Document:

Exhibit 4.50

 

SECOND AMENDMENT

 TO THE FACILITY AGREEMENT

THIS SECOND AMENDMENT (this "Amendment") to the Facility Agreement (as defined below) is dated as of March 24, 2016 by and between DRYSHIPS INC., a corporation incorporated under the laws of the Republic of the Marshall Islands (the "Borrower"), and SIFNOS SHAREHOLDERS INC., a corporation incorporated under the laws of the Republic of the Marshall Islands (the "Lender"). Capitalized terms herein have the meanings specified in the Secured Revolving Facility Agreement dated as of October 21, 2015, as amended by the First Amendment to the Facility Agreement dated as of November 11, 2015 (as so amended and as may be further amended, restated, supplemented or otherwise modified from time to time, the "Existing Facility Agreement" and as hereby amended, the "Facility Agreement"), by and between the Borrower and the Lender.

W I T N E S S E T H:

WHEREAS, pursuant to the Existing Facility Agreement, the Lender has made commitments to make Loans to the Borrower;

WHEREAS, pursuant to the Preferred Stock Exchange Agreement (the "Exchange Agreement") dated as of March 24, 2016 by and between the Borrower and the Lender, the Lender has agreed to exchange 4,000,000 shares of the Borrower's preferred stock currently held by the Lender for an increase in the Commitment in the Existing Facility by $10,000,000 to $70,000,000 and certain other amendments to the Facility Agreement as set forth herein; and 

WHEREAS, the terms of the Exchange Agreement require that the Existing Facility Agreement be amended in connection therewith as provided below.

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the Borrower and the Lender hereby agree as follows:

1.          AMENDMENT

Effective as of the Amendment Effective Date (as defined below):

Section 1.01 Section 1. The definition of "Commitment" shall be replaced in its entirety with the following:

"Commitment" means, on any date, Seventy Million Dollars (US$70,000,000).

Section 1.02 Section 3.01. Section 3.01 is hereby amended by adding the following sentence at the end:

"With 7 days' prior written notice to the Lender, the Borrower shall have the option to extend the Maturity Date by twelve (12) months to the fourth anniversary of the Effective Date."

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Section 1.03 Section 8.01. Section 8.01 shall be deleted and replaced in its entirety with "[Reserved]".

Section 1.04 Section 8.02. Section 8.02 shall be replaced in its entirety with the following:

"Preferred Stock Right. Upon three (3) Business Days' prior notice to the Lender and subject to the Lender's prior written consent, the Borrower may elect, at any time prior to the Maturity Date, to convert $8,750,000 of the outstanding principal amount of Loans into 3,500,000 preferred shares of the Borrower (the "Conversion Preferred Stock"). Each Conversion Preferred Stock shall have five (5) votes (vis-à-vis common stock of the Borrower) and be mandatorily converted to common stock of the Borrower, on a one for one basis, on any Business Day selected by the Borrower within three (3) months after the issuance thereof."

2.          CONDITION TO EFFECTIVENESS

This Amendment shall become effective only upon the satisfaction of each of the following conditions precedent (such satisfaction date being referred to herein as the "Amendment Effective Date"):

(a)          The Lender shall have received a counterpart signature page to this Amendment duly executed and delivered by an authorized officer or representative of the Borrower.

(b)          The Lender shall have received a counterpart signature page to the Exchange Agreement duly executed and delivered by an authorized officer or representative of the Borrower.

(c)          The Lender shall have received a counterpart signature page to Acknowledgement and Agreement of Guarantor duly executed and delivered by an authorized officer or representative of the Guarantor.

3.          REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the Lender that, as of the Effective Date and as of the date of each disbursement:

(a)          This Amendment has been duly authorized, executed and delivered by the Borrower, and constitutes a legal, valid and binding obligation of the Borrower in accordance with its terms. The Facility Agreement (as amended hereby) and each other Facility Document constitutes a legal, valid and binding obligation of the Borrower in accordance with its terms;

(b)          immediately prior to and after giving effect to this Amendment, no Default or Event of Default shall exist; and

(c)          at the time of and immediately after giving effect to this Amendment, (i) all representations and warranties of the Borrower set forth in the Facility Documents shall be true and correct in all material respects on and as of the date of this Amendment before and after

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giving effect thereto (unless stated to relate solely to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date), in each case other than representations and warranties that are subject to a Material Adverse Effect or a materiality qualifier, in which case such representations and warranties shall be (or shall have been) true and correct in all respects, and (ii) no Default shall have then occurred and be continuing.

4.          COVENANT

In accordance with Section 11(a) of the Existing Facilities Agreement (as amended by this Amendment), the Borrower shall reimburse the Lender upon demand for all out-of-pocket expenses (including counsel's fees) incurred by the Lender in connection with this Amendment.

5.          MISCELLANEOUS

Section 5.01 Reference to and Effect on the Facility Agreement and the Other Facility Documents.

(a)          This Amendment shall constitute a Facility Document for purposes of the Facility Agreement and the other Facility Documents. On and after the Amendment Effective Date, each reference in the Facility Agreement to "this Agreement", "herein", "hereunder", "hereto", "hereof" and words of similar import shall, unless the context otherwise requires, refer to the Facility Agreement as amended hereby, and each reference to the Facility Agreement in any other Facility Document shall be deemed to be a reference to the Facility Agreement as amended hereby; and

(b)          Except as specifically modified by this Amendment, the Facility Agreement and the other Facility Documents shall remain unchanged and shall remain in full force and effect and are hereby ratified and confirmed.

Section 5.02 Headings. Section and subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect.

Section 5.03 Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York, United States of America.

Section 5.04 Counterparts. This Amendment may be executed in counterparts, and all such counterparts taken together shall be deemed to constitute one and the same instrument.

Section 5.05 Successors and Assigns. This Amendment shall be binding upon the Borrower and the Lender and their respective successors and assigns.

[Remainder of this page intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

	 	
DRYSHIPS INC., as Borrower

 

By:    /s/ Ziad Nakhleh                 

          Name: Ziad Nakhleh

           Title: Chief Financial Officer

 

 

 

	 	
SIFNOS SHAREHOLDERS INC., as Lender

 

By:    /s/ Savvas Tournis                      

          Name: Savvas Tournis

           Title: Attorney-in-fact

[Signature Page — Second Amendment to Facility Agreement]Exhibit 4.51

 

EXECUTION VERSION

PREFERRED STOCK EXCHANGE AGREEMENT

 DRYSHIPS INC.

This Preferred Stock Exchange Agreement (the "Agreement") is made as of March 24, 2016 by and between DRYSHIPS INC., a Marshall Islands corporation (the "Company"), and SIFNOS SHAREHOLDERS INC., a Marshall Islands corporation (the "Seller").

WHEREAS, the Board of Directors of the Company deems it to be advisable and in the best interests of the Company and its stockholders that the Company exchanges certain of the outstanding shares of the Company's preferred stock from the Seller.

NOW THEREFORE, in consideration of the following mutual agreements and covenants, the parties hereto hereby agree as follows:

1.          Sale of Stock. Subject to the terms and conditions of this Agreement, on the Exchange Date (as defined below), the Company shall exchange (the "Exchange") from the Seller 4,000,000 shares of the Company's preferred stock (the "Shares") currently held by the Seller (or its designee), which have been adjusted for a reverse stock split ratio of 25 to 1, effectuated by the Company on March 11, 2016 and the Proportional Adjustment set forth in the Certificate of Designations of Rights, Preferences and Privileges of Series B Preferred Stock of DryShips Inc., dated December 28, 2015, at an exchange price per Share equal to 12% discount to the 10-day volume weighted average price calculated as of the close of business on March 22, 2016 or at a total exchange price of $ 9,000,000.00 (whichever is less, the "Exchange Price").

2.          Exchange. The exchange and sale of the Shares under this Agreement shall occur at the principal office of the Company simultaneously with the execution of this Agreement by the parties or on such other date as the Company and the Seller shall agree (the "Exchange Date"). On the Exchange Date, (i) the Seller shall deliver to the Company (or its designee) the Shares to be exchanged by the Company in exchange for an increase by the amount of the Exchange Price in the amount of the aggregate outstanding Loans (the "Loan Increase") under the Secured Revolving Facility Agreement, dated as of October 21, 2015, as amended by the First Amendment thereto, dated as of November 11, 2015 (as so amended and as may be further amended, restated, supplemented or otherwise modified from time to time, the "Facility Agreement"), between the Company, as borrower, and the Seller, as lender, (ii) the Loan Increase shall be evidenced by a written borrowing request for the amount of the Exchange Price delivered in accordance with Section 2.02 of the Facility Agreement and the amount of the aggregate outstanding Loans under the Facility Agreement shall then be deemed to be automatically increased by the amount of the Exchange Price without any additional action by any party or any funding obligation on the part of the Seller, as lender, (iii) the Company, as borrower, and the Seller, as lender, shall reflect the Loan Increase in its respective books and records or registers relating to the Facility Agreement, if any, and (iv) the Facility Agreement shall be amended to incorporate the changes described in Annex I hereto.

3.          Termination of Rights. The Seller agrees that upon the Exchange and the Loan Increase in accordance with Section 2 hereof, the Company shall become the legal and beneficial

owner of the Shares being exchanged and all rights and interest therein or related thereto and that the Seller shall immediately cease to be a stockholder of the Company with respect to the Shares.

4.          Miscellaneous.

(a)          Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of New York.

(b)          Entire Agreement; Enforcement of Rights. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

(c)          Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.

(d)          Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.

(e)          Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

(f)          Facility Document. This Agreement shall constitute a "Facility Document" for purposes of the Facility Agreement and the other Facility Documents.

(g)          No Waiver. The execution and delivery of this Agreement by the Seller shall not be construed to waive, limit, prejudice or otherwise adversely affect any of rights, powers, privileges and remedies of the Seller, available to it as lender under the Facility Documents, by statute, at law or in equity, (i) as to the Company as borrower under the Facility Documents and any other Person as a result of or otherwise in connection with any Default (as defined in the Facility Agreement) (whether known or unknown and whether previously or currently existing or arising in the future), which rights, powers, privileges and remedies may be exercised at any time or from time to time without further notice while such Default is continuing or (ii) to receive any and all other sums that may be or may become due or payable under any Facility Document or any other agreement, document or instrument delivered in connection with

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any Facility Document, all of which rights, powers, privileges and remedies are expressly reserved.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

	 	
COMPANY:

 

DRYSHIPS INC.

 

By:    /s/ Ziad Nakhleh                     

          Name: Ziad Nakhleh

           Title: Chief Financial Officer

 

 

	 	
SELLER:

 

SIFNOS SHAREHOLDERS INC.

 

By:    /s/ Savvas Tournis                 

          Name: Savvas Tournis

           Title: Attorney-in-fact

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ANNEX I

	1.	
The maximum amount of the Commitment is to increase by $10 million to $70 million from $60 million.

	2.	
The Borrower has the option to extend the maturity of the facility by 12 months from October 21, 2018 to October 21, 2019.

	3.	
The Lender will no longer have the conversion right under Section 8.01 of the existing Facility Agreement and such Section 8.01 will be deleted in its entirety.

	4.	
Subject to the prior written consent of the Lender, the Borrower has the right to convert $8,750,000 of the outstanding balance of the Loans into 3,500,000 preferred shares of the Borrower which have a voting power of 5:1 (vis-à-vis the common) and which mandatorily convert into common on a 1:1 basis within 3 months after conversion.

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