Exhibit
10.7


 


General Maritime Corporation


Restricted Stock Grant Agreement


 


THIS
AGREEMENT, made as of the 9th day of February 2005, between GENERAL
MARITIME CORPORATION (the “Company”) and MILTON GONZALES (the “Participant”).


 


WHEREAS, the
Company has adopted and maintains the General Maritime Corporation 2001 Stock
Incentive Plan (the “Plan”) to provide certain key persons, on whose initiative
and efforts the successful conduct of the business of the Company depends, and
who are responsible for the management, growth and protection of the business
of the Company, with incentives to: (a) enter into and remain in the service of
the Company, a Company subsidiary or a Company joint venture, (b) acquire a
proprietary interest in the success of the Company, (c) maximize their
performance and (d) enhance the long-term performance of the Company (whether
directly or indirectly through enhancing the long-term performance of a Company
subsidiary or a Company joint venture);


 


WHEREAS, the
Plan provides that the Compensation Committee (the “Committee”) of the Board of
Directors (or the Board of Directors if it so elects) shall administer the Plan
and determine the key persons to whom awards shall be granted and the amount
and type of such awards; and


 


WHEREAS, the
Committee and the Board of Directors have determined that the purposes of the
Plan would be furthered by granting the Participant an award under the Plan as
set forth in this Agreement;


 


NOW,
THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto hereby agree as follows:


 


1.                                       Grant
of Restricted Stock.  Pursuant to, and subject to, the terms and
conditions set forth herein and in the Plan, the Committee hereby grants to the
Participant 5,000 restricted shares (the “Restricted Stock”) of common stock of
the Company, par value $0.01 per share (“Common Stock”).


 


2.                                       Grant
Date.  The Grant Date of the Restricted Stock is February 9,
2005.


 


3.                                       Incorporation
of Plan.  All terms, conditions and restrictions of the Plan are
incorporated herein and made part hereof as if stated herein.  If
there is any conflict between the terms and conditions of the Plan and this
Agreement, the terms and conditions of the Plan, as interpreted by the
Committee, shall govern.  Except as otherwise provided herein, all
capitalized terms used herein shall have the meaning given to such terms in the
Plan.


 





















 


4.                                       Vesting.


 


(a)                                  Subject
to Section 4(b) hereof and the further provision of this Agreement, a
number of whole shares of Restricted Stock as close as possible to the
following percentage of the total number of shares granted hereunder shall vest
on the following dates (each specified date, a “Vesting Date”):


 


	
  Percentage
  of Total

  Shares

  	
   

  	
  Vesting Date

  
	
  20%

  	
   

  	
  November 16, 2005

  
	
  20%

  	
   

  	
  November 16, 2006

  
	
  20%

  	
   

  	
  November 16, 2007

  
	
  20%

  	
   

  	
  November 16, 2008

  
	
  20%

  	
   

  	
  November 16, 2009

  



 


(b)                                 the
occurrence of a Change in Control, as defined in Section 3.8(a) of the
Plan, as in effect on the date of such occurrence.


 


5.                                       Restrictions
on Transferability.  Until a share of
Restricted Stock vests, the Participant shall not transfer the Participant’s
rights to such share of Restricted Stock or to any rights related thereto.  Any attempt to transfer unvested shares of
Restricted Stock or any rights related thereto, whether by transfer, pledge,
hypothecation or otherwise and whether voluntary or involuntary, by operation
of law or otherwise, shall not vest the transferee with any interest or right
in or with respect to such shares of Restricted Stock or such related rights.


 


6.                                       Termination
of Employment.  In the event that the
Participant’s employment with the Company terminates for any reason, including,
without limitation, the Participant’s death or disability, all unvested shares
of Restricted Stock, together with any property received in respect of such
shares, as set forth in Section 9 hereof, shall be forfeited as of the
date of such termination of employment and the Participant promptly shall
return to the Company any certificates evidencing such shares, together with
any cash dividends or other property received in respect of such shares.


 


7.                                       Issuance
of Certificates.


 


(a)                                  Reasonably promptly
after the Grant Date, the Company shall issue and deliver to the Participant
stock certificates, registered in the name of the Participant, evidencing the
shares of Restricted Stock.  Each such
certificate may bear the following legend:


 


“THE SALE, TRANSFER, ASSIGNMENT, PLEDGE,
HYPOTHECATION ENCUMBRANCE OR OTHER DISPOSAL OF THE SECURITIES REPRESENTED BY
THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF THE GENERAL MARITIME CORPORATION
2001 STOCK INCENTIVE PLAN AND A RESTRICTED STOCK GRANT AGREEMENT BETWEEN
GENERAL MARITIME CORPORATION AND THE HOLDER OF


 





















 


RECORD OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE.  NO
TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IN CONTRAVENTION OF
SUCH PLAN AND RESTRICTED STOCK GRANT AGREEMENT SHALL BE VALID OR
EFFECTIVE.  COPIES OF SUCH AGREEMENT MAY
BE OBTAINED BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THE CERTIFICATE
TO THE SECRETARY OF GENERAL MARITIME CORPORATION.”


 


Such legend
shall not be removed from such certificates until such shares of Restricted
Stock vest.


 


(b)                                 Reasonably promptly
after any such shares of Restricted Stock vest pursuant to Section 4
hereof, in exchange for the surrender to the Company of the certificates
evidencing such shares of Restricted Stock, delivered to the Participant under Section 7(a)
hereof, and the certificates evidencing any other securities received in
respect of such shares, if any, the Company shall issue and deliver to the
Participant (or the Participant’s legal representative, beneficiary or heir)
certificates evidencing such shares of Restricted Stock and such other
securities, free of the legend provided in Section 7(a) hereof.


 


(c)                                  The Company may
require as a condition of the delivery of stock certificates pursuant to Section 7(b)
hereof that the Participant remit to the Company an amount sufficient in the
opinion of the Company to satisfy any federal, state and other governmental tax
withholding requirements related to the vesting of the shares represented by
such certificate.  The Committee, in its
sole discretion, may permit the Participant to satisfy such obligation by delivering shares of Common Stock or by
directing the Company to withhold from delivery shares of Common Stock, in either case valued at their
Fair Market Value on the Vesting Date with fractional shares being settled in
cash.


 


(d)                                 The Participant shall
not be deemed for any purpose to be, or have rights as, a shareholder of the
Company by virtue of the grant of Restricted Stock, except to the extent a
stock certificate is issued therefor pursuant to Section 7(a) hereof, and
then only from the date such certificate is issued.  Upon the issuance of a stock certificate, the
Participant shall have the rights of a shareholder with respect to the
Restricted Stock, including the right to vote the shares, subject to the
restrictions on transferability and the forfeiture provisions, as set forth in
this Agreement.


 


8.                                       Securities
Matters.  The Company shall be under
no obligation to effect the registration pursuant to the Securities Act of
1933, as amended (the “1933 Act”) of any interests in the Plan or any shares of
Common Stock to be issued thereunder or to effect similar compliance under any
state laws.  The Company shall not be obligated to cause to be issued
or delivered any certificates evidencing shares of Common Stock pursuant hereto
unless and until the Company is advised by its counsel that the issuance and
delivery of such certificates is in compliance with all applicable laws,
regulations of governmental authority and the requirements of any securities
exchange on which shares of Common Stock are traded.  The Committee
may require, as a condition of the issuance and delivery of certificates
evidencing shares of Common Stock pursuant to the terms hereof, that the
recipient of such shares make such covenants, agreements and representations,
and that such certificates bear such legends, as the Committee,


 





















 


in its sole discretion, deems necessary or desirable.  The
Participant specifically understands and agrees that the shares of Common
Stock, if and when issued, may be “restricted securities,” as that term is
defined in Rule 144 under the 1933 Act and, accordingly, the Participant may be
required to hold the shares indefinitely unless they are registered under such
Act or an exemption from such registration is available.


 


9.                                       Dividends,
etc.  Any cash dividends or other
property (but not including securities) received by a Participant with respect
to a share of Restricted Stock shall be returned to the Company in the event
such share of Restricted Stock is forfeited. 
Any securities received by a Participant with respect to a share of
Restricted Stock as a result of any dividend, recapitalization, merger,
consolidation, combination, exchange of shares or otherwise will not vest until
such share of Restricted Stock vests and shall be forfeited if such share of
Restricted Stock is forfeited.  Unless
the Committee otherwise determines, such securities shall bear the legend set
forth in Section 7(a) hereof.


 


10.                                 Delays
or Omissions.  No delay or omission to exercise any right, power
or remedy accruing to any party hereto upon any breach or default of any party
under this Agreement, shall impair any such right, power or remedy of such
party, nor shall it be construed to be a waiver of any such breach or default,
or an acquiescence therein, or of or in any similar breach or default
thereafter occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring.  Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this Agreement,
or any waiver on the part of any party or any provisions or conditions of this
Agreement, must be in a writing signed by such party and shall be effective
only to the extent specifically set forth in such writing.


 


11.                                 Right
of Discharge Preserved.  Nothing in
this Agreement shall confer upon the Participant the right to continue in the
employ or other service of the Company, or affect any right which the Company
may have to terminate such employment or service.


 


12.                                 Integration.  This
Agreement contains the entire understanding of the parties with respect to its
subject matter.  There are no restrictions, agreements, promises,
representations, warranties, covenants or undertakings with respect to the
subject matter hereof other than those expressly set forth herein.  This
Agreement, including, without limitation, the Plan, supersedes all prior
agreements and understandings between the parties with respect to its subject
matter.


 


13.                                 Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same
instrument.


 


14.                                 Governing
Law.  This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New York, without regard to
the provisions governing conflict of laws.


 


15.                                 Obligation
to Notify.  If the Participant makes
the election permitted under Section 83(b) of the Internal Revenue Code of
1986, as amended (that is, an election to include


 





















 


in gross income in the year of transfer the amounts specified in Section 83(b)),
the Participant shall notify the Company of such election within 10 days of
filing notice of the election with the Internal Revenue Service and shall
within the same 10-day period remit to the Company an amount sufficient in the
opinion of the Company to satisfy any federal, state and other governmental tax
withholding requirements related to such inclusion in Participant’s income. The
Participant should consult with his or her tax advisor to determine the tax
consequences of acquiring the Restricted Stock and the advantages and
disadvantages of filing the Section 83(b) election.  The Participant acknowledges that it is his
or her sole responsibility, and not the Company’s, to file a timely election
under Section 83(b), even if the Participant requests the Company or its
representatives to make this filing on his or her behalf.


 


16.                                 Reduction
in Benefits.  In the event that the
Participant would incur an Excise Tax on any payments or benefits under this
Agreement as a result of a Change of Control (or any other change described in Section 280G(b)(2)
of the Code), the Company shall reduce the payments or benefits to be paid to
or granted to Participant hereunder to the greater of (i) the maximum amount
payable to the Participant without the imposition of any Excise Tax with
respect to the Restricted Stock and (ii) the amount that yields the Participant
the greatest after-tax amount of benefits under this Agreement after taking
into account any Excise Tax imposed on Participant, whether due to payments and
benefits under this Agreement or otherwise. 
“Excise Tax” means the tax imposed by Section 4999 of the Code and
any successor tax.  The determination of
whether the Participants payments and benefits should be reduced and the amount
of any such reduction shall be made by counsel selected by the Company (“Counsel”).  For purposes of such determination, (x) the
total amount of payments and benefits received by the Participant as a result
of such Change in Control (or such other change) shall be treated as “parachute
payments” within the meaning of Section 280G(b)(2) of the Code, and all “excess
parachute payments” within the meaning of Section 280G(b)(1) of the Code
shall be treated as subject to the Excise Tax, except to the extent that, in
the opinion of Counsel, a payment or benefit hereunder (in whole or in part)
does not constitute a “parachute payment” within the meaning of Section 280G(b)(2)
of the Code and the Treasury Regulations (including proposed Treasury
Regulations) under Section 280G of the Code (the “Regulations”), or such “excess
parachute payments” (in whole or in part) are not subject to the Excise Tax;
(y) the amount of the payments and benefits hereunder that shall be treated as
subject to the Excise Tax shall be equal to the lesser of (A) the total amount
of such payments and benefits or (B) the amount of “excess parachute payments”
within the meaning of Section 280G(b)(1) of the Code (after applying
clause (x) hereof); and (z) the value of any noncash benefits or any deferred
payment or benefit shall be determined by Counsel in accordance with the
principles of Sections 280G(d)(3) and (4) of the Code.  All fees and expenses of Counsel shall be
borne by the Company.


 


17.                                 Participant
Acknowledgment.  The Participant hereby acknowledges receipt of a
copy of the Plan.  The Participant hereby acknowledges that all
decisions, determinations and interpretations of the Committee in respect of
the Plan, this Agreement and the Restricted Stock shall be final and
conclusive.


 





















 


IN WITNESS WHEREOF, the Company has caused
this Agreement to be duly executed by its duly authorized officer, and the
Participant has hereunto signed this Agreement on his own behalf, thereby
representing that he has carefully read and understands this Agreement and the
Plan as of the day and year first written above.


 


 


	
   

  	
  GENERAL MARITIME CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   By:

  	
   /s/ John C. Georgiopoulos

  	
   

  
	
   

  	
   Name:

  	
   

  	
   

  
	
   

  	
   Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    /s/ Milton H. Gonzales

  	
   

  
	
   

  	
    Milton Gonzales