Document:

exv10w1

Exhibit 10.1

SEVERANCE AGREEMENT AND RELEASE OF CLAIMS

     This Severance Agreement and Release of Claims (“Agreement”) is made and entered into
on August 28, 2008 by and between Hamid R. Shokrgozar (“Executive”) and White Electronic
Designs Corporation and all of its affiliated companies and divisions (collectively referred to as
“Company”) and is intended by the parties hereto to settle and dispose of all claims and
liabilities that exist between Executive and Company as indicated herein.

RECITALS

     A. Executive and the Company are parties to that certain Executive Employment Agreement dated
December 13, 2007 (the “Employment Agreement”).

     B. Executive’s last day of employment with Company will be August 28, 2008 (the
“Termination Date”). Executive will resign from his positions as Chairman of the Board,
Chief Executive Officer, President and Director and any other positions and offices he holds with
the Company and with each of Company’s subsidiaries and affiliated entities on that date; and

     C. By entering into this Agreement, the parties mutually and voluntarily agree to be legally
bound by the terms set forth below.

COVENANTS

     NOW, THEREFORE, for valuable consideration, the parties agree as follows:

I.

     A. The Company agrees to pay Executive the sum of one million six hundred thousand dollars
($1,600,000), plus Executive’s accrued and unused vacation pay, less all lawfully required
withholdings. Payment shall be made immediately following the expiration of the seven (7) day
revocation period            set forth in Section VII, assuming that Executive has not revoked his
signature during that seven (7) day period. The Company will promptly pay Executive all
appropriate expense reimbursement requests properly submitted by Executive in compliance with
Company policy.

     B. If the Executive elects to continue his group health plan coverage (medical, dental and
vision) under Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Company shall pay for
eighteen (18) months following the Termination Date the Company’s portion of the Executive’s
COBRA premium equal to the amount paid by the Company before the Executive’s Termination Date.
Following such period, until December 13, 2010, the Company shall pay Executive an amount equal
to the Company’s portion of the Executive’s COBRA premium in order for Executive to secure health
insurance of his choice; provided that such payments shall

 

 

cease if, during the COBRA period or thereafter, Executive is then covered by reasonably
equivalent or superior health insurance provided by any subsequent employer. In addition, the
Company shall continue to provide Executive with up to $4,000 per year for unreimbursed medical
expenses and with the auto allowance and the disability and life benefits he is receiving from
the Company as of the Termination Date, less any required deductions, until December 13, 2010.
The life benefits and auto allowance received by Executive shall be on an after-tax basis, such
that the Company shall compensate Executive for any federal or state tax payable with respect to
such benefit as well as any such tax payable with respect to the compensation called for by this
sentence. Such gross up payments shall be made to Executive no later than the last day of the
calendar year in which Executive pays such taxes.

     C. The Company will provide outplacement services to the Executive at the outplacement
provider of his choice for a period not to exceed eighteen (18) months in the maximum amount of
$50,000.

     D. The Company will reimburse Executive for all reasonable attorneys’ fees incurred in
connection with this Agreement in the maximum amount of $50,000 (so long as such fees are
incurred and paid within six months from the date of this Agreement).

     E. The Company and Executive agree to the following concerning outstanding grants of stock
options, restricted stock units (“RSUs”) and performance shares to Executive:

	 	1.	 	The following vested stock options: (i) 125,000 shares granted on November 10,
1999; (ii) 125,000 shares granted on November 10, 1999; (iii) 150,000 shares granted on
May 16, 2001 and (iv) 150,000 shares granted on December 15, 2004 shall terminate, if
not exercised, on their respective expiration dates (i.e. November 10, 2009, November
10, 2009, May 16, 2011, and December 15, 2014, respectively);

	 	2.	 	The vested stock options to acquire 150,000 shares granted on December 3, 1998
shall terminate, if not exercised, on the 90th day following the Termination Date;

	 	3.	 	The vested stock options to acquire 150,000 shares granted on November 30, 2000
shall terminate on the date hereof;

	 	4.	 	Assuming Executive does not revoke his signature during the seven day period
set forth in Section VII, the Committee shall grant to Executive on the 8th day after
the date hereof an option to acquire 150,000 shares of the Company’s Common Stock at an
exercise price of $7.25 per share, an expiration date of November 30, 2010, and with
such other terms as are contained in the Company’s standard form of option agreement;

	 	5.	 	Assuming Executive does not revoke his signature during the seven day

- 2 -

 

	 	 	 	period set forth in Section VII, the 50,000 shares of restricted stock granted to
Executive pursuant to that certain Restricted Stock Units Award Agreement dated
December 12, 2007 shall vest on the 8th day after the date hereof;

	 	6.	 	Assuming Executive does not revoke his signature during the seven day period
set forth in Section VII, one-half (50,000 shares) of the performance shares granted to
Executive pursuant to that certain Performance Share Award Agreement dated December 12,
2007 shall vest on the 8th day after the date hereof;

	 	7.	 	Assuming Executive does not revoke his signature during the seven day period
set forth in Section VII, one-half (50,000 shares) of the performance shares granted to
Executive pursuant to that certain Performance Share Award Agreement dated December 12,
2007 shall vest if the Company’s EBITDA for the fiscal year ended in 2009 equals or
exceeds $9,960,000; and

	 	8.	 	Any other unvested right to receive Company stock shall terminate on the date
hereof.

     F. Executive acknowledges that upon receipt of the above, he is not owed any further money
or any further equity compensation by the Company.

     G. Executive hereby resigns his positions of Chairman of the Board, Chief Executive Officer,
President and Director and any other positions he holds with the Company and with each of
Company’s subsidiaries and affiliated entities and the Company hereby accepts the resignations.
At the request of Company, Executive agrees to execute any documents reasonably requested to
effectuate or to facilitate his resignations. Executive agrees he did not resign as a result of
a disagreement of the type referred to in Item 5.02(a)(1) of Form 8-K.

     H. By December 31, 2008, Executive’s Employment Agreement must be amended to either comply
with Section 409A of the Internal Revenue Code (“Code”) or to qualify for an exception to
the requirements of Code Section 409A. To qualify for an exception to the requirements of Code
Section 409A, Executive and the Company hereby amend Executive’s Employment Agreement by the
following:

     1. Section 5(f) shall be amended by adding the word “material” between the words “A
decrease” in paragraph (ii) and by adding the following language to the end thereof:
“Executive shall give written notice of his intent to terminate his employment under this
Section 5(f) and the facts underlying his reasons for termination, and during the 10 days
thereafter, the Company shall have an opportunity to cure the facts giving rise to the
Executive’s reasons for termination of employment.”

     2. Section 6 of the Employment Agreement is amended by adding the following Section
6(h): “Notwithstanding any provision in this Agreement to the

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contrary, any severance payment paid to you under this Section 6 shall be paid in a
lump sum within 30 days following the date of your termination of employment.”

     I. For a period of six (6) months following the Termination Date, Executive agrees to
provide consultation and advice, on an as needed and as requested basis, as an independent
contractor, to assist in the transition of Executive’s duties to other Company employees.
Executive shall be paid based on an hourly rate of $250 for any such services.

II.

     In consideration of the covenants set forth in Paragraph I above and the covenants herein:

     A. Executive, on behalf of himself, his marital community if any, and his heirs or assigns,
expressly releases Company and its subsidiaries, affiliated companies, directors, officers, all
of their agents, employees, and attorneys; and all their predecessors and successors
(collectively the “Released Entities”) from ANY AND ALL RIGHTS, CLAIMS, DEMANDS, CAUSES
OF ACTION, OBLIGATIONS, DAMAGES, PENALTIES, FEES, COSTS, EXPENSES, AND LIABILITIES OF ANY NATURE
WHATSOEVER WHICH EXECUTIVE HAS, HAD, OR MAY HAVE HAD AGAINST COMPANY OR ANY OR ALL OF THE
RELEASED ENTITIES IN CONNECTION WITH ANY CAUSE OR MATTER WHATSOEVER, WHETHER KNOWN OR UNKNOWN TO
THE PARTIES AT THE TIME OF EXECUTION OF THIS AGREEMENT AND EXISTING FROM THE BEGINNING OF TIME TO
THE DATE OF THE EXECUTION OF THIS AGREEMENT AND INCLUDING, WITHOUT LIMITATION, ALL MATTERS
RELATED TO EXECUTIVE’S EMPLOYMENT WITH THE COMPANY, THE EMPLOYMENT AGREEMENT AND THE TERMINATION
OF HIS EMPLOYMENT.

     By signing this Agreement, Executive agrees to FULLY WAIVE AND RELEASE ALL CLAIMS without
limitation, such as attorneys’ fees, and all rights and claims arising out of, or relating to, his
employment or termination from employment, with the Company including, BUT NOT LIMITED TO, any
claim or other proceeding arising under:

	•	 	The Civil Rights Act of 1866 (“Section 1981”);

	•	 	Title VII of the Civil Rights Act of 1964 as amended by the Civil Rights Act of 1991;

	•	 	The Americans with Disabilities Act (“ADA”);

	•	 	The Age Discrimination in Employment Act (“ADEA”);

	•	 	The Labor Management Relations Act (“LMRA”);

	•	 	The National Labor Relations Act (“NLRA”);

	•	 	The Fair Labor Standards Act (“FLSA”);

	•	 	The Family and Medical Leave Act of 1993 (“FMLA”);

	•	 	The Arizona Civil Rights Act;

	•	 	The Arizona Employment Protection Act;

- 4 -

 

	•	 	The Employee Retirement Income Security Act of 1974 (“ERISA”); and/or

	•	 	Any common law or statutory cause of action arising out of Executive’s employment or
termination of employment with the Company.

     This Agreement may be used to completely bar any action or suit before any court, arbitral, or
administrative body with respect to any claim under federal, state, local or other law relating to
this Agreement or to Executive’s employment and/or termination of employment with Company or its
subsidiaries, affiliates, related entities, predecessors, parents or divisions. Furthermore,
Executive specifically agrees that he will not be entitled to any further payment of any kind
following any future “Change in Control” as defined in the Employment Agreement. Notwithstanding
any provision hereof to the contrary, however, Executive does not release his rights to
indemnification under provisions of the Company’s articles of incorporation, bylaws or applicable
law.

     B. Executive shall deliver to Company any Company property, including any documents,
materials, files, or computer files, or copies, reproductions, duplicates, transcriptions, or
replicas thereof, relating to Company’s business or affairs, which are in Executive’s possession
or control, or of which Executive is aware.

     C. Executive hereby agrees to comply with the all of the restrictions and requirements in
Sections 4, 7 and 14 of his Employment Agreement.

III.

     The provisions of this Agreement are severable. This means that if any provision is invalid,
it will not affect the validity of the other provision. If the scope of any restrictions of this
Agreement should ever be deemed to exceed that permitted by applicable law or be otherwise
overbroad, Executive agrees that a court of competent jurisdiction shall enforce that restriction
to the maximum scope permitted by law under the circumstances.

IV.

     Executive agrees that he will not seek nor accept employment in the future with the Company or
any of its subsidiaries, affiliates, successors, or divisions.

V.

     By his signature below, Executive affirms that he has been given at least 21 days during which
to consider this Agreement. Executive has been advised to seek legal counsel prior to signing this
Agreement.

VI.

     The Company and Executive mutually agree not to disparage the other, either directly or
indirectly. However, nothing in this Section precludes either party from testifying or
participating in any legal proceeding in which the party is required by law to provide information
about the other party. The Company agrees to issue a press

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release in the form attached hereto as Exhibit A to announce this Agreement.

VII.

     Executive may revoke this Agreement at any time within seven (7) days following his execution
of the Agreement. Such revocation must be provided in writing and received during the seven (7)
day revocation period. To be effective, the revocation must be received by the following
individual:

Roger A. Derse

Chief Financial Officer

White Electronic Designs Corporation

3601 East University Drive, Suite 475

Phoenix AZ 85034

     This Agreement shall not become effective or enforceable until the foregoing revocation period
has expired.

VIII.

     Executive agrees that all requests for employment verification with the Company be directed to
the Company’s Chief Financial Officer. The Company agrees that it will provide only Executive’s
position, dates of employment and the fact that he resigned, in response to such employment
verification requests.

IX.

     This Agreement supersedes and replaces all prior discussions, understandings, and oral
agreements between the parties except as noted herein, and contains the entire agreement between
them on the matters herein contained. This Agreement may not be changed orally, but only by a
written agreement signed by Executive and Company.

X.

     The laws of the State of Arizona will apply to this Agreement.

XI.

     The Company intends that the payments to which Executive is entitled under this Agreement
comply with the short-term deferral exception to the requirements of Code Section 409A as defined
in Treasury Regulation Section 1.409A-1(b)(4). In order to meet the requirements of the short-term
deferral exception, despite any other provision of this Agreement to the contrary, such payment
shall be paid at the time stated in Section 6(h) of the Employment Agreement and in no event later
than March 15, 2009. In addition, the Company intends that the payment of COBRA premiums pursuant
to Section I.B., the payment of certain outplacement expenses pursuant to Section I.C. and the
payment of certain legal fees pursuant to Section I.D., fit within the exception to Section 409A
for certain reimbursements as defined in Treasury Regulation Section 1.409A-1(b)(9)(v).

- 6 -

 

XII.

     Except as otherwise provided herein, the Company, on behalf of itself and its subsidiaries,
affiliated companies, and all their predecessors and successors hereby release Executive and his
heirs or assigns, (collectively the “Released Parties”) from ANY AND ALL RIGHTS, CLAIMS,
DEMANDS, CAUSES OF ACTION, OBLIGATIONS, DAMAGES, PENALTIES, FEES, COSTS, EXPENSES, AND
LIABILITIES OF ANY NATURE WHATSOEVER WHICH THE COMPANY HAS, HAD, OR MAY HAVE HAD AGAINST THE
RELEASED PARTIES OR ANY OR ALL OF THE RELEASED PARTIES IN CONNECTION WITH ANY CAUSE OR MATTER
WHATSOEVER, WHETHER KNOWN OR UNKNOWN TO THE PARTIES AT THE TIME OF EXECUTION OF THIS AGREEMENT
AND EXISTING FROM THE BEGINNING OF TIME TO THE DATE OF THE EXECUTION OF THIS AGREEMENT AND
INCLUDING, WITHOUT LIMITATION, ALL MATTERS RELATED TO EXECUTIVE’S EMPLOYMENT WITH THE COMPANY,
THE EMPLOYMENT AGREEMENT AND THE TERMINATION OF HIS EMPLOYMENT.

     By signing this Agreement, the Company agrees to FULLY WAIVE AND RELEASE ALL CLAIMS.

     This Agreement may be used to completely bar any action or suit before any court, arbitral, or
administrative body with respect to any claim under federal, state, local or other law relating to
this Agreement or to Executive’s employment and/or termination of employment with Company or its
subsidiaries, affiliates, related entities, predecessors, parents or divisions.

	 	 	 	 	 	 	 
	/s/ Hamid R. Shokrgozar

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	Hamid R. Shokrgozar
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	WHITE ELECTRONIC DESIGNS CORPORATION
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Edward A. White

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	Edward A. White
	 	 	 	 	 	 

- 7 -ex10-3.htm

    Exhibit
10.3

     

    
       

      
        

        

        
          Date 
June 11, 2008

          

           

          

          CAPITAL
PRODUCT PARTNERS L.P.

          as
Borrower

          

          

          

          THE
BANKS AND FINANCIAL INSTITUTIONS

          listed
in Schedule 1

          as
Lenders

          

          - and
-

          

          HSH
NORDBANK AG

          as Swap
Bank

          

          

          - and
-

          

          

          HSH
NORDBANK AG

          as
Bookrunner

          

          

          - and
-

          

          

          HSH
NORDBANK AG

          as Agent
and Security Trustee

          

          

          
            
              

            

          

          

          SECOND
SUPPLEMENTAL AGREEMENT

           

          
            
              

            

          in
relation to a Loan Agreement dated

          22 March
2007 relating to revolving credit

          and term
loan facilities not exceeding US$370,000,000

           

           

           

           

           

           

           

          WATSON,
FARLEY & WILLIAMS

          
            Piraeus

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

          Clause                                                                                                      Page

          

           

          
            
              	
                      1

                    	
                      INTERPRETATION

                    	
                      3

                    
	
                      2

                    	
                      AGREEMENT OF THE CREDITOR
      PARTIES

                    	
                      4

                    
	
                      3

                    	
                      CONDITIONS PRECEDENT

                    	
                      4

                    
	
                      4

                    	
                      REPRESENTATIONS AND
    WARRANTIES

                    	
                      4

                    
	
                      5

                    	
                      AMENDMENTS TO LOAN AGREEMENT AND
      OTHER FINANCE DOCUMENTS

                    	
                      5

                    
	
                      6

                    	
                      FURTHER ASSURANCES

                    	
                      6

                    
	
                      7

                    	
                      EXPENSES

                    	
                      7

                    
	
                      8

                    	
                      NOTICES

                    	
                      7

                    
	
                      9

                    	
                      SUPPLEMENTAL

                    	
                      7

                    
	
                      10

                    	
                      LAW AND JURISDICTION

                    	
                      7

                    
	
                      EXECUTION PAGES

                    	
                      9

                    
	
                      SCHEDULE 1   LENDERS

                    	
                      12

                    

            

            
 

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          THIS AGREEMENT is made
on  2008

          

          BETWEEN

          

          
            	
                    (1)

                  	
                    CAPITAL PRODUCT PARTNERS
      L.P. (the “Borrower”);

                  

          

           

          
            	
                    (2)

                  	
                    THE BANKS AND FINANCIAL
      INSTITUTIONS  listed in Schedule 1, as Lenders;

                  

          

           

          
            	
                    (3)

                  	
                    HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20095, Hamburg,
      Germany, as Agent;

                  

          

           

          
            	
                    (4)

                  	
                    HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20095, Hamburg,
      Germany, as Security Trustee;

                  

          

           

          
            	
                    (5)

                  	
                    HSH NORDBANK AG acting
      through its office at Martensdamm 6, D-24103 Kiel, Germany, as Swap Bank;
      and

                  

          

           

          
            	
                    (6)

                  	
                    HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20095, Germany as Bookrunner.

                  

          

           

          
            BACKGROUND

          

           

          
            	
                    (A)

                  	
                    By
      a loan agreement dated 22 March 2007 as amended by a supplemental
      agreement dated 19th September 2007 and made between (i) the Borrower,
      (ii) the Lenders, (iii) the Agent, (iv) the Security Trustee, (v) the Swap
      Bank and (vi) the Bookrunner, the Lenders agreed to make available to the
      Borrower revolving credit and term loan facilities not exceeding
      US$370,000,000.

                  

          

           

          
            	
                    (B)

                  	
                    The
      Borrower has made a request to the Creditor
  Parties:

                  

          

           

          
            	
                     
      

                  	
                    (i)

                  	
                    to
      allow the Borrower to use the undrawn balance of Tranche C as working
      capital for its general corporate purposes including acquisition of
      vessels and ship owning companies;
and

                  

          

           

          
            	
                     
      

                  	
                    (ii)

                  	
                    that
      m.v. “ARIS II” and m.v. “ARISTOTELIS II” no longer be considered as
      Tranche C New Ships which will act as security for the
    Loan.

                  

          

           

          
            	
                    (C)

                  	
                    This
      Agreement sets out the terms and conditions on which the Creditor Parties
      agree, with effect on and from the Effective Date, to the requests of the
      Borrower and the consequential amendments to the Loan Agreement and the
      other Finance Documents.

                  

          

           

          IT IS AGREED as
follows:

          

          1     
INTERPRETATION

           

          
            	
                    1.2

                  	
                    Defined
      expressions.  Words and expressions defined in the Loan
      Agreement and the other Finance Documents shall have the same meanings
      when used in this Agreement unless the context otherwise
      requires.

                  

          

           

          
            	
                    1.3

                  	
                    Definitions.  In
      this Agreement, unless the contrary intention
  appears:

                  

          

           

          “Effective
Date”  means the date on which all the conditions precedent
referred to in Clause 3.1 have been fulfilled by the Borrower, to be a Business
Day not later than  June 2008 (or such later date as the Lenders may
agree with the Borrower);

          

          “Loan
Agreement”  means the loan agreement dated 22 March 2007
referred to in Recital (A) as amended by a supplemental agreement dated 19th
September 2007.

           

           

          
            
              
              

            

            
              3

              
                

              

            

            
              
              

            

          

          
 

          
            	
                    1.4

                  	
                    Application of construction and
      interpretation provisions of Loan Agreement.  Clauses
      1.2, 1.3, 1.4 and 1.5 of the Loan Agreement apply, with any necessary
      modifications, to this Agreement.

                  

          

           

          
            2     AGREEMENT
OF THE CREDITOR PARTIES

          

           

          
            	
                    2.1

                  	
                    Agreement of the
      Lenders.  The Lenders agree, subject to and upon the
      terms and conditions of this Agreement,
to:

                  

          

           

          
            	
                    (a)

                  	
                    allow
      the Borrower to use the undrawn balance of Tranche C as working capital
      for its general corporate purposes including acquisition of vessels and
      ship owning companies and such undrawn balance of Tranche C to be drawn in
      multiple advances (having the same use as per the undrawn balance of
      Tranche D); and

                  

          

           

          
            	
                    (b)

                  	
                    no
      longer consider m.v. “ARIS II” and m.v. “ARISTOTELIS II” as Tranche C New
      Ships which will act as security for the
Loan.

                  

          

           

          
            	
                    2.2

                  	
                    Agreement of the Creditor
      Parties.  The Creditor Parties agree, subject to and upon
      the terms and conditions of this Agreement, to the consequential amendment
      of the Loan Agreement and the other Finance Documents in connection with
      the matters referred to in Clause
2.1.

                  

          

           

          
            	
                    2.3

                  	
                    Effective Date. The
      agreement of the Lenders and the other Creditor Parties contained in
      Clause 2.1 shall have effect on and from the Effective
    Date.

                  

          

           

          
            3     
CONDITIONS
PRECEDENT

          

           

          
            	
                    3.1

                  	
                    General.  The
      agreement of the Lenders and the other Creditor Parties contained in
      Clauses 2.1 and 2.2 is subject to the fulfilment of the conditions
      precedent referred to in Clause 9.1 of the Loan Agreement and in Clause
      3.2.

                  

          

           

          
            	
                    3.2

                  	
                    Conditions
      Precedent.  The conditions referred to in Clause 3.1 are
      that the Agent shall have received the following documents and evidence in
      all respects in form and substance satisfactory to the Agent and its
      lawyers on or before the Effective Date (or such later date as the Lenders
      may agree with the Borrower):

                  

          

           

          
            	
                    (a)

                  	
                    documents
      of the kind specified in paragraphs 3, 4 and 5 of Schedule 3, Part A to
      the Loan Agreement in relation to the Borrower updated with appropriate
      modifications to refer to this
Agreement;

                  

          

           

          
            	
                    (b)

                  	
                    originals
      of this Agreement duly executed by the parties
  thereto;

                  

          

           

          
            	
                    (c)

                  	
                    the
      endorsement at the end of this Agreement signed by the relevant
      Owners;

                  

          

           

          
            	
                    (d)

                  	
                    documentary
      evidence that the agent for service of process named in Clause 30 of the
      Loan Agreement has accepted its appointment;
and

                  

          

           

          
            	
                    (e)

                  	
                    any
      further opinions, consents, agreements and documents in connection with
      this Agreement and the Finance Documents which the Lenders may request by
      notice to the Borrower prior to the Effective
  Date.

                  

          

           

          
            
              4     
REPRESENTATIONS
AND WARRANTIES

               

            

          

          
            	
                    4.1

                  	
                    Repetition of Loan Agreement
      representations and warranties.  The Borrower represents
      and warrants to the Creditor Parties that the representations and
      warranties in clause 10 of the Loan Agreement, as amended and supplemented
      by this Agreement and updated with appropriate modifications to refer to
      this Agreement, remain true and not misleading if repeated on the date of
      this Agreement with reference to the circumstances now
      existing.

                  

          

           

           

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

          

           

           

          
            	
                    4.2

                  	
                    Repetition of Finance Document
      representations and warranties.  The Borrower and each of
      the Security Parties represents and warrants to the Creditor Parties that
      the representations and warranties in the Finance Documents (other than
      the Loan Agreement) to which it is a party, as amended and supplemented by
      this Agreement and updated with appropriate modifications to refer to this
      Agreement remain true and not misleading if repeated on the date of this
      Agreement with reference to the circumstances now
  existing.

                  

          

           

          
            5     
AMENDMENTS
TO LOAN AGREEMENT AND OTHER FINANCE DOCUMENTS

          

           

          
            	
                    5.1

                  	
                    Specific amendments to Loan
      Agreement.  With effect on and from the Effective Date
      the Loan Agreement shall be, and shall be deemed by this Agreement to be,
      amended as follows:

                  

          

           

          
            	
                    (a)

                  	
                    by
      deleting the definition “ARIS II” from Clause 1.2
  thereof;

                  

          

           

          
            	
                    (b)

                  	
                    by
      deleting the definition “ARIS II Shipbuilding Contract” from Clause 1.2
      thereof;

                  

          

           

          
            	
                    (c)

                  	
                    by
      removing the words “ARISTOTELIS II and ARIS II” from the definition of
      “Bareboat Charter” in Clause 1.2 thereof and construing the definition of
      “Bareboat Charter” accordingly;

                  

          

           

          
            	
                    (d)

                  	
                    by
      removing the words “ARISTOTELIS II and ARIS II” from the definition of
      “Existing Charter” in Clause 1.2 thereof and by construing the definition
      of “Existing Charter” accordingly;

                  

          

           

          
            	
                    (e)

                  	
                    by
      removing the words “Belerion Maritime Co. (“Belerion”) and “Wind Dancer
      Shipping Inc. (“Wind Dancer”)” from the definition of “New Ships Owners”
      in Clause 1.2 thereof, by construing the definition “New Ships Owners”
      accordingly and by redesignating the existing paragraphs (b), (c), (d),
      (e) and (f) in such definition as respectively paragraphs (a), (b), (c),
      (d) and (e);

                  

          

           

          
            	
                    (f)

                  	
                    by
      removing the words “together ARISTOTELIS II and ARIS II and, in the
      singular means any of them” from the definition of “Tranche C New Ships”
      in Clause 1.2 thereof and by construing all references in the Loan
      Agreement to the “Tranche C New Ships” to mean “ALEXANDROS
      II”;

                  

          

           

          
            	
                    (g)

                  	
                    by
      removing the words “(i) ARIS II, Belerion” and “(j) ARISTOTELIS II, Wind
      Dancer” from the definition of “Owner” in Clause 1.2 thereof and by
      redesignating the existing paragraphs (k), (l), (m), (n) and (o) in the
      definition of “Owner” as respectively paragraphs (i), (j), (k), (l) and
      (m);

                  

          

           

          
            	
                    (h)

                  	
                    by
      removing the words “the Aristotelis II Shipbuilding Contract and the Aris
      II Shipbuilding Contract” from the definition of “Shipbuilding Contracts”
      in Clause 1.2 thereof and by construing the definition of “Shipbuilding
      Contract” accordingly;

                  

          

           

          
            	
                    (i)

                  	
                    by
      deleting the definition of “Tranche C” in Clause 1.2 thereof and replacing
      it with the following:

                  

          

           

          “Tranche C”  means an
amount of up to $86,000,000 to be made available by the Lenders to the Borrower
in multiple Advances pursuant to the terms of this Agreement and:

           

           

           

          
            
              
              

            

            
              5

              
                

              

            

            
              
              

            

          

          
 

          
            	
                     
      

                  	
                    (a)

                  	
                    which,
      as to an amount of $48,000,000, has been on-lent by the Borrower to Sorrel
      in part-financing the acquisition of “ALEXANDROS II” by Sorrel;
      and

                  

          

           

          
            	
                     
      

                  	
                    (b)

                  	
                    which,
      as to an amount of up to $38,000,000, may be used by the Borrower as
      working capital for its general working capital purposes including
      acquisition of vessels and ship owning
  companies,

                  

          

           

          or, as
the context may require, the aggregate principal amount thereof outstanding at
the relevant time under this Agreement;”;

           

          
            	
                    (j)

                  	
                    by
      deleting Clause 4.2(c) thereof in its entirety and replacing it with the
      following:

                  

          

           

          
            	
                     
      

                  	
                    “(c)

                  	
                    the
      Advances under Tranche C shall be used (i) in financing the acquisition of
      “ALEXANDROS II” and (ii) providing the Borrower with working capital for
      its general corporate purposes including acquisition of vessels and ship
      owning companies subject to the aggregate amount of the Advances under
      Tranche C which are outstanding at any time not exceeding $86,000,000;”;
      and

                  

          

          

          
            	
                    (k)

                  	
                    by
      adding in the second line of Clause 9.1(d) thereof after the words
      “Tranche C” the words “(other than any Advance which shall be used to
      provide the Borrower with working capital for its general corporate
      purposes)”.

                  

          

           

          
            	
                    5.2

                  	
                    Amendments to Finance
      Documents.  With effect on and from the Effective Date
      each of the Finance Documents other than the Loan Agreement, shall be, and
      shall be deemed by this Agreement to be, amended as
    follows:

                  

          

           

          
            	
                    (a)

                  	
                    the
      definition of, and references throughout each of the Finance Documents to,
      the Loan Agreement and any of the other Finance Documents shall be
      construed as if the same referred to the Loan Agreement and those Finance
      Documents as amended and supplemented by this
  Agreement;

                  

          

           

          
            	
                    (b)

                  	
                    by
      construing references throughout each of the Finance Documents to “this
      Agreement”, “this Deed”, “hereunder” and other like expressions as if the
      same referred to such Finance Documents as amended and supplemented by
      this Agreement.

                  

          

           

          
            	
                    5.3

                  	
                    Finance Documents to remain in
      full force and effect.  The Finance Documents shall
      remain in full force and effect as amended and supplemented
      by:

                  

          

           

          
            	
                    (a)

                  	
                    the
      amendments to the Finance Documents contained or referred to in Clauses
      5.1 and 5.2; and

                  

          

           

          
            	
                    (b)

                  	
                    such
      further or consequential modifications as may be necessary to give full
      effect to the terms of this
Agreement,

                  

          

           

          
            6     
FURTHER
ASSURANCES

          

           

          
            	
                    6.1

                  	
                    Borrower’s obligation to
      execute further documents etc.  The Borrower shall, and
      shall procure that any other party to any Finance Document
      shall:

                  

          

           

          
            	
                    (a)

                  	
                    execute
      and deliver to the Security Trustee (or as it may direct) any assignment,
      mortgage, power of attorney, proxy or other document, governed by the law
      of England or such other country as the Security Trustee may, in any
      particular case, specify;

                  

          

           

          
            	
                    (b)

                  	
                    effect
      any registration or notarisation, give any notice or take any other
      step,

                  

          

           

          which the
Agent may, by notice to the Borrower or other party, specify for any of the
purposes described in Clause 6.2 or for any similar or related
purpose.

           

           

           

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

          

          
 

          
            	
                    6.2

                  	
                    Purposes of further
      assurances.  Those purposes
  are:

                  

          

           

          
            	
                    (a)

                  	
                    validly
      and effectively to create any Security Interest or right of any kind which
      the Security Trustee intended should be created by or pursuant to the Loan
      Agreement or any other Finance Document, each as amended and supplemented
      by this Agreement; and

                  

          

           

          
            	
                    (b)

                  	
                    implementing
      the terms and provisions of this
Agreement.

                  

          

           

          
            	
                    6.3

                  	
                    Terms of further
      assurances.  The Security Trustee may specify the terms
      of any document to be executed by the Borrower or any other party under
      Clause 6.1, and those terms may include any covenants, powers and
      provisions which the Security Trustee considers appropriate to protect its
      interests.

                  

          

           

          
            	
                    6.4

                  	
                    Obligation to comply with
      notice.  The Borrower or any other party shall comply
      with a notice under Clause 6.1 by the date specified in the
      notice.

                  

          

           

          
            	
                    6.5

                  	
                    Additional corporate
      action.  At the same time as the Borrower or any other
      party delivers to the Agent any document executed under Clause 6.1(a), the
      Borrower or any other party shall also deliver to the Agent a certificate
      signed by 2 of the Borrower’s or that other party’s directors which
      shall:

                  

          

           

          
            	
                    (a)

                  	
                    set
      out the text of a resolution of the Borrower’s or that other party’s
      directors specifically authorising the execution of the document specified
      by the Agent; and

                  

          

           

          
            	
                    (b)

                  	
                    state
      that either the resolution was duly passed at a meeting of the directors
      validly convened and held throughout which a quorum of directors entitled
      to vote on the resolution was present or that the resolution has been
      signed by all the directors and is valid under the Borrower's or that
      other party’s articles of association or other constitutional
      documents.

                  

          

           

          
            7     
EXPENSES

          

           

          
            	
                    7.1

                  	
                    Expenses.  The
      provisions of clause 20 (Fees and Expenses) of the Loan Agreement, as
      amended and supplemented by this Agreement, shall apply to this Agreement
      as if they were expressly incorporated in this Agreement with any
      necessary modifications.

                  

          

           

          
            8     
NOTICES

          

           

          
            	
                    8.1

                  	
                    General.  The
      provisions of clause 28 (Notices) of the Loan Agreement, as amended and
      supplemented by this Agreement, shall apply to this Agreement as if they
      were expressly incorporated in this Agreement with any necessary
      modifications.

                  

          

           

          
            9     
SUPPLEMENTAL

          

           

          
            	
                    9.1

                  	
                    Counterparts.  This
      Agreement may be executed in any number of
  counterparts.

                  

          

           

          
            	
                    9.2

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

                  

          

           

          
            10    LAW AND
JURISDICTION

          

           

          
            	
                    10.1

                  	
                    Governing
      law.  This Agreement shall be governed by and construed
      in accordance with English law.

                  

          

           

           

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

          

           

           

          
            	
                    10.2

                  	
                    Incorporation of the Loan
      Agreement provisions.  The provisions of clause 30 (Law
      and Jurisdiction) of the Loan Agreement, as amended and supplemented by
      this Agreement, shall apply to this Agreement as if they were expressly
      incorporated in this Agreement with any necessary
      modifications.

                  

          

           

          THIS AGREEMENT has been duly
executed as a Deed on the date stated at the beginning of this
Agreement.

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

          EXECUTION PAGES

           

          
             

             

             

             

            
              	
                      BORROWER
      

                    	
                       

                    
	 	 
	SIGNED by             	) 
	
                      for
      and on behalf of  

                    	) 
	CAPITAL PRODUCT PARTNERS
      L.P. 	) 
	 	 
	 	 
	 	 
	
                      LENDERS 

                    	 
	 	 
	
                      SIGNED
      by 

                    	) 
	for and on behalf
      of  	) 
	HSH NORDBANK
      AG 	) 
	 	 
	 	 
	 	 
	SIGNED
by 	) 
	for and on behalf
      of  	) 
	ALPHA BANK
      A.E. 	) 
	 	 
	 	 
	 	 
	SIGNED
by 	) 
	for and on behalf
      of 	) 
	DEUTSCHE SCHIFFSBANK
      AG 	) 
	 	 
	 	 
	 	 
	SIGNED
by 	) 
	for and on behalf
      of 	) 
	NATIONAL BANK
      OF 	) 
	GREECE
    S.A. 	) 
	 	 
	 	 
	 	 
	SIGNED
by 	) 
	for and on behalf
      of 	) 
	FORTIS
    BANK 	) 
	 	 
	 	 
	 	 
	AGENT 	 
	 	 
	SIGNED
by 	) 
	for and on behalf
      of 	) 
	HSH NORDBANK
      AG 	) 
	 	 

            

             

             

             

            
              
                
                

              

              
                9

                
                  

                

              

              
                
                

              

            

             

             

             

            
              	
                      SECURITY
      TRUSTEE 

                    	 
	 	 
	SIGNED
by 	) 
	for and on behalf
      of 	) 
	HSH NORDBANK
      AG 	) 
	 	 
	 	 
	 	 
	SWAP
BANK 	 
	 	 
	SIGNED
by 	) 
	for and on behalf
      of 	) 
	HSH NORDBANK
      AG 	) 
	 	 
	 	 
	 	 
	BOOKRUNNER 	 
	 	 
	SIGNED
by 	) 
	for and on behalf
      of 	) 
	HSH NORDBANK
      AG 	) 
	 	 
	 	 
	 	 
	Witness to all the
      above 	) 
	signatures: 	) 
	 	 
	Name: 	 
	 	 
	Address: 	 

            

             

          

                           

          
            
              
              

            

            
              10

              
                

              

            

            
              
              

            

          

           

           

          We hereby
confirm and acknowledge we have read and understood the terms and conditions of
the above Supplemental Agreement and agree in all respects to the same and
confirm that the Finance Documents to which we are a party shall remain in full
force and effect and shall continue to stand as security for the obligations of
the Borrower under the Loan Agreement (as amended by the Supplemental Agreement)
and shall, without limitation, secure the Loan.

           

          
             

            

            
              	 
      	 	 
      
	
                       

                    	 	
                       

                    
	 
      	 	 
      
	
                      for
      and on behalf of

                    	 	
                      for
      and on behalf of

                    
	
                      APOLLONAS
      SHIPPING COMPANY

                    	 	
                      CANVEY
      SHIPMANAGEMENT CO.

                    
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                       

                    	 	
                       

                    
	 
      	 	 
      
	
                      for
      and on behalf of

                    	 	
                      for
      and on behalf of

                    
	
                      CARNATION
      SHIPPING COMPANY

                    	 	
                      CENTURION
      NAVIGATION

                    
	 
      	 	
                      LIMITED

                    
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                       

                    	 	
                       

                    
	
                      for
      and on behalf of

                    	 	
                      for
      and on behalf of

                    
	
                      IRAKLITOS
      SHIPPING COMPANY

                    	 	
                      POLARWIND
      MARITIME S.A.

                    
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                       

                    	 	
                       

                    
	 
      	 	 
      
	
                      for
      and on behalf of

                    	 	
                      for
      and on behalf of

                    
	
                      SHIPPING
      RIDER CO.

                    	 	
                      TEMPEST
      MARITIME INC.

                    
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                       

                    	 	
                       

                    
	 
      	 	 
      
	
                      for
      and on behalf of

                    	 	
                      for
      and on behalf of

                    
	
                      LAREDO
      MARITIME INC.

                    	 	
                      EPICURUS
      SHIPPING COMPANY

                    
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                       

                    	 	
                       

                    
	 
      	 	 
      
	
                      for
      and on behalf of

                    	 	
                      for
      and on behalf of

                    
	
                      ROSS
      SHIPMANAGEMENT CO.

                    	 	
                      SOPREL
      SHPMANAGEMENT INC.

                    

            

            

            Dated:  2008

            
              
                 

              

              
                11 

                
                  

                

              

              
                 

              

            

          SCHEDULE 1

           

          LENDERS

           

          

          
            	
                    Lender

                  	
                    Lending
      Office

                  
	
                     

                    HSH
      Nordbank AG

                     

                  	
                     

                    Gerhart-Hauptmann-Platz
      50

                    20095
      Hamburg

                    Germany

                     

                    Fax
      No: +(49) 40 33 33 34118

                     

                  
	
                     

                    Alpha
      Bank A.E.

                  	
                     

                    Akti
      Miaouli 89

                    185
      38 Piraeus

                    Greece

                     

                    Fax
      No: +30 210 429 0348

                     

                  
	
                     

                    Deutsche
      Schiffsbank AG

                     

                  	
                     

                    Domshof
      17

                    D-28195
      Bremen

                     

                    Fax
      No: +49 421 3609329

                     

                  
	
                     

                    National
      Bank of Greece S.A.

                     

                  	
                     

                    Bouboulinas
      2 & Akti Miaouli

                    185
      35 Piraeus

                     

                    Fax
      No: +30 210 414 4120

                     

                  
	
                     

                    Fortis
      Bank

                  	
                     

                    166
      Syngrou Ave

                    176
      71 Athens

                    Greece

                     

                    Fax
      No: +30 210 954 4368

                  

          

          

           

           

          
12

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