Document:

d1104770_ex4-20.htm

 

 

Exhibit 4.20

 

 

DATED 25 NOVEMBER 2009

 

 

 

 

LICHTENSTEIN SHIPPING COMPANY LIMITED

(as borrower)

 

-and-

 

ALPHA BANK A.E.

 

(as lender)

 

 

 

 

____________________________________________________

THIRD AGREEMENT

DATED 3 APRIL 2009 AND A SIDE SUPPLEMENTAL AGREEMENT

TO SECURED LOAN FACILITY AGREEMENT

DATED 18 AUGUST 2008

AS AMENDED AND SUPPLEMENTED BY A FIRST SUPPLEMENTAL AGREEMENT

DATED 23 FEBRUARY 2009

AND A SECOND SUPPLEMENTAL LETTER DATED 2 JULY 2009

____________________________________________________

 

 

 

 

 

 

STEPHENSON HARWOOD

One, St. Paul's Churchyard

London EC4M 8SH

Tel: +44 (0)20 7329 4422

Fax: +44 (0)20 7329 7100

Ref: F28.063

  

  

  

CONTENTS

 

Page

 

	
1

	
Interpretation

 

	
2

	
2

	
Conditions

 

	
3

	
3

	
Representations and Warranties

 

	
5

	
4

	
Amendments to Original Loan Agreement and the Guarantee

 

	
5

	
5

	
Confirmation and Undertaking

 

	
9

	
6

	
Further Assurance

 

	
9

	
7

	
Miscellaneous

 

	
10

	
8

	
Notices, Law and Jurisdiction

 

	
10

	
9

	
Costs and Expenses

 

	
10

 

  

  

  

THIRD SUPPLEMENTAL AGREEMENT

 

Dated: 25 November 2009

 

BETWEEN:

 

(1)   LICHTENSTEIN SHIPPING COMPANY LIMITED, a company incorporated under the laws of the Republic of Liberia whose registered office is at 80, Broad Street Monrovia, Liberia (the "Borrower"); and

 

(2)   ALPHA BANK A.E., acting through its office at 89 Akti Miaouli, GR 185 38 Piraeus, Greece (the "Lender").

 

SUPPLEMENTAL TO a secured loan agreement dated 18 August 2008, as amended and supplemented by a first supplemental agreement dated 23 February 2009 (the "First Supplemental Agreement"), as further amended and supplemented by a second supplemental agreement dated 3 April 2009 (the "Second Supplemental Agreement") and a side letter dated 2 July 2009, and as the same may be amended, supplemented, novated and/or replaced from time to time (the "Original Loan Agreement") each made between, amongst others, the Borrower, as borrower, and the Lender, as lender, on the terms and subject to the conditions of which the Lender has agreed to advance to the Borrower an aggregate amount not exceeding thirty nine million Dollars ($39,000,000) (the "Loan").

 

WHEREAS:

 

(A)   Pursuant to the clause 12.2.1 of the Original Loan Agreement, the Borrower would procure that the Guarantor shall at all times during the Facility Period on a consolidated basis, commencing from the date of the Original Loan Agreement, maintain a Minimum Liquidity of not less than twenty five million Dollars ($25,000,000).

 

(B)   Further to the request of the Borrower and pursuant to the terms and conditions of the Second Supplemental Agreement, the Borrower and the Lender agreed to reduce the requisite amount of Minimum Liquidity referred to in clause 12.2.1 of the Original Loan Agreement to an amount not less than fifteen million Dollars ($15,000,000) with effect from the Effective Date (as defined in the Second Supplemental Agreement) up to and including 31 March 2010, whereupon and for the remainder of the Facility Period, the requisite amount of the Minimum Liquidity will be increased again to an amount of not less than twenty five million Dollars ($25.000.000).

 

  

  

  

(C)   The Borrower has now requested that the Lender agree to waive the financial covenant referred to in clause 12.2.1 of the Original Loan Agreement with effect from the Effective Date until and including 31 March 2010, whereupon and for the remainder of the Facility Period, the requisite amount of the Minimum Liquidity will be increased again to an amount of not less than twenty five million Dollars ($25,000,000).

 

(D)   The Lender is willing to agree to all the foregoing requests and amend the Original Loan Agreement and the Security Documents subject to the terms and conditions set forth in this Third Supplemental Agreement.

 

(E)   At the date of this Third Supplemental Agreement the outstanding amount of the Loan is thirty seven million eight hundred thousand Dollars ($37,800,000).

 

IT IS AGREED THAT:

 

1        Interpretation

 

	
  

	
1.1

	
In this Third Supplemental Agreement:

 

"Collateral Addenda to Mortgages" means any addendum to the first preferred Panamanian mortgage over the Vessel to be granted by the Borrower, as owner of the Vessel in favour of the Lender and any addendum to the second preferred Liberian mortgage over the Collateral Vessel to be granted by the Collateral Guarantor, as owner of the Collateral Vessel, each in form and substance acceptable to the Lender in all respects and "Collateral Addendum to Mortgage" means any one of them.

 

"Effective Date" means the date of this Third Supplemental Agreement.

 

"New Security Documents" means this Third Supplemental Agreement, the Third Supplemental Deeds of Confirmation, the Collateral Addenda to Mortgages and any other agreement or document which may at any time be executed by any person as additional security for the payment of all or any part of the Indebtedness and "New Security Document" means any one of them.

 

"Third Supplemental Deeds of Confirmation" means the deeds of confirmation to be executed by each of the Guarantor and the Collateral Guarantor in favour of the Lender in form and substance acceptable to the Lender in all respects and “Third Supplemental Deed of Confirmation” means any one of them.

 

  

2

  

	
  

	
1.2

	
Unless otherwise defined, all words and expressions defined in the Original Loan Agreement shall have the same meaning when used in this Third Supplemental Agreement unless the context otherwise requires, and clause 1.2 of the Original Loan Agreement shall apply to the interpretation of this Third Supplemental Agreement as if it was set out in full.

 

2           Conditions

 

	
  

	
2.1

	
As conditions for the agreement of the Lender to the requests specified in Recital (C) above, the Borrower shall deliver or cause to be delivered to or to the order of the Lender the following documents and evidence:

 

2.1.1    Officer's bringdown certificates — Borrower and Guarantor A certificate from a duly authorised officer of each of the Borrower and the Guarantor confirming that none of the documents delivered to the Lender pursuant to Schedule 1, Part I, Paragraphs 1(a), (c), (d) and (g) of the Original Loan Agreement and clauses 2.1.2 and 2.1.3 of the First Supplemental Agreement and clauses 2.1.3 and 2.1.4 of the Second Supplemental Agreement have been amended or modified in any way since the date of their delivery to the Lender, or copies, certified by a duly authorised officer of each of the Borrower and the Guarantor as true, complete, accurate and neither amended nor revoked, of any documents which have been amended or modified.

 

2.1.2    Officer's bringdown certificates — Collateral Guarantor A certificate from a duly authorised officer of the Collateral Guarantor confirming that none of the documents delivered to the Lender pursuant to clauses 2.1.2, 2.1.3 and 2.1.4 of the Second Supplemental Agreement have been amended or modified in any way since the date of their delivery to the Lender, or copies, certified by a duly authorised officer of the Collateral Guarantor as true, complete, accurate and neither amended nor revoked, of any documents which have been amended or modified.

 

  

3

  

	
  

	
2.1.3

	
Board and shareholder resolutions The original resolution of the directors and the shareholders of each Security Party (together, where appropriate, with signed waivers of notice of any directors' or shareholders' meetings) approving, and authorising or ratifying the execution of, the New Security Documents (as applicable) and any document to be executed by the Security Party in question pursuant to the New Security Documents.

 

	
  

	
2.1.4

	
Power of attorney A notarially attested and legalised power of attorney of each of the Security Parties under which the New Security Documents (as applicable) and any documents required pursuant to any such New Security Document is to be executed by the Security Party in question.

 

	
  

	
2.1.5

	
Goodstanding certificates A certificate of good standing in respect of each of the Security Parties.

 

	
  

	
2.1.6

	
New Security Documents The New Security Documents together with all other documents required by any of them.

 

	
  

	
2.1.7

	
Legal opinions Confirmation satisfactory to the Lender that all legal opinions required by the Lender will be given substantially in the form required by the Lender.

 

	
  

	
2.1.8

	
Process agent Evidence that the process agent referred to in clause 21.5 of the Original Loan Agreement has accepted its appointment as agent for service of process in relation to any proceedings before the English courts in connection with the New Security Documents.

 

	
  

	
2.1.9

	
Other authorisations A copy of any other consent, licence, approval, authorisation or other document, opinion or assurance which the Lender considers to be necessary or desirable (if it has notified the Borrower accordingly) in connection with the entry into and performance of the transactions contemplated by the New Security Documents or for the validity and enforceability of the New Security Documents.

 

  

4

  

	
  

	
2.2

	
If the Lender agrees, in its sole discretion, to waive any conditions under Clause 2.1 prior to the Effective Date, the Borrower undertakes to deliver all outstanding documents and evidence to or to the order of the Lender no later than the date specified by the Lender, which however, shall not be taken as a waiver of the Lender's right to require production of all the documents and evidence required by Clause 2.1.

 

	
  

	
2.3

	
All documents and evidence delivered to the Lender pursuant to this Clause shall:

 

	
  

	
2.3.1

	
be in form and substance acceptable to the Lender;

 

	
  

	
2.3.2

	
be accompanied, if required by the Lender, by translations into the English language, certified in a manner acceptable to the Lender; and

 

	
  

	
2.3.3

	
if required by the Lender, be certified, notarised, legalised or attested in a manner acceptable to the Lender.

 

3         Representations and Warranties

 

Each of the representations and warranties contained in clause 11 of the Original Loan Agreement shall be deemed repeated by the Borrower at the Effective Date, by reference to the facts and circumstances then pertaining, as if references to the Security Documents included this Third Supplemental Agreement.

 

4         Amendments to Original Loan Agreement and the Guarantee

 

With effect from the Effective Date:

 

4.1   the definitions contained in Clause 1.1 (other than the definition of "Effective Date") of this Third Supplemental Agreement and the following new definitions shall be added to clause 1.1 of the Original Loan Agreement in alphabetical order;

 

"Daelim Corporation' means Daelim Corporation of 1OF KCCI Bldg, 45 4ga Namdaemunre, Jung gu Seoul, Republic of Korea.";

 

"'Tripartite Deed' means the deed of assignment of Insurances, Earnings, Charter Rights and Requisition Compensation in respect

 

  

5

  

of the Bareboat Charter referred to in Clause 10.1.5 Security Documents).";

 

"'Waiver Period' means the period commencing on :25 November 2009 until 31 March 2010 (inclusive).";

 

	
  

	
4.2

	
the definition of "Bareboat Charter" and "Bareboat Charterer", as set out in clause 1.1 of the Original Loan Agreement, shall be substituted as follows:-

 

"'Bareboat Charter' means the bareboat charter dated 8 April 2008, as amended and supplemented by Addendum No.1 dated 20 August 2008, as further amended and supplemented by Addendum No.2 dated 21 November 2008 and as the same may be further amended, supplemented, novated and/or replaced from time to time, on the terms and subject to the conditions of which the Borrower will bareboat charter the Vessel to the Bareboat Charterer, for a duration of ten (10) years at a minimum net daily rate of hire of fourteen thousand five hundred and fifty Dollars ($14,550).";

 

"'Bareboat Charterer' means Daelim Corporation (formerly known as and legal successor in title of Daelim) or any of its one hundred per cent (100%) owned subsidiaries which is guaranteed by Daelim Corporation.";

 

	
  

	
4.3

	
the definition of the term "Margin", as is set out in clause 1.1 of the Original Loan Agreement, shall be substituted as follows:-

 

"'Margin' means:-

 

	
  

	
(a)

	
commencing on the date of this Agreement and until 2 April 2009 (inclusive), one point sixty-five percent (1.65%) per annum;

 

	
  

	
(b)

	
commencing on 3 April 2009 and until 25 October 2009 (inclusive), two point twenty five percent (2.25%) per annum;

 

 

6

 

	
  

	
(c)

	
commencing on 26 October 2009 (the next rollover date) and until 31 March 2010 (inclusive), three point zero percent (3.00%) per annum; and

 

	
  

	
(d)

	
commencing on 1 April 2010 and throughout the remainder of the Facility Period, two point twenty five percent (2.25%) per annum.";

 

	
  

	
4.4

	
the definition of "New Tripartite Deed", as incorporated pursuant to the First Supplemental Agreement, shall be deleted and any reference thereto as a Security Document shall also be deleted;

 

	
  

	
4.5

	
the definition of "Security Documents", as set forth in clause 1.1 of the Original Loan Agreement, shall be construed to include the New Security Documents;

 

	
  

	
4.6

	
clause 10.1 of the Original Loan Agreement shall be read and construed as including the New Security Documents;

 

	
  

	
4.7

	
clause 10.1.5 of the Original Loan Agreement shall be deleted and replaced as follows:-

 

	
  

	
"10.1.5

	
a first priority deed or deeds of assignment of the Insurances, Earnings, Bareboat Charter and Requisition Compensation of the Vessel from the Borrower and the Bareboat Charterer, including (in the case of the Bareboat Charterer) any agreement whereby its interests under the Bareboat Charter are subordinated to the interests of the Lender under the Mortgage and an assignment of any performance guarantee from Daelim Corporation (if the Bareboat Charterer is a one hundred per cent (100%) subsidiary of Daelim Corporation).";

 

	
  

	
4.8

	
clause 12.2 of the Loan Agreement shall be deleted and replaced with the following clause 12.2:-

 

"12.2  Financial covenants

 

The Borrower shall procure that the Guarantor shall at all times during the Facility Period on a consolidated basis (assessed semi-annually and certified in accordance with Clause 12.1.2 (a)) commencing from the date of this Agreement:-

 

  

7

  

	
  

	
12.2.1

	
other than during the Waiver Period during which there is no Minimum Liquidity requirement, maintain a Minimum Liquidity of (i) not less than twenty five million Dollars ($25,000,000) from the date of this Agreement until 2 April 2009 (inclusive), (ii) not less than fifteen million Dollars ($15,000,000) from 3 April 2009 until the commencement of the Waiver Period and (iii) not less than twenty five million Dollars ($25,000,000) from 1 April 2010 and throughout the remainder of the Facility Period; and

 

	
  

	
12.2.2

	
maintain a Minimum Adjusted Net Worth of not less than two hundred and fifty million Dollars ($250,000,000) with the exception of the period between 3 April 2009 and 31 March 2010 (inclusive); and

 

	
  

	
12.2.3

	
maintain Minimum Equity of not less than one hundred million Dollars ($100,000,000).";

 

	
  

	
4.9

	
clause 6.7 of the Guarantee shall be deleted and replaced with the following clause 6.7:-

 

"6.7         Financial covenants

 

The Guarantor shall at all times during the Facility Period on a consolidated basis (assessed semi-annually and certified in accordance with Clause 6.5) commencing from the date of the Loan Agreement:-

 

6.7.1    other than during the Waiver Period, maintain a Minimum Liquidity of (i) not less than twenty five million Dollars ($25,000,000) from the date of this Agreement until 2 April 2009 (inclusive), (ii) not less than fifteen million Dollars ($15,000,000) from 3 April 2009 until the commencement of the Waiver Period and (iii) not less than twenty five million Dollars ($25,000,000) from 1 April 2010 and throughout the remainder of the Facility Period; and

 

  

8

  

6.7.2    maintain a Minimum Adjusted Net Worth of not less than two hundred and fifty million Dollars ($250,000,000) with the exception of the period between 3 April 2009 and 31 March 2010 (inclusive); and

 

6.7.3    maintain Minimum Equity of not less than one hundred million Dollars ($100,000,000).";

 

	
  

	
4.11

	
all references to "this Agreement" (howsoever defined in the Original Loan Agreement and the Security Documents) shall be references to the Original Loan Agreement as amended and supplemented by this Third Supplemental Agreement; and

 

	
  

	
4.12

	
all references in the Finance Documents to the Original Loan Agreement (however it may be defined) shall be read and construed as the Original Loan Agreement as amended and supplemented by this Third Supplemental Agreement.

 

All other terms and conditions of the Original Loan Agreement, the Guarantee and the other Security Documents shall remain unaltered and in full force and effect.

 

5      Confirmation and Undertaking

 

5.1   The Borrower confirms that all of its respective obligations under or pursuant to each of the Security Documents to which it is a party remain in full force and effect, despite the amendments to the Original Loan Agreement and the Guarantee made in or pursuant to this Third Supplemental Agreement, as if all references in any of the Security Documents to the Original Loan Agreement (however described) and the Guarantee (however described) were references to the Original Loan Agreement and the Guarantee (as applicable) as amended and supplemented by this Third Supplemental Agreement.

 

5.2   The definition of any term defined in any of the Security Documents shall, to the extent necessary, be modified to reflect the amendments to the Original Loan Agreement and the Guarantee made in this Third Supplemental Agreement.

 

6      Further Assurance

 

The Borrower covenants that from time to time at the request of the Lender it will execute and deliver to the Lender or procure the execution and delivery to the Lender of all such

 

  

9

  

documents as the Lender shall deem necessary or desirable in its absolute discretion for giving full effect to this Third Supplemental Agreement and for perfecting and protecting the value of or enforcing any rights or securities granted to the Lender under or pursuant to the Original Loan Agreement and/or this Third Supplemental Agreement and/or the Security Documents.

 

7      Miscellaneous

 

7.1   Clauses 20.1 (No oral variations), 20.5 (Counterparts) and 20.6 (Contracts (Rights of Third Parties) Act 1999) of the Original Loan Agreement shall (mutatis mutandis) apply to this Third Supplemental Agreement.

 

7.2  With effect from the Effective Date, this Third Supplemental Agreement shall be construed with and shall constitute an instrument supplemental to the Original Loan Agreement and the Guarantee (as applicable). Save as otherwise provided herein and as hereby expressly varied and supplemented, the Original Loan Agreement and the Guarantee shall remain valid and binding and in full force and effect after the Effective Date.

 

8      Notices, Law and Jurisdiction

 

The provisions of clauses 17 and 21 of the Original Loan Agreement shall apply to this Third Supplemental Agreement as if they were set out in full and as if references to the Original Loan Agreement were references to this Third Supplemental Agreement and references to the Borrower were references to the Security Parties.

 

9      Costs and Expenses

 

The Security Parties shall, on demand of the Lender and upon a full indemnity basis, reimburse the Lender for all costs and expenses (including legal fees and disbursements plus any value added tax payable thereon) incurred by the Lender in connection with the preparation, negotiation and execution of this Third Supplemental Agreement and any other documents required.

 

  

10

  

IN WITNESS of which the parties to this Third Supplemental Agreement have executed this Third Supplemental Agreement as a deed the day and year first before written.

 

	
SIGNED and DELIVERED

	) 	
 

	
as a DEED

	) 	
 

	
by Andreas Louka

	)	
 

	
duly authorized Attorney-in-Fact

	) 	
/s/ Andreas Louka

	
for and on behalf of

	) 	
 

	
 
LICHTENSTEIN SHIPPING COMPANY LIMITED

	) 	
 

	
in the presence of:-

 

/s/ Georgia Asimakopous

Georgia Asimakopous

 

Stephenson Harwood

Ariston Building

2 Filellion Str. & Akti Miaouli

Pireaus 18536

VAT No. 998711156

Tel. No. 2104925160

	) 	
 

	
SIGNED and DELIVERED

	)	
 

	
as a DEED

	) 	
 

	
by Gregorios  Kondilis

	) 	
 

	
and by Constantinos Flokos

	) 	
/s/ Gregorios N. Kondilis

	
duly authorised Attorney-in-Fact

	) 	
 

	
for and on behalf of

	) 	
/s/ Contantinos Flokos

	
ALPHA BANK A.E.

	) 	
 

	
in the presence of:-

 

/s/ Georgia Asimakopous

Georgia Asimakopous

 

Stephenson Harwood

Ariston Building

2 Filellion Str. & Akti Miaouli

Pireaus 18536

VAT No. 998711156

Tel. No. 2104925160

	) 	
 

  

11d1104934_ex4-21.htm

Exhibit 4.21

 

 

	 	 	 Dated: 5th August, 2009	 	 

 

EMPORIKI BANK OF GREECE S.A.

(as lender)

- and -

JAPAN I SHIPPING COMPANY LIMITED

(as borrower)

- and -

TOP SHIPS INC

(as corporate guarantor)

	  	
 

FIRST SUPPLEMENTAL AGREEMENT

in relation to a Loan Agreement No. 185

dated 5th March, 2008

for a loan facility of up to US$50,000,000

 

	  

  

1

  

THIS AGREEMENT is made this 5th day of August, 2009 made BETWEEN:

	
(1)

	
EMPORIKI BANK OF GREECE S.A., a Greek banking societe anonyme duly incorporated under the laws of Greece, having its registered office at 11, Sofokleous Street, Athens, Greece, acting for the purposes of this Agreement through its office at 114 Kolokotroni Street, Piraeus, Greece and includes its successors in title, as lender (the "Bank"); and

	
(2)

	
JAPAN I SHIPPING COMPANY LIMITED, a company incorporated in the Republic of Liberia and having its registered office at 80, Broad Street, Monrovia, Liberia and includes its successors in title, as borrower (hereinafter called the "Borrower"); and

	
(3)

	
TOP SHIPS INC., a company duly incorporated under the laws of the Republic of the Marshall Islands having its registered office at Trust Company Complex, Ajeltake Island, Majuro, Marshall Islands MH 96960, a company listed in the Nasdaq, as Guarantor (hereinafter called the "Corporate Guarantor", which expression shall include its successors);

IS SUPPLEMENTAL to a Loan Agreement dated 5th March, 2008 made between (1) the Bank and (2) the Borrower (the "Principal Agreement"), on the terms and conditions of which the Bank agreed to advance and has advanced to the Borrower a secured floating interest rate term loan facility in the amount of fifty million ($50,000,000) (the "Loan") for the purpose therein specified (the Principal Agreement as hereby amended and/or supplemented and as the same may hereinafter be amended and/or supplemented called the "Loan Agreement").

WHEREAS:

	
(A)

	
The Borrower and the Corporate Guarantor hereby jointly and severally acknowledge and confirm that (a) the Bank has advanced to the Borrower the full amount of the Loan and (b) as the date hereof the principal amount of $43,325,000 (US Dollars Forty three million three hundred twenty five thousand) remains outstanding.

	
(B)

	
Pursuant to a Guarantee dated Stn March, 2008 (the "Corporate Guarantee") the Corporate Guarantor irrevocably and unconditionally guaranteed the due and timely repayment of the Loan and interest and default interest accrued thereon and the performance of all the obligations of the Borrower under the Loan Agreement and the Security Documents executed in accordance thereto;

	
(C)

	
The Borrower and the other Security Parties have requested the Bank to provide a waiver to the covenants of the Borrower under Clause 8.3 (a) and 8.6 (c) for the period starting from March 31st 2009 until the 31st March, 2010;

and the Bank has agreed so to do against:

	
  

	
(a)

	
an increase in loan margin to two and a half per cent (2.5%) per annum for the whole Waiver Period (as hereinafter defined); and

	
  

	
(b)

	
an increase in loan margin to one and three quarters per centum (1.75%) per annum thereafter and until the end of the Security Period,

conditionally upon terms that (inter alia) the Principal Agreement shall be amended in the manner hereinafter set out.

  

2

  

NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

 

1. Definitions

	
1.1

	
Words and expressions defined in the Principal Agreement and not otherwise defined herein (including the Preamble and Recitals hereto) shall have the same meanings when used in this Agreement.

"Waiver Period" means a period starting on the 31st March, 2009 and terminating on the 31st March, 2010;

"Effective Date" means the 31st March, 2009;

"Loan Agreement" means the Principal Agreement as hereby amended as the same may from time to time be further amended and/or supplemented;

"Mortgage Addendum" means the addendum to the first preferred Liberian Naval mortgage registered over the Vessel in favour of the Bank, whereby the said first mortgage shall be amended, executed or (as the context may require) to be executed by the Borrower in favour of the Bank in form satisfactory to the Bank;

	
1.2

	
In this Agreement the term "Security Documents" shall be construed as to include the Security Documents as defined in the Principal Agreement as amended and/or supplemented by this Agreement and the Mortgage Addendum.

	
1.3

	
(a) where the context so admits words importing the singular number only shall include the plural and vice versa and words importing persons shall include firms and corporations, (b) clause headings are inserted for convenience of reference only and shall be ignored in construing this Agreement, (c) references to Clauses are to clauses of this Agreement save as may be otherwise expressly provided in this Agreement and (d) all capitalised terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement.

	
2.

	
Representations and Warranties

	
2.1

	
Each corporate Security Party hereby jointly and severally represent and warrant to the Bank as at the date hereof that the representations and warranties set forth in the Principal Agreement and the Security Documents (updated mutatis mutandis to the date of this Agreement) are (and will be on the Effective Date) true and correct as if all references therein to "this Agreement" were references to the Principal Agreement as amended and supplemented by this Agreement.

	
2.2

	
In addition to the above, the Borrower and the Corporate Guarantor hereby jointly and severally represent and warrant to the Bank as at the date of this Agreement that:

	
  

	
(a)

	
each of the corporate Security Parties is duly formed, is validly existing and in good standing under the laws of the place of its incorporation has full power to carry on its business as it is now being conducted and to enter into and perform its obligations under the Principal Agreement, this Agreement and the Mortgage Addendum and has complied with all statutory and other requirements relative to its business;

 

 

  

3

  

 

	
  

	
(b)

	
all necessary licences, consents and authorities, governmental or otherwise under this Agreement, the Principal Agreement and the Mortgage Addendum have been obtained and, as of the date of this Agreement, no further consents or authorities are necessary for any of the Security Parties to enter into this Agreement or otherwise perform its obligations hereunder;

	
  

	
(c)

	
this Agreement constitutes and the Mortgage Addendum on the execution thereof will constitute, the legal, valid and binding obligations of the Security Parties thereto enforceable in accordance with their respective terms;

	
  

	
(d)

	
the execution and delivery of, and the performance of the provisions of this Agreement and the Mortgage Addendum do not, and will not contravene any applicable law or regulation existing at the date hereof or any contractual restriction binding on any of the Security Parties or its respective constitutional documents;

	
  

	
(e)

	
no action, suit or proceeding is pending or threatened against any of the Borrower and the other Security Parties or their assets before any court, board of arbitration or administrative agency which could or might result in any material adverse change in the business or condition (financial or otherwise) of such Borrower or such Security Party;

	
  

	
(f)

	
none of the Borrower and the other Security Parties is and at the Effective Date will be in default under any agreement by which it is or will be at the Effective Date bound or in respect of any financial commitment, or obligation.

	
3.

	
Conditions

	
3.1

	
The agreement of the Bank contained in Clause 4 shall be expressly subject to the fulfilment of the conditions set out in Clause 7 of the Principal Agreement and further subject to the condition that the Bank shall have received on or before the date hereof in form and substance satisfactory to the Bank and its legal advisers:

	
  

	
(a)

	
a recent certificate of incumbency of the Borrower and the Corporate Guarantor signed by the secretary or a director thereof, stating the officers and the directors and the shareholders of each of them;

	
  

	
(b)

	
certified and duly legalised copies of resolutions passed at a meeting of the Board of Directors and Shareholders of the Borrower evidencing approval of this Agreement and the Mortgage Addendum to which it is a party and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given under this Agreement on its behalf or other evidence of such approvals and authorisations as shall be acceptable to the Bank;

	
  

	
(c)the original of any power(s) of attorney issued in favour of any person executing this Agreement or the Mortgage Addendum to which it is a party on behalf of the Borrower;

	
  

	
(d)

	
the Mortgage Addendum duly executed by the respective parties thereto;

 

 

  

4

  

 

	
  

	
(e)

	
evidence that the Vessel is classed with a classification society member of IACS to be specifically approved by the Bank, and remains free from outstanding or overdue recommendations, notations or conditions of class; such certificate to be dated no more than three (3) business days prior to the date hereof; and

 

	
  

	
(f)

	
payment of any and all fees payable by the Borrower in accordance with Clause 8 hereof.

 

	
4.

	
Agreement of the Bank

 

The Bank, relying upon each of the representations and warranties set out in Clause 2 hereby agrees with the Borrower, subject to and upon the terms and conditions of this Agreement and in particular, but without limitation, subject to the fulfilment of the conditions precedent set out in Clause 3, to consent to the amendment of the Loan Agreement as set out in Clause 5 hereof.

	
5.

	
Variations to the Loan Agreement

 

The Borrower hereby agree with the Bank, subject to the Bank's consent and further subject to and upon the terms and conditions contained in this Agreement, that the provisions of the Principal Agreement shall be and are hereby agreed to be varied and/or amended and/or supplemented as follows:

	
5.1

	
As from the Effective Date, the following new definitions, shall be added to Clause 1.2 of the Principal Agreement reading as follows:

"Waiver Period" means a period starting on the 31st March, 2009 and terminating on the 31st March, 2010;

"First Mortgage Addendum" means in respect of the Mortgage, a first addendum thereto executed or to be executed by the Borrower in favour of the Bank in such form as the Bank may approve or require and, in the plural, means both of them;"

	
5.2

	
With effect as from the Effective Date, the following definitions set out in Clause 1.2 of the Principal Agreement shall be deleted and shall be replaced as follows:

"Margin" means:

(a) in respect of the period from the 31st March 2009 until the 31st March 2010, two and a half per cent (2.5%) per annum and (b) thereafter and until the end of the Security Period, one and three quarters per centum (1.75%) per annum ;

"Mortgage" means the first preferred Liberian mortgage of the Vessel executed by the Borrower in favour of the Bank as amended by the First Mortgage Addendum;"

	
5.3

	
With effect from the Effective Date the following shall be added at the end of respective para (a) of Clause 8.3 and para (c) of Clause 8.6 of the Principal Agreement:

 

 

  

5

  

 

"Provided however that subject to no Default then existing this covenant shall not be applicable to the Borrower throughout the Waiver Period"

	
5.4

	
With effect from the Effective Date, the definition "Security Documents" shall be deemed to include the Security Documents as amended and/or supplemented in pursuance to the terms hereof and any document or documents (including if the context requires the Loan Agreement) that may now or hereafter be executed as security for the repayment of the Loan, interest thereon and any other moneys payable by the Bank under the Principal Agreement and the Security Documents (as herein defined) as well as for the performance by the Borrower and the other Security Parties (as herein defined) of all obligations, covenants and agreements pursuant to the Principal Agreement this Agreement and/or the Security Documents;

	
5.5

	
With effect from the Effective Date hereof, the definition and all references in the Principal Agreement and in the Security Documents to the "Mortgage" as references to the Mortgage as amended and supplemented by the Mortgage Addendum.

	
5.6.

	
With effect from the Effective Date hereof, the definition and all references in the Principal Agreement and in the Security Documents to "this Agreement", "hereunder" and the like and in the Security Documents to the "Loan Agreement" shall be construed as references to the Principal Agreement as amended and/or supplemented by this Agreement.

	
6.

	
Continuance of Principal Agreement and the Security Documents

Save for the alterations to the Principal Agreement made or deemed to be made pursuant to this Agreement and such further modifications (if any) thereto as may be necessary to make the same consistent with the terms of this Agreement, the Principal Agreement shall remain in full force and effect and the security constituted by the Security Documents executed by the Borrower and the other Security Parties shall continue and remain valid and enforceable and each of the Borrower hereby reconfirms its obligations under the Principal Agreement as hereby amended and under the Security Documents to which it is party.

	
7.

	
Reconfirmation of the Corporate Guarantee

Notwithstanding the variation to the Loan Agreement contained herein the Corporate Guarantee granted by the Corporate Guarantor (which such Guarantor hereby reconfirms in all respects) shall remain in full force and effect as guarantee and/or security of the obligations of the Borrower under the Principal Agreement, this Agreement and the Security Documents (as hereby amended), and in respect of all outstanding balance of the Loan and other sums due to the Bank under the Loan Agreement and the Security Documents.

	
7.

	
ENTIRE AGREEMENT AND AMENDMENT; EFFECT ON PRINCIPAL AGREEMENT-WAIVERS

	
7.1

	
The Principal Agreement, the Security Documents and this Agreement represent the entire agreement among the parties hereto with respect to the subject matter hereof and supersede any prior expressions of intent or understanding with respect to this transaction and may be amended only by an instrument in writing executed by the party or parties to be bound or burdened thereby.

 

 

  

6

  

 

	
7.2

	
Except to the extent that the Principal Agreement is expressly amended or supplemented by this Agreement, all terms and conditions of the Principal Agreement remain in full force and effect. This Agreement is supplementary to and incorporated in the Principal Agreement, all terms and conditions whereof, including, but not limited to, provisions on payments, calculation of interest and Events of Default, shall apply to the performance and interpretation of this Agreement.

	
7.3

	
No waiver of any such right, remedy or power, or any consent to any departure from the strict application of the provisions of this Agreement, the Loan Agreement or of any other Security Document shall in any way prejudice or affect the powers conferred upon the Bank under this Agreement, the Loan Agreement and the other Security Documents or the right of the Bank thereafter to act strictly in accordance with the terms of this Agreement, the Loan Agreement and the other Security Documents nor shall, any delay or omission by the Bank to exercise any right, remedy or power vested in the Bank under this Agreement, the Loan Agreement and/or the other Security Documents or by law, impair such right or power, or be construed as a waiver of, or as an acquiescence in any default by the Borrower and/or any other Security Party, nor shall any single or partial exercise by the Bank of any power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy.

	
8.

	
Fees and Expenses

	
  

	
(a)

	
The Borrower and the Corporate Guarantor, jointly and severally, agree to pay to the Bank all costs, charges and expenses (including legal fees) incurred by the Bank in connection with the negotiation, preparation, execution and enforcement or attempted enforcement of this Agreement and any document executed pursuant thereto and/or in preserving or protecting or attempting to preserve or protect the security created hereunder and/or under the Security Documents.

	
  

	
(c)

	
The Borrower and the Corporate Guarantor, jointly and severally, covenant and agree to pay and discharge any and all stamp duties, registration and recording fees and charges and any other charges whatsoever and wheresoever payable or due in respect of this Agreement and/or any document executed pursuant hereto.

	
9.

	
NOTICES

The provisions of clause 15.1 of the Principal Agreement shall extend and apply to the giving or making of notices or demands hereunder as if the same were expressly stated herein save that notices or demands hereunder as regards the Borrower and the Corporate Guarantor should be sent to such address or facsimile number as the Borrower and the Corporate Guarantor have advised in writing to the Bank on the date of the Principal Agreement.

 

 

  

7

  

 

	
10.

	
APPLICABLE LAW AND JURISDICTION AND MISCELLANEOUS

This provisions of Clause 16.3 (Process Agent) and of Clause 16.1 (Law and Jurisdiction) of the Principal Agreement shall apply to this Agreement as if the same were set out herein in full.

IN WITNESS whereof the parties hereto have caused this Agreement to be duly executed the date first above written.

THE BORROWER

	
SIGNED by

Mr. Andreas Louka

for and on behalf of

JAPAN I SHIPPING COMPANY LIMITED

	
)

)

)

)

	
/s/ Andreas Louka

	
of Liberia, in the presence of:

	
)

	
Attorney-in-Fact

	
 

 

/s/ Efstratios Kalantzis

	
 

	
 

	Witness:

Name:

Address:

 

Occupation: 	
 

Efstratios Kalantzis

13, Defteras Merarchias Street

Piraeus, Greece

Occupation:  Attorney-at-law

	
 

	
 

 

THE GUARANTOR

	
EXECUTED as a DEED

for and on behalf of

TOP SHIPS INC.,

of The Marshall Islands

by Mr. Andreas Louka

its duly authorised Attorney-in-fact

	
)

)

)

)

)

)

	
/s/ Andreas Louka

	
in the presence of:

	
)

	
Attorney-in-Fact

	
 

 

/s/ Efstratios Kalantzis

	
 

	
 

	Witness:

Name:

Address:

 

Occupation: 	
 

Efstratios Kalantzis

Defteras Merarchias Street 13,

Piraeus, Greece

Attorney-at-law

	
 

	
 

 

THE BANK

	
SIGNED by

Mrs. Christina Margelou and

	
)

)

	
/s/ Christina Margelou

	
Mrs. Maria Antoniou

for and on behalf of

EMPORIKI BANK OF GREECE S.A.

	
)

)

)

	
Attorney-in-Fact

 

/s/ Maria Antoniou

	
in the presence of:

	
)

	
Attorney-in-Fact

	
 

 

/s/ Efstratios Kalantzis

	
 

	
 

	Witness:

Name:

Address:

 

Occupation:	
 

Efstratios Kalantzis

13 Defteras Merarchias Street

185 35 Piraeus, Greece

 Attorney-at-law

	
 

	
 

  

8

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