Document:

ex_350561.htm

 

Exhibit 4.25

 

SALE AND PURCHASE AGREEMENT

 

This Sale and Purchase Agreement (this "Agreement") is entered into as of September 8th, 2021, by and between Top Ships Inc., a Marshall Islands corporation (the "Buyer"), and Zizzy Charter Co., a Marshall Islands corporation (the "Seller"). The Seller and the Buyer are sometimes referred to in this Agreement as a "Party" and collectively as the "Parties."

 

RECITALS

 

WHEREAS, the Seller owns 325 and 325 shares (together the "Shares") of capital stock, no par value, representing 65% of the issued and outstanding shares of capital stock of Julius Caesar Inc and Legio X Inc. respectively (together the “Investment Shares”);

 

WHEREAS, Julius Caesar Inc is a party to a shipbuilding contract for a very high specification scrubber fitted VLCC tanker currently under construction in Hyundai Heavy Industries (the “Shipyard”) with Hull number 3213 and expected delivery in January 2022. Upon its delivery from the Shipyard the VLCC tanker will enter into time charter employment with Trafigura Maritime Logistics Pte Ltd, Singapore, as per a time charter party agreement dated 15th December 2020, as amended, for a firm duration of three years at a gross daily rate of $36,000, with a charterer’s option to extend for two additional years at $39,000 and $41,500, respectively (“Company 1”);

 

WHEREAS, Legio X Inc (“Company 2” and together with Company 1 “The Companies”) is a party to a shipbuilding contract (together with the shipbuilding contract of Julius Caesar Inc the “Shipbuilding Contracts”) for a very high specification scrubber fitted VLCC tanker currently under construction in the Shipyard with Hull number 3214 and expected delivery in February 2022. Upon its delivery from the Shipyard the VLCC tanker will enter into time charter employment with Trafigura Maritime Logistics Pte Ltd, Singapore, as per a time charter party agreement dated 17th December 2020, as amended, for a firm duration of three years at a gross daily rate of $35,750, with a charterer’s option to extend for two additional years at $39,000 and $41,500, respectively (together with the time charter of Julius Caesar Inc the “Time Charters”);

 

WHEREAS, the total shipbuilding cost, as of the date of this agreement, is $89,761,120 for Hull 3213 and $89,758,120 for Hull 3214.

 

WHEREAS, the Seller desires to sell to the Buyer, and the Buyer desires to purchase from the Seller the Investment Shares.

 

WHEREAS, the disinterested directors of the Board of Directors of the Buyer (the “Board”) have unanimously determined that this Agreement and the transactions contemplated hereby and thereby are fair to and in the best interests of the Buyer and the shareholders of the Buyer.

 

NOW, THEREFORE, in consideration of the respective representations, warranties and agreements contained herein and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:

 

ARTICLE I

PURCHASE AND SALE OF THE INVESTMENT AND PURCHASED SHARES; CLOSING

 

Section 1.1    Sale and Purchase of the Investment Shares. At the Closing (as defined below), subject to the terms and conditions herein contained, the Seller shall sell, convey, transfer, assign and deliver to the Buyer, and the Buyer shall purchase and acquire from the Seller, the Investment Shares, together with all rights and interests associated therewith.

 

Section 1.2    Consideration. In consideration of the sale, conveyance, transfer, assignment and delivery of the Investment Shares at Closing, the Buyer shall deliver to the Seller a consideration of $29.75 million (the "Consideration") payable as follows:

 

	 	
			-

				
			$2.18 million in the form of Series E Preferred Shares to be issued today to the name of Family Trading Inc.

			

 

	 	
			-

				
			$27.57 million payable in cash, up to 30 days after the delivery of the last vessel, to the following bank account:

			

 

CREDIT SUISSE AG

ZURICH, 8070, CH

ACCOUNT HOLDER: CENTRAL MARE INC.

ACCOUNT NUMBER: 2193917-92

IBAN (USD): CH91 0486 6219 3917 9200 0

SWIFT CODE: CRESCHZHXXX

 

1

 

 

As part of this transaction the Seller agrees to provide finance by remaining responsible to the shipyard for up to 20% of the shipbuilding cost per vessel ($17.8 million per vessel) or $35.6 million in total, at the option of the Buyer, with such option to be exercised until each vessel’s delivery date. Following the exercise of the option, repayment of finance to the Seller is to take place via one single installment within 36 months from each vessel’s delivery. The cost of finance and financial covenants shall be agreed between the parties at the time of exercise and will take into account market terms for similar duration unsecured financings, however it is hereby agreed that in case the Buyer is delisted from NASDAQ it would constitute a default of the financing agreement. Finally, the Buyer will not provide any form of performance guarantee to the Shipyard as the Seller will remain the guarantor until both vessels are delivered by the Shipyard.

 

Section 1.3    Closing. The consummation of the sale and purchase of the Shares (the “Closing”) shall take place at the Representative Office of Top Ships Inc., 1 Vas. Sofias and Meg. Alexandrou Str 15124 Maroussi, Greece, on the date hereof, (the “Closing Date”).

 

Section 1.4    Deliverables. On the Closing Date, subject to the terms and conditions herein contained, the Seller shall deliver to the Buyer the Investment Shares free and clear of any and all charges, claims, conditions, encumbrances, equitable interests, liens, mortgages, options, pledges, rights of refusal, security interests or restrictions of any kind, including any restrictions on use, voting, transfer, receipt of income, or exercise of any other attribute of ownership, in each case of any nature whatsoever (not including any restrictions on the resale of the Investment Shares under the Securities Act of 1933, as amended (the "Securities Act") or under applicable state securities laws) (collectively, "Liens"), in certificated form, registered in the name of the Buyer or its designated nominee (or, if applicable, stock powers duly executed in blank, proper form for transfer), together with any necessary assignment documents in form and substance as reasonably requested by the Buyer.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE SELLER AND THE BUYER

 

The Seller represents and warrants to the Buyer and Buyer represents and warrants to the Seller that the statements in the following sections of this Article II are true and correct as of the date of this Agreement and as of the Closing Date:

 

Section 2.1    Organization and Good Standing. Each of the Parties and the Companies are duly organized, validly existing and in good standing under the laws of the Republic of the Marshall Islands and have all requisite corporate power and authority to own, lease, operate and hold their respective properties and assets and to conduct their respective business as is now conducted and as currently contemplated to be conducted, and is authorized to do business in all jurisdictions material to the conduct of its respective business. The Parties have delivered to each other complete and correct copies of the Articles of Incorporation, Bylaws or other charter documents ("Constitutional Documents") of the Companies, in each case, as currently in effect, together with copies of all minutes of meetings and resolutions of shareholders and directors of the Companies (the "Companies Corporate Records"). The Companies Corporate Records are accurate in all material respects and all corporate proceedings and actions reflected therein have been conducted or taken in compliance with all applicable laws and in compliance with the Companies Constitutional Documents. The Companies are not in default under or in violation of its Constitutional Documents.

 

Section 2.2    Authority and Enforceability. Each of the Parties have the full legal right and requisite corporate power and authority and has taken all action necessary in order to execute, deliver and perform fully its obligations under this Agreement and to consummate the transactions contemplated herein. This Agreement has been duly and validly authorized, executed and delivered by the Parties and constitutes a valid and binding obligation of the Parties, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, moratorium or other similar laws relating to or affecting the rights of creditors generally and by equitable principles, including those limiting the availability of specific performance, injunctive relief and other equitable remedies and those providing for equitable defense.

 

Section 2.3    Consents and Approvals; No Violation. Neither the execution and delivery of this Agreement by the Parties nor the consummation of the transactions contemplated by this Agreement will (i) conflict with or result in any breach of any provision of the Constitutional Documents of the Parties or the Companies; (ii) require any consent, approval, authorization or permit of, or filing with or notification to, any national, federal, regional, state, multi-state, municipal or other governmental authority of any nature, including any court, subdivision, agency, commission or authority thereof, or any quasi-governmental body exercising any regulatory or taxing authority (any such governmental authority or body, a "Governmental Body"), other than those that have been made or obtained; (iii) cause any of the Parties or the Companies to violate or contravene any provision of law, any rule or regulation of any Governmental Body, or any order, writ, judgment, injunction, decree, determination or award, binding upon or applicable to them or the Companies or their respective assets; (iv) result in a default (or give rise to any right of amendment, termination, cancellation, consent, acceleration or loss of a material benefit) under the terms, conditions or provisions of any loan or credit agreement, note, bond, mortgage, indenture, lease, sublease, license, obligation, commitment, purchase order or other agreement, commitment, instrument, permit, concession, or obligation, written or oral (each, a "Contract") to which the Parties or the Companies or any of their respective assets may be bound, except in such cases where the requisite waivers or consents have been obtained; or (v) result in the creation of any Lien upon any of the properties or assets of the Parties or the Companies under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Parties or the Companies or any of their respective assets may be bound or affected.

 

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Section 2.4    No Litigation. There is no action, suit, claim, investigation, litigation, legal, administrative, arbitration or other proceeding pending against the Parties other than publicly disclosed or, to the knowledge of the other Party, threatened against the Parties, nor is any of the Parties subject to or bound by any outstanding orders, judgments, injunctions, awards or decrees of any Governmental Body, other than publicly disclosed, which questions the validity of this Agreement or any of the transactions contemplated hereby or any action taken or to be taken pursuant hereto or which seeks to prohibit, enjoin or otherwise challenge any of the transactions contemplated hereby.

 

Section 2.5    No Registration. The Shares exchanged pursuant to this Agreement are being acquired for investment purposes only and not with a view to any public distribution thereof in violation of any securities laws, and the Parties shall not offer to sell or otherwise dispose of the Shares so acquired by it in violation of any of the registration requirements of the Securities Act. The Parties acknowledge that it is able to fend for themselves, can bear the economic risk of its investments in the Shares, and have such knowledge and experience in financial and business matters renders them capable of evaluating the merits and risks of an investment in the Shares. The Parties understand that, when issued, none of the Shares will be registered pursuant to the Securities Act and that all of the Shares will constitute "restricted securities" under the federal securities laws of the United States. Each certificate for Shares shall bear the following legend:

 

"THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND COMPLIANCE WITH SUCH STATE LAWS OR (II) AN APPLICABLE EXEMPTION THEREFROM AND AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED."

 

Section 2.6    Capitalization. The Companies are authorized to issue five hundred (500) shares each, without par value, of capital stock. The Shares represent all of the issued and outstanding shares of capital stock of the Companies. All of the Shares are duly authorized, validly issued, fully paid and non-assessable and are owned legally by the Parties. Other than this Agreement, there is no subscription, option, warrant, preemptive right, call right or other right, agreement or commitment of any nature relating to the voting, issuance, sale, delivery or transfer (including any right of conversion or exchange or right of first refusal under any outstanding security or other instruments) by the Parties of the Shares, and there is no obligation on the part of the Parties to grant, extend or enter into any of the foregoing. There are no outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights with respect to the Shares or any other equity or voting interests in the Companies. No claim has been made or, to the knowledge of the Parties, threatened against the Parties or the Companies asserting that any person other than the Parties or its sole shareholders are the holders or beneficial owners of the Shares or any other equity or voting interests in the Companies.

 

Section 2.7    Ownership of the Investment Shares. The Seller is the sole legal owner and holder of, and has good, valid and marketable title to, the Investment Shares to be sold pursuant to this Agreement, free and clear of any Liens. At the Closing, the Seller will transfer, assign and deliver good and marketable title to the Investment Shares to the Buyer, free and clear of all Liens.

 

Section 2.8    Contracts. The Companies are not a party to any Contract other than the Shipbuilding Contracts and the Time Charters. The Companies have good and valid title to the Shipbuilding Contracts, free and clear of any Liens. The Companies are not in default under the Shipbuilding Contracts, nor does an event exist which, with the giving of notice or lapse of time or both, would constitute such a default. To the Parties knowledge, all other parties to the Shipbuilding Contracts are in compliance with the terms thereof. The Shipbuilding Contracts are in full force and effect and are enforceable against the Companies and the other parties thereto in accordance with its terms except as enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, moratorium or other similar laws relating to or affecting the rights of creditors generally and by equitable principles, including those limiting the availability of specific performance, injunctive relief and other equitable remedies and those providing for equitable defense. No consent (including the consent of any Governmental Body) or other action is required in order for the Shipbuilding Contracts to remain in full force and effect, and for the Companies to fully exercise their rights thereunder, following the Closing. The Parties have delivered or made available to each other the true and complete copies, including all amendments and supplements thereof, of the Shipbuilding Contracts.

 

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Section 2.9    No Unlawful Payments. Neither the Parties nor the Companies, nor any director, shareholder, officer, agent, employee or other person associated with or acting on behalf of the Parties or the Companies, as applicable, has: (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; or (iii) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any supplier, customer, licensor, contractor, politician, government employee or other person.

 

Section 2.10    Full Disclosure. No representation or warranty by the Parties in this Agreement and no statement contained in any document or other writing furnished or to be furnished to the Parties pursuant to the provisions hereof, when considered with all other such documents or writings, contain or will contain any untrue statement of material fact or omits or will omit to state any material fact necessary in order to make the statements made herein or therein not misleading.

 

Section 2.11    Adequate Information. Each of the Parties (i) has sufficient knowledge and experience in business, financial and investment matters so as to be able to evaluate the risks and merits of the sale of the Investment Shares and of protecting its own interests in connection with the sale of the Investment Shares; (ii) is a sophisticated person with respect to the exchange of the Shares; (iii) has adequate information concerning the business and financial condition, prospects and plans of the Companies to make an informed decision regarding the exchange of the Shares; and (iv) has independently and without reliance upon the other Party member, and based on such information as the they have deemed appropriate, made its own analysis and decision to enter into this Agreement. The Parties acknowledges that the no member of the Parties have given to one another any investment advice or opinion on whether the sale or purchase of the Shares is prudent or suitable and no member of the Parties is relying on any representation or warranty by the other member of the Parties except as expressly set forth in this Agreement.

 

Section 2.12    No General Solicitation. Neither the Parties nor any nominee thereof has offered any Shares by any means of general solicitation or advertising (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio; or (ii) any seminar or meeting whose attendees have been invited by general solicitation or advertising.

 

Section 2.13    Independent Investigation. Each of the Parties has had the opportunity to conduct to its own satisfaction independent investigation, review and analysis of the business, operations, assets, liabilities, results of operations, financial condition and prospects of the Companies and, in making the determination to proceed with the transactions contemplated hereby, has relied solely on the results of its own independent investigation and the representations and warranties of the Parties set forth in Article II hereof and the other information provided by the Parties.

 

Section 2.14    Exemption from Registration. The Shares are being offered and sold pursuant to an exemption from the registration requirements of the Securities Act.

 

ARTICLE III

 

[PURPOSETLY LEFT BLANK]

 

ARTICLE IV

COVENANTS

 

Section 4.1    Conduct of Business Pending Closing. The Buyer and the Seller agree that between the date of the execution of this Agreement and the Closing Date, (i) the Parties shall, or shall cause the Companies to, conduct the business and maintain and preserve the assets of the Companies in the ordinary course of business; (ii) the Parties shall use their reasonable efforts to cause all of the representations and warranties in Article II hereof, to continue to be true and correct; and (iii) the Companies shall not incur any debt, or enter into any other Contract.

 

Section 4.2    Further Assurances. Each of the Parties shall execute, acknowledge and deliver or cause to be executed, acknowledged and delivered to each other such certificates, assignments or other instruments of ownership, transfer, assignment and conveyance, in form and substance reasonably satisfactory to the Parties, as shall be necessary to vest in each member of the Parties all of the right, title and interest in and to the Shares undertaken to be sold to the Buyer by the Seller and to the Seller by the Buyer pursuant to this Agreement, free and clear of all Liens, debts, dues and duties of whatsoever nature, and any other document reasonably requested by each member of the Parties in connection with this Agreement.

 

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Section 4.3    Governmental Filings. As promptly as practicable after the execution of this Agreement, each Party shall, in cooperation with the other, file any reports or notifications that may be required to be filed by it under applicable law, if any.

 

Section 4.4    Further Consents. After the Closing Date, the Parties shall obtain any consents or approvals or assist in any filings reasonably required in connection with the transactions contemplated hereby that are requested by each member of the Parties and that have not been previously obtained or made.

 

Section 4.5    Public Announcements. Neither Party shall, without the prior approval of the other Party, issue, or permit any of its partners, stockholders, directors, officers, employees, members, managers, agents to issue, any press release or other public announcement with respect to this Agreement or the transactions contemplated hereby, except as may be required by law, NASDAQ requirements or any Governmental Body to which the relevant Party is accountable.

 

ARTICLE V

CONDITIONS TO CLOSING

 

Section 5.1    Conditions to Obligations of Buyer. At the Closing, the obligation of the Buyer to buy the Investment Shares from the Seller is subject to the fulfillment at the Closing of the following conditions:

 

(a)    Accuracy of Buyer Representations and Warranties; Compliance. The representations and warranties of the Buyer contained in Article II of this Agreement shall be true and correct in all material respects at and as of the Closing Date as though then made, and Buyer shall have performed and complied in all material respects with all conditions and agreements required by this Agreement to be performed and complied with by it on or prior to the Closing Date.

 

(b)    Legal Investment. On the Closing Date, the purchase and sale of the Investment Shares shall be permitted by the laws and regulations of each relevant jurisdiction.

 

(c)    No Actions Pending. There shall be no suit, action, investigation, inquiry or other proceeding by any Governmental Body or other person or entity pending or threatened in writing that challenges, or has the effect of interfering with, the validity or legality of the transactions contemplated in this Agreement.

 

(d)    No Material Adverse Change. Between the date of the execution of this Agreement and the Closing Date, there shall not have been any material adverse change in the condition, financial or otherwise, or the business affairs or assets, of the Companies.

 

Section 5.2    Conditions to Obligations of Seller. The obligation of the Seller to sell the Investment Shares to the Buyer is subject to the fulfillment at the Closing of the following conditions:

 

(a)    Accuracy of Seller Representations and Warranties; Compliance. The representations and warranties of the Seller contained in Article II of this Agreement shall be true and correct in all material respects at and as of the Closing Date as though then made, and the Seller shall have performed and complied in all material respects, with all conditions and agreements required by this Agreement to be performed and complied with by it on or prior to the Closing Date.

 

(b)    Legal Investment. On the Closing Date, the purchase and sale of the Shares shall be permitted by the laws and regulations of each relevant jurisdiction.

 

(c)    No Actions Pending. There shall be no suit, action, investigation, inquiry or other proceeding by any Governmental Body or other person or entity pending or threatened in writing, other than publicly disclosed, that challenges, or has the effect of interfering with, the validity or legality of the transactions contemplated in this Agreement.

 

ARTICLE VI

MISCELLANEOUS

 

Section 6.1    Termination. This Agreement may be terminated at any time prior to the Closing Date:

 

(a)    by the mutual written agreement of the Seller and the Buyer;

 

(b)    by the Buyer if any of the conditions set forth in Section 5.1 hereof shall have become incapable of fulfillment, by reason other than the Buyer's negligent or willful failure to perform or observe in any material respect any of the covenants or agreements set forth herein to be performed or observed by the Buyer, and such conditions shall not have been waived by the Seller;

 

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(c)    by the Seller if any of the conditions set forth in Section 5.2 hereof shall have become incapable of fulfillment, by reason other than the Seller's negligent or willful failure to perform or observe in any material respect any of the covenants or agreements set forth herein to be performed or observed by the Seller, and such conditions shall not have been waived by the Buyer; or

 

Section 6.2    No further Liability. Subject to Section 6.4, if this Agreement is terminated in accordance with Section 6.1 hereof, (i) neither Party shall have any further obligation or liability under this Agreement, other than by reason of a breach or default by a Party hereunder; and (ii) any monies, instruments or documents of any Party held in escrow or transferred to the other Party in connection with the transactions contemplated herein with respect to which the Closing shall not have occurred shall be immediately returned to such Party. For the avoidance of doubt, any such termination shall not have any effect whatsoever on any transactions contemplated herein with respect to which the Closing has occurred.

 

Section 6.3    Indemnification. Each Party shall indemnify, defend and hold harmless the other Party, its managers, directors, officers, members, partners, shareholders, employees, attorneys, accountants, agents and representatives and their successors and assigns from and against all liabilities, losses, damages or expenses (including, without limitation, reasonable attorney's fees and disbursements) based upon or arising out of (i) any inaccuracy or breach of any representation or warranty of such indemnifying Party herein, and (ii) any breach of any covenant or agreement of such indemnifying Party herein.

 

Section 6.4    Survival. The representations, warranties, covenants and agreements of each of the Parties under this Agreement shall survive the Closing. Furthermore, Section 6.2 and Section 6.3 hereof shall survive the termination of this Agreement.

 

Section 6.5    Expenses. Each of the Parties agrees to pay its own expenses incident to this Agreement and the performance of its obligations hereunder, except as provided in Section 6.3.

 

Section 6.6    Assignment. This Agreement shall be binding on and inure to the benefit of the Parties hereto and their respective successors and permitted assigns, provided, however, that a party may not assign this Agreement without the prior written consent of the other party.

 

Section 6.7    Notices. Any notice, request, instruction or other document to be given hereunder by any Party to the other shall be in writing and delivered by hand or by an courier service or shall be sent by facsimile or electronic mail to the address for such Party set forth below:

 

	
			If to the Buyer:

				
			Top Ships Inc.

			1 Vas. Sofias-and Meg Alexandrou Str

			15124 Maroussi, Greece

			Attention: Alexandros Tsirikos

			Facsimile: +30210 8056441

			Email: atsirikos@topships.org

			

 

	
			If to the Seller:

				
			Zizzy Charter Co.

			Kanari 11

			10676 Athens, Greece

			Facsimile: +302108128320

			Email: louka@loukapartners.com

			
	 	 
	 	 
	 	 
	
			With a copy (which shall not

			constitute notice) to:

				
			Watson Farley & Williams LLP

			250 West 55th Street - 31st Floor

			New York, New York 10019

			Attention: Will Vogel

			Email: WVogel@wfw.com

			

 

6

 

 

or to such other place and with such other copies as either Party may designate as to itself by written notice to the other. All such notices, requests, instructions or other documents shall be deemed to have been delivered (i) in the case of personal delivery or delivery by courier, on the date of such delivery, (ii) in the case of delivery by facsimile transmission or electronic mail, when receipt is acknowledged and (iii) in the case of mailing, on the third business day after the posting thereof. Whenever any notice is required to be given by law or this Agreement, a written waiver thereof signed by the Party entitled to such notice, whether before or after the time stated at which such notice is required to be given, shall be deemed equivalent to the giving of such notice.

 

Section 6.8      Entire Agreement; Amendments and Waivers. This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. No supplement, modification, amendment or waiver of this Agreement shall be binding unless executed in writing by each Party to the Agreement. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

Section 6.9      Headings. Headings contained in this Agreement are inserted only as a matter of convenience and in no way define, limit or extend the scope or intent of this Agreement or any provision hereof.

 

Section 6.10    Further Assurances. From and after the Closing, upon the request of a Party, the other Party will execute and deliver such instruments, documents or other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

 

Section 6.11    Choice of Law. This Agreement shall be construed and interpreted, and the rights of the Parties determined, in accordance with the laws of the State of New York, without regard to principles of conflicts of law.

 

Section 6.12    Jurisdiction. Each of the Seller and the Buyer (i) irrevocably submits to the co-exclusive jurisdiction of the United States District Court sitting in the Southern District of New York and the courts of the State of New York located in New York County for the purposes of any suit, action or proceeding arising out of or relating to this Agreement and (ii) waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceedings in improper.  Each of the Seller and the Buyer consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such Party at the address set forth in Section 6.7 and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 6.12 shall affect or limit any right to serve process in any other manner permitted by law.

 

Section 6.13    WAIVER OF JURY TRIAL. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN.

 

Section 6.14    Remedies. In addition to any remedies either Party may have in law, each Party shall be entitled to apply to any court of competent jurisdiction (without posting bond or other security) to enjoin any actual or threatened breach or default under this Agreement and shall also be entitled to seek specific performance of this Agreement. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to any Party at law or in equity or otherwise.

 

Section 6.15    Severability of Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

Section 6.16    No Third Party Beneficiary Rights. No provisions of this Agreement are intended, nor will be interpreted, to provide or create any third party beneficiary rights or other rights of any kind in any client, customer, affiliate, stockholder, member, or partner of any Party hereto or any other person or entity unless specifically provided otherwise herein, and, except as so provided, all provisions hereof will be personal solely between the Parties hereto.

 

Section 6.17    Counterparts. This Agreement may be executed in two or more counterparts, and all such counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument. Facsimile or portable document format (PDF) signatures shall be treated as original signatures for all purposes hereunder.

 

(Signature Page Follows)

 

7

 

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.

 

	 	
			BUYER:

			
	 	 
	 	
			TOP SHIPS INC.

			
	 	 
	 	
			By:

				
			/s/ Alexandros Tsirikos

			
	 	
			Name:

				
			Alexandros Tsirikos

			
	 	
			Title:

				
			Director

			
	 	 	 
	 	 	 
	 	 	 
	 	
			SELLER:

			
	 	 
	 	
			ZIZZY CHARTER CO.

			
	 	 	 
	 	
			By:

				
			/s/ Pinelopi Athanasia Platsouka

			
	 	
			Name:

				
			Pinelopi Athanasia Platsouka

			
	 	
			Title:

				
			Director

			
	 	 	 
	 	 	 

 

 

(Signature Page to Sale and Purchase Agreement)

 

 

 

SCHEDULE 1

 

1.         Shipbuilding Contracts with Hyundai Heavy Industries by and among the Companies for the construction of the Vessels; and

 

2.         Time charter parties, Julius Caesar Inc. and Legio X Inc. and Trafigura Maritime Logistics Pte Ltd, Singapore.ex_350562.htm

Exhibit 4.26

 

 

 

Dated      23 November      2021

 

 

 

 

TOP SHIPS INC.

as Guarantor

 

and

 

SEA 268 LEASING CO. LIMITED

as Owner

 

 

 

 

 

 

 

GUARANTEE

 

relating to

a Bareboat Charter of the vessel m.v. JULIUS CAESAR

dated       23 November       2021

 

 

 

 

 

 

 

 

 

Index

	
			 

				 	 
	
			Clause

				
			Page

				 
	 	 	 
	
			1

				
			Interpretation

				
			1

			
	
			2

				
			Guarantee

				
			2

			
	
			3

				
			Liability as Principal and Independent Debtor

				
			3

			
	
			4

				
			Expenses

				
			3

			
	
			5

				
			Adjustment of Transactions

				
			3

			
	
			6

				
			Payments

				
			4

			
	
			7

				
			Interest

				
			4

			
	
			8

				
			Subordination

				
			4

			
	
			9

				
			Enforcement

				
			5

			
	
			10

				
			Representations and Warranties

				
			5

			
	
			11

				
			Undertakings

				
			8

			
	
			12

				
			Judgments and Currency Indemnity

				
			14

			
	
			13

				
			Supplemental

				
			15

			
	
			14

				
			Assignment

				
			17

			
	
			15

				
			Notices

				
			17

			
	
			16

				
			Invalidity of Bareboat Charter

				
			18

			
	
			17

				
			Governing Law and Enforcement

				
			18

			
	 	 	 
	
			Schedules

				 	 
	 	 	 
	
			Schedule 1 Form of compliance Certificate

				20
	 	 	 
	
			Execution

				 	 
	 	 	 
	
			Execution Page

				
			 

				21

 

 

 

 

THIS GUARANTEE is made on       23 November       2021

 

PARTIES

 

	 	
			(1)

				
			TOP SHIPS INC., a corporation incorporated under the laws of the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960 (the "Guarantor")

			

 

	 	
			(2)

				
			SEA 268 LEASING CO. LIMITED, a company incorporated under the laws of Hong Kong whose registered office is at 27/F, Three Exchange Square, 8 Connaught Place, Central, Hong Kong (the "Owner" which expression includes its successors and assigns)

			

 

BACKGROUND

 

	 	
			(A)

				
			By a bareboat charter dated      23 November      2021 (the "Bareboat Charter") and made between (i) the Owner, as owner and (ii) Julius Caesar Inc., a corporation incorporated under the laws of the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960, as charterer (the "Charterer"), the Owner has agreed to bareboat charter one (1) very large crude oil carrier to be named m.v. "Julius Caesar" and to be flagged in the Marshall Islands with hull no. 3213 (the "Vessel") to the Charterer pursuant to the terms and conditions contained therein.

			
	 	 	 
	 	
			(B)

				
			The Guarantor is the shareholder of the Charterer and holds all of the issued and outstanding shares in the Charterer.

			
	 	 	 
	 	
			(C)

				
			The execution and delivery to the Owner of this Guarantee is one of the conditions to the chartering of the Vessel under the Bareboat Charter.

			
	 	 	 
	 	
			(D)

				
			This Guarantee is the Guarantee referred to in the Bareboat Charter.

			

 

OPERATIVE PROVISIONS

 

	 	
			1

				
			INTERPRETATION

			
	 	 	 
	 	
			1.1

				
			Defined expressions

			
	 	 	 
	 	 	Words and expressions defined in the Bareboat Charter shall have the same meanings when used in this Guarantee unless the context otherwise requires.

 

	 	
			1.2

				
			Construction of certain terms

			
	 	 	 
	 	 	In this Guarantee:
	 	 	 
	 	 	"bankruptcy" includes a liquidation, receivership or administration and any form of suspension of payments, arrangement with creditors or reorganisation under any corporate or insolvency law of any country.
	 	 	 
	 	 	"Compliance Certificate" means a certificate in the form set out in Schedule 1 or in any other form approved by the Owner.
	 	 	 
	 	 	"control" over a particular company means the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

 

 

 

 

	 	
			(a)

				
			cast, or control the casting of, more than 51 per cent, of the maximum number of votes that might be cast at a general meeting of such company;

			
	 	 	 
	 	
			(b)

				
			appoint or remove all, or the majority, of the directors or other equivalent officers of such company; or

			
	 	 	 
	 	
			(c)

				
			give directions with respect to the operating and financial policies of such company with which the directors or other equivalent officers of such company are obliged to comply.

			
	 	 	 
	 	 	"Group" means the Guarantor and its subsidiaries from time to time.
	 	 	 
	 	 	"Party" means a party to this Guarantee.
	 	 	 
	 	 	"Relevant Person" means each "Relevant Person" as defined in the Bareboat Charter.
	 	 	 
	 	
			2

				
			GUARANTEE

			
	 	 	 
	 	
			2.1

				
			Guarantee and indemnity

			
	 	 	 
	 	 	The Guarantor unconditionally and irrevocably:
	 	 	 
	 	
			(a)

				
			guarantees the due payment of all amounts payable by each other Relevant Person under or in connection to each Leasing Document to which such Relevant Person is a party;

			
	 	 	 
	 	
			(b)

				
			undertakes to pay to the Owner on the Owner's demand any such amount which is not paid by that Relevant Person when due and payable under or in connection to that Leasing Document;

			
	 	 	 
	 	
			(c)

				
			guarantees the punctual performance by that Relevant Person of all that Relevant Person's obligations under or in connection with that Leasing Document; and

			
	 	 	 
	 	
			(d)

				
			fully indemnifies the Owner on its demand in respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by the Owner as a result of or in connection with any obligation or liability guaranteed by the Guarantor being or becoming unenforceable, invalid, void or illegal; and the amount recoverable under this indemnity shall be equal to the amount which the Owner would otherwise have been entitled to recover.

			
	 	 	 
	 	
			2.2

				
			No limit on number of demands

			
	 	 	 
	 	 	The Owner may serve more than one demand under Clause 2.1.
	 	 	 
	 	
			2.3

				
			Guarantee of whole amount

			
	 	 	 
	 	 	This Guarantee shall be construed and take effect as a guarantee of all amounts due to the Owner under the Leasing Documents to which each other Relevant Person is a party.
	 	 	 
	 	
			3

				
			LIABILITY AS PRINCIPAL AND INDEPENDENT DEBTOR

			

 

	 	
			3.1

				
			Principal and independent debtor

			
	 	 	 
	 	 	The Guarantor shall be liable under this Guarantee as a principal and independent debtor and accordingly it shall not have, as regards this Guarantee, any of the rights or defences of a surety.

 

2

 

 

	 	
			3.2

				
			Waiver of rights and defences

			
	 	 	 
	 	 	Without limiting the generality of Clause 3.1, the Guarantor shall neither be discharged by, nor have any claim against the Owner in respect of:
	 	 	 
	 	
			(a)

				
			any amendment or supplement being made to the Bareboat Charter or any other Leasing Document;

			
	 	 	 
	 	
			(b)

				
			any arrangement or concession (including a rescheduling or acceptance of partial payments) relating to, or affecting, the Bareboat Charter or any other Leasing Document;

			
	 	 	 
	 	
			(c)

				
			any release or loss (even though negligent) of any right or Security Interest created by any Leasing Document;

			
	 	 	 
	 	
			(d)

				
			any failure (even though negligent) promptly or properly to exercise or enforce any such right or Security Interest, including a failure to realise for its full market value an asset covered by such a Security Interest; or

			
	 	 	 
	 	
			(e)

				
			the Bareboat Charter or any other Leasing Document now being or later becoming void, unenforceable, illegal or invalid or otherwise defective for any reason, including a neglect to register it.

			
	 	 	 
	 	
			4

				
			EXPENSES

			
	 	 	 
	 	
			4.1

				
			Costs of preservation of rights, enforcement etc

			
	 	 	 
	 	 	The Guarantor shall pay to the Owner on its demand the amount of all expenses (including, without limitation, legal fees) incurred by the Owner in connection with the enforcement of, or the preservation of any rights under this Guarantee or any other Leasing Document, including any advice, claim or proceedings relating to such matters.
	 	 	 
	 	
			4.2

				
			Fees and expenses payable under Leasing Documents

			
	 	 	 
	 	 	Clause 4.1 is without prejudice to the Guarantor's liabilities in respect of any other Relevant Person's obligations under any Leasing Document to which it is a party.
	 	 	 
	 	
			5

				
			ADJUSTMENT OF TRANSACTIONS

			
	 	 	 
	 	
			5.1

				
			Reinstatement of obligation to pay

			
	 	 	 
	 	 	The Guarantor shall pay to the Owner on its demand any amount which the Owner is required, or agrees, to pay pursuant to any claim by, or settlement with, a trustee in bankruptcy of any other Relevant Person on the ground that any Leasing Document to which that Relevant Person is a party, or a payment by that Relevant Person, was invalid or unenforceable or on any similar ground.
	 	 	 
	 	
			6

				
			PAYMENTS

			
	 	 	 
	 	
			6.1

				
			Method of payments

			
	 	 	 
	 	 	Any amount due under this Guarantee shall be paid:
	 	 	 
	 	
			(a)

				
			in immediately available funds;

			

 

3

 

 

	 	
			(b)

				
			to such account as the Owner may from time to time notify to the Guarantor;

			
	 	 	 
	 	
			(c)

				
			without any form of set‐off, cross‐claim or condition; and

			
	 	 	 
	 	
			(d)

				
			free and clear of any tax deduction or withholding for or on account of any tax payable under any law of relevant jurisdictions except a tax deduction which the Guarantor is required by law to make.

			
	 	 	 
	 	
			6.2

				
			Grossing-up for taxes

			
	 	 	 
	 	 	If the Guarantor is required by law to make a tax deduction, the amount due to the Owner shall be increased by the amount necessary to ensure that the Owner receives and retains a net amount which, after the tax deduction, is equal to the full amount that it would otherwise have received.
	 	 	 
	 	
			6.3

				
			Indemnity and evidence of payment of taxes

			
	 	 	 
	 	 	The Guarantor shall fully indemnity the Owner on the Owner's demand in respect of all claims, expenses, liabilities and losses incurred by the Owner by reason of any failure of the Guarantor to make any tax deduction or by reason of any increased payment not being made on the due date for such payment in accordance with Clause 6.2. Within 30 days after making a tax deduction, that Guarantor shall deliver to the Owner any receipts, certificates or other documentary evidence satisfactory to the Owner that the tax had been paid to the appropriate taxation authority.
	 	 	 
	 	
			7

				
			INTEREST

			
	 	 	 
	 	
			7.1

				
			Accrual of interest

			
	 	 	 
	 	 	Any amount due under this Guarantee shall carry interest after the date on which the Owner demands payment of it until it is actually paid, unless interest on that same amount also accrues under the Bareboat Charter.
	 	 	 
	 	
			7.2

				
			Calculation of interest

			
	 	 	 
	 	 	Interest under this Guarantee shall be calculated and accrue (as well after as before judgment) at the rate described in Clause 37.6 of the Bareboat Charter and otherwise in accordance with the terms thereof.
	 	 	 
	 	
			8

				
			SUBORDINATION

			
	 	 	 
	 	
			8.1

				
			Subordination of rights of Guarantor

			
	 	 	 
	 	 	All rights which the Guarantor at any time has (whether in respect of this Guarantee or any other transaction) against each other Relevant Person or its assets shall be fully subordinated to the rights of the Owner under the Leasing Documents (or any of them), and in particular, the Guarantor shall not:
	 	 	 
	 	
			(a)

				
			claim, or in a bankruptcy of that Relevant Person prove for, any amount payable to the Guarantor by that Relevant Person, whether in respect of this Guarantee or any other transaction;

			
	 	 	 
	 	
			(b)

				
			take or enforce any Security Interest for any such amount;

			

 

4

 

 

	 	
			(c)

				
			claim to set-off any such amount against any amount payable by the Guarantor to that Relevant Person; or

			
	 	 	 
	 	
			(d)

				
			claim any subrogation or other right in respect of any Leasing Document or any sum received or recovered by the Owner under such Leasing Document.

			
	 	 	 
	 	
			9

				
			ENFORCEMENT

			
	 	 	 
	 	
			9.1

				
			No requirement to commence proceedings against other Relevant Person

			
	 	 	 
	 	 	The Owner will not need to commence any proceedings under, or enforce any Security Interest created by, the Bareboat Charter or any other Leasing Document before claiming or commencing proceedings under this Guarantee.
	 	 	 
	 	
			9.2

				
			Conclusive evidence of certain matters

			
	 	 	 
	 	 	However, as against the Guarantor:
	 	 	 
	 	
			(a)

				
			any final and unappealable judgment or order of a court in England or any Relevant Jurisdiction or award of an arbitration tribunal in London in connection with the Bareboat Charter or any other Leasing Document; and

			
	 	 	 
	 	
			(b)

				
			any statement or admission of any other Relevant Person in connection with the Bareboat Charter or any other Leasing Document,

			
	 	 	 
	 	 	shall be binding and conclusive as to all matters of fact and law to which it relates.
	 	 	 
	 	
			10

				
			REPRESENTATIONS AND WARRANTIES

			
	 	 	 
	 	
			10.1

				
			General

			
	 	 	 
	 	 	The Guarantor represents and warrants to the Owner and the Other Owner as of the date of this Guarantee, and on each day henceforth until the last day of the Security Period as follows.
	 	 	 
	 	
			10.2

				
			Status

			
	 	 	 
	 	
			(a)

				
			The Guarantor is duly incorporated and validly existing and in good standing under the laws of the Marshall Islands.

			
	 	 	 
	 	
			(b)

				
			The Guarantor is not a FATCA foreign financial institution ("FFI") or a US Tax Obligor.

			
	 	 	 
	 	
			10.3

				
			Corporate power

			
	 	 	 
	 	 	The Guarantor has the corporate capacity, and has taken all corporate action and obtained all consents necessary for it:
	 	 	 
	 	
			(a)

				
			to execute this Guarantee or any other Leasing Document to which it is a party; and

			
	 	 	 
	 	
			(b)

				
			to make all the payments contemplated by, and to comply with, this Guarantee or any other Leasing Document to which it is a party.

			

 

5

 

 

	 	
			10.4

				
			Consents in force

			
	 	 	 
	 	 	All the capacities, actions and consents referred to in Clause 10.3 remain in full force and nothing has occurred which makes any of them liable to revocation.
	 	 	 
	 	
			10.5

				
			No conflicts

			
	 	 	 
	 	 	The execution by the Guarantor of the Leasing Documents to which it is a party and its compliance with this Guarantee will not involve or lead to a contravention of:
	 	 	 
	 	
			(a)

				
			any law or regulation applicable to it; or

			
	 	 	 
	 	
			(b)

				
			the constitutional documents of the Guarantor; or

			
	 	 	 
	 	
			(c)

				
			any contractual or other obligation or restriction which is binding on the Guarantor or any of its assets.

			

 

	 	
			10.6

				
			Legal, valid and binding obligations

			
	 	 	 
	 	 	This Guarantee and the Leasing Document to which it is a party do now or will upon execution and delivery constitute the Guarantor's legal, valid and binding obligations enforceable against it in accordance with its terms and any relevant insolvency laws affecting creditors' rights generally.

 

	 	
			10.7

				
			Governing law

			
	 	 	 
	 	 	The choice of governing law as stated in this Guarantee and the agreement by the Guarantor to refer disputes to the relevant courts or tribunals as stated herein are valid and binding against the Guarantor.

 

	 	
			10.8

				
			Immunity

			
	 	 	 
	 	 	Neither the Guarantor nor any of its assets are entitled to immunity on the grounds of sovereignty or otherwise from any legal action or proceeding (which shall include, without limitation, suit, attachment prior to judgment, execution or other enforcement).

 

	 	
			10.9

				
			Pari passu ranking

			
	 	 	 
	 	 	The obligations of the Guarantor under this Guarantee, are the direct, general and unconditional obligations of the Guarantor and rank at least pari passu with all other present and future unsecured and unsubordinated creditors of the Guarantor save for any obligation which is mandatorily preferred by law and not by virtue of any contract.

 

	 	
			10.10

				
			Legal or administrative action

			
	 	 	 
	 	 	No legal or administrative action involving the Guarantor has been commenced or taken which would have required notification to the Owner under Clause 11.8.

 

	 	
			10.11

				
			No insolvency

			
	 	 	 
	 	 	The Guarantor is not insolvent or in liquidation or administration or subject to any other formal or informal insolvency procedure, and no receiver, administrative receiver, administrator, liquidator, trustee or analogous officer has been appointed in respect of the Guarantor or all or material part of their assets.

 

6

 

 

	 	
			10.12

				
			Tax obligor and place of business

			
	 	 	 
	 	 	The Guarantor is not a US Tax Obligor, and has not established a place of business in the United Kingdom or the United States of America.
	 	 	 
	 	
			10.13

				
			No withholding taxes

			
	 	 	 
	 	 	All payments which the Guarantor is liable to make under the Leasing Documents to which it is a party may be made without deduction or withholding for or on account of any tax payable under any law of relevant jurisdictions.
	 	 	 
	 	
			10.14

				
			Taxes paid

			
	 	 	 
	 	 	The Guarantor has paid all taxes applicable to, or imposed on or in relation to it, its business or except for those being contested in good faith with adequate reserves.
	 	 	 
	 	
			10.15

				
			No default

			
	 	 	 
	 	 	No Termination Event or Potential Termination Event has occurred nor is continuing or might reasonably be expected to result from the entry into and performance of this Guarantee or any other Leasing Document.
	 	 	 
	 	
			10.16

				
			Information

			
	 	 	 
	 	 	Any factual information provided by the Guarantor (or on its behalf) to the Owner was true and accurate in all material respects as at the date it was provided or as the date at which such information was stated; all accounts (audited and unaudited) delivered under Clause 11.3 satisfied the requirements of Clause 11.4; and there has been no Material Adverse Effect on the Guarantor from its position disclosed in the latest of those accounts.
	 	 	 
	 	
			10.17

				
			No litigation

			
	 	 	 
	 	 	No legal or administrative action involving the Guarantor has been commenced or taken or, to the Guarantor's knowledge, is likely to be commenced or taken which, in either case, would be likely to have a Material Adverse Effect on the Guarantor.
	 	 	 
	 	
			10.18

				
			Sanctions

			
	 	 	 
	 	
			(a)

				
			No Relevant Person, nor any of their respective directors, officers, or employees, is a Prohibited Person.

			
	 	 	 
	 	
			(b)

				
			Each Relevant Person, and their respective directors, officers, and employees is in compliance with all Sanctions laws, and none of them have been or are currently being investigated on compliance with Sanctions, they have not received notice or are aware of any claim, action, suit or proceeding against any of them with respect to Sanctions and they have not taken any action to evade the application of Sanctions.

			
	 	 	 
	 	
			(c)

				
			No Relevant Person is in breach of any Anti-Money Laundering Laws, Anti-Terrorism Financing Laws and/or Business Ethics Laws and, to the extent required by applicable law, has instituted and maintained systems, controls, policies and procedures designed to:

			

 

7

 

 

	 	
			(i)

				
			prevent and detect incidences of bribery and corruption, money laundering and terrorism financing; and

			
	 	 	 
	 	
			(ii)

				
			promote and achieve compliance with Anti-Money Laundering Laws, Anti-Terrorism Financing Laws and/or Business Ethics Laws including, but not limited to, ensuring thorough and accurate books and records, and utilization of best efforts to ensure that Affiliates acting on behalf of a Relevant Person shall act in compliance with Anti-Money Laundering Laws, Anti-Terrorism Financing Laws and Business Ethics Laws.

			

 

	 	
			10.19

				
			Environmental Laws

			
	 	 	 
	 	 	All Environmental Laws relating to the ownership, operation and management of the Vessel and the business of each Relevant Person (as now conducted and as reasonably anticipated to be conducted in the future) have been complied with.
	 	 	 
	 	
			10.20

				
			Environmental Claim

			
	 	 	 
	 	 	No Environmental Claim has been made or threatened against any Relevant Person or otherwise in connection with the Vessel which is either (i) in excess of US$5,000,000 or (ii) has or is reasonably likely to have a Material Adverse Effect.
	 	 	 
	 	
			10.21

				
			Environmental Incident

			
	 	 	 
	 	 	No Environmental Incident has occurred and no person has claimed that an Environmental Incident has occurred.
	 	 	 
	 	
			10.22

				
			Ownership of the Charterer

			
	 	 	 
	 	 	The Charterer is legally and beneficially and indirectly wholly owned and controlled by the Guarantor.
	 	 	 
	 	
			10.23

				
			Status of the Guarantor

			
	 	 	 
	 	
			(a)

				
			Save for permitted under the Bareboat Charter, the shares of the Guarantor are traded on the NASDAQ or Over the Counter (OTC); and

			
	 	 	 
	 	
			(b)

				
			the Guarantor is an entity reporting with the U.S. Securities and Exchange Commission.

			
	 	 	 
	 	
			11

				
			UNDERTAKINGS

			
	 	 	 
	 	
			11.1

				
			General

			
	 	 	 
	 	 	The Guarantor undertakes with the Owner to comply with the following provisions of this Clause 11 at all times during the Security Period, except as the Owner may otherwise permit.
	 	 	 
	 	
			11.2

				
			Information provided to be accurate

			
	 	 	 
	 	 	All financial and other information which is provided by or on behalf of the Guarantor under or in connection with the Leasing Documents will be true and not misleading and will not omit any material fact or consideration.
	 	 	 
	 	
			11.3

				
			Provision of financial statements

			
	 	 	 
	 	 	The Guarantor will send to the Owner:
	 	 	 
	 	
			(a)

				
			as soon as possible, but in no event later than one hundred and fifty (150) days after the end of each financial year of the Charterers, the audited annual financial statement accounts of the Charterers for that financial year as referred to in the Guarantor's audited consolidated annual financial statement accounts of the Guarantor for that financial year to be delivered under paragraph (c);

			

 

8

 

 

	 	
			(b)

				
			as soon as possible, but in no event later than ninety (90) days after the end of each half-year, the unaudited semi-annual accounts of the Charterers for that half-year;

			
	 	 	 
	 	
			(c)

				
			as soon as possible, but in no event later than one hundred and fifty (150) days after the end of each financial year of the Guarantor, the audited consolidated annual financial statement accounts of the Guarantor for that financial year; and

			
	 	 	 
	 	
			(d)

				
			as soon as possible, but in no event later than ninety (90) days after the end of each half-year, the semi-annual consolidated unaudited accounts of the Guarantor for that half-year certified as to their correctness by at least one director of the Guarantor.

			
	 	 	 
	 	
			11.4

				
			Form of financial statements

			
	 	 	 
	 	 	All accounts (audited and unaudited) delivered under Clause 11.3 will:
	 	 	 
	 	
			(a)

				
			be prepared in accordance with all applicable laws and generally accepted accounting principles in the United States consistently applied;

			
	 	 	 
	 	
			(b)

				
			give a true and fair view of (in respect of the audited accounts) or fairly representing (in the case of the management accounts) the state of affairs of the Group at the date of those accounts and of their profit for the period to which those accounts relate;

			
	 	 	 
	 	
			(c)

				
			fully disclose or provide for all significant liabilities of the Group; and

			
	 	 	 
	 	
			(d)

				
			If not in the English language, be accompanied by an English translation duly certified as to its correctness.

			
	 	 	 
	 	
			11.5

				
			Shareholder and creditor notices

			
	 	 	 
	 	 	The Guarantor will send the Owner, upon its request, copies of all communications which are despatched to the Guarantor's shareholders or creditors or any class of them.
	 	 	 
	 	
			11.6

				
			Consents

			
	 	 	 
	 	 	The Guarantor will obtain and promptly renew and will procure that each other Relevant Person obtains and promptly renews or procure the obtainment or renewal of and provide copies of, from time to time, any necessary consents, approvals, authorisations, licenses or permits of any regulatory body or authority for the transactions contemplated under each Leasing Document to which it is a party.
	 	 	 
	 	
			11.7

				
			Valid obligations

			
	 	 	 
	 	 	The Guarantor will at its own cost, and will procure that each other Relevant Person will:
	 	 	 
	 	
			(a)

				
			do all that such Relevant Person reasonably can to ensure that any Leasing Document to which such Relevant Person is a party validly creates the obligations and the Security Interests which such Relevant Person purports to create; and

			

 

9

 

 

	 	
			(b)

				
			without limiting the generality of paragraph (a), promptly register, file, record or enrol any Leasing Document to which such Relevant Person is a party with any court or authority in all Relevant Jurisdictions, pay any stamp duty, registration or similar tax in all Relevant Jurisdictions in respect of any Leasing Document to which such Relevant Person is a party, give any notice or take any other step which, is or has become necessary or desirable for any such Leasing Document to be valid, enforceable or admissible in evidence or to ensure or protect the priority of any Security Interest which such Relevant Person creates.

			
	 	 	 
	 	
			11.8

				
			Notification of legal or administrative action

			
	 	 	 
	 	 	The Guarantor will provide or will procure that each other Relevant Person provides the Owner with details of any legal or administrative action involving such Relevant Person or the Vessel that is likely to have a Material Adverse Effect as soon as such action is instituted or it becomes apparent is likely to be instituted and is likely to have a Material Adverse Effect.
	 	 	 
	 	
			11.9

				
			Notification of damage or default

			
	 	 	 
	 	 	The Guarantor:
	 	 	 
	 	
			(a)

				
			will, and will procure that each other Relevant Person will, notify the Owner immediately of the occurrence of any damage and/or alteration caused to the Vessel by any reason whatsoever which results, or may be expected to result, in repairs on the Vessel which exceed $5,000,000; and

			
	 	 	 
	 	
			(b)

				
			will, and will procure that each other Relevant Person will, notify the Owner immediately of the occurrence of any Termination Event,

			
	 	 	 
	 	 	and will keep the Owner fully up-to-date with all developments and the Guarantor will, if so requested by the Owner, provide any such certificate signed by its authorised signatory, confirming that there exists no Potential Termination Event or Termination Event.
	 	 	 
	 	
			11.10

				
			Additional information

			
	 	 	 
	 	 	The Guarantor will, and will procure that each other Relevant Person will, as soon as practicable after receiving the request, provide the Owner with any additional financial or other information relating:
	 	 	 
	 	
			(a)

				
			to themselves and/or the Vessel (including, but not limited to the condition, location and employment status of the Vessel); or

			
	 	 	 
	 	
			(b)

				
			to any other matter relevant to, or to any provision of any Leasing Document to which it is a party,

			
	 	 	 
	 	 	which may be reasonably requested by the Owner (or their financiers (if any)) at any time, provided that, in the case of information on the employment status of the Vessel, such information shall be in form and substance satisfactory to the Owner and shall be provided by the Charterers to the Owner at least once every six-monthly period during each calendar year.
	 	 	 
	 	
			11.11

				
			Compliance with operational laws

			
	 	 	 
	 	 	The Guarantor shall procure compliance, and will procure that each other Relevant Person will comply or procure compliance, with all laws or regulations relating to the Vessel and its construction, ownership, employment, operation, management and registration, including the ISM Code, the ISPS Code, all Environmental Laws and the laws of the Vessel's registry.

 

10

 

 

	 	
			11.12

				
			Compliance with other laws

			
	 	 	 
	 	
			(a)

				
			The Guarantor shall comply, and shall procure that each other Relevant Person will, comply with all applicable laws and regulations in respect of Sanctions, and in particular, the Charterers shall effect and maintain a sanctions compliance policy to ensure compliance with all such laws and regulations implemented from time to time.

			
	 	 	 
	 	
			(b)

				
			The Guarantor:

			

 

	 	
			(i)

				
			shall, and shall procure that each other Relevant Person will, promptly notify the Owner of any non-compliance by any Relevant Person or their respective officers, directors, or employees with all laws and regulations relating to Sanctions, (including but not limited to notifying the Owner in writing immediately upon being aware that any Relevant Person or their respective shareholders, directors, officers or employees is a Prohibited Person or has otherwise become a target of Sanctions) as well as provide all information in relation to its business and operations which may be relevant for the purposes of ascertaining whether any of the aforesaid parties are in compliance with such laws.

			
	 	 	 
	 	
			(ii)

				
			shall, and will procure that each other Relevant Person will, promptly notify the Owner of any non-compliance by any Relevant Person or their respective officers, directors, or employees with all laws and regulations relating to Anti-Money Laundering Laws, Anti-Terrorism Financing Laws and/or Business Ethics Laws as well as provide all information (once available) in relation to its business and operations which may be relevant for the purposes of ascertaining whether any of the aforesaid parties are in compliance with such laws.

			

 

	 	
			(c)

				
			The Guarantor shall procure that the Vessel shall not be employed, operated or managed in any manner which (i) is contrary to any Sanctions and in particular, the Vessel is not used by or to benefit any party which is a target of Sanctions or trade to any area or country where trading the Vessel to such area or country would constitute a breach of any Sanctions or published boycotts imposed by any of the United Nations, the European Union, the United States of America, the United Kingdom or the People's Republic of China (provided that operation or use of the Vessel by the Trafigura Charterer pursuant to the Trafigura Charter shall not in any case be deemed to be in breach or contrary to any published boycotts or sanctions imposed by the People's Republic of China) or (ii) would trigger the operation of any sanctions limitation or exclusion clause in any insurance documentation.

			
	 	 	 
	 	
			(d)

				
			The Guarantor shall, and shall procure that each other Relevant Person and their respective officers, directors and employees, will:

			

 

	 	
			(i)

				
			conduct its business in compliance with all Anti-Money Laundering Laws, Anti-Terrorism Financing Laws and/or Business Ethics Laws;

			
	 	 	 
	 	
			(ii)

				
			maintain systems, controls, policies and procedures designed to promote and achieve ongoing compliance with Anti-Money Laundering Laws, Anti-Terrorism Financing Laws and/or Business Ethics Laws; and

			
	 	 	 
	 	
			(iii)

				
			in respect of the Charterers, not use, or permit or authorize any person to directly or indirectly use, the Opening Capital Balance for any purpose that would breach any Anti-Money Laundering Laws, Anti-Terrorism Financing Laws and/or Business Ethics Laws;

			
	 	 	 
	 	
			(iv)

				
			not lend, invest, contribute or otherwise make available the Opening Capital Balance to or for any other person in a manner which would result in a violation of Anti-Money Laundering Laws, Anti-Terrorism Financing Laws and/or Business Ethics Laws.

			

 

11

 

 

	 	
			11.13

				
			No Security Interests

			
	 	 	 
	 	 	The Guarantor shall not, and shall procure that each other Relevant Person will not create, assume or permit to exist any Security Interest (other than any Permitted Security Interest) of any kind upon any Leasing Document to which such Relevant Person is a party, and if applicable, the Vessel.
	 	 	 
	 	
			11.14

				
			Financial covenants

			
	 	 	 
	 	
			(a)

				
			The Guarantor shall ensure that, at any time during the Security Period, the Guarantor's Leverage Ratio shall not be more than seventy five per cent (75%).

			
	 	 	 
	 	
			(b)

				
			The Guarantor shall ensure that all time during the Security Period the Liquid Funds shall not be less than $500,000 multiplied by the number of the Fleet Vessels which are fully owned by the Guarantor ("100% Owned Vessels") or leased or operated (including those under a capital lease or operating lease with a purchase option at the end of the relevant charter period) by the Guarantor and/or any member of the Group.

			
	 	 	 
	 	 	In this Guarantee:
	 	 	 
	 	 	
			"Leverage Ratio" means, at any date, the ratio (expressed as a percentage) of:

			 

			

 

	 	
			(a)

				
			the Total Net Debt; and

			
	 	 	 
	 	
			(b)

				
			the aggregate Market Value of all Fleet Vessels adjusted, in each case, to reflect the percentage of ownership by the Guarantor of each such Fleet Vessel.

			

 

	 	 	"Liquid Funds" means, at any time, cash at bank and credited to an account in the name of any member of the Group and to which the Guarantor is solely (or together with other members of the Group) beneficially entitled and for so long as such cash has not been blocked due to the existence and/or enforcement of any Security Interest held by any bank or any other third party or otherwise unless such cash is held in such account charged, as the case may be, by way of a floating charge for the purposes of meeting minimum liquidity requirements in the context of any financing arrangement of the Group.
	 	 	 
	 	 	"Market Value" means, in relation to any Fleet Vessel at any relevant time (the "Market Value Test Date")

 

	 	
			(a)

				
			subject to sub-paragraph (b) below, the arithmetic mean of the valuations shown by two (2) valuation reports prepared:

			

 

	 	
			(i)

				
			on a date no later than thirty (30) days after the Market Value Test Date;

			
	 	 	 
	 	
			(ii)

				
			with or without physical inspection of that Vessel;

			
	 	 	 
	 	
			(iii)

				
			on the basis of a sale for prompt delivery for cash on normal arm's length commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of employment,

			

 

12

 

 

	 	and such valuation shall be prepared by Approved Valuers one nominated by the Owners and one nominated by the Charterers.
	 	 	 
	 	
			(b)

				
			if there is a discrepancy of five per cent. (5%) or more between the market valuations shown on the two valuation reports obtained pursuant to the above paragraph (using the lower valuation figure as the denominator), the arithmetic mean of the valuations shown by three (3) valuation reports each prepared on the same terms and conditions as set out under paragraph (b) above (except that the third valuation report additionally required under this sub-paragraph (b) shall be prepared by an Approved Valuer nominated by the Owners).

			

 

	 	 	"Total Net Debt" means, at any date, the aggregate Financial Indebtedness of the Group as per US GAAP as at such date, adjusted to include a percentage of the Financial Indebtedness of any joint venture with a minimum holding of 50 per cent by any member of the Group which is equal to the percentage of the Guarantor's ownership in such joint venture, minus the aggregate amount of all cash balances standing on such date to the credit of a bank account of any member of the Group, adjusted to include a percentage of the cash balances of any entity holding any Fleet Vessel (other than the 100% Owned Vessels) which is equal to the percentage of the Guarantor's and/or such member's ownership in that entity, but excluding any cash held by any bank or any other third party or otherwise which is subject to the existence and/or enforcement any Security Interest unless such cash is held in such account charged, as the case may be, by way of a floating charge for the purposes of meeting minimum liquidity requirements in the context of any financing arrangement of the Group.
	 	 	 
	 	 	"US GAAP" means the generally accepted accounting principles in the United States.
	 	 	 
	 	
			11.15

				
			Compliance Certificate

			
	 	 	 
	 	 	The Guarantor shall supply to the Owner, a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 11.14 on each testing date, being 31st December in each calendar year; and each Compliance Certificate shall be signed by the Co-Chief Financial Officer of the Guarantor.
	 	 	 
	 	
			11.16

				
			Negative Pledge

			
	 	 	 
	 	 	The Guarantor shall:
	 	 	 
	 	
			(a)

				
			procure that the Charterers will not create or permit to arise any Security Interest over any of its assets present or future except for the Permitted Security Interests.; and

			
	 	 	 
	 	
			(b)

				
			procure that its liabilities under this Guarantee will rank at least pari passu with all its other present and future unsecured liabilities, except for liabilities which are mandatorily preferred by law.

			
	 	 	 
	 	
			11.17

				
			No disposal of assets, change of business

			
	 	 	 
	 	 	The Guarantor will not, and shall (at all times) procure that no other Relevant Person shall:

 

13

 

 

	 	
			(a)

				
			transfer, lease or otherwise dispose of all or a substantial part of their respective assets (or any of their assets, in the case of the Charterer), whether by one transaction or a number of transactions, whether related or not except in the usual course of their respective trading operations; or

			
	 	 	 
	 	
			(b)

				
			make any substantial change (or any change, in the case of the Charterer) to the nature of their respective business or corporate structure from that existing as at the date of this Guarantee.

			
	 	 	 
	 	
			11.18

				
			No merger etc

			
	 	 	 
	 	 	The Guarantor shall not enter into any form of merger, sub-division, amalgamation, demerger, reorganization, corporate reconstruction or change of ownership, or change of voting control unless the Guarantor remains as the surviving entity after such merger, sub-division, amalgamation, demerger, reorganization, corporate reconstruction or change of ownership, or change of voting control and Clause 11.14 has been complied with.
	 	 	 
	 	
			11.19

				
			FATCA

			
	 	 	 
	 	 	The Guarantor shall not, and shall procure that no Relevant Person will become a FATCA FFI or US Tax Obligor.
	 	 	 
	 	
			11.20

				
			No payment of dividend

			
	 	 	 
	 	 	The Guarantor shall not declare, make or pay any dividend or other distribution (or interest on any unpaid dividend or other distribution) on or in respect of its share capital (whether in cash or in kind) upon the occurrence of a Termination Event described in Clause 49 of the Bareboat Charter.
	 	 	 
	 	
			11.21

				
			Notification of Financial Indebtedness

			
	 	 	 
	 	 	The Guarantor shall promptly notify the Owner if the Guarantor agrees to provide any new financial covenants to a creditor (or to amend existing ones such that they materially differ from the financial covenants under Clause 11.14 (Financial Covenants) of this Guarantee, placing such creditor in a position which is comparatively more favourable in terms of the financial covenants than the position of the Owner) under the agreements entered into or to be entered into in connection with any Financial Indebtedness owed by the Guarantor or Group member to such creditor and agrees that it will promptly enter into such necessary documentation as may be required to amend and supplement this Guarantee and any applicable Leasing Document so as to reflect and incorporate such more favourable financial covenants into this Guarantee and any applicable Leasing Document.
	 	 	 
	 	
			12

				
			JUDGMENTS AND CURRENCY INDEMNITY

			
	 	 	 
	 	
			12.1

				
			Judgments relating to Bareboat Charter and other Leasing Documents

			
	 	 	 
	 	 	This Guarantee shall cover any amount payable by any other Relevant Person under or in connection with any judgment or award relating to the Bareboat Charter and any other Leasing Document.
	 	 	 
	 	
			12.2

				
			Currency indemnity

			
	 	 	 
	 	 	If any sum due from the Guarantor to the Owner under this Guarantee or under any order, judgment or award relating to this Guarantee has to be converted from the currency in which this Guarantee provided for the sum to be paid (the "Contractual Currency") into another currency (the "Payment Currency") for the purpose of:

 

14

 

 

	 	
			(a)

				
			making or lodging any claim or proof against the Guarantor, whether in its liquidation, any arrangement involving it or otherwise; or

			
	 	 	 
	 	
			(b)

				
			obtaining an order, judgment or award from any court or other tribunal; or

			
	 	 	 
	 	
			(c)

				
			enforcing any such order, judgment or award;

			
	 	 	 
	 	 	the Guarantor shall indemnify the Owner against the loss arising when the amount of the payment actually received by the Owner is converted at the available rate of exchange into the Contractual Currency.
	 	 	 
	 	 	In this Clause 12.2, the "available rate of exchange" means the rate at which the Owners are able at the opening of business (Shanghai time) on the Business Day after it receives the sum concerned to purchase the Contractual Currency with the Payment Currency.
	 	 	 
	 	
			13

				
			SUPPLEMENTAL

			
	 	 	 
	 	
			13.1

				
			Continuing guarantee

			
	 	 	 
	 	 	This Guarantee shall remain in force as a continuing security interest at all times during the Security Period.
	 	 	 
	 	
			13.2

				
			Rights cumulative, non-exclusive

			
	 	 	 
	 	 	The Owner's rights under and in connection with this Guarantee are cumulative, may be exercised as often as appears expedient and shall not be taken to exclude or limit any right or remedy conferred by law.
	 	 	 
	 	
			13.3

				
			No impairment of rights under Guarantee

			
	 	 	 
	 	 	If the Owner omits to exercise, delays in exercising or invalidly exercises any of its rights under this Guarantee, that shall not impair that or any other right of the Owner under this Guarantee.
	 	 	 
	 	
			13.4

				
			Severability of provisions

			
	 	 	 
	 	 	If any provision of this Guarantee is or subsequently becomes void, illegal, unenforceable or otherwise invalid, that shall not affect the validity, legality or enforceability of its other provisions.
	 	 	 
	 	
			13.5

				
			Guarantee not affected by other Security Interests

			
	 	 	 
	 	 	This Guarantee shall not impair, nor be impaired by, any other guarantee or any right of set-off or netting or to combine accounts which the Owner may now or later hold in connection with the Bareboat Charter or any other Leasing Document.
	 	 	 
	 	
			13.6

				
			Guarantor bound by Bareboat Charter and other Leasing Documents

			
	 	 	 
	 	 	The Guarantor agrees with the Owner to be bound by all provisions of the Bareboat Charter and any other Leasing Document in the same way as if those provisions had been set out (with any necessary modifications) in this Guarantee.

 

15

 

 

	 	
			13.7

				
			Applicability of provisions of Guarantee to other rights

			
	 	 	 
	 	 	Clauses 3 and 16 shall also apply to any right of set-off or netting or to combine accounts which the Guarantor creates by an agreement entered into at the time of this Guarantee or at any later time (notwithstanding that the agreement does not include provisions similar to Clauses 3 and 16), being an agreement referring to this Guarantee.
	 	 	 
	 	
			13.8

				
			Third party rights

			
	 	 	 
	 	 	A person who is not a party to this Guarantee has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Guarantee.
	 	 	 
	 	
			13.9

				
			Counterpart

			
	 	 	 
	 	 	This Guarantee may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Guarantee.
	 	 	 
	 	
			13.10

				
			FATCA Information

			
	 	 	 
	 	
			(a)

				
			Subject to paragraph (c) below, each Party shall, on the date of the Bareboat Charter, and thereafter within ten (10) Business Days of a reasonable request by the other Party:

			

 

	 	
			(i)

				
			confirm to that other party whether it is a FATCA Exempt Party or is not a FATCA Exempt Party; and

			
	 	 	 
	 	
			(ii)

				
			supply to the requesting party (with a copy to all other Relevant Parties) such other form or forms (including IRS Form W-8 or Form W-9 or any successor or substitute form, as applicable) and any other documentation and other information relating to its status under FATCA (including its applicable "pass thru percentage" or other information required under FATCA or other official guidance including intergovernmental agreements) as the requesting party reasonably requests for the purpose of the requesting party's compliance with FATCA.

			

 

	 	
			(b)

				
			If a Party confirms to any other Party that it is a FATCA Exempt Party or provides an IRS Form W-8 or W-9 showing that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, or that the said form provided has ceased to be correct or valid, that party shall so notify all other Relevant Parties or provide the relevant revised form, as applicable, reasonably promptly.

			
	 	 	 
	 	
			(c)

				
			Nothing in this Clause shall oblige a Party to do anything which would or, in its reasonable opinion, might constitute a breach of any law or regulation, any policy of that party, any fiduciary duty or any duty of confidentiality, or to disclose any confidential information (including, without limitation, its tax returns and calculations); provided, however, that nothing in this paragraph shall excuse a Party from providing a true, complete and correct IRS Form W-8 or W-9 (or any successor or substitute form where applicable). Any information provided on such IRS Form W-8 or W-9 (or any successor or substitute forms) shall not be treated as confidential information of such party for purposes of this paragraph.

			
	 	 	 
	 	
			(d)

				
			If a Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with the provisions of this Charter or the provided information is insufficient under FATCA, then:

			

 

16

 

 

	 	
			(i)

				
			if that party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such party shall be treated for the purposes of this Charter and the Leasing Documents as if it is a FATCA Non-Exempt Party; and

			
	 	 	 
	 	
			(ii)

				
			if that party failed to confirm its applicable passthru percentage then such party shall be treated for the purposes of this Charter and the Leasing Documents (and payments made thereunder) as if its applicable passthru percentage is 100%,

			

 

	 	 	until (in each case) such time as the party in question provides sufficient confirmation, forms, documentation or other information to establish the relevant facts.
	 	 	 
	 	
			14

				
			ASSIGNMENT

			
	 	 	 
	 	
			14.1

				
			Assignment by Owner

			
	 	 	 
	 	 	Clause 63 of the Bareboat Charter shall apply to this Guarantee as if they were expressly incorporated herein with any necessary modifications including the references to "the Charterers" therein shall be references to "the Guarantor" when applied herein and references to "the Leasing Document" and "this Charter" therein shall be references to "this Guarantee" when applied herein.
	 	 	 
	 	
			14.2

				
			The Guarantor may not assign any of its rights or transfer any of its rights or obligations under this Guarantee.

			
	 	 	 
	 	
			15

				
			NOTICES

			

 

	 	
			15.1

				
			Notices to Guarantor

			
	 	 	 
	 	 	Any notice or demand to the Guarantor under or in connection with this Guarantee shall be given by letter or fax or mail at:
	 	 	 
	 	 	TOP SHIPS INC.
	 	 	 
	 	 	Attention: Alexandros Tsirikos
	 	 	 
	 	 	Email: atsirikos@topships.org
	 	 	Tel: +30 210 8128180
	 	 	Fax: +30 210 8056441
	 	 	 
	 	 	or to such other address which the Guarantor may notify to the Owner.

 

	 	
			15.2

				
			Validity of demands

			
	 	 	 
	 	 	A demand under this Guarantee shall be valid notwithstanding that it is served:
	 	 	 
	 	
			(a)

				
			on the date on which the amount to which it relates is payable by the Relevant Person under the Leasing Document to which it is a party;

			
	 	 	 
	 	
			(b)

				
			at the same time as the service of a notice under Clause 44 of the Bareboat Charter;

			
	 	 	and a demand under this Guarantee shall (i) be in writing; (ii) be signed by a duly authorised officer of the Owner and delivered to the Guarantor pursuant to the provisions under this Guarantee; (iii) make reference to this Guarantee; (iv) specifically identify the Charterer or any other Relevant Person and the Guaranteed Obligations to be paid and/or performed (as the case may be); and (v) set forth payment instructions in respect of any amount or amounts payable to the Owner.
	 	 	 

 

17

 

 

	 	
			15.3

				
			Notices to Owner

			
	 	 	 
	 	 	Any notice to the Owner under or in connection with this Guarantee shall be sent to the same address and in the same manner as notices to the Owner under Clause 44 of the Bareboat Charter.
	 	 	 
	 	
			16

				
			INVALIDITY OF BAREBOAT CHARTER

			
	 	 	 
	 	
			16.1

				
			Invalidity of Bareboat Charter or other Leasing Documents

			
	 	 	 
	 	 	In the event of:
	 	 	 
	 	
			(a)

				
			the Bareboat Charter or any other Leasing Document now being or later becoming, with immediate or retrospective effect, void, illegal, unenforceable or otherwise invalid for any other reason whatsoever, whether of a similar kind or not; or

			
	 	 	 
	 	
			(b)

				
			without limiting the scope of paragraph (a), a bankruptcy of the Relevant Person party thereto, the introduction of any law or any other matter resulting in that Relevant Person being discharged from liability under the Bareboat Charter or other Leasing Document, or the Bareboat Charter or other Leasing Document ceasing to operate (for example, by interest ceasing to accrue);

			
	 	 	 
	 	 	this Guarantee shall cover any amount which would have been or become payable under or in connection with the Bareboat Charter or other Leasing Document if the Bareboat Charter or other Leasing Document had been and remained entirely valid, legal and enforceable, or that Party had not suffered bankruptcy, or any combination of such events or circumstances, as the case may be, and the Charterer had remained fully liable under it for liabilities whether invalidly incurred or validly incurred but subsequently retrospectively invalidated; and references in this Guarantee to amounts payable by that Party under or in connection with the Bareboat Charter or other Leasing Document shall include references to any amount which would have so been or become payable as aforesaid.
	 	 	 
	 	
			17

				
			GOVERNING LAW AND ENFORCEMENT

			
	 	 	 
	 	
			17.1

				
			Governing law

			
	 	 	 
	 	 	This Guarantee and any non-contractual obligations arising out of or in connection with it are governed by English law.
	 	 	 
	 	
			17.2

				
			Arbitration

			
	 	 	 
	 	
			(a)

				
			Any dispute arising out of or in connection with this Guarantee (including a dispute regarding the existence, validity or termination of this Guarantee or any non-contractual obligation arising out of or in connection with this Guarantee) (a "Dispute") shall be referred to and finally resolved by arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause 17. The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association ("LMAA") Terms current at the time when the arbitration proceedings are commenced.

			

 

18

 

 

	 	
			(b)

				
			The reference shall be to three arbitrators. A party wishing to refer a Dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within 14 calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the 14 days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the 14 days specified, the party referring a Dispute to arbitration may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both parties as if he had been appointed by agreement. Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator.

			
	 	 	 
	 	
			(c)

				
			Where the reference is to three arbitrators the procedure for making appointments shall be in accordance with the procedure for full arbitration stated above.

			
	 	 	 
	 	
			(d)

				
			The language of the arbitration shall be English.

			
	 	 	 
	 	
			(e)

				
			In cases where neither the claim nor any counterclaim exceeds the sum of US$100,000 (or such other sum as the Parties may agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.

			

 

IN WITNESS WHEREOF this GUARANTEE has been executed as a DEED and delivered on the date stated at the beginning of this GUARANTEE.

 

 

 

 

 

19

 

 

SCHEDULE 1

FORM OF COMPLIANCE CERTIFICATE

 

To:

 

SEA 268 LEASING CO. LIMITED

 

From:

 

TOP SHIPS INC. 

 

Date: _______________

 

Guarantee dated [●] 2021 (the "Guarantee") in respect of a bareboat charter for m.v. "JULIUS CAESAR"

 

Dear Sirs

 

	 	
			1

				
			We refer to the Guarantee. This is a Compliance Certificate. Terms defined in the Guarantee have the same meaning when used in this Compliance Certificate unless given a difference meaning in this Compliance Certificate.

			

 

	 	
			2

				
			We confirm that, as at the date hereof, no Termination Event has occurred and is continuing which has not been waived or remedied at the date hereof or if that is not the case, specifying the same and the steps, if any, being taken to remedy the same.

			

 

	 	
			3

				
			We confirm that, at any time during the Security Period, Leverage Ratio was not be more than 75 per cent (75%).

			

 

	 	
			4

				
			We confirm that all time during the Security Period the Liquid Funds was not be less than the aggregate of $500,000 multiplied by the number of the Fleet Vessels which are fully owned by the Guarantor or leased or operated (including those under a capital lease or operating lease with a purchase option at the end of the relevant charter period) by the Guarantor and/or any member of the Group. .

			

 

Yours faithfully

 

Signed: ___________________________

 

Co-Chief Financial Officer of

 

TOP SHIPS INC.

 

 

20

 

 

EXECUTION PAGE

 

	GUARANTOR	 	 
	 	 	 
	EXECUTED AS A DEED	)	 
	by TOP SHIPS INC.	)	/s/ Alexandros Tsirikos
	acting by Alexandros Tsirikos	)	 
	being an attorney-in-fact	)	Attorney-in-fact
	 	)	 
	in the presence of: 	)	 
	 	)	 
	Witness' signature: 	)	/s/ Dimitra Karkaletsi
	Witness' name: 	)	Dimitra Karkaletsi 
	Witness' address:	)	
			274, Loef. Salaminas – Salamina

			Greece

			
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	OWNER	 	 
	 	 	 
	SIGNED, SEALED AND DELIVERED	)	 
	by SEA 268 LEASING CO. LIMITED	)	/s/ Lin Chung Fai Simon
	acting by Lin Chung Fai Simon	)	 
	being an attorney-in-fact	)	Attorney-in-fact
	 	)	 
	in the presence of:	)	 
	 	)	 
	 	)	 
	 	)	 
	Witness' signature:	)	/s/ Wong Ho Ching
	Witness' name: 	)	Wong Ho Ching   
	Witness' address: 	)	
			Suites 4610-4619, Jardine House,

			1 Connaught Place, Hong Kong

			

 

21

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