EIRINI SHIPPING LTD ELENI SHIPPING LIMITED

EIRINI SHIPPING LTD, a corporation incorporated under the laws of the Republic of Liberia, having its registered address at ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ("Eirini");

ELENI SHIPPING LIMITED, a corporation incorporated under the laws of the Republic of Liberia, having its registered address at ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ("Eleni" and together with Eirini, the "Borrowers" and each a "Borrower");

EUROSEAS LTD, a corporation incorporated under the laws of the Republic of the ▇▇▇▇▇▇▇▇ Islands with its registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇ (the "Guarantor");

PANTELIS SHIPPING CORP., a corporation incorporated under the laws of the Republic of Liberia, with registered address at ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ of Liberia ( "Pantelis");

▇▇▇▇▇▇ MARITIME LTD ("▇▇▇▇▇▇"), a corporation incorporated under the laws of the Republic of Liberia, having its registered address at ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ("▇▇▇▇▇▇"); and

HSBC BANK plc, a company incorporated under the laws of England whose registered office is at ▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇ ▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ (as "Lender").

By a loan agreement dated 25 June 2014 (as amended by a supplemental agreement dated 12 November 2015 and a second supplemental agreement dated         September 2016 and as from time to time amended or supplemented, the "Loan Agreement") and made between (i) the Borrowers and (ii) the Lender, the Lender agreed to make available to the Borrowers a term loan facility of up to (originally) $16,400,000 on the terms and conditions contained therein secured on the Liberian flag vessels "EIRINI P" and "ELENI P".  The principal amount of the Loan currently outstanding is $11,600,000.

By a guarantee dated 25 June 2014 (the "Euroseas Guarantee") and made between (i) the Guarantor and (ii) the Lender, the Guarantor guaranteed the Borrowers' obligations under the Loan Agreement and the other Security Documents (as defined in the Loan Agreement).

By a guarantee dated 12 November 2015 (the "Pantelis Guarantee") and made between (i) Pantelis and (ii) the Lender, Pantelis guaranteed the Borrowers' obligations under the Loan Agreement and the other Security Documents (as defined in the Loan Agreement);

By a guarantee dated 12 November 2015 (the "▇▇▇▇▇▇ Guarantee") and made between (i) ▇▇▇▇▇▇ and (ii) the Lender, ▇▇▇▇▇▇ guaranteed the Borrowers' obligations under the Loan Agreement and the other Security Documents (as defined in the Loan Agreement).

The Borrowers, the Guarantor and the Collateral Owners have requested (the "Request") that the Lender agrees to:

the sale of m.v. "ELENI P";

the release of Eleni from the Loan Agreement and Security Documents; and

replace m.v. "ELENI P" with m.v. "TASOS" instead of making the prepayment required under paragraph 10.01.03 of the Loan Agreement.

The Lender's consent to the Request referred to in Recital (E) above is subject to:

the addition of Areti Shipping Ltd (the "Areti Collateral Owner") as a Collateral Owner (as defined in the Loan Agreement); and

the Areti Collateral Owner executing in favour of the Lender a guarantee to secure the Borrowers' obligations (the "New Guarantee") and as security for Areti Collateral Owner's obligations under the New Guarantee:

a first priority Cypriot ship mortgage and a deed of covenant collateral thereto (the "Tasos Mortgage"), relating to m.v. ""TASOS", the "Tasos Collateral Vessel"); and

a first priority assignment of the Earnings, any Charter and the Requisition Compensation (as such terms are defined therein) in respect of the Tasos Collateral Vessel (the "Tasos Assignment").

This Supplemental Agreement sets out the terms and conditions on which the Lender agrees to:

the Request; and

the consequential amendments to the Loan Agreement and the other Security Documents.

DEFINITIONS

Defined Expressions

Definitions

Application of construction and interpretation provisions of Loan Agreement

REPRESENTATIONS AND WARRANTIES

Repetition of Loan Agreement representations

Repetition of Guarantee representations

Further representations and warranties

it is duly incorporated and validly existing and in good standing under the laws of Liberia (and in the case of the Guarantor and the Areti Collateral Owner, the ▇▇▇▇▇▇▇▇ Islands), and has full power to enter into and perform its obligations under this Supplemental Agreement and has complied with all statutory and other requirements relative to its business, and does not have an established place of business in any part of the United Kingdom or the United States of America (for the avoidance of doubt, the Guarantor is listed in the Nasdaq Capital Market);

all necessary governmental or other official consents, authorisations, approvals, licences, consents or waivers for the execution, delivery, performance, validity and/or enforceability of this Supplemental Agreement and all other documents to be executed in connection with the amendments to the Loan Agreement, the Guarantees and the other Security Documents as contemplated hereby have been obtained and will be maintained in full force and effect, from the date of this Supplemental Agreement and so long as any moneys are owing under any of the Security Documents and while all or any part of the Facilities remains outstanding;

it has taken all necessary corporate and other action to authorise the execution, delivery and performance of its obligations under this Supplemental Agreement and such other documents to which it is a party and such documents do or will upon execution thereof constitute its valid and binding obligations enforceable in accordance with their respective terms;

the execution, delivery and performance of this Supplemental Agreement and all such other documents as contemplated hereby does not and will not, from the date of this Supplemental Agreement and so long as any moneys are owing under any of the Security Documents and while all or any part of the Loan remains outstanding, constitute a breach of any contractual restriction or any existing applicable law, regulation, consent or authorisation binding on the Borrowers, the Guarantor and the Collateral Owners or on any of  respective property or assets and will not result in the creation or imposition of any security interest, lien, charge or encumbrance (other than under the Security Documents as contemplated hereby) on any of such property or assets; and

it has fully disclosed in writing to the lender all facts which it knows or which it should reasonably know and which are material for disclosure to the Lender in the context of this Supplemental Agreement and all information furnished by the Borrowers, the Guarantor and the Collateral Owners on behalf of each of them relating to their business and affairs in connection with this Supplemental Agreement was and remains true, correct and complete in all material respects at the date provided and there are no other material facts or considerations the omission of which would render any such information misleading at the date provided.

AGREEMENT OF THE LENDER

Agreement of the Lender

the Request; and

the amendments/variations to the Loan Agreement and the other Security Documents referred to in Clause 5.

Effect of Lender's Agreement

CONDITIONS

Conditions precedent

a duly executed original of this Supplemental Agreement and of each Tasos Collateral Documents (and of each document required to be delivered under each Tasos Collateral Document) duly executed by the parties thereto;

copies of the certificate of incorporation and constitutional documents of the Areti Collateral Owner;

copies of resolutions of the directors of each Borrower, the Guarantor and the Collateral Owners, authorising the execution of this Supplemental Agreement and, in the case of the Areti Collateral Owner, also copies of resolutions of its shareholders, authorising, the execution of each of the Tasos Collateral Documents to which the Areti Collateral Owner is a party, and authorising named attorneys to give any notices thereunder;

the original of the power of attorney issued by each Borrower, each Collateral Owner or the Guarantor pursuant to such resolutions aforesaid in paragraph (a) above;

copies of all consents which the Areti Collateral Owner requires to enter into, or make any payment under, any Tasos Collateral Document;

documentary evidence that:

the Tasos Collateral Vessel is in the absolute and unencumbered ownership of the Areti Collateral Owner save as contemplated by the Tasos Collateral Documents;

the Tasos Collateral Vessel maintains the highest class available for vessels of the same type, age and specification as the Tasos Collateral Vessel with a classification society acceptable to the Lender free of all recommendations and conditions of such classification society not complied with in accordance with their terms;

the Tasos Mortgage has been duly registered against the Tasos Collateral Vessel as a valid first priority ship mortgage in accordance with the laws of Cyprus; and

the Tasos Collateral Vessel is insured in accordance with the provisions of the New Guarantee and all requirements therein in respect of insurances have been complied with;

documents establishing that the Tasos Collateral Vessel will, as from the date of this Agreement, be managed by the Manager on terms acceptable to the Lender, together with:

the Tasos Manager's Undertaking duly signed by the Manager;

copies of the document of compliance (DOC) and safety management certificate (SMC) in respect of the Tasos Collateral Vessel certified as true and in effect by the Areti Collateral Owner and the Manager; and

a copy of the International Ship Security Certificate in respect of the Collateral Ship certified as true and in effect by the Areti Collateral Owner and the Manager;

favourable legal opinions from lawyers appointed by the Lender on such matters concerning the laws of Liberia, Cyprus, the ▇▇▇▇▇▇▇▇ Islands and such other relevant jurisdictions as the Lender may require; and

evidence that the agent referred to in clause 37.04 of the Loan Agreement (as amended and supplemented by this Supplemental Agreement) has accepted its appointment as agent for service of process under this Supplemental Agreement.

VARIATIONS TO LOAN AGREEMENT AND SECURITY DOCUMENTS

Specific amendments to Loan Agreement

by deleting the definitions of  "Collateral Vessels", "Collateral Owners",  "Collateral Mortgages", "Earnings Account" and "Earnings Account Charges"   from clause 2.01 thereof and replacing them with the following:

by adding in clause 2.01 thereof the following definitions:

by deleting paragraph 10.01.03 in its entirety and replacing it with the following:

"10.01.03   in the case the Mortgage on a Ship is discharged (other than in the circumstances referred to in paragraph 10.01.01 above and where the Borrowers and the other Security Parties have discharged all their obligations, whether actual or contingent, under this Agreement and the other Finance Documents), on or before the date on which the relevant Mortgage is discharged.

in the case of sale or Total Loss of the Eleni Ship, no prepayment will be required if replaced with the Tasos Collateral Vessel;

in the case a Collateral Vessel (other than the Tasos Collateral Vessel) is sold or becomes a Total Loss, "relevant proportion" means an amount which results (following such prepayment) in the Security Value being equal to the percentage which existed immediately prior to such sale or Total Loss (taking into account the sale or the insurance proceeds of the Collateral Vessel concerned); and

if, at any time, only the Eirini Ship or only the Tasos Collateral Vessel is subject to a Mortgage and that Ship is sold or becomes a Total Loss or the Mortgage on that Ship is discharged, the term "relevant proportion" shall be construed to mean an amount which is sufficient to repay the Indebtedness in full."

all references to the term "Ship" in the Loan Agreement (other than in respect of the definitions of "General Assignment", "Manager's Undertakings" and "Mortgage" in Clause 2.1 of the Loan Agreement and in Clauses 1.1.2, 3.1.1.2, 10, 19, 20.37, 21, 24.1.25 and 27.01 of the Loan Agreement) shall be read and construed to include the Tasos Collateral Vessel and all references to the Borrowers in such clauses shall also refer to the Areti Collateral Owner (as the context may require);

by construing all references therein to "this Agreement" where the context admits as being references to "this Agreement as the same is amended and supplemented by this Supplemental Agreement and as the same may from time to time be further supplemented and/or amended";

by construing all references in the Loan Agreement and the Finance Documents to "the Borrowers", "each Borrower", "either Borrower" or "a Borrower" as references to the Borrower, being Eirini Shipping Ltd only.

by construing references to each of the Security Documents as being references to each such document as it is from time to time supplemented and/or amended;

Amendments to Security Documents

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

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

Security Documents to remain in full force and effect

the amendments to the Security Documents contained or referred to in Clauses 5.1, 5.2, 5.3; and

such further or consequential modifications as may be necessary to make the same consistent with, and to give full effect to, the terms of this Supplemental Agreement.

RELEASE OF ELENI

Release of Encumbrances

Release of obligations

Existing Borrowers' and Guarantors' confirmation

COSTS AND EXPENSES

Costs and expenses

COMMUNICATIONS

General

SUPPLEMENTAL

Counterparts

Third Party rights

LAW AND JURISDICTION

Governing law

Incorporation of the Loan Agreement provisions