Document:

kl09006_ex10-1.htm

    
      

    

    
       

      Exhibit
10.1

       

       

    

    
      CREDIT
AGREEMENT

      

    

    
      among

    

    
       

      GENCO
SHIPPING & TRADING LIMITED,

       

      VARIOUS
LENDERS,

       

      and

       

      NORDEA
BANK FINLAND PLC,

       

      acting
through its New York branch,

       

      as
Administrative Agent, Mandated Lead Arranger, Bookrunner and Collateral
Agent,

      

    

    
      BAYERISCHE
HYPO- UND VEREINSBANK AG,

       

      as
Mandated Lead Arranger and Bookrunner,

       

      DNB NOR BANK ASA,

       

      as
Mandated Lead Arranger,

       

      and

      

    

    
      SUMITOMO
MITSUI BANKING CORPORATION,

      acting
through its Brussels branch,

    

    
      as
Mandated Lead Arranger

      __________________________________

      

    

    
      Dated
as of September 4, 2008

    

    
      __________________________________

       

    

    
       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	
                SECTON
      1.

              	
                 

              	
                AMOUNT
      AND TERMS OF THE FACILITY 

              	
                1

              

      

       

    

    
      	
               
      

            	
              1.01

            	
              The
      Commitments 

            	
              1

            

    

     

    
      	
               
      

            	
              1.02

            	
              Amount
      of Each Borrowing; Limitation on Number of
Borrowings 

            	
              1

            

    

     

    
      	
               
      

            	
              1.03

            	
              Notice
      of Borrowing 

            	
              2

            

    

     

    
      	
               
      

            	
              1.04

            	
              Disbursement
      of Funds 

            	
              2

            

    

     

    
      	
               
      

            	
              1.05

            	
              Notes 

            	
              3

            

    

     

    
      	
               
      

            	
              1.06

            	
              Pro
      Rata Borrowings 

            	
              4

            

    

     

    
      	
               
      

            	
              1.07

            	
              Interest 

            	
              4

            

    

     

    
      	
               
      

            	
              1.08

            	
              Interest
      Periods 

            	
              4

            

    

     

    
      	
               
      

            	
              1.09

            	
              Increased
      Costs, Illegality, etc 

            	
              5

            

    

     

    
      	
               
      

            	
              1.10

            	
              Compensation 

            	
              8

            

    

     

    
      	
               
      

            	
              1.11

            	
              Change
      of Lending Office 

            	
              8

            

    

     

    
      	
               
      

            	
              1.12

            	
              Replacement
      of Lenders 

            	
              8

            

    

     

    
      
        
          	
                  SECTON
      2.

                	
                   

                	
                  COMMITMENT COMMISSION; FEES; REDUCTIONS OF
      COMMITMENT

                	
                  9

                

        

         

      

    

    
      	
               
      

            	
              2.01

            	
              Commitment
      Commission; Fees 

            	
              9

            

    

     

    
      	
               
      

            	
              2.02

            	
              Voluntary
      Termination of Unutilized Commitments 

            	
              9

            

    

     

    
      	
               
      

            	
              2.03

            	
              Mandatory
      Reduction of Commitments 

            	
              10

            

    

     

    
      
        
          
            	
                    SECTON
      3.

                  	
                     

                  	
                    REPAYMENTS; PREPAYMENTS;
TAXES

                  	
                    10

                  

          

           

        

      

    

    
      	
               
      

            	
              3.01

            	
              Scheduled
      Repayments 

            	
              10

            

    

     

    
      	
               
      

            	
              3.02

            	
              Voluntary
      Prepayments 

            	
              10

            

    

     

    
      	
               
      

            	
              3.03

            	
              Mandatory
      Repayments 

            	
              11

            

    

     

    
      	
               
      

            	
              3.04

            	
              Method
      and Place of Payment 

            	
              12

            

    

     

    
      	
               
      

            	
              3.05

            	
              Net
      Payments; Taxes 

            	
              12

            

    

     

    
      
        
          
            
              	
                      SECTON
      4.

                    	
                       

                    	
                      CONDITIONS PRECEDENT

                    	
                      14

                    

            

             

          

        

      

    

    
      	
               
      

            	
              4.01

            	
              Opinions
      of Counsel 

            	
              14

            

    

     

    
      	
               
      

            	
              4.02

            	
              Corporate
      Documents; Proceedings; etc 

            	
              14

            

    

     

    
      	
               
      

            	
              4.03

            	
              Subsidiaries
      Guaranty 

            	
              15

            

    

     

    
      
        	
                 
      

              	
                4.04

              	
                Solvency/Minimum
      Consolidated Net Worth Certificate

              	
                15

              

      

    

     

    
      	
               
      

            	
              4.05

            	
              Purchase
      Contracts 

            	
              15

            

    

     

    
      	
               
      

            	
              4.06

            	
              Approvals 

            	
              15

            

    

     

    
      	
               
      

            	
              4.07

            	
              Litigation 

            	
              15

            

    

     

    
      	
               
      

            	
              4.08

            	
              Material
      Adverse Effect 

            	
              16

            

    

     

    
      	
               
      

            	
              4.09

            	
              Environmental
      Laws 

            	
              16

            

    

     

    
      	
               
      

            	
              4.10

            	
              Fees 

            	
              16

            

    

     

    
      	
               
      

            	
              4.11

            	
              No
      Conflicts 

            	
              16

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      
        
          
            
              
                	
                        SECTON
      5.

                      	
                         

                      	
                        CONDITIONS PRECEDENT TO BORROWINGS UNDER THE
      FACILITY

                      	
                        16

                      

              

               

            

          

        

      

    

    
      	
               
      

            	
              5.01

            	
              Opinions
      of Counsel 

            	
              16

            

    

     

    
      	
               
      

            	
              5.02

            	
              Corporate
      Documents; Proceedings; etc 

            	
              17

            

    

     

    
      	
               
      

            	
              5.03

            	
              Pledge
      and Security Agreement 

            	
              17

            

    

     

    
      	
               
      

            	
              5.04

            	
              Assignments
      of Earnings, Insurances and Charter 

            	
              18

            

    

     

    
      	
               
      

            	
              5.05

            	
              Control
      Agreement 

            	
              18

            

    

     

    
      	
               
      

            	
              5.06

            	
              Mortgages 

            	
              18

            

    

     

    
      	
               
      

            	
              5.07

            	
              Vessel
      Documents 

            	
              18

            

    

     

    
      	
               
      

            	
              5.08

            	
              Management
      and Service Agreements 

            	
              19

            

    

     

    
      	
               
      

            	
              5.09

            	
              Environmental
      Laws 

            	
              20

            

    

     

    
      
        
          
            
              
                
                  	
                          SECTON
      6.

                        	
                           

                        	
                          FURTHER CONDITIONS PRECEDENT

                        	
                          20

                        

                

              

            

          

        

      

    

     

    
      	
               
      

            	
              6.01

            	
              Further
      Conditions Precedent 

            	
              20

            

    

     

    
      
        
          
            
              
                
                  
                    	
                            SECTON
      7.

                          	
                             

                          	
                            REPRESENTATIONS, WARRANTIES AND
      AGREEMENTS

                          	
                            20

                          

                  

                

              

            

          

        

      

       

    

    
      	
               
      

            	
              7.01

            	
              Corporate/Limited
      Liability Company/Limited Partnership Status 

            	
              20

            

    

     

    
      	
               
      

            	
              7.02

            	
              Corporate
      Power and Authority 

            	
              21

            

    

     

    
      	
               
      

            	
              7.03

            	
              No
      Violation 

            	
              21

            

    

     

    
      	
               
      

            	
              7.04

            	
              Governmental
      Approvals 

            	
              21

            

    

     

    
      	
               
      

            	
              7.05

            	
              Financial
      Statements; Financial Condition; Undisclosed
    Liabilities 

            	
              21

            

    

     

    
      	
               
      

            	
              7.06

            	
              Litigation 

            	
              23

            

    

     

    
      	
               
      

            	
              7.07

            	
              True
      and Complete Disclosure 

            	
              23

            

    

     

    
      	
               
      

            	
              7.08

            	
              Use
      of Proceeds; Margin Regulations 

            	
              23

            

    

     

    
      	
               
      

            	
              7.09

            	
              Tax
      Returns and Payments 

            	
              23

            

    

     

    
      	
               
      

            	
              7.10

            	
              Compliance
      with ERISA 

            	
              23

            

    

     

    
      	
               
      

            	
              7.11

            	
              The
      Security Documents 

            	
              25

            

    

     

    
      	
               
      

            	
              7.12

            	
              Representations
      and Warranties in Documents 

            	
              25

            

    

     

    
      	
               
      

            	
              7.13

            	
              Subsidiaries 

            	
              25

            

    

     

    
      	
               
      

            	
              7.14

            	
              Compliance
      with Statutes, etc 

            	
              25

            

    

     

    
      	
               
      

            	
              7.15

            	
              Investment
      Company Act 

            	
              25

            

    

     

    
      	
               
      

            	
              7.16

            	
              Pollution
      and Other Regulations 

            	
              25

            

    

     

    
      	
               
      

            	
              7.17

            	
              Labor
      Relations 

            	
              26

            

    

     

    
      	
               
      

            	
              7.18

            	
              Patents,
      Licenses, Franchises and Formulas 

            	
              26

            

    

     

    
      	
               
      

            	
              7.19

            	
              Indebtedness 

            	
              26

            

    

     

    
      	
               
      

            	
              7.20

            	
              Insurance 

            	
              27

            

    

     

    
      	
               
      

            	
              7.21

            	
              Concerning
      the Vessels 

            	
              27

            

    

     

    
      	
               
      

            	
              7.22

            	
              Citizenship 

            	
              27

            

    

     

     

    (ii)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              7.23

            	
              Vessel
      Classification 

            	
              27

            

    

     

    
      	
               
      

            	
              7.24

            	
              No
      Immunity 

            	
              27

            

    

     

    
      	
               
      

            	
              7.25

            	
              Fees
      and Enforcement 

            	
              27

            

    

     

    
      	
               
      

            	
              7.26

            	
              Form
      of Documentation 

            	
              27

            

    

     

    
      	
               
      

            	
              7.27

            	
              Vessel
      Acquisitions 

            	
              28

            

    

     

    
      
        
          
            
              
                
                  
                    
                      	
                              SECTON
      8.

                            	
                               

                            	
                              AFFIRMATIVE COVENANTS

                            	
                              28

                            

                    

                  

                

              

            

          

        

         

      

    

    
      	
               
      

            	
              8.01

            	
              Information
      Covenants 

            	
              28

            

    

     

    
      	
               
      

            	
              8.02

            	
              Books,
      Records and Inspections 

            	
              31

            

    

     

    
      	
               
      

            	
              8.03

            	
              Maintenance
      of Property; Insurance; Mortgagee Interest Insurance 

            	
              31

            

    

     

    
      	
               
      

            	
              8.04

            	
              Corporate
      Franchises 

            	
              31

            

    

     

    
      	
               
      

            	
              8.05

            	
              Compliance
      with Statutes, etc 

            	
              32

            

    

     

    
      	
               
      

            	
              8.06

            	
              Compliance
      with Environmental Laws 

            	
              32

            

    

     

    
      	
               
      

            	
              8.07

            	
              ERISA 

            	
              33

            

    

     

    
      	
               
      

            	
              8.08

            	
              End
      of Fiscal Years; Fiscal Quarters 

            	
              34

            

    

     

    
      	
               
      

            	
              8.09

            	
              Performance
      of Obligations 

            	
              34

            

    

     

    
      	
               
      

            	
              8.10

            	
              Payment
      of Taxes 

            	
              34

            

    

     

    
      	
               
      

            	
              8.11

            	
              Further
      Assurances 

            	
              34

            

    

     

    
      	
               
      

            	
              8.12

            	
              Deposit
      of Earnings 

            	
              35

            

    

     

    
      	
               
      

            	
              8.13

            	
              Ownership
      of Subsidiaries 

            	
              35

            

    

     

    
      	
               
      

            	
              8.14

            	
              Flag
      of the Vessels; Vessel Classifications 

            	
              35

            

    

     

    
      	
               
      

            	
              8.15

            	
              Consent
      to Assignment of Charters 

            	
              36

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                SECTON
      9.

                              	
                                 

                              	
                                NEGATIVE COVENANTS

                              	
                                36

                              

                      

                    

                  

                

              

            

          

           

        

      

    

    
      	
               
      

            	
              9.01

            	
              Liens 

            	
              36

            

    

     

    
      	
               
      

            	
              9.02

            	
              Consolidation,
      Merger, Sale of Assets, etc 

            	
              37

            

    

     

    
      	
               
      

            	
              9.03

            	
              Dividends 

            	
              39

            

    

     

    
      	
               
      

            	
              9.04

            	
              Indebtedness 

            	
              40

            

    

     

    
      	
               
      

            	
              9.05

            	
              Advances,
      Investments and Loans 

            	
              41

            

    

     

    
      	
               
      

            	
              9.06

            	
              Transactions
      with Affiliates 

            	
              42

            

    

     

    
      	
               
      

            	
              9.07

            	
              Consolidated
      Interest Coverage Ratio 

            	
              42

            

    

     

    
      	
               
      

            	
              9.08

            	
              Maximum
      Leverage Ratio 

            	
              42

            

    

     

    
      	
               
      

            	
              9.09

            	
              Collateral
      Maintenance 

            	
              42

            

    

     

    
      	
               
      

            	
              9.10

            	
              Minimum
      Cash Balance 

            	
              43

            

    

     

    
      	
               
      

            	
              9.11

            	
              Minimum
      Consolidated Net Worth 

            	
              43

            

    

     

    
      	
               
      

            	
              9.12

            	
              Limitation
      on Modifications of Certificate of Incorporation and By-Laws;
      etc 

            	
              43

            

    

     

    
      	
               
      

            	
              9.13

            	
              Limitation
      on Certain Restrictions on Subsidiaries 

            	
              43

            

    

     

     

    (iii)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              9.14

            	
              Limitation
      on Issuance of Capital Stock 

            	
              44

            

    

     

    
      	
               
      

            	
              9.15

            	
              Business 

            	
              44

            

    

     

    
      	
               
      

            	
              9.16

            	
              Bank
      Accounts 

            	
              44

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  SECTON
      10.

                                	
                                   

                                	
                                  EVENTS OF DEFAULT

                                	
                                  45

                                
	 	 	 	 
	               10.01	 	Payments 	45
	 	 	 	 
	               10.02	 	Representations, etc	45
	 	 	 	 
	               10.03	 	Covenants	45

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        	
                 
      

              	
                10.04

              	
                Default
      Under Other Agreements 

              	
                45

              

      

    

     

    
      
        	
                 
      

              	
                10.05

              	
                Bankruptcy,
      etc 

              	
                45

              

      

    

     

    
      
        	
                 
      

              	
                10.06

              	
                ERISA 

              	
                46

              

      

    

     

    
      
        
          	
                   
      

                	
                  10.07

                	
                  Security
      Documents 

                	
                  46

                

        

      

    

     

    
      
        
          	
                   
      

                	
                  10.08

                	
                  Guaranty

                	
                  47

                

        

      

    

     

    
      
        
          	
                   
      

                	
                  10.09

                	
                  Judgments 

                	
                  47

                

        

      

    

     

    
      
        
          	
                   
      

                	
                  10.10

                	
                  Change
      of Control 

                	
                  47

                

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    SECTON
      11.

                                  	
                                     

                                  	
                                    DEFINITIONS AND ACCOUNTING
    TERMS

                                  	
                                    47

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            	
                     
      

                  	
                    11.01

                  	
                    Defined
      Terms 

                  	
                    48

                  

          

        

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      SECTON
      12.

                                    	
                                       

                                    	
                                      AGENCY AND SECURITY TRUSTEE
      PROVISIONS

                                    	
                                      48

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              	
                       
      

                    	
                      12.01

                    	
                      Appointment

                    	
                      48

                    

            

          

        

      

    

     

    
      
        
          
            
              
                	
                         
      

                      	
                        12.02

                      	
                        Nature
      of Duties 

                      	
                        48

                      

              

            

          

        

      

       

    

    
      
        
          
            
              
                	
                         
      

                      	
                        12.03

                      	
                        Lack
      of Reliance on the Agents 

                      	
                        49

                      

              

            

          

        

      

       

    

    
      
        
          
            
              
                	
                         
      

                      	
                        12.04

                      	
                        Certain
      Rights of the Agents 

                      	
                        49

                      

              

            

          

        

      

       

    

    
      
        
          
            
              
                	
                         
      

                      	
                        12.05

                      	
                        Reliance 

                      	
                        49

                      

              

            

          

        

      

       

    

    
      
        
          
            
              
                	
                         
      

                      	
                        12.06

                      	
                        Indemnification 

                      	
                        49

                      

              

            

          

        

      

       

    

    
      
        
          
            
              
                	
                         
      

                      	
                        12.07

                      	
                        The
      Administrative Agent in its Individual Capacity 

                      	
                        50

                      

              

            

          

        

      

       

    

    
      
        
          
            
              
                	
                         
      

                      	
                        12.08

                      	
                        Holders 

                      	
                        50

                      

              

            

          

        

      

       

    

    
      
        
          
            
              
                	
                         
      

                      	
                        12.09

                      	
                        Resignation
      by the Administrative Agent 

                      	
                        50

                      

              

            

          

        

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        SECTON
      13.

                                      	
                                         

                                      	
                                        MISCELLANEOUS

                                      	
                                        51

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    	
                             
      

                          	
                            13.01

                          	
                            Payment
      of Expenses, etc 

                          	
                            51

                          

                  

                

              

            

          

           

        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                         
      

                                                      	
                                                        13.02

                                                      	
                                                        Right
      of Setoff 

                                                      	
                                                        52

                                                      

                                              

                                            

                                          

                                        

                                      

                                       

                                    

                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            	
                                                                                     
      

                                                                                  	
                                                                                    13.03

                                                                                  	
                                                                                    Notices 

                                                                                  	
                                                                                    52

                                                                                  

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                   

                                                                

                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        	
                                                                                                                 
      

                                                                                                              	
                                                                                                                13.04

                                                                                                              	
                                                                                                                Benefit
      of Agreement 

                                                                                                              	
                                                                                                                52

                                                                                                              

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                               

                                                                                            

                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    	
                                                                                                                                             
      

                                                                                                                                          	
                                                                                                                                            13.05

                                                                                                                                          	
                                                                                                                                            No
      Waiver; Remedies Cumulative 

                                                                                                                                          	
                                                                                                                                            54

                                                                                                                                          

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                           

                                                                                                                        

                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  
                                                                                                                                                    
                                                                                                                                                      
                                                                                                                                                        
                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                              
                                                                                                                                                                	
                                                                                                                                                                         
      

                                                                                                                                                                      	
                                                                                                                                                                        13.06

                                                                                                                                                                      	
                                                                                                                                                                        Payments
      Pro Rata 

                                                                                                                                                                      	
                                                                                                                                                                        54

                                                                                                                                                                      

                                                                                                                                                              

                                                                                                                                                            

                                                                                                                                                          

                                                                                                                                                        

                                                                                                                                                      

                                                                                                                                                       

                                                                                                                                                    

                                                                                                                                                    
                                                                                                                                                      
                                                                                                                                                        
                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                              
                                                                                                                                                                
                                                                                                                                                                  
                                                                                                                                                                    
                                                                                                                                                                      
                                                                                                                                                                        
                                                                                                                                                                          
                                                                                                                                                                            
                                                                                                                                                                              
                                                                                                                                                                                
                                                                                                                                                                                  
                                                                                                                                                                                    
                                                                                                                                                                                      
                                                                                                                                                                                        
                                                                                                                                                                                          
                                                                                                                                                                                            
                                                                                                                                                                                              	
                                                                                                                                                                                                       
      

                                                                                                                                                                                                    	
                                                                                                                                                                                                      13.07

                                                                                                                                                                                                    	
                                                                                                                                                                                                      Calculations;
      Computations 

                                                                                                                                                                                                    	
                                                                                                                                                                                                      55

                                                                                                                                                                                                    

                                                                                                                                                                                            

                                                                                                                                                                                          

                                                                                                                                                                                        

                                                                                                                                                                                      

                                                                                                                                                                                    

                                                                                                                                                                                     

                                                                                                                                                                                  

                                                                                                                                                                                  
                                                                                                                                                                                    
                                                                                                                                                                                      
                                                                                                                                                                                        
                                                                                                                                                                                          
                                                                                                                                                                                            
                                                                                                                                                                                              
                                                                                                                                                                                                
                                                                                                                                                                                                  
                                                                                                                                                                                                    
                                                                                                                                                                                                      
                                                                                                                                                                                                        
                                                                                                                                                                                                          
                                                                                                                                                                                                             

                                                                                                                                                                                                          

                                                                                                                                                                                                        

                                                                                                                                                                                                      

                                                                                                                                                                                                    

                                                                                                                                                                                                  

                                                                                                                                                                                                

                                                                                                                                                                                              

                                                                                                                                                                                            

                                                                                                                                                                                          

                                                                                                                                                                                        

                                                                                                                                                                                      

                                                                                                                                                                                    

                                                                                                                                                                                  

                                                                                                                                                                                

                                                                                                                                                                              

                                                                                                                                                                            

                                                                                                                                                                          

                                                                                                                                                                        

                                                                                                                                                                      

                                                                                                                                                                    

                                                                                                                                                                  

                                                                                                                                                                

                                                                                                                                                              

                                                                                                                                                            

                                                                                                                                                          

                                                                                                                                                        

                                                                                                                                                      

                                                                                                                                                    

                                                                                                                                                  

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    (iv)

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                         
      

                                                      	
                                                        13.08

                                                      	
                                                        GOVERNING
      LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY
      TRIAL 

                                                      	
                                                        55

                                                      

                                              

                                            

                                          

                                        

                                      

                                       

                                    

                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          	
                                                                                                                   
      

                                                                                                                	
                                                                                                                  13.09

                                                                                                                	
                                                                                                                  Counterparts 

                                                                                                                	
                                                                                                                  56

                                                                                                                

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                                 

                                                                                              

                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  
                                                                                                                                                    
                                                                                                                                                      
                                                                                                                                                        
                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                              
                                                                                                                                                                
                                                                                                                                                                  
                                                                                                                                                                    	
                                                                                                                                                                             
      

                                                                                                                                                                          	
                                                                                                                                                                            13.10

                                                                                                                                                                          	
                                                                                                                                                                            Effectiveness 

                                                                                                                                                                          	
                                                                                                                                                                            56

                                                                                                                                                                          

                                                                                                                                                                  

                                                                                                                                                                

                                                                                                                                                              

                                                                                                                                                            

                                                                                                                                                          

                                                                                                                                                           

                                                                                                                                                        

                                                                                                                                                        
                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                              
                                                                                                                                                                
                                                                                                                                                                  
                                                                                                                                                                    
                                                                                                                                                                      
                                                                                                                                                                        
                                                                                                                                                                          
                                                                                                                                                                            
                                                                                                                                                                              
                                                                                                                                                                                
                                                                                                                                                                                  
                                                                                                                                                                                    
                                                                                                                                                                                      
                                                                                                                                                                                        
                                                                                                                                                                                          
                                                                                                                                                                                            
                                                                                                                                                                                              
                                                                                                                                                                                                
                                                                                                                                                                                                  
                                                                                                                                                                                                    
                                                                                                                                                                                                      
                                                                                                                                                                                                        
                                                                                                                                                                                                          
                                                                                                                                                                                                            
                                                                                                                                                                                                              
                                                                                                                                                                                                                
                                                                                                                                                                                                                  
                                                                                                                                                                                                                    
                                                                                                                                                                                                                      
                                                                                                                                                                                                                        
                                                                                                                                                                                                                          
                                                                                                                                                                                                                            
                                                                                                                                                                                                                              	
                                                                                                                                                                                                                                       
      

                                                                                                                                                                                                                                    	
                                                                                                                                                                                                                                      13.11

                                                                                                                                                                                                                                    	
                                                                                                                                                                                                                                      Headings
      Descriptive 

                                                                                                                                                                                                                                    	
                                                                                                                                                                                                                                      57

                                                                                                                                                                                                                                    

                                                                                                                                                                                                                            

                                                                                                                                                                                                                          

                                                                                                                                                                                                                        

                                                                                                                                                                                                                      

                                                                                                                                                                                                                    

                                                                                                                                                                                                                     

                                                                                                                                                                                                                  

                                                                                                                                                                                                                  
                                                                                                                                                                                                                    
                                                                                                                                                                                                                      
                                                                                                                                                                                                                        
                                                                                                                                                                                                                          
                                                                                                                                                                                                                            
                                                                                                                                                                                                                              
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                        	
                                                                                                                                                                                                                                                                                                 
      

                                                                                                                                                                                                                                                                                              	
                                                                                                                                                                                                                                                                                                13.12

                                                                                                                                                                                                                                                                                              	
                                                                                                                                                                                                                                                                                                Amendment
      or Waiver; etc 

                                                                                                                                                                                                                                                                                              	
                                                                                                                                                                                                                                                                                                57

                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                               

                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                  	
                                                                                                                                                                                                                                                                                                                                                           
      

                                                                                                                                                                                                                                                                                                                                                        	
                                                                                                                                                                                                                                                                                                                                                          13.13

                                                                                                                                                                                                                                                                                                                                                        	
                                                                                                                                                                                                                                                                                                                                                          Survival 

                                                                                                                                                                                                                                                                                                                                                        	
                                                                                                                                                                                                                                                                                                                                                          58

                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                         

                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                            	
                                                                                                                                                                                                                                                                                                                                                                                                                     
      

                                                                                                                                                                                                                                                                                                                                                                                                                  	
                                                                                                                                                                                                                                                                                                                                                                                                                    13.14

                                                                                                                                                                                                                                                                                                                                                                                                                  	
                                                                                                                                                                                                                                                                                                                                                                                                                    Domicile
      of Loans 

                                                                                                                                                                                                                                                                                                                                                                                                                  	
                                                                                                                                                                                                                                                                                                                                                                                                                    58

                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                   

                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      	
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
      

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            	
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              13.15

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            	
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Limitation
      on Additional Amounts, etc 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            	
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              58

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                                                             

                                                                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                	
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
      

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      	
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        13.16

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      	
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Confidentiality 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      	
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        59

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                

                                                                                                                                                                                                                              

                                                                                                                                                                                                                            

                                                                                                                                                                                                                          

                                                                                                                                                                                                                        

                                                                                                                                                                                                                      

                                                                                                                                                                                                                    

                                                                                                                                                                                                                  

                                                                                                                                                                                                                

                                                                                                                                                                                                              

                                                                                                                                                                                                            

                                                                                                                                                                                                          

                                                                                                                                                                                                        

                                                                                                                                                                                                      

                                                                                                                                                                                                    

                                                                                                                                                                                                  

                                                                                                                                                                                                

                                                                                                                                                                                              

                                                                                                                                                                                            

                                                                                                                                                                                          

                                                                                                                                                                                        

                                                                                                                                                                                      

                                                                                                                                                                                    

                                                                                                                                                                                  

                                                                                                                                                                                

                                                                                                                                                                              

                                                                                                                                                                            

                                                                                                                                                                          

                                                                                                                                                                        

                                                                                                                                                                      

                                                                                                                                                                    

                                                                                                                                                                  

                                                                                                                                                                

                                                                                                                                                              

                                                                                                                                                            

                                                                                                                                                          

                                                                                                                                                        

                                                                                                                                                      

                                                                                                                                                    

                                                                                                                                                  

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	
                                                           
      

                                                        	
                                                          13.17

                                                        	
                                                          Register 

                                                        	
                                                          59

                                                        

                                                

                                              

                                            

                                          

                                        

                                         

                                      

                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              	
                                                                                                                       
      

                                                                                                                    	
                                                                                                                      13.18

                                                                                                                    	
                                                                                                                      Judgment
      Currency 

                                                                                                                    	
                                                                                                                      60

                                                                                                                    

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                     

                                                                                                  

                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  
                                                                                                                                                    
                                                                                                                                                      
                                                                                                                                                        
                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                              
                                                                                                                                                                
                                                                                                                                                                  
                                                                                                                                                                    
                                                                                                                                                                      
                                                                                                                                                                        
                                                                                                                                                                          	
                                                                                                                                                                                   
      

                                                                                                                                                                                	
                                                                                                                                                                                  13.19

                                                                                                                                                                                	
                                                                                                                                                                                  Language 

                                                                                                                                                                                	
                                                                                                                                                                                  60

                                                                                                                                                                                

                                                                                                                                                                        

                                                                                                                                                                      

                                                                                                                                                                    

                                                                                                                                                                  

                                                                                                                                                                

                                                                                                                                                                 

                                                                                                                                                              

                                                                                                                                                              
                                                                                                                                                                
                                                                                                                                                                  
                                                                                                                                                                    
                                                                                                                                                                      
                                                                                                                                                                        
                                                                                                                                                                          
                                                                                                                                                                            
                                                                                                                                                                              
                                                                                                                                                                                
                                                                                                                                                                                  
                                                                                                                                                                                    
                                                                                                                                                                                      
                                                                                                                                                                                        
                                                                                                                                                                                          
                                                                                                                                                                                            
                                                                                                                                                                                              
                                                                                                                                                                                                
                                                                                                                                                                                                  
                                                                                                                                                                                                    
                                                                                                                                                                                                      
                                                                                                                                                                                                        
                                                                                                                                                                                                          
                                                                                                                                                                                                            
                                                                                                                                                                                                              
                                                                                                                                                                                                                
                                                                                                                                                                                                                  
                                                                                                                                                                                                                    
                                                                                                                                                                                                                      
                                                                                                                                                                                                                        
                                                                                                                                                                                                                          
                                                                                                                                                                                                                            
                                                                                                                                                                                                                              
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                      	
                                                                                                                                                                                                                                               
      

                                                                                                                                                                                                                                            	
                                                                                                                                                                                                                                              13.20

                                                                                                                                                                                                                                            	
                                                                                                                                                                                                                                              Waiver
      of Immunity 

                                                                                                                                                                                                                                            	
                                                                                                                                                                                                                                              60

                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                

                                                                                                                                                                                                                              

                                                                                                                                                                                                                            

                                                                                                                                                                                                                             

                                                                                                                                                                                                                          

                                                                                                                                                                                                                          
                                                                                                                                                                                                                            
                                                                                                                                                                                                                              
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                  	
                                                                                                                                                                                                                                                                                                           
      

                                                                                                                                                                                                                                                                                                        	
                                                                                                                                                                                                                                                                                                          13.21

                                                                                                                                                                                                                                                                                                        	
                                                                                                                                                                                                                                                                                                          USA
      PATRIOT Act Notice 

                                                                                                                                                                                                                                                                                                        	
                                                                                                                                                                                                                                                                                                          61

                                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                                         

                                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                        

                                                                                                                                                                                                                                      

                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                  

                                                                                                                                                                                                                                

                                                                                                                                                                                                                              

                                                                                                                                                                                                                            

                                                                                                                                                                                                                          

                                                                                                                                                                                                                        

                                                                                                                                                                                                                      

                                                                                                                                                                                                                    

                                                                                                                                                                                                                  

                                                                                                                                                                                                                

                                                                                                                                                                                                              

                                                                                                                                                                                                            

                                                                                                                                                                                                          

                                                                                                                                                                                                        

                                                                                                                                                                                                      

                                                                                                                                                                                                    

                                                                                                                                                                                                  

                                                                                                                                                                                                

                                                                                                                                                                                              

                                                                                                                                                                                            

                                                                                                                                                                                          

                                                                                                                                                                                        

                                                                                                                                                                                      

                                                                                                                                                                                    

                                                                                                                                                                                  

                                                                                                                                                                                

                                                                                                                                                                              

                                                                                                                                                                            

                                                                                                                                                                          

                                                                                                                                                                        

                                                                                                                                                                      

                                                                                                                                                                    

                                                                                                                                                                  

                                                                                                                                                                

                                                                                                                                                              

                                                                                                                                                            

                                                                                                                                                          

                                                                                                                                                        

                                                                                                                                                      

                                                                                                                                                    

                                                                                                                                                  

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    (v)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

                

        

    
      	 	APPENDIX
      A	 	Definitions
	 	 	 	 
	 	SCHEDULE
      I	-	The
      Lenders and the Commitments
	 	SCHEDULE
      II	-	The
      Lenders’ Addresses
	 	SCHEDULE
      III    	-	Subsidiary
      Guarantors, Vessels and Allocated Loan Amount
	 	SCHEDULE
      IV	-	Indebtedness
	 	SCHEDULE
      V	-	Insurance
	 	SCHEDULE
      VI	-	ERISA
	 	SCHEDULE
      VII	-	Subsidiaries
	 	SCHEDULE
      VIII	-	Approved
      Classification Societies
	 	SCHEDULE
      IX	-	Repayment
	 	 	 	 
	
               
      

            	
              EXHIBIT
      A

            	
              -

            	
              Form
      of Notice of Borrowing

            

    

    
      	
               
      

            	
              EXHIBIT
      B

            	
              -

            	
              Form
      of Note

            

    

    
      	
               
      

            	
              EXHIBIT
      C-1

            	
              -

            	
              Form
      of Opinion of Kramer Levin Naftalis & Frankel LLP, New York counsel to
      the Borrower and its Subsidiaries

            

    

    
      	
               EXHIBIT
      C-2

            	
              Form
      of Opinion of Reeder & Simpson, special Marshall Islands counsel to
      the Borrower and its Subsidiaries

            

    

    
      	
               
      

            	
              EXHIBIT
      C-3

            	
              -

            	
              Form
      of Opinion of Constantine P. Georgiopoulos, New
      York maritime counsel to Borrower and its
  Subsidiaries

            

    

    
      	
               
      

            	
              EXHIBIT
      C-4

            	
              -

            	
              Form
      of Opinion of Mayer Brown JSM, Hong Kong counsel to the Administrative
      Agent

            

    

    
      	
               
      

            	
              EXHIBIT
      D

            	
              -

            	
              Form
      of Officer’s Certificate

            

    

    
      	
               EXHIBIT
      E

            	
              Form
      of Guaranty

            

    

    
      	
               
      

            	
              EXHIBIT
      F

            	
              -

            	
              Form
      of Pledge Agreement

            

    

    
      	
               
      

            	
              EXHIBIT
      G

            	
              -

            	
              Form
      of Solvency/Minimum Consolidated Net Worth
  Certificate

            

    

    
      	
               
      

            	
              EXHIBIT
      H-1

            	
              -

            	
              Form
      of Assignment of Earnings

            

    

    
      	
               
      

            	
              EXHIBIT
      H-2

            	
              -

            	
              Form
      of Assignment of Insurances

            

    

    
      	
               
      

            	
              EXHIBIT
      I

            	
              -

            	
              Form
      of Compliance Certificate

            

    

    
      	
               
      

            	
              EXHIBIT
      J

            	
              -

            	
              Form
      of Subordination Provisions

            

    

    
      	
               
      

            	
              EXHIBIT
      K

            	
              -

            	
              Form
      of Assignment and Assumption
Agreement

            

    

    
      	
               
      

            	
              EXHIBIT
      L-1

            	
              -

            	
              Form
      of Hong Kong Vessel Mortgage

            

    

    
      	
               
      

            	
              EXHIBIT
      L-2

            	
              -

            	
              Form
      of Marshall Islands Vessel Mortgage

            

    

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    THIS
SENIOR SECURED CREDIT AGREEMENT (this “Credit Agreement”), is made as of [DATE],
2008, by and among (1) GENCO SHIPPING & TRADING LIMITED, a corporation
organized and existing under the laws of the Republic of Marshall Islands (the
“Borrower”),
(2) the banks and financial institutions acceptable to the Borrower and Mandated
Lead Arrangers (as defined below) listed in Schedule I of this Credit Agreement,
as lenders (the “Lenders”), (3) NORDEA BANK FINLAND PLC, acting through its New
York branch (“Nordea”) as
Administrative Agent (in such capacity, the “Administrative
Agent”), as mandated lead arranger, as bookrunner, and as security
trustee and as collateral agent under the Security Documents (in such capacity,
the “Collateral
Agent”), (4) Bayerische Hypo- und Vereinsbank AG (“HVB”) as mandated
lead arranger and as bookrunner (in such capacity and together with Nordea, the
“Bookrunners”),
(5) DnB NOR Bank ASA (“DnB NOR”) as mandated
lead arranger, and (6) SUMITOMO MITSUI BANKING CORPORATION, acting through its
Brussels branch (“Sumitomo”), as mandated lead arranger (in such capacity and
together with Nordea, HVB and DnB NOR, the “Mandated Lead
Arrangers”).  All capitalized terms used herein and defined in
Appendix A are used herein as therein defined.

     

    W I T N E S S E T
H:

     

    WHEREAS,
the Borrower desires to finance a portion of the purchase price for the
acquisition of six (6) modern dry-bulk vessels as listed in Schedule III (the
“Vessels”);

     

    WHEREAS,
subject to and upon the terms and conditions herein set forth, the Lenders are
willing to make available to the Borrower a credit facility (the “Facility”) in an
amount (the “Total
Facility Amount”) not to exceed Three Hundred Twenty Million United
States Dollars (US$320,000,000).

     

    NOW,
THEREFORE, IT IS AGREED:

     

    SECTION
1.    Amount and Terms of the
Facility.

     

    1.01    The
Commitments.  Subject to and upon the terms and conditions set
forth herein, each Lender with a Commitment severally agrees to make at any time
on or after the Effective Date and prior to the Availability Termination Date a
loan for each Vessel (each, a “Loan” and,
collectively, the “Loans”) to the
Borrower, which Loans (i) shall bear interest in accordance with Section
1.07, (ii) shall be denominated in Dollars, (iii) shall not exceed the
Allocated Loan Amount for such Vessel, (iv) shall not exceed for any Lender
at any time the Commitment of such Lender at such time and (v) shall not
exceed for all Lenders at any the Total Commitment at such time.

     

    1.02    Amount of Each Borrowing;
Limitation on Number of Borrowings.  (a)  The
aggregate principal amount of each Borrowing of a Loan shall not exceed the
Allocated Loan Amount for the Vessel to which such Loan relates.

     

    (b)    More than
one Borrowing may occur on the same date, which Borrowings may have the same or
different Interest Periods.  There shall be only one Borrowing per
Vessel

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    and
accordingly at no time shall there be outstanding more than six Borrowings of
Loans subject to different Interest Periods in the aggregate.

     

    1.03    Notice of
Borrowing.  (a)  Whenever the Borrower desires to
make a Borrowing hereunder, it shall give the Administrative Agent at its Notice
Office at least three Business Days’ prior written notice of each Loan to be
made hereunder, provided that any such notice shall be deemed to have been given
on a certain day only if given before 4:00 P.M. (New York time).  Each
such written notice (each a “Notice of
Borrowing”), except as otherwise expressly provided in Section 1.09,
shall be irrevocable and shall be given by the Borrower in the form of Exhibit
A, appropriately completed to specify (i) the aggregate principal amount of
the Loans to be made pursuant to such Borrowing, (ii) the date of such
Borrowing (which shall be a Business Day), (iii) the initial Interest
Period to be applicable thereto, (iv) the Vessel or Vessels  the
proceeds of the Loan or Loans made pursuant to such Borrowing are being used to
purchase, and (v) to which account the proceeds of such Loans are to be
deposited.  The Administrative Agent shall promptly give each Lender
notice of such proposed Borrowing, of such Lender’s proportionate share thereof
and of the other matters required by the immediately preceding sentence to be
specified in the Notice of Borrowing.

     

    (b)    Without
in any way limiting the obligation of the Borrower to deliver a written Notice
of Borrowing in accordance with Section 1.03(a), the Administrative Agent may
act without liability upon the basis of telephonic notice of such Borrowing,
believed by the Administrative Agent in good faith to be from an Authorized
Officer of the Borrower prior to receipt of Notice of Borrowing.  In
each such case, the Borrower hereby waives the right to dispute the
Administrative Agent’s record of the terms of such telephonic notice of such
Borrowing of Loans, absent manifest error.

     

    1.04    Disbursement of
Funds.  Except as otherwise specifically provided in the
immediately succeeding sentence, no later than 12:00 Noon (New York time)
on the date specified in each Notice of Borrowing, each Lender will make
available its pro rata portion of each
such Borrowing requested to be made on such date.  All such amounts
shall be made available in Dollars and in immediately available funds at the
Payment Office of the Administrative Agent and the Administrative Agent will
make available to the Borrower (prior to 1:00 P.M. (New York Time) on such day
to the extent of funds actually received by the Administrative Agent prior to
12:00 Noon (New York Time) on such day) at the Payment Office, in the account
specified in the applicable Notice of Borrowing, the aggregate of the amounts so
made available by the Lenders.  Unless the Administrative Agent shall
have been notified by any Lender prior to the date of Borrowing that such Lender
does not intend to make available to the Administrative Agent such Lender’s
portion of any Borrowing to be made on such date, the Administrative Agent may
assume that such Lender has made such amount available to the Administrative
Agent on such date of Borrowing and the Administrative Agent may, in reliance
upon such assumption, make available to the Borrower a corresponding
amount.  If such corresponding amount is not in fact made available to
the Administrative Agent by such Lender, the Administrative Agent shall be
entitled to recover such corresponding amount on demand from such
Lender.  If such Lender does not pay such corresponding amount
forthwith upon the Administrative Agent’s demand therefore, the Administrative
Agent shall promptly notify the Borrower and the Borrower shall immediately pay
such corresponding amount to the 

     

     

    
      
        
        

      

      
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    Administrative
Agent.  The Administrative Agent shall also be entitled to recover on
demand from such Lender or the Borrower, as the case may be, interest on such
corresponding amount in respect of each day from the date such corresponding
amount was made available by the Administrative Agent to the Borrower until the
date such corresponding amount is recovered by the Administrative Agent, at a
rate per annum equal to (i) if recovered from such Lender, at the overnight
Federal Funds Rate and (ii) if recovered from the Borrower, the rate of
interest applicable to the respective Borrowing, as determined pursuant to
Section 1.07.  

     

    1.05    Notes.  (a)  The
Borrower’s obligation to pay the principal of, and interest on, the Loans made
by each Lender shall be evidenced by a promissory note in favor of the
Administrative Agent and, if requested by any Lender, be evidenced by a
promissory note in favor of such Lender duly executed and delivered by the
Borrower substantially in the form of Exhibit B with blanks appropriately
completed in conformity herewith (each a “Note” and,
collectively, the “Notes”).

     

    (b)    Each Note
shall (i) be executed by the Borrower, (ii) be payable to the order of
the Administrative Agent or the appropriate Lender, as applicable, and be dated
the Effective Date (or, in the case of Notes issued after the Effective Date, be
dated the date of issuance thereof), (iii) be in a stated principal amount
equal to (x) the Commitment of such Lender on the Effective Date (or, in the
case of Notes issued after the Effective Date, be in a stated principal amount
equal to the Commitment of such Lender on the date of the issuance thereof) if
issued in favor of a Lender and (y) the Total Commitment less the amount of any
other Notes issued in favor of any Lender if issued in favor of the
Administrative Agent, and be payable in the principal amount of the Loans
evidenced thereby, (iv) mature on the Maturity Date, (v) bear interest
as provided in Section 1.07, (vi) be subject to voluntary prepayment and
mandatory repayment as provided in Sections 3.02 and 3.03 and (vii) be
entitled to the benefits of this Agreement and the other Credit
Documents.

     

    (c)    The
Administrative Agent and/or each Lender, as applicable, will note on its
internal records the amount, in the case of the Administrative Agent, of the
Loans made to date and, in the case of each Lender in whose favor a Note has
been issued, of each Loan made by it and in each instance, each payment in
respect thereof and will, prior to any transfer of any relevant Notes, endorse
on the reverse side thereof the outstanding principal amount of Loans evidenced
thereby which notation shall be prima facie evidence of the
amount of the Loans.  However, failure to make any such notation or
any error in any such notation or endorsement shall not affect the Borrower’s
obligations in respect of such Loans.

     

    (d)    Notwithstanding
anything to the contrary contained above in this Section 1.05 or elsewhere in
this Agreement, Notes shall be delivered to the Administrative Agent and to only
those Lenders that at any time specifically request the delivery of such
Notes.  No failure of any Lender to request or obtain a Note
evidencing its Loans to the Borrower shall affect or in any manner impair the
obligations of the Borrower to pay the Loans (and all related Obligations)
incurred by the Borrower that would otherwise be evidenced thereby in accordance
with the requirements of this Agreement, and shall not in any way affect the
security or guaranties therefore provided pursuant to the Credit
Documents.  Any Lender that does not have a Note evidencing its
outstanding Loans shall in no event be required to make the notations otherwise
described in preceding clause (c).  At any time (including, without
limitation, to replace any Note

     

     

     

    
      
        
        

      

      
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    that has
been destroyed or lost) when the Administrative Agent or any Lender requests the
delivery of a Note to evidence any of Loans, the Borrower shall promptly execute
and deliver to the Administrative Agent or such Lender, as applicable, the
requested Note in the appropriate amount or amounts to evidence such Loans
provided that, in the case of a substitute or replacement Note, the Borrower
shall have received from such requesting Lender (i) an affidavit of loss or
destruction and (ii) a customary lost/destroyed Note indemnity, in each
case in form and substance reasonably acceptable to the Borrower and the
Administrative Agent or such requesting Lender, as applicable, and duly executed
by such requesting Lender.

     

    1.06    Pro Rata
Borrowings.  All Borrowings of Loans under this Agreement shall
be incurred from the Lenders pro rata on the basis of
their Commitments.  It is understood that no Lender shall be
responsible for any default by any other Lender of its obligation to make Loans
hereunder and that each Lender shall be obligated to make the Loans provided to
be made by it hereunder, regardless of the failure of any other Lender to make
its Loans hereunder.

     

    1.07    Interest.  (a)  The
Borrower agrees to pay interest in respect of the unpaid principal amount of
each Loan from the date the proceeds thereof are made available to the Borrower
until such Loan is paid in full at a rate per annum which shall, during each
Interest Period applicable thereto, be equal to the sum of the Applicable Margin
plus the LIBOR for such Interest Period.

     

    (b)    Overdue
principal and, to the extent permitted by law, overdue interest in respect of
each Loan and any other overdue amount payable hereunder shall, in each case,
bear interest at a rate per annum equal to 2% per annum in excess of the rate
then borne by such Loans (or, if such overdue amount is not interest or
principal in respect of a Loan, 2.50% per annum in excess of the Base Rate as in
effect from time to time), in each case with such interest to be payable on
demand.

     

    (c)    Accrued
and unpaid interest shall be payable in respect of each Loan, on the last day of
each Interest Period applicable thereto and, in the case of an Interest Period
in excess of three months, on each date occurring at three month intervals after
the first day of such Interest Period, on any repayment or prepayment (on the
amount repaid or prepaid), at maturity (whether by acceleration or otherwise)
and, after such maturity, on demand.

     

    (d)    Upon each
Interest Determination Date, the Administrative Agent shall determine LIBOR for
each Interest Period applicable to the Loans to be made pursuant to the
applicable Borrowing and shall promptly notify the Borrower and the Lenders
thereof.  Each such determination shall, absent manifest error, be
final and conclusive and binding on all parties hereto.

     

    1.08    Interest
Periods.  At the time the Borrower gives any Notice of
Borrowing in respect of the making of any Loan (in the case of the initial
Interest Period applicable thereto) or on the third Business Day prior to the
expiration of an Interest Period applicable to such Loan (in the case of any
subsequent Interest Period) (provided that any such notice shall be deemed to be
given on a certain day only if given before 11:00 A.M. (New York time)), it
shall have the right to elect, by giving the Administrative Agent notice
thereof, the interest period (each an “Interest Period”)
applicable to such Loan, which Interest Period shall, at the option of
the

     

     

    
      
        
        

      

      
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    Borrower,
be a one, three, six or, to the extent available and agreed by all Lenders, nine
or twelve month period and such other period of less
than 30 days; provided that any Interest Period selected pursuant to this clause
shall be approved by the Administrative Agent in its reasonable discretion
and that:

     

    (i)    the
initial Interest Period for any Loan shall commence on the date of Borrowing of
such Loan and each Interest Period occurring thereafter in respect of such Loan
shall commence on the day on which the immediately preceding Interest Period
applicable thereto expires;

     

    (ii)    if any
Interest Period relating to a Loan begins on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period, such Interest Period shall end on the last Business Day of such calendar
month;

     

    (iii)   if any
Interest Period would otherwise expire on a day which is not a Business Day,
such Interest Period shall expire on the first succeeding Business Day;
provided, however, that if any Interest Period for a Loan would otherwise expire
on a day which is not a Business Day but is a day of the month after which no
further Business Day occurs in such month, such Interest Period shall expire on
the immediately preceding Business Day;

     

    (iv)   no
Interest Period longer than one month may be selected at any time when an Event
of Default (or, if the Administrative Agent or the Required Lenders have
determined that such an election at such time would be disadvantageous to the
Lenders, a Default) has occurred and is continuing;

     

    (v)    no
Interest Period in respect of any Borrowing of any Loans shall be selected which
extends beyond the Maturity Date;

     

    (vi)   no
Interest Period in respect of any Borrowing of Loans shall be selected which
extends beyond any date upon which a mandatory repayment of Loans will be
required to be made under Section 3.03(a) as a result of a reduction to the
Total Commitment pursuant to Section 2.03(b) if the aggregate principal amount
of Loans which have Interest Periods which will expire after such date will be
in excess of the aggregate principal amount of Loans then outstanding less the
aggregate amount of such required repayment on such date; and

     

    (vii)   the
selection of Interest Periods shall be subject to the provisions of Section
1.02(b).

     

    If by
11:00 A.M. (New York time) on the third Business Day prior to the expiration of
any Interest Period applicable to a Borrowing, the Borrower has failed to elect
a new Interest Period to be applicable to such Loans as provided above, the
Borrower shall be deemed to have elected a one month Interest Period to be
applicable to such Loans effective as of the expiration date of such current
Interest Period.

     

     

     

    
      
        
        

      

      
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    1.09    Increased Costs, Illegality,
etc.  (a)  In the event that any Lender shall have
determined in good faith (which determination shall, absent manifest error, be
final and conclusive and binding upon all parties hereto but, with respect to
clause (i) below, may be made only by the Administrative
Agent):

     

    (i)    on any
Interest Determination Date that, by reason of any changes arising after the
date of this Agreement affecting the London interbank market, adequate and fair
means do not exist for ascertaining the applicable interest rate on the basis
provided for in the definition of LIBOR; or

     

    (ii)    at any
time, that such Lender shall incur increased costs or reductions in the amounts
received or receivable hereunder with respect to any Loan because of
(x) any change since the Effective Date in any applicable law or
governmental rule, regulation, order, guideline or request (whether or not
having the force of law) or in the interpretation or administration thereof and
including the introduction of any new law or governmental rule, regulation,
order, guideline or request, such as, for example, but not limited
to:  (A) a change in the basis of taxation of payment to any
Lender of the principal of or interest on such Loan or any other amounts payable
hereunder (except for changes in the rate of tax on, or determined by reference
to, the net income, gross receipts or net profits of such Lender, or any
franchise tax based on net income, net profits or net worth of such Lender, in
each case pursuant to the laws of the jurisdiction in which such Lender is
organized or in which such Lender’s principal office or applicable lending
office is located or any subdivision thereof or therein), but without
duplication of any amounts payable in respect of Taxes pursuant to Section 3.05,
or (B) a change in official reserve requirements but, in all events,
excluding reserves required under Regulation D to the extent included in the
computation of the LIBOR and/or (y) other circumstances arising since the
Effective Date affecting such Lender or the London interbank market for Dollars
or the position of such Lender in such market; or

     

    (iii)    at any
time, that the making or continuance of any Loan has been made (x) unlawful
by any law or governmental rule, regulation or order, (y) impossible by
compliance by any Lender in good faith with any governmental request (whether or
not having force of law) and/or (z) impracticable as a result of a
contingency occurring after the Effective Date which materially and adversely
affects the London interbank market for Dollars;

     

    then, and
in any such event, such Lender (or the Administrative Agent, in the case of
clause (i) above) shall promptly give notice (by telephone confirmed in
writing) to the Borrower and, except in the case of clause (i) above, to
the Administrative Agent of such determination (which notice the Administrative
Agent shall promptly transmit to each of the Lenders).  Thereafter
(x) in the case of clause (i) above, any Notice of Borrowing given by
the Borrower with respect to any affected Loans which have not yet been incurred
shall be deemed rescinded by the Borrower and the Total Commitment shall
thereafter not be available to be borrowed hereunder, and the rate of interest
applicable to any affected Loans then outstanding shall be the Base Rate, as in
effect from time to time, from the date such notice is delivered to the Borrower
and

     

     

     

    
      
        
        

      

      
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    thereafter
until such time as the Administrative Agent notifies the Borrower and the
Lenders that the circumstances giving rise to such notice by the Administrative
Agent no longer exist, (y) in the case of clause (ii) above, the
Borrower agrees, subject to the provisions of Section 1.11 and Section 13.15 (to
the extent applicable), to pay to such Lender, upon written demand therefore
such additional amounts (in the form of an increased rate of, or a different
method of calculating, interest or otherwise as such Lender in its reasonable
good faith discretion shall determine) as shall be required to compensate such
Lender for such increased costs or reductions in amounts received or receivable
hereunder (a written notice as to the additional amounts owed to such Lender,
showing in reasonable detail the basis for and the calculation thereof,
submitted to the Borrower by such Lender in good faith shall, absent manifest
error, be final and conclusive and binding on all the parties hereto) and
(z) in the case of clause (iii) above, and subject to Section 1.11,
such Lender shall so notify the Administrative Agent and the Borrower (and the
Administrative Agent shall promptly give notice thereof to the other Lenders)
and thereafter (A) except in the case of an event of the type described in
clause (iii)(z) above, the Commitment of such Lender shall be permanently
reduced by an amount sufficient to alleviate such circumstance arising pursuant
to clause (iii)(x) or (y) above, or shall be terminated in its
entirety if all of such Lender’s Loans are so affected, and the Borrower shall
prepay in full the affected Loans of such Lender, together with accrued interest
thereon and, in the event of a termination of such Lender’s Commitment, any
Commitment Commission which may be due to such Lender under this Agreement (and,
in the event all of such Lender’s Loans are being repaid, any other amounts
which may be owing to such Lender hereunder (including, without limitation, any
accrued and unpaid interest)), on either the last day of the then current
Interest Period applicable to each such affected Loan (if such Lender may
lawfully continue to maintain and fund such Loans) or immediately (if such
Lender may not lawfully continue to maintain and fund such Loans to such day)
and (B) in the case of an event of the type described in clause (iii)(z)
above, the Commitment of such Lender shall be terminated in its entirety and the
Borrower shall pay to such Lender any accrued and unpaid Commitment Commission
which may be due to such Lender under this Agreement, and all outstanding Loans
of such Lender shall, from the date such notice is delivered to the Borrower and
thereafter until such time as the Administrative Agent or such Lender shall
notify the Borrower that the circumstances giving rise to the operation of
clause (iii)(z) above with respect to such Lender no longer
exist.  The Administrative Agent and each Lender (to the extent it
continues to be a Lender hereunder) agree that if any of them gives notice to
the Borrower of any of the events described in clause (i) or (iii) above, it
shall promptly notify the Borrower and, in the case of any such Lender, the
Administrative Agent, if such event ceases to exist.  If any such
event described in clause (iii) above ceases to exist as to a Lender (to
the extent it continues at such time to be a Lender hereunder), the obligations
of such Lender to make Loans on the terms and conditions contained herein shall
to the extent of such Lender’s outstanding Loans and Commitments as in effect at
such time, be immediately reinstated.

     

    (b)    If any
Lender in good faith determines that after the Effective Date the introduction
of or effectiveness of or any change in any applicable law or governmental rule,
regulation, order, guideline, directive or request (whether or not having the
force of law) concerning capital adequacy, or any change in interpretation or
administration thereof by the NAIC or any governmental authority, central bank
or comparable agency will have the effect of increasing the amount of capital
required or requested to be maintained by such Lender, or any corporation
controlling such Lender, based on the existence of such Lender’s
Commitments

     

     

     

    
      
        
        

      

      
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    hereunder
or its obligations hereunder, then the Borrower agrees, subject to the
provisions of Section 13.15 (to the extent applicable), to pay to such Lender,
upon its written demand therefore, such additional amounts as shall be required
to compensate such Lender or such other corporation for the increased cost to
such Lender or such other corporation or the reduction in the rate of return to
such Lender or such other corporation as a result of such increase of
capital.  In determining such additional amounts, each Lender will act
reasonably and in good faith and will use averaging and attribution methods
which are reasonable, provided that such Lender’s
determination of compensation owing under this Section 1.09(b) shall, absent
manifest error, but subject to the provisions of Section 13.15 (to the extent
applicable), be final and conclusive and binding on all the parties
hereto.  Each Lender, upon determining that any additional amounts
will be payable pursuant to this Section 1.09(b), will give prompt written
notice thereof to the Borrower, which notice shall show in reasonable detail the
basis for and calculation of such additional amounts.

     

    1.10    Compensation.  The
Borrower agrees, subject to the provisions of Section 13.15 (to the extent
applicable), to compensate each Lender, upon its written request (which request
shall set forth in reasonable detail the basis for requesting and the
calculation of such compensation), for all reasonable losses, expenses and
liabilities (including, without limitation, any such loss, expense or liability
incurred by reason of the liquidation or reemployment of deposits or other funds
required by such Lender to fund its Loans but excluding any loss of anticipated
profits) which such Lender may sustain in respect of Loans made to the
Borrower:  (i) if for any reason (other than a default by such
Lender or the Administrative Agent) a Borrowing of Loans does not occur on a
date specified therefore in a Notice of Borrowing (whether or not withdrawn by
the Borrower or deemed withdrawn pursuant to Section 1.09(a)); (ii) if any
prepayment or repayment (including any prepayment or repayment made pursuant to
Section 1.09(a), Section 3.02 or Section 3.03 or as a result of an acceleration
of the Loans pursuant to Section 10) of any of its Loans, or assignment of its
Loans pursuant to Section 1.12, occurs on a date which is not the last day of an
Interest Period with respect thereto; (iii) if any prepayment of any of its
Loans is not made on any date specified in a notice of prepayment given by the
Borrower; or (iv) as a consequence of any other Default or Event of Default
arising as a result of the Borrower’s failure to repay Loans or make payment on
any Note held by such Lender when required by the terms of this
Agreement.

     

    1.11    Change of Lending
Office.  Each Lender agrees that on the occurrence of any event
giving rise to the operation of Section 1.09(a)(ii) or (iii),
Section 1.09(b) or Section 3.05 with respect to such Lender, it will,
if requested by the Borrower, use reasonable good faith efforts (subject to
overall policy considerations of such Lender) to designate another lending
office for any Loans affected by such event, provided that, such
designation is made on such terms that such Lender and its lending office suffer
no economic, legal or regulatory disadvantage, with the object of avoiding the
consequence of the event giving rise to the operation of such
Section.  Nothing in this Section 1.11 shall affect or postpone
any of the obligations of the Borrower or the rights of any Lender provided in
Section 1.09 and Section 3.05.

     

    1.12    Replacement of
Lenders.  (x)  Upon the occurrence of a Lender Default by
any Lender, (y) upon the occurrence of any event giving rise to the
operation of Section

     

     

     

    
      
        
        

      

      
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    1.09(a)(ii)
or (iii), Section 1.09(b) or Section 3.05 with respect to any Lender which
results in such Lender charging to the Borrower increased costs in excess of
those being generally charged by the other Lenders, or (z) as provided in
Section 13.12(b) in the case of certain refusals by a Lender to consent to
certain proposed changes, waivers, discharges or terminations with respect to
this Agreement which have been approved by the Required Lenders, the Borrower
shall have the right, if no Default or Event of Default will exist immediately
after giving effect to the respective replacement, to replace such Lender (the
“Replaced
Lender”) with one or more other Eligible Transferee or Eligible
Transferees (collectively, the “Replacement Lender”)
reasonably acceptable to the Administrative Agent, provided
that:

     

    (i)    at the
time of any replacement pursuant to this Section 1.12, the Replacement Lender
shall enter into one or more Assignment and Assumption Agreements pursuant to
Section 13.04(b) (and with all fees payable pursuant to said Section 13.04(b) to
be paid by the Replacement Lender) pursuant to which the Replacement Lender
shall acquire all of the Commitments and outstanding Loans of the Replaced
Lender and, in connection therewith, shall pay to the Replaced Lender in respect
thereof an amount equal to the sum (without duplication) of (x) an amount
equal to the principal of, and all accrued interest on, all outstanding Loans of
the Replaced Lender, and (y) an amount equal to all accrued, but unpaid,
Commitment Commission and other fees owing to the Replaced Lender pursuant to
Section 2.01; and

     

    (ii)    all
obligations of the Borrower due and owing to the Replaced Lender at such time
(other than those specifically described in clause (i) above in respect of
which the assignment purchase price has been, or is concurrently being, paid)
shall be paid in full to such Replaced Lender concurrently with such
replacement.

     

    Upon the
execution of the respective Assignment and Assumption Agreement, the payment of
amounts referred to in clauses (i) and (ii) above and, if so requested by the
Replacement Lender, delivery to (i) the Replacement Lender of the
appropriate Note or Notes executed by the Borrower, the Replacement Lender shall
become a Lender hereunder and the Replaced Lender shall cease to constitute a
Lender hereunder, except with respect to indemnification provisions under this
Agreement (including, without limitation, Sections 1.09, 1.10, 3.05, 13.01 and
13.06), which shall survive as to such Replaced Lender.

     

    SECTION
2.    Commitment Commission; Fees;
Reductions of Commitment.

     

    2.01    Commitment Commission;
Fees.  (a)  The Borrower agrees to pay the
Administrative Agent for distribution to each Lender a commitment commission
(the “Commitment
Commission”) for the period from the Effective Date until the
Availability Termination Date, computed at a rate for each day equal to 0.40%
per annum on the daily average Unutilized Commitment of such
Lender.  Accrued Commitment Commission shall be due and payable
quarterly in arrears on each Commitment Commission Payment Date and on the
Availability Termination Date (or such earlier date upon which the unutilized
Total Commitment is terminated).

     

     

    
      
        
        

      

      
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    (b)    The
Borrower shall pay to the Administrative Agent, for the Administrative Agent’s
own account, such other fees as have been agreed to in writing from time to time
by the Borrower or any of its Subsidiaries and the Administrative
Agent.

     

    2.02    Voluntary Termination of
Unutilized Commitments.  (a)  Upon at least three
Business Days’ prior notice to the Administrative Agent at its Notice Office
(which notice the Administrative Agent shall promptly transmit to each of the
Lenders), the Borrower shall have the right, at any time or from time to time,
without premium or penalty, to terminate or reduce the unutilized Total
Commitment, in whole or in part, in integral multiples of US$5,000,000 in the
case of partial reductions thereto, provided that each
such reduction shall apply proportionately to permanently reduce the Commitment
of each Lender.

     

    (b)    In the
event of certain refusals by a Lender as provided in Section 13.12(b) to consent
to certain proposed changes, waivers, discharges or terminations with respect to
this Agreement which have been approved by the Required Lenders, the Borrower
may, subject to the requirements of said Section 13.12(b) and upon five Business
Days’ written notice to the Administrative Agent at its Notice Office (which
notice the Administrative Agent shall promptly transmit to each of the Lenders),
terminate the entire Commitment of such Lender so long as all Loans, together
with accrued and unpaid interest, Commitment Commission and all other amounts,
owing to such Lender are repaid concurrently with the effectiveness of such
termination (at which time Schedule I shall be deemed modified to reflect such
changed amounts), and at such time such Lender shall no longer constitute a
“Lender” for purposes of this Agreement, except with respect to indemnification
provisions under this Agreement (including, without limitation, Sections 1.09,
1.10, 3.05, 13.01 and 13.06), which shall survive as to such repaid
Lender.

     

    2.03    Mandatory Reduction of
Commitments.  Upon (a) the sale of a Purchase Contract, (b) the
material default of a Seller under a Purchase Contract (which default is not
cured within the applicable cure period or waived by the Borrower), and (c) the
cancellation of a Purchase Contract with respect to one or more Vessels, the
Total Commitment shall be reduced by an amount equal to the Allocated Loan
Amount for the Vessel or Vessels to which such Purchase Contract
relates.

     

    SECTION
3.    Repayments; Prepayments;
Taxes.

     

    3.01    Scheduled
Repayments.  Subject to the provisions of this Section 3
regarding application of prepayments and Section 2 regarding reduction of
Commitments, the Borrower shall repay the principal of the Facility in full in
accordance with Schedule IX in ten (10) consecutive semi-annual installments
commencing on the Initial Payment Date.  The last such installment is
to be made on the Maturity Date together with the Final
Payment.  Should any Vessel Acquisition fail to occur for any reason,
appropriate adjustments shall be made to Schedule IX.  No amounts
repaid pursuant to this Section 3.01 shall be available for
reborrowing.

     

    3.02    Voluntary
Prepayments.  The Borrower shall have the right to: (a) prepay
the Loans in full or in part, which prepayments shall be applied pro rata among
the Loans to prepay the installments in inverse order of their maturity and/or
(b) prepay any Loan in respect of

     

     

     

    
      
        
        

      

      
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    a Vessel
in full; in each case, without premium or penalty except as provided by law, at
any time and from time to time.  In the event of a prepayment under
Section 3.02(b), the repayment schedule set forth in the relevant column on
Schedule IX associated with the Vessel to which such Loan relates shall be
eliminated. Prepayments hereunder shall be subject to the following terms and
conditions:

     

    (i)    the
Borrower shall give the Administrative Agent prior to 12:00 Noon (New York time)
at its Notice Office at least two Business Days’ prior written notice (or
telephonic notice promptly confirmed in writing) of its intent to prepay such
Loans and the amount of such prepayment, which notice the Administrative Agent
shall promptly transmit to each of the Lenders;

     

    (ii)    each
prepayment shall be in an aggregate principal amount of at least US$5,000,000,
provided that
no partial prepayment of Loans made pursuant to any Borrowing under this Section
3.02 shall reduce the outstanding amount of any Loan to an amount less than
US$5,000,000;

     

    (iii)    at the
time of any prepayment of Loans pursuant to this Section 3.02 on any date other
than the last day of the Interest Period applicable thereto, the Borrower shall
pay the amounts required pursuant to Section 1.10;

     

    (iv)    in the
event of certain refusals by a Lender as provided in Section 13.12(b) to
consent to certain proposed changes, waivers, discharges or terminations with
respect to this Agreement which have been approved by the Required Lenders, the
Borrower may, upon five Business Days’ written notice to the Administrative
Agent at its Notice Office (which notice the Administrative Agent shall promptly
transmit to each of the Lenders), prepay all Loans, together with accrued and
unpaid interest, Commitment Commission, and other amounts owing to such Lender
in accordance with said Section 13.12(b) so long as (A) the Commitment
of such Lender is terminated concurrently with such prepayment (at which time
Schedule I shall be deemed modified to reflect the changed Commitments) and
(B) the consents required by Section 13.12(b) in connection with the
prepayment pursuant to this clause (iv) have been obtained;

     

    (v)     if the
Borrower prepays a Loan in full in accordance with Section 3.02(b), the
Collateral Agent shall take all necessary steps to terminate any security
interest and any guaranty granted by the Borrower and the relevant Subsidiary
Guarantor in respect of the Vessel to which such repaid Loan
relates;

     

    (vi)    no
amounts prepaid pursuant to this Section 3.02 shall be available for
reborrowing; and

     

    (vii)   after
giving effect to any such prepayment, the Administrative Agent shall distribute
a revised Schedule IX updated to reflect the prepayments made pursuant to this
Section 3.02

     

     

    
      
        
        

      

      
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    3.03    Mandatory
Repayments.  (a)  On any day on which the aggregate
outstanding principal amount of all Loans exceeds the Total Commitment as then
in effect, the Borrower shall repay principal of Loans in an amount equal to
such excess.

     

    (b)    In
addition to any other mandatory repayments required pursuant to this Section
3.03, but without duplication, on (i) the Business Day following the date
of any Collateral Disposition involving a Vessel (other than a Collateral
Disposition constituting an Event of Loss or a Collateral Disposition in
connection with a Vessel Exchange) and (ii) the earlier of (A) the
date which is 180 days following any Collateral Disposition constituting an
Event of Loss involving a Vessel and (B) the date of receipt by the
Borrower, any of its Subsidiaries or the Administrative Agent of the insurance
proceeds relating to such Event of Loss, the Borrower shall be required to repay
an aggregate principal amount of the outstanding Loan relating to such Vessel
and corresponding adjustments shall be made to Schedule IX.

     

    (c)    With
respect to each repayment of Loans required by Section 3.03(a), the Borrower may
designate the specific Borrowing or Borrowings pursuant to which such Loans were
made, provided
that (i) all Loans with Interest Periods ending on such date of
required repayment shall be paid in full prior to the payment of any other Loans
and (ii) each repayment of any Loans comprising a Borrowing shall be
applied pro rata
among such Loans.  In the absence of a designation by the
Borrower as described in the preceding sentence, the Administrative Agent shall,
subject to the preceding provisions of this clause (c), make such designation in
its sole reasonable discretion with a view, but no obligation, to minimize
breakage costs owing pursuant to Section 1.10.

     

    (d)    No
amounts repaid pursuant to this Section 3.03 shall be available for
reborrowing.

     

    (e)    Notwithstanding
anything to the contrary contained elsewhere in this Agreement, all then
outstanding Loans and Unpaid Drawings shall be repaid in full on the Maturity
Date.

     

    3.04    Method and Place of
Payment.  Except as otherwise specifically provided herein, all
payments under this Agreement or any Note shall be made to the Administrative
Agent for the account of the Lender or Lenders entitled thereto not later than
12:00 Noon (New York time) on the date when due and shall be made in Dollars in
immediately available funds at the Payment Office of the Administrative
Agent.  Whenever any payment to be made hereunder or under any Note
shall be stated to be due on a day which is not a Business Day, the due date
thereof shall be extended to the next succeeding Business Day and, with respect
to payments of principal, interest shall be payable at the applicable rate
during such extension.

     

    3.05    Net Payments;
Taxes.  (a)  All payments made by any Credit Party
hereunder or under any Note will be made without setoff, counterclaim or other
defense. All such payments will be made free and clear of, and without deduction
or withholding for, any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed by any
jurisdiction or by any political subdivision or taxing authority thereof or
therein with respect to such payments (but excluding, except as provided in the
second succeeding sentence, any tax imposed on or measured by the net income or
net profits

     

     

    
      
        
        

      

      
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    (or any
franchise tax or similar tax imposed in lieu thereof), net profits or net worth
of a Lender, in each case pursuant to the laws of the jurisdiction in which it
is organized or the jurisdiction in which the principal office or applicable
lending office of such Lender is located or any subdivision thereof or therein)
and all interest, penalties or similar liabilities with respect to such
non-excluded taxes, levies, imposts, duties, fees, assessments or other charges
(all such non-excluded taxes, levies, imposts, duties, fees, assessments or
other charges being referred to collectively as “Taxes”).  If
any Taxes are so levied or imposed, the Borrower agrees to pay the full amount
of such Taxes, and such additional amounts as may be necessary so that every
payment of all amounts due under this Agreement or under the Note, after
withholding or deduction for or on account of any Taxes, will not be less than
the amount provided for herein or in such Note.  If any amounts are
payable in respect of Taxes pursuant to the preceding sentence, the Borrower
agrees to reimburse each Lender within three days of the written request of such
Lender, for taxes imposed on or measured by the net income, net profits or any
franchise tax based on net income, net profits or net worth of such Lender, in
each case pursuant to the laws of the jurisdiction in which such Lender is
organized or in which the principal office or applicable lending office of such
Lender is located or under the laws of any political subdivision or taxing
authority of any such jurisdiction in which such Lender is organized or in which
the principal office or applicable lending office of such Lender is located and
for any withholding of taxes as such Lender shall determine are payable by, or
withheld from, such Lender, in respect of such amounts so paid to or on behalf
of such Lender pursuant to the preceding sentence and in respect of any amounts
paid to or on behalf of such Lender pursuant to this sentence.  The
Borrower will furnish to the Administrative Agent within 45 days after the date
of payment of any Taxes is due pursuant to applicable law certified copies of
tax receipts evidencing such payment by the Borrower.  The Borrower
agrees to indemnify and hold harmless each Lender, and reimburse such Lender
upon its written request, for the amount of any Taxes so levied or imposed and
paid by such Lender.

     

    (b)    Each
Lender agrees to use reasonable efforts (consistent with legal and regulatory
restrictions and subject to overall policy considerations of such Lender) to
file any certificate or document or to furnish to the Borrower any information
as reasonably requested by the Borrower that may be necessary to establish any
available exemption from, or reduction in the amount of, any Taxes; provided, however, that nothing
in this Section 3.05(b) shall require a Lender to disclose any confidential
information (including, without limitation, its tax returns or its
calculations).

     

    (c)    If the
Borrower pays any additional amount under this Section 3.05 to a Lender and such
Lender determines in its sole discretion that it has actually obtained or
utilized in connection therewith any refund or any reduction of, or credit
against, its Tax liabilities in or with respect to the taxable year in which the
additional amount is paid (a “Tax Benefit”), such
Lender shall pay to the Borrower an amount that such Lender shall, in its sole
discretion, determine is equal to the net benefit, after tax, which was obtained
by such Lender in such year as a consequence of such Tax Benefit; provided, however, that
(i) any Lender may determine, in its sole discretion consistent with the
policies of such Lender, whether to seek a Tax Benefit, (ii) any Taxes that
are imposed on a Lender as a result of a disallowance or reduction (including
through the expiration of any tax credit carryover or carryback of such Lender
that otherwise would not have expired) of any Tax Benefit with respect to which
such Lender has made a

     

     

     

    
      
        
        

      

      
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    payment
to the Borrower pursuant to this Section 3.05(c) shall be treated as a Tax for
which the Borrower is obligated to indemnify such Lender pursuant to this
Section 3.05 without any exclusions or defenses, (iii) nothing in this
Section 3.05(c) shall require any Lender to disclose any confidential
information to the Borrower (including, without limitation, its tax returns),
and (iv) no Lender shall be required to pay any amounts pursuant to this
Section 3.05(c) at any time during which a Default or an Event of Default
exists.

     

    (d)    No
provision of this Agreement will:

     

    (i)    interfere
with the right of any Lender to arrange its affairs (tax or otherwise) in
whatever manner it thinks fit (excluding Section 1.09(a)(ii) or (iii), Section
1.09(b), or this Section 3.05);

     

    (ii)    oblige
any Lender to investigate or claim any credit, relief, remission or repayment
available to it or the extent, order and manner of any claim; or

     

    (iii)    oblige
any Lender to disclose any information relating to its affairs (tax or
otherwise) or any computations in respect of Tax.

     

    SECTION
4.    Conditions
Precedent.  The obligation of each Lender to make a Loan on the
Initial Borrowing Date is subject to the satisfaction or waiver of the following
conditions:

     

    4.01    Opinions of
Counsel.  (a)  On the Effective Date, the
Administrative Agent shall have received from Kramer Levin Naftalis &
Frankel LLP, special New York counsel to the Borrower and its Subsidiaries, an
opinion addressed to the Administrative Agent and each of the Lenders and dated
the Effective Date which shall (x) be in form and substance acceptable to
the Administrative Agent and (y) cover the perfection of the security
interests granted pursuant to the Pledge and Security Agreements and such other
matters incidental to the transactions contemplated herein as the Administrative
Agent may reasonably request.

     

    (b)    On the
Effective Date, the Administrative Agent shall have received from Reeder &
Simpson P.C., special Marshall Islands counsel to the Borrower and its
Subsidiaries, an opinion addressed to the Administrative Agent and each of the
Lenders and dated the Effective Date which shall be in form and substance
acceptable to the Administrative Agent.

     

    4.02    Corporate Documents;
Proceedings; etc.  (a)  On the Effective Date, the
Administrative Agent shall have received a certificate, dated the Effective
Date, signed by an Authorized Officer, member or general partner of each Credit
Party, and attested to by the secretary or any assistant secretary (or, to the
extent such Credit Party does not have a secretary or assistant secretary, the
analogous Person within such Credit Party) of such Credit Party, as the case may
be, in substantially the form of Exhibit D, with appropriate insertions,
together with copies of the Certificate of Incorporation and By-Laws (or
equivalent organizational documents) of such Credit Party and the resolutions of
such Credit Party referred to in such certificate, and the foregoing shall be
reasonably acceptable to the Administrative Agent.

     

     

    
      
        
        

      

      
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    (b)    All
corporate, limited liability company, partnership and legal proceedings, and all
material instruments and agreements in connection with the transactions
contemplated by this Agreement and the other Documents, shall be reasonably
satisfactory in form and substance to the Administrative Agent, and the
Administrative Agent shall have received all information and copies of all
documents and papers, including records of corporate, limited liability company
and partnership proceedings, governmental approvals and good standing
certificates which the Administrative Agent may have reasonably requested in
connection therewith, such documents and papers, where appropriate, to be
certified by proper corporate or governmental authorities.

     

    4.03    Solvency/Minimum
Consolidated Net Worth Certificate.  On the Effective Date, the
Borrower shall have caused to be delivered to the Administrative Agent a
certificate from the senior financial officer of the Borrower, in the form of
Exhibit G, which shall be addressed to the Administrative Agent and each of the
Lenders and dated the Effective Date, (i) setting forth the conclusion that,
after giving effect to the incurrence of all the financings contemplated hereby,
the Borrower individually, and the Borrower and its Subsidiaries taken as a
whole, are not insolvent and will not be rendered insolvent by the incurrence of
such indebtedness, and will not be left with unreasonably small capital with
which to engage in their respective businesses and will not have incurred debts
beyond their ability to pay such debts as they mature and (ii) certify the
Minimum Consolidated Net Worth and the calculations required to establish the
Minimum Consolidated Net Worth as set forth in Section 9.11 and Appendix A
hereto, respectively.

     

    4.04    Purchase
Contracts.  On the Effective Date, the Borrower shall have
caused to be delivered to the Administrative Agent a certified copy of the
Purchase Contract in respect of each of the Vessels.

     

    4.05    Approvals.  On
or prior to the Effective Date, all necessary governmental (domestic and
foreign) and third party approvals and/or consents in connection with the Loans,
and the granting of Liens under the Credit Documents, if any, shall have been
obtained and remain in effect, and all applicable waiting periods with respect
thereto shall have expired without any action being taken by any competent
authority which restrains, prevents or imposes materially adverse conditions
upon the making of the Loans and the performance by the Credit Parties of the
Credit Documents.  On the Effective Date, there shall not exist any
judgment, order, injunction or other restraint issued or filed or a hearing
seeking injunctive relief or other restraint pending or notified prohibiting or
imposing materially adverse conditions upon the making of the Loans or the
performance by the Credit Parties of the Credit Documents.

     

    4.06    Litigation.  On
the Effective Date, no actions, suits, investigations or proceedings of any
Credit Party by any entity (private or governmental) shall be pending or, to the
knowledge of any Credit Party, threatened with respect to (i) any Document,
(ii) any Subsidiary Guarantor which could (i) either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, or
(ii) which the Administrative Agent shall determine could be reasonably
expected to have a Material Adverse Effect.

     

    4.07    Material Adverse
Effect.  On the Effective Date, nothing shall have occurred
(and neither the Administrative Agent nor any of the Lenders shall have become
aware

     

     

    
      
        
        

      

      
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    of facts
or conditions not previously known to them) which the Administrative Agent or
the Required Lenders shall determine has had, or could reasonably be expected to
have, a Material Adverse Effect.

     

    4.08    Environmental
Laws.  On the Effective Date, there shall not exist any
condition or occurrence on or arising from any property owned or operated or
occupied by the Borrower or any of its Subsidiaries that (a) results in
noncompliance by the Borrower or such Subsidiary with any applicable
Environmental Law that has had, or could reasonably be expected to have, a
Material Adverse Effect or (b) could reasonably be expected to form the
basis of an Environmental Claim against the Borrower or any of its Subsidiaries
or any such Vessel or property, which in any such case individually or in the
aggregate could reasonably be expected to have a Material Adverse
Effect.

     

    4.09    Fees.  On
the Effective Date, the Borrower shall have paid to the Administrative Agent,
the Mandated Lead Arrangers or the Lenders all costs, fees and expenses as set
out in the Fee Letter.

     

    4.10    No
Conflicts.  On the Effective Date, there shall be no material
default under, and the transactions contemplated hereby shall not give rise to a
material conflict with, any material agreement of the Borrower or any of its
Subsidiaries.

     

    SECTION
5.    Conditions Precedent to
Borrowings Under the Facility.  The obligation of each Lender
to make any Loan available to the Borrower under this Agreement shall be
expressly subject to the following conditions precedent:

     

    5.01    Opinions of
Counsel.  (i) the Administrative Agent shall have received from
Kramer Levin Naftalis & Frankel LLP, special New York counsel to the
Borrower and its Subsidiaries, an opinion addressed to the Administrative Agent
and each of the Lenders and dated the date of such Borrowing which shall
(x) be in form and substance reasonably acceptable to the Administrative
Agent and (y) cover the perfection of the security interests (other than
those to be covered by opinions delivered pursuant to clauses (ii) through (iii)
below) granted pursuant to the Security Documents and such other matters
incidental to the transactions contemplated herein as the Administrative Agent
may reasonably request;

     

    (ii)    the
Administrative Agent shall have received from Reeder & Simpson P.C., special
Marshall Islands counsel to the Borrower and the Subsidiary Guarantors (or such
other counsel reasonably satisfactory to the Administrative Agent), an opinion
addressed to the Administrative Agent and each of the Lenders and dated the date
of such Borrowing which shall be in form and substance reasonably acceptable to
the Administrative Agent and cover such matters as the Administrative Agent may
reasonably request; and

     

    (iii)    the
Administrative Agent shall have received from (1) if the relevant Vessel is
to be registered under Hong Kong flag, Mayer Brown JSM, special Hong Kong
counsel to the Administrative Agent, (2) if the relevant Vessel is to be
registered under the Marshall Islands flag, Reeder & Simpson P.C., special
Marshall Islands counsel to the Borrower, (3) Constantine P. Georgiopoulos, special
New York maritime counsel to the Borrower and its Subsidiaries or (4) if the
relevant Vessel is to be registered in an Acceptable Flag
Jurisdiction

     

     

     

    
      
        
        

      

      
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    other
than Hong Kong or the Marshall Islands, special counsel to the Administrative
Agent of such Acceptable Flag Jurisdiction, which shall be reasonably acceptable
to the Administrative Agent, an opinion addressed to the Administrative Agent
and each of the Lenders, which shall (x) be in form and substance
reasonably acceptable to the Administrative Agent and (y) cover the
perfection of the security interests granted pursuant to the Vessel Mortgage(s)
and such other matters incident thereto as the Administrative Agent may
reasonably request.

     

    5.02    Corporate Documents;
Proceedings; etc.  (i)  The Administrative Agent
shall have received a certificate, dated such date, signed by an Authorized
Officer, member or general partner of the Credit Party owning or operating the
Vessel to which such Loan relates, and attested to by the secretary or any
assistant secretary (or, to the extent such Credit Party does not have a
secretary or assistant secretary, the analogous Person within such Credit Party)
of such Credit Party, as the case may be, in the form of Exhibit D, with
appropriate insertions, together with copies of any changes to the Certificate
of Incorporation and By-Laws (or equivalent organizational documents) of such
Credit Party for certifying there have been no changes thereto or to the
resolutions of such Credit Party referred to in such certificate, and the
foregoing shall be reasonably acceptable to the Administrative
Agent.

     

    (ii)    All
corporate, limited liability company, partnership and legal proceedings, and all
material instruments and agreements in connection with the transactions
contemplated by this Agreement, shall be reasonably satisfactory in form and
substance to the Administrative Agent, and the Administrative Agent shall have
received all information and copies of all documents and papers, including
records of corporate, limited liability company and partnership proceedings,
governmental approvals and good standing certificates, if any, which the
Administrative Agent may have reasonably requested in connection therewith, such
documents and papers, where appropriate, to be certified by proper corporate or
governmental authorities.

     

    5.03    Subsidiaries
Guaranty.  each Subsidiary Guarantor of the Borrower that owns
the Vessel to which such Loan relates shall have duly authorized, executed and
delivered to the Administrative Agent a Guaranty substantially in the form of
Exhibit E (as modified, supplemented or amended from time to time, the “Guaranty”), and the
Guaranty shall be in full force and effect.

     

    5.04    Pledge and Security
Agreement.  the Borrower and the Subsidiary Guarantor that owns
the Vessel to which such Loan relates shall have (x) duly authorized,
executed and delivered a Pledge and Security Agreement substantially in the form
of Exhibit F (as modified, supplemented or amended from time to time, the “Pledge Agreement”)
and shall have (A) delivered to the Collateral Agent, as pledgee, all the
Pledged Securities, together with executed and undated stock powers in the case
of capital stock constituting Pledged Securities, and (B) otherwise
complied with all of the requirements set forth in the Pledge Agreement and
(y) duly authorized, executed and delivered any other related documentation
necessary or advisable to perfect the Lien on the Pledge Agreement Collateral
referred to therein in the respective jurisdictions of formation of the
respective Subsidiary Guarantor or the Borrower, as the case may
be.

     

     

     

    
      
        
        

      

      
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    5.05    Assignments of Earnings,
Insurances and Charter.  Each Credit Party which owns or
operates a Vessel to which such Loan relates shall have duly authorized,
executed and delivered an Assignment of Earnings, an Assignment of Insurances
and an Assignment of Charters, together covering all of such Credit Party’s
present and future Earnings and Insurance Collateral, in each case together
with:

     

    (i)    proper
Financing Statements (Form UCC-1) fully executed for filing under the UCC or in
other appropriate filing offices of each jurisdiction as may be necessary, or in
the reasonable opinion of the Collateral Agent desirable, to perfect the
security interests purported to be created by the Assignment of Earnings,
Assignment of Charters and the Assignment of Insurances;

     

    (ii)    certified
copies of Requests for Information or Copies (Form UCC-11), or equivalent
reports, listing all effective financing statements that name such Credit Party
as debtor and that are filed in the jurisdictions referred to in Section 5.05(i)
above, together with copies of such other financing statements (none of which
shall cover the Collateral except to the extent evidencing Permitted Liens
unless in respect of which the Collateral Agent shall have received Form UCC-3
Termination Statements (or such other termination statements as shall be
required by local law) fully executed for filing if required by applicable
laws); and

     

    (iii)    evidence
that all other actions necessary, or in the reasonable opinion of the Collateral
Agent desirable, to perfect and protect the security interests purported to be
created by the Assignment of Earnings, the Assignment of Insurances and the
Assignment of Charters have been taken.

     

    5.06    Control
Agreement.  The Borrower, each Subsidiary Guarantor and the
Collateral Agent, acting through its New York branch, as collateral agent and as
deposit bank shall have duly executed and delivered a Control Agreement in the
form attached to the Pledge Agreement with respect to each Operating
Account.

     

    5.07    Mortgages.  Each
Credit Party which owns or operates a Vessel to which such Loan relates shall
have duly authorized, executed and delivered, and caused to be recorded in the
appropriate vessel registry, a Vessel Mortgage with respect to such Vessel owned
or operated by such Credit Party on such date and such Vessel Mortgage shall be
effective to create in favor of the Collateral Agent and/or the Lenders a legal,
valid and enforceable first priority security interest in and lien upon such
Vessels, subject only to Permitted Liens.  Except as specifically
provided above, all filings, deliveries of instruments and other actions
necessary or desirable in the reasonable opinion of the Collateral Agent to
perfect and preserve such security interests shall have been duly effected and
the Collateral Agent shall have received evidence thereof in form and substance
reasonably satisfactory to the Collateral Agent.

     

    5.08    Vessel
Documents.  The Administrative Agent shall have received each
of the following with respect to each Vessel to which the Loans being made on
such date relate:

     

    (i)    a duly
executed protocol of delivery and acceptance;

     

     

     

    
      
        
        

      

      
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    (ii)    certificates
of ownership from appropriate authorities showing (or confirmation updating
previously reviewed certificates and indicating) the registered ownership of
such Vessel by the relevant Subsidiary Guarantor;

     

    (iii)    the
results of maritime registry searches with respect to such Vessel, indicating no
record liens other than Liens in favor of the Collateral Agent and/or the
Lenders, Permitted Liens and Liens being discharged contemporaneously with such
acquisition;

     

    (iv)    class
certificates from a classification society listed on Schedule VIII hereto or
another internationally recognized classification society acceptable to the
Collateral Agent, indicating that such Vessel meets the criteria specified in
Section 7.23;

     

    (v)    a copy of
the Operator’s DOC and the SMC, ISSC and IAPPC for such Vessel.

     

    (vi)    Appraisals
from at least two Approved Appraisers of such Vessel of recent date in scope,
form and substance reasonably satisfactory to the Administrative Agent;
and

     

    (vii)    a report,
in form and scope reasonably satisfactory to the Administrative Agent, from a
firm of independent marine insurance brokers reasonably acceptable to the
Administrative Agent with respect to the insurance maintained by the Credit
Parties in respect of such Vessel, together with a certificate from such broker
certifying that such insurances (i) are placed with such insurance
companies and/or underwriters and/or clubs, in such amounts, against such risks,
and in such form, as are customarily insured against by similarly situated
insureds for the protection of the Administrative Agent and/or the Lenders as
mortgagee and (ii) conform with the insurance requirements of the
respective Vessel Mortgage.

     

    5.09    Management and Service
Agreements.  There shall have been delivered to the
Administrative Agent or its counsel true and correct copies of the following
documents:

     

    (i)    all
management agreements (the “Management Agreements”) with respect to each Vessel
to which the Loans being made on such date relate, each of which shall be with
an International Transport Workers’ Federation approved manager and otherwise be
in form and substance acceptable to the Lenders. Each Management Agreement shall
contain provisions satisfactory to the Administrative Agent subordinating the
rights of the respective manager to those of the Agents and Lenders hereunder;
and

     

    (ii)    all
service agreements (the “Service Agreements”) entered into between the Borrower
and the Subsidiary Guarantors not delivered on or prior to the relevant
Borrowing Date;

     

     

    
      
        
        

      

      
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    all of
which Management Agreements and Service Agreements shall be in form and
substance reasonably satisfactory to the Administrative Agent and shall be in
full force and effect on such Borrowing Date.

     

    5.10    Environmental
Laws.  There shall not exist any condition or occurrence on or
arising from any Vessel or property owned or operated or occupied by the
Borrower or any of its Subsidiaries that (a) results in noncompliance by
the Borrower or such Subsidiary with any applicable Environmental Law that has
had, or could reasonably be expect to have, a Material Adverse Effect or
(b) could reasonably be expected to form the basis of a Environmental Claim
against the Borrower or any of its Subsidiaries or any property (including,
without limitation, the related Vessel), which in any such case individually or
in the aggregate could reasonably be expected to have a Material Adverse
Effect.

     

    SECTION
6.    Further Conditions
Precedent.

     

    6.01    Further Conditions
Precedent.  The obligation of each Lender to make Loans on each
Borrowing Date is subject at the time of the making of such Loan to the
satisfaction or waiver of the following conditions:

     

    (a)    No Default; Representations
and Warranties.  At the time of the making of such Loan and
also after giving effect thereto (i) there shall exist no Default or Event
of Default and (ii) all representations and warranties contained herein or
in any other Credit Document shall be true and correct in all material respects
both before and after giving effect to the making of such Loan with the same
effect as though such representations and warranties had been made on the date
of the making of such Loan (it being understood and agreed that any
representation or warranty which by its terms is made as of a specified date
shall be required to be true and correct in all material respects only as of
such specified date).

     

    (b)    Notice of
Borrowing.  Prior to such Loan, the Administrative Agent shall
have received a Notice of Borrowing required by Section 1.03(a).

     

    (c)    Aggregate Amount of
Loans.  On each Borrowing Date, the aggregate Appraised Value
of the Vessels shall be at least 130% of the aggregate amount of all Loans
(determined on a pro
forma basis giving effect to such Loan being made).

     

    SECTION
7.    Representations, Warranties
and Agreements.  In order to induce the Lenders to enter into
this Agreement and to make the Loans, the Borrower makes the following
representations, warranties and agreements, in each case on the Effective Date
and on each Borrowing Date thereafter, all of which shall survive the execution
and delivery of this Agreement and the Notes and the making of the Loans, with
the incurrence of each Loan on or after the Effective Date being deemed to
constitute a representation and warranty that the matters specified in this
Section 7 are true and correct in all material respects on and as of the
Effective Date and on each Borrowing Date thereafter (it being understood and
agreed that any representation or warranty which by its terms is made as of a
specified date shall be required to be true and correct in all material respects
only as of such specified date):

     

     

    
      
        
        

      

      
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    7.01    Corporate/Limited Liability
Company/Limited Partnership Status.  Each of the Borrower and
each of its Subsidiaries (i) is a duly organized and validly existing
corporation, limited liability company or limited partnership, as the case may
be, in good standing under the laws of the jurisdiction of its incorporation or
formation, (ii) has the corporate or other applicable power and authority
to own its property and assets and to transact the business in which it is
currently engaged and presently proposes to engage and (iii) is duly
qualified and is authorized to do business and is in good standing in each
jurisdiction where the conduct of its business as currently conducted requires
such qualifications, except for failures to be so qualified which, either
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

     

    7.02    Corporate Power and
Authority.  Each Credit Party has the corporate or other
applicable power and authority to execute, deliver and perform the terms and
provisions of each of the Documents to which it is party and has taken all
necessary corporate or other applicable action to authorize the execution,
delivery and performance by it of each of such Documents.  Each Credit
Party has duly executed and delivered each of the Documents to which it is
party, and each of such Documents constitutes the legal, valid and binding
obligation of such Credit Party enforceable against such Credit Party in
accordance with its terms, except to the extent that the enforceability thereof
may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws generally affecting creditors’
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

     

    7.03    No
Violation.  Neither the execution, delivery or performance by
any Credit Party of the Documents to which it is a party, nor compliance by it
with the terms and provisions thereof, will (i) contravene any material
provision of any applicable law, statute, rule or regulation or any applicable
order, writ, injunction or decree of any court or governmental instrumentality,
(ii) conflict with or result in any breach of any of the terms, covenants,
conditions or provisions of, or constitute a default under, or result in the
creation or imposition of (or the obligation to create or impose) any Lien
(except pursuant to the Security Documents) upon any of the material properties
or assets of the Borrower or any of its Subsidiaries pursuant to the terms of
any indenture, mortgage, deed of trust, credit agreement or loan agreement, or
any other material agreement, contract or instrument, to which the Borrower or
any of its Subsidiaries is a party or by which it or any of its material
property or assets is bound or to which it may be subject or (iii) violate
any provision of the Certificate of Incorporation or By-Laws (or equivalent
organizational documents) of the Borrower or any of its
Subsidiaries.  

     

    7.04    Governmental
Approvals.  No order, consent, approval, license, authorization
or validation of, or filing, recording or registration with (except as have been
obtained or made or in the case of any filings or recordings in respect of the
Security Documents (other than the Vessel Mortgages), will be made within 10
days of the date such Security Document is required to be executed pursuant
hereto), or exemption by, any governmental or public body or authority, or any
subdivision thereof, is required to authorize, or is required in connection
with, (i) the execution, delivery and performance by any Credit Party of
any Document to which it is a party or (ii) the legality, validity, binding
effect or enforceability of  any Document to which it is or will be a
party.

     

     

    
      
        
        

      

      
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    7.05    Financial Statements;
Financial Condition; Undisclosed
Liabilities.  (a)  The audited consolidated balance
sheets of the Borrower as at December 31, 2007, and the unaudited consolidated
balance sheets of the Borrower as at June 30, 2008, and the related consolidated
statements of operations and of cash flows for the fiscal period or quarter, as
the case may be, ended on such dates, reported on by and accompanied by, in the
case of the December 31, 2007, financial statements, an unqualified report from
Deloitte & Touche LLP, present fairly the consolidated financial condition
of the Borrower as at such dates, and the consolidated results of its operations
and its consolidated cash flows for the respective fiscal period or quarter, as
the case may be, then ended.  All such financial statements, including
the related schedules and notes thereto, have been prepared in accordance with
GAAP applied consistently throughout the periods involved (except as approved by
the aforementioned firm of accountants and disclosed therein).

     

    (b)    On and as
of each Borrowing Date and after giving effect to all Indebtedness (including
the Loans) being incurred or assumed and Liens created by the Credit Parties in
connection therewith (i) the sum of the assets, at a fair valuation, of the
Borrower and on a stand-alone basis and of the Borrower and its Subsidiaries
taken as a whole will exceed their respective debts, (ii) each of the
Borrower on a stand-alone basis and the Borrower and its Subsidiaries taken as a
whole have not incurred and do not intend to incur, and do not believe that they
will incur, debts beyond their respective ability to pay such debts as such
debts mature, and (iii) the Borrower on a stand-alone basis and the
Borrower and its Subsidiaries taken as a whole will have sufficient capital with
which to conduct their respective businesses.  For purposes of this
Section 7.05(b), “debt” means any liability on a claim, and “claim” means
(a) right to payment, whether or not such a right is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured, or unsecured or (b) right to an
equitable remedy for breach of performance if such breach gives rise to a
payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured
or unsecured.  The amount of contingent liabilities at any time shall
be computed as the amount that, in the light of all the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

     

    (c)    Except as
fully disclosed in the balance sheet delivered pursuant to Section 7.05(a),
there were as of the Effective Date no liabilities or obligations with respect
to the Borrower or any of its Subsidiaries of any nature whatsoever (whether
absolute, accrued, contingent or otherwise and whether or not due) which, either
individually or in the aggregate, would be materially adverse to the Borrower
and its Subsidiaries taken as a whole.  None of the Credit Parties
knows of any basis for the assertion against it of any liability or obligation
of any nature that is not fairly disclosed (including, without limitation, as to
the amount thereof) in the balance sheets delivered pursuant to Section 7.05(a)
which, either individually or in the aggregate, could be materially adverse to
the Borrower and its Subsidiaries taken as a whole.

     

    (d)    Since
June 30, 2008, nothing has occurred that, either individually or in the
aggregate, has had or could reasonably be expected to have a Material Adverse
Effect.

     

    (e)    Since the
Effective Date, except as permitted in Section 9.03, the Borrower has not paid
any Dividends.

     

     

     

    
      
        
        

      

      
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    7.06    Litigation.  There
are no actions, suits, investigations or proceedings by any entity (private or
governmental) pending or, to the knowledge of any Credit Party, threatened with
respect to (i) any Vessel, except for such actions, suits, investigations
or proceedings with respect to a Vessel which could not, either individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect, or
(ii) which could reasonably be expected to have a Material Adverse
Effect.

     

    7.07    True and Complete
Disclosure.  All factual information (taken as a whole)
furnished by or on behalf of the Borrower or any of its Subsidiaries to the
Administrative Agent or any Lender (including, without limitation, all
information contained in the Documents) for purposes of or in connection with
this Agreement, the other Credit Documents or any transaction contemplated
herein or therein is, and all other such factual information (taken as a whole)
hereafter furnished by or on behalf of the Borrower or any of its Subsidiaries
in writing to the Administrative Agent or any Lender will be, true and accurate
in all material respects and not incomplete by omitting to state any fact
necessary to make such information (taken as a whole) not misleading in any
material respect at such time as such information was provided.

     

    7.08    Use of Proceeds; Margin
Regulations.  (a)  All proceeds of the Loans shall be
used to fund or refund to the Borrower the acquisition costs of the
Vessels.

     

    (b)    No part
of the proceeds of any Loan will be used to purchase or carry any Margin Stock
or to extend credit for the purpose of purchasing or carrying any Margin
Stock.  The making of any Loan will not violate or be inconsistent
with the provisions of Regulations T, U or X of the Board of Governors of the
Federal Reserve System.

     

    7.09    Tax Returns and
Payments.  Each of the Borrower and each of its Subsidiaries
has timely filed all U.S. federal income tax returns, statements, forms and
reports for taxes and all other material U.S. and non-U.S. tax returns,
statements, forms and reports for taxes required to be filed by or with respect
to the income, properties or operations of the Borrower and/or any of its
Subsidiaries (the “Returns”).  The
Returns accurately reflect in all material respects all liability for taxes of
the Borrower and its Subsidiaries for the periods covered
thereby.  The Borrower and each of its Subsidiaries have at all times
paid, or have provided adequate reserves (in accordance with GAAP) for the
payment of, all material taxes payable by them.  There is no material
action, suit, proceeding, investigation, audit, or claim now pending or, to the
best knowledge of the Borrower or any of its Subsidiaries, threatened by any
authority regarding any taxes relating to the Borrower or any of its
Subsidiaries.  Neither the Borrower nor any of its Subsidiaries has
entered into an agreement or waiver or been requested to enter into an agreement
or waiver extending any statute of limitations relating to the payment or
collection of taxes of the Borrower or any of its Subsidiaries, or is aware of
any circumstances that would cause the taxable years or other taxable periods of
the Borrower or any of its Subsidiaries not to be subject to the normally
applicable statute of limitations.  

     

    7.10    Compliance with
ERISA.  (i) Schedule VI sets forth, as of the Effective
Date, each Plan.  Each Plan, other than any Multiemployer Plan (and
each related trust, insurance contract or fund), is in substantial compliance
with its terms and with all applicable laws, including without limitation ERISA
and the Code; each Plan, other than any Multiemployer Plan (and each related
trust, if any), which is intended to be qualified under Section 401(a) of
the

     

     

     

    
      
        
        

      

      
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    Code has
received a determination letter from the Internal Revenue Service to the effect
that it meets the requirements of Sections 401(a) and 501(a) of the Code; no
Reportable Event has occurred; to the best knowledge of the Borrower or any of
its Subsidiaries or ERISA Affiliates, no Plan which is a Multiemployer Plan is
insolvent or in reorganization; no Plan has an Unfunded Current Liability in an
amount material to the Borrower’s operation; no Plan (other than a Multiemployer
Plan) which is subject to Section 412 of the Code or Section 302 of ERISA has an
accumulated funding deficiency within the meaning of such sections of the Code
or ERISA, or has applied for or received a waiver of an accumulated funding
deficiency or an extension of any amortization period within the meaning of
Section 412 of the Code or Section 303 or 304 of ERISA; all contributions
required to be made with respect to a Plan have been or will be timely made
(except as disclosed on Schedule VI); neither the Borrower nor any of its
Subsidiaries nor any ERISA Affiliate has incurred any material liability
(including any indirect, contingent or secondary liability) to or on account of
a Plan pursuant to Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069,
4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971 or 4975 of the Code or
expects to incur any such liability under any of the foregoing sections with
respect to any Plan; no condition exists which presents a material risk to the
Borrower or any of its Subsidiaries or any ERISA Affiliate of incurring a
liability to or on account of a Plan pursuant to the foregoing provisions of
ERISA and the Code; no proceedings have been instituted by the PBGC to terminate
or appoint a trustee to administer any Plan (in the case of a Multiemployer
Plan, to the best knowledge of the Borrower or any of its Subsidiaries or ERISA
Affiliates) which is subject to Title IV of ERISA; no action, suit, proceeding,
hearing, audit or investigation with respect to the administration, operation or
the investment of assets of any Plan (other than routine claims for benefits) is
pending, or, to the best knowledge of the Borrower or any of its Subsidiaries,
expected or threatened which could reasonably be expected to have a Material
Adverse Effect; using actuarial assumptions and computation methods consistent
with Part 1 of subtitle E of Title IV of ERISA, the Borrower and its
Subsidiaries and ERISA Affiliates would have no liabilities to any Plans which
are Multiemployer Plans in the event of a complete withdrawal therefrom in an
amount which could reasonably be expected to have a Material Adverse Effect;
each group health plan (as defined in Section 607(1) of ERISA or Section
4980B(g)(2) of the Code) which covers or has covered employees or former
employees of the Borrower, any of its Subsidiaries, or any ERISA Affiliate has
at all times been operated in material compliance with the provisions of Part 6
of subtitle B of Title I of ERISA and Section 4980B of the Code; no lien imposed
under the Code or ERISA on the assets of the Borrower or any of its Subsidiaries
or any ERISA Affiliate exists nor has any event occurred which could reasonably
be expected to give rise to any such lien on account of any Plan; and the
Borrower and its Subsidiaries do not maintain or contribute to any employee
welfare plan (as defined in Section 3(1) of ERISA) which provides benefits to
retired employees or other former employees (other than as required by Section
601 of ERISA) or any Plan the obligations with respect to which could reasonably
be expected to have a Material Adverse Effect.

     

    (ii)    Each
Foreign Pension Plan, if any, has been maintained in substantial compliance with
its terms and with the requirements of any and all applicable laws, statutes,
rules, regulations and orders and has been maintained, where required, in good
standing with applicable regulatory authorities.  All contributions
required to be made with respect to a Foreign Pension Plan have been or will be
timely made.  Neither the Borrower nor any of its Subsidiaries has
incurred any obligation in connection with the termination of or withdrawal from
any

     

     

     

    
      
        
        

      

      
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    Foreign
Pension Plan that could reasonably be expected to have a Material Adverse
Effect.  Neither the Borrower nor any of its Subsidiaries maintains or
contributes to any Foreign Pension Plan the obligations with respect to which
could in the aggregate reasonably be expected to have a Material Adverse
Effect.

     

    7.11    The Security
Documents.  After the execution and delivery thereof and upon
the taking of the actions mentioned in the immediately succeeding sentence, each
of the Security Documents will create in favor of the Collateral Agent for the
benefit of the Secured Creditors a legal, valid and enforceable fully perfected
first priority security interest in and Lien on all right, title and interest of
the Credit Parties party thereto in the Collateral described therein, subject to
no other Liens subject only to Permitted Liens.  No filings or
recordings are required in order to perfect the security interests created under
any Security Document except for filings or recordings which shall be on or
prior to the respective Borrowing Date, in the case of the respective Vessel
Mortgages, Assignment of Earnings, Assignment of Insurances and Assignment of
Charters in respect of the Vessels.

     

    7.12    Representations and
Warranties in Documents.  On each Borrowing Date, all
representations and warranties made by the Borrower and its Subsidiaries in the
other Credit Documents were true and correct in all material respects at the
time as of which such representations and warranties were made (or deemed
made).

     

    7.13    Subsidiaries.  On
the Effective Date, the Borrower has no Subsidiaries other than those
Subsidiaries listed on Schedule VII (which Schedule identifies the correct legal
name, direct owner, percentage ownership and jurisdiction of organization of
each such Subsidiary on the date hereof).

     

    7.14    Compliance with Statutes,
etc.  Each of the Borrower and each of its Subsidiaries is in
compliance in all material respects with all applicable statutes, regulations
and orders of, and all applicable restrictions imposed by, all governmental
bodies, domestic or foreign, in respect of the conduct of its business and the
ownership of its property, except such noncompliances as could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     

    7.15    Investment Company
Act.  Neither the Borrower nor any of its Subsidiaries is an
“investment company” or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as
amended.

     

    7.16    Pollution and Other
Regulations.  Each of the Borrower and each of its Subsidiaries
is in compliance with all applicable Environmental Laws governing its business,
except for such failures to comply as are not reasonably likely to have a
Material Adverse Effect, and neither the Borrower nor any of its Subsidiaries is
liable for any material penalties, fines or forfeitures for failure to comply
with any of the foregoing.  All licenses, permits, registrations or
approvals required for the business of the Borrower and each of its
Subsidiaries, as conducted as of the Effective Date, under any Environmental Law
have been secured and each of the Borrower and each of its Subsidiaries is in
substantial compliance therewith, except for such failures to secure or comply
as are not reasonably likely to have a Material Adverse
Effect.  Neither the Borrower nor any of its Subsidiaries is in any
respect in noncompliance with, breach

     

     

    
      
        
        

      

      
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    of or
default under any applicable writ, order, judgment, injunction, or decree to
which the Borrower or such Subsidiary is a party or which would affect the
ability of the Borrower or such Subsidiary to operate any Vessel, Real Property
or other facility and no event has occurred and is continuing which, with the
passage of time or the giving of notice or both, would constitute noncompliance,
breach of or default thereunder, except in each such case, such noncompliances,
breaches or defaults as are not likely to, either individually or in the
aggregate, have a Material Adverse Effect.  There are no Environmental
Claims pending or, to the knowledge of the Borrower, threatened against the
Borrower or any of its Subsidiaries which, either individually or in the
aggregate, are reasonably likely to have a Material Adverse
Effect.  There are no facts, circumstances, conditions or occurrences
on any Vessel, Real Property or other facility owned or operated by the Borrower
or any of its Subsidiaries that is reasonably likely (i) to form the basis
of an Environmental Claim against the Borrower, any of its Subsidiaries or any
Vessel, Real Property or other facility owned by the Borrower or any of its
Subsidiaries, or (ii) to cause such Vessel, Real Property or other facility
to be subject to any restrictions on its ownership, occupancy, use or
transferability under any Environmental Law, except in each such case, such
Environmental Claims or restrictions that, either individually or in the
aggregate, are not reasonably likely to have a Material Adverse
Effect.

     

    7.17    Labor
Relations.  Neither the Borrower nor any of its Subsidiaries is
engaged in any unfair labor practice that could reasonably be expected to have a
Material Adverse Effect and there is (i) no unfair labor practice complaint
pending against the Borrower or any of its Subsidiaries or, to the Borrower’s
knowledge, threatened against any of them before the National Labor Relations
Board, and no material grievance or arbitration proceeding arising out of or
under any collective bargaining agreement is so pending against the Borrower or
any of its Subsidiaries or, to the Borrower’s knowledge, threatened against any
of them, (ii) no strike, labor dispute, slowdown or stoppage pending
against the Borrower or any of its Subsidiaries or, to the Borrower’s knowledge,
threatened against the Borrower or any of its Subsidiaries and (iii) no
union representation proceeding pending with respect to the employees of the
Borrower or any of its Subsidiaries, except (with respect to the matters
specified in clauses (i), (ii) and (iii) above) as could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     

    7.18    Patents, Licenses,
Franchises and Formulas.  Each of the Borrower and each of its
Subsidiaries owns, or has the right to use, all material patents, trademarks,
permits, service marks, trade names, copyrights, licenses, franchises and
formulas, and has obtained assignments of all leases and other rights of
whatever nature, necessary for the present conduct of its business, without any
known conflict with the rights of others, except for such failures and conflicts
which could not, either individually or in the aggregate, reasonably be expected
to result in a Material Adverse Effect.

     

    7.19    Indebtedness.  Schedule IV
sets forth a true and complete list of all Indebtedness of the Borrower and its
Subsidiaries as of the Effective Date and which is to remain outstanding after
giving effect to the Effective Date, in each case showing the aggregate
principal amount thereof and the name of the Borrower and any other entity which
directly or indirectly guarantees such debt.

     

     

     

    
      
        
        

      

      
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    7.20    Insurance.  Schedule
V sets forth a true and complete listing of all insurance maintained by each
Credit Party as of the Effective Date, with the amounts insured (and any
deductibles) set forth therein.

     

    7.21    Concerning the
Vessels.  Each vessel owned or to be owned by a Subsidiary
Guarantor or the Borrower will be operated in material compliance with all
applicable law, rules and regulations.

     

    7.22    Citizenship.  The
Borrower and each other Credit Party which owns or operates, or will own or
operate, one or more Vessels is qualified to own and operate such Vessels under
the laws of Acceptable Flag Jurisdiction .

     

    7.23    Vessel
Classification.  On each Borrowing Date, and thereafter, each
Vessel is or will be, classified in the highest class available for Vessels of
its age and type with a classification society listed on Schedule VIII or
another internationally recognized classification society acceptable to the
Administrative Agent, free of any conditions or recommendations, other than as
permitted, or will be permitted, under the Vessel Mortgages.

     

    7.24    No
Immunity.  The Borrower does not, nor does any other Credit
Party or any of their respective properties, have any right of immunity on the
grounds of sovereignty or otherwise from the jurisdiction of any court or from
setoff or any legal process (whether through service or notice, attachment prior
to judgment, attachment in aid of execution, execution or otherwise) under the
laws of any jurisdiction.  The execution and delivery of the Credit
Documents by the Credit Parties and the performance by them of their respective
obligations thereunder constitute commercial transactions.

     

    7.25    Fees and
Enforcement.  No fees or taxes, including, without limitation,
stamp, transaction, registration or similar taxes, are required to be paid to
ensure the legality, validity, or enforceability of this Agreement or any of the
other Credit Documents other than recording taxes which have been, or will be,
paid as and to the extent due.  Under the laws of the Acceptable Flag
Jurisdiction, as applicable, the choice of the laws of the State of New York as
set forth in the Credit Documents which are stated to be governed by the laws of
the State of New York is a valid choice of law, and the irrevocable
submission by each Credit Party to jurisdiction and consent to service of
process and, where necessary, appointment by such Credit Party of an agent for
service of process, in each case as set forth in such Credit Documents, is
legal, valid, binding and effective.

     

    7.26    Form of
Documentation.  Each of the Credit Documents is in proper legal
form under the laws of the applicable Acceptable Flag Jurisdiction for the
enforcement thereof under such laws, subject only to such matters which may
affect enforceability arising under the law of the State of New
York.  To ensure the legality, validity, enforceability or
admissibility in evidence of each such Credit Document in the applicable
Acceptable Flag Jurisdiction, it is not necessary that any Credit Document or
any other document be filed or recorded with any court or other authority in the
applicable Acceptable Flag Jurisdiction, except as have been made, or will be
made, in accordance with Section 5.

     

     

    
      
        
        

      

      
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    7.27    Vessel
Acquisitions.  At the time of consummation of each Vessel
Acquisition, (i) all necessary material consents and approvals of, and filings
and registrations with, and all other actions in respect of, all governmental
agencies, authorities or instrumentalities required, if any, in order to make or
consummate such Vessel Acquisition will have been obtained, given, filed or
taken and are or will be in full force and effect (or effective judicial relief
with respect thereto has been obtained), (ii) all applicable waiting
periods with respect thereto have or, prior to the time when required, will
have, expired without, in all such cases, any action being taken by any
competent authority which restrains, prevents, or imposes material adverse
conditions upon any Vessel Acquisition, (iii) no judgment, order or
injunction prohibiting or imposing material adverse conditions upon any Vessel
Acquisition, or the incurrence of any Loan or the performance by the Borrower or
any other Credit Party of their respective obligations under the respective
Credit Documents shall exist and (iv) all actions taken by the Borrower and
its Subsidiaries pursuant to or in furtherance of such Vessel Acquisitions have
been taken in all material respects in compliance with all applicable
laws.

     

    SECTION
8.    Affirmative
Covenants.  The Borrower hereby covenants and agrees that on
and after the Effective Date and until the Loans, the Notes and Unpaid Drawings,
together with interest, Commitment Commission and all other Obligations incurred
hereunder and thereunder, are paid in full:

     

    8.01    Information
Covenants.  The Borrower will furnish to the Administrative
Agent, with sufficient copies for each of the Lenders:

     

    (a)    Quarterly Financial
Statements.  Within 45 days after the close of the first three
quarterly accounting periods in each fiscal year of the Borrower, (i) the
consolidated balance sheet of the Borrower and its Subsidiaries as at the end of
such quarterly accounting period and the related consolidated statements of
income and cash flows, in each case for such quarterly accounting period and for
the elapsed portion of the fiscal year ended with the last day of such quarterly
accounting period, and in each case, setting forth comparative figures for the
related periods in the prior fiscal year, all of which shall be certified by the
senior financial officer of the Borrower, subject to normal year-end audit
adjustments and (ii) management’s discussion and analysis of the important
operational and financial developments during the fiscal quarter and
year-to-date periods.

     

    (b)    Annual Financial
Statements.  Within 90 days after the close of each fiscal year
of the Borrower, (i) the consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such fiscal year and the related consolidated
statements of income and retained earnings and of cash flows for such fiscal
year setting forth comparative figures for the preceding fiscal year and
certified by an independent certified public accounting firm of recognized
national standing reasonably acceptable to the Administrative Agent, together
with a report of such accounting firm stating that in the course of its regular
audit of the financial statements of the Borrower and its Subsidiaries, which
audit was conducted in accordance with generally accepted auditing standards,
such accounting firm obtained no knowledge of any Default or Event of Default
pursuant to Sections 9.07 through 9.11, inclusive, which has occurred and is
continuing or, if in the opinion of such accounting firm such a Default or Event
of Default has occurred and is continuing, a statement as to the nature thereof
and (ii) management’s discussion and analysis of the important operational
and financial developments during such fiscal year.

     

     

     

    
      
        
        

      

      
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    (c)    Appraisal
Reports.  Within 45 days after the close of the second and the
fourth quarterly accounting periods in each fiscal year of the Borrower, and at
any other time within 33 days of the written request of the Administrative
Agent, Appraisals for each Vessel of recent date in form and substance
satisfactory to the Administrative Agent and from at least two Approved
Appraisers.  All such Appraisals shall be conducted by, and made at
the expense of, the Borrower (it being understood that the Administrative Agent
may and, at the request of the Required Lenders, shall, upon notice to the
Borrower, obtain such Appraisals and that the cost of all such Appraisals will
be for the account of the Borrower); provided that, unless a
Default or an Event of Default has occurred and is continuing, in no event shall
the Borrower be required to pay for Appraisals obtained pursuant to this
Section 8.01(c) on more than two occasions in any single fiscal year of the
Borrower, with the cost of any such reports in excess thereof to be paid by the
Lenders on a pro rata
basis.

     

    (d)    Projections,
etc.  As soon as available but not more than 45 days after the
commencement of each fiscal year of the Borrower beginning with its fiscal year
commencing on January 1, 2009, a budget of the Borrower and its Subsidiaries in
reasonable detail for each of the twelve months and four fiscal quarters of such
fiscal year.

     

    (e)    Officer’s Compliance
Certificates.  (i)  At the time of the delivery of
the financial statements provided for in Sections 8.01(a) and (b), a certificate
of the senior financial officer of the Borrower in the form of Exhibit I to the
effect that, to the best of such officer’s knowledge, no Default or Event of
Default has occurred and is continuing or, if any Default or Event of Default
has occurred and is continuing, specifying the nature and extent thereof (in
reasonable detail), which certificate shall (x) set forth the calculations
required to establish whether the Borrower was in compliance with the provisions
of Sections 9.07 through 9.11, inclusive, at the end of such fiscal quarter or
year, as the case may be, and (y) certify that there have been no changes
to any of Schedule VII and Annexes A through F of the Pledge Agreement since the
Effective Date or, if later, since the date of the most recent certificate
delivered pursuant to this Section 8.01(e)(i), or if there have been any such
changes, a list in reasonable detail of such changes (but, in each case with
respect to this clause (y), only to the extent that such changes are required to
be reported to the Collateral Agent pursuant to the terms of such Security
Documents) and whether the Borrower and the other Credit Parties have otherwise
taken all actions required to be taken by them pursuant to such Security
Documents in connection with any such changes.

     

    (ii)    At the
time of a Collateral Disposition or Vessel Exchange in respect of any Vessel, a
certificate of the senior financial officer of the Borrower which certificate
shall (x) certify on behalf of the Borrower the last Appraisals received
pursuant to Section 8.01(c) determining the Aggregate Appraised Value after
giving effect to such disposition or exchange, as the case may be, and
(y) set forth the calculations required to establish whether the Borrower
is in compliance with the provisions of Section 9.09 after giving effect to such
disposition or exchange, as the case may be.

     

    (f)    Notice of Default,
Litigation or Event of Loss.  Promptly, and in any event within
three Business Days after the Borrower obtains knowledge thereof, notice of
(i) the occurrence of any event which constitutes a Default or an Event of
Default and which notice shall specify the nature thereof, the period of
existence thereof and what action the Borrower

     

     

     

    
      
        
        

      

      
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    proposes
to take with respect thereto, (ii) any litigation or governmental
investigation or proceeding pending or threatened (x) against the Borrower
or any of its Subsidiaries which, if adversely determined, could reasonably be
expected to have a Material Adverse Effect or (y) with respect to any
Vessel Acquisition or any Document and (iii) any Event of Loss in respect
of any Vessel.

     

    (g)    Other Reports and
Filings.  Promptly, copies of all financial information, proxy
materials and other information and reports, if any, which the Borrower or any
of its Subsidiaries shall file with the Securities and Exchange Commission (or
any successor thereto) or deliver to holders of its Indebtedness pursuant to the
terms of the documentation governing such Indebtedness (or any trustee, agent or
other representative therefore).

     

    (h)    Environmental
Matters.  Promptly upon, and in any event within five Business
Days after, the Borrower obtains knowledge thereof, written notice of any of the
following environmental matters occurring after the Effective Date, except to
the extent that such environmental matters could not, either individually or in
the aggregate, be reasonably expected to have a Material Adverse
Effect:

     

    (i)    any
Environmental Claim pending or threatened in writing against the Borrower or any
of its Subsidiaries or any Vessel or property owned or operated or occupied by
the Borrower or any of its Subsidiaries;

     

    (ii)    any
condition or occurrence on or arising from any Vessel or property owned or
operated or occupied by the Borrower or any of its Subsidiaries that
(a) results in noncompliance by the Borrower or such Subsidiary with any
applicable Environmental Law or (b) could reasonably be expected to form
the basis of an Environmental Claim against the Borrower or any of its
Subsidiaries or any such Vessel or property;

     

    (iii)    any
condition or occurrence on any Vessel or property owned or operated or occupied
by the Borrower or any of its Subsidiaries that could reasonably be expected to
cause such Vessel or property to be subject to any restrictions on the
ownership, occupancy, use or transferability by the Borrower or such Subsidiary
of such Vessel or property under any Environmental Law; and

     

    (iv)    the
taking of any removal or remedial action in response to the actual or alleged
presence of any Hazardous Material on any Vessel or property owned or operated
or occupied by the Borrower or any of its Subsidiaries as required by any
Environmental Law or any governmental or other administrative agency; provided that in any
event the Borrower shall deliver to the Administrative Agent all material
notices received by the Borrower or any of its Subsidiaries from any government
or governmental agency under, or pursuant to, CERCLA or OPA.

     

    All such
notices shall describe in reasonable detail the nature of the claim,
investigation, condition, occurrence or removal or remedial action and the
Borrower’s or such Subsidiary’s response thereto.  In addition, the
Borrower will provide the Administrative Agent with copies of all material
communications with any government or governmental agency and all
material

     

     

    
      
        
        

      

      
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    communications
with any Person relating to any Environmental Claim of which notice is required
to be given pursuant to this Section 8.01(h), and such detailed reports of
any such Environmental Claim as may reasonably be requested by the
Administrative Agent or the Required Lenders.

     

    (i)    Other
Information.  From time to time, such other information or
documents (financial or otherwise) with respect to the Borrower or its
Subsidiaries as the Administrative Agent or the Required Lenders may reasonably
request in writing.

     

    8.02    Books, Records and
Inspections.  The Borrower will, and will cause each of its
Subsidiaries to, keep proper books of record and account in which full, true and
correct entries, in conformity in all material respects with generally accepted
accounting principles and all requirements of law, shall be made of all dealings
and transactions in relation to its business.  The Borrower will, and
will cause each of its Subsidiaries to, permit officers and designated
representatives of the Administrative Agent and the Lenders as a group to visit
and inspect, during regular business hours and under guidance of officers of the
Borrower or any of its Subsidiaries, any of the properties of the Borrower or
its Subsidiaries, and to examine the books of account of the Borrower or such
Subsidiaries and discuss the affairs, finances and accounts of the Borrower or
such Subsidiaries with, and be advised as to the same by, its and their officers
and independent accountants, all upon reasonable advance notice and at such
reasonable times and intervals and to such reasonable extent as the
Administrative Agent or the Required Lenders may request; provided that, unless
an Event of Default exists and is continuing at such time, the Administrative
Agent and the Lenders shall not be entitled to request more than two such
visitations and/or examinations in any fiscal year of the Borrower.

     

    8.03    Maintenance of Property;
Insurance; Mortgagee Interest Insurance.  (a)  The
Borrower will, and will cause each of its Subsidiaries to, (i) keep all
material property necessary in its business in good working order and condition
(ordinary wear and tear and loss or damage by casualty or condemnation
excepted), (ii) maintain insurance on the Vessels in at least such amounts
and against at least such risks as are in accordance with normal industry
practice for similarly situated insureds and (iii) furnish to the
Administrative Agent, at the written request of the Administrative Agent or any
Lender, a complete description of the material terms of insurance
carried.  In addition to the requirements of the immediately preceding
sentence, the Borrower will at all times cause insurance of the types described
in Schedule V to (x) be maintained (with the same scope of coverage as that
described in Schedule V) at levels which are at least as great as the respective
amount described on Schedule V and (y) comply with the insurance
requirements of the Vessel Mortgages.  

     

    (b)    The
Borrower will reimburse the Administrative Agent, Collateral Agent and/or the
Lenders for all costs, fees and expenses incurred in relation to mortgagee
interest insurance; provided that the
Borrower shall not be required to reimburse the Administrative Agent, Collateral
Agent and/or the Lenders for any costs, fees and expenses incurred in relation
to mortgagee interest insurance at any time (i) the Credit Parties own six
(6) Vessels and (ii) the Appraised Value of each Vessel is less than 15% of
the Aggregate Appraised Value.

     

    8.04    Corporate
Franchises.  The Borrower will, and will cause each of its
Subsidiaries, to do or cause to be done, all things necessary to preserve and
keep in full force and

     

     

     

    
      
        
        

      

      
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    effect
its existence and its material rights, franchises, licenses and patents (if any)
used in its business; provided, however, that nothing in this Section 8.04 shall
prevent (i) sales or other dispositions of assets, consolidations or
mergers by or involving the Borrower or any of its Subsidiaries which are
permitted in accordance with Section 9.02, (ii) any Subsidiary Guarantor
from changing the jurisdiction of its organization to the extent permitted by
Section 9.12 or (iii) the abandonment by the Borrower or any of its
Subsidiaries of any rights, franchises, licenses and patents that could not be
reasonably expected to have a Material Adverse Effect.

     

    8.05    Compliance with Statutes,
etc.  The Borrower will, and will cause each of its
Subsidiaries to, comply with all applicable statutes, regulations and orders of,
and all applicable restrictions (including all laws and regulations relating to
money laundering) imposed by, all governmental bodies, domestic or foreign, in
respect of the conduct of its business and the ownership of its property, except
such non-compliances as could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     

    8.06    Compliance with
Environmental Laws.  (a)  The Borrower will, and will
cause each of its Subsidiaries to, comply in all material respects with all
Environmental Laws applicable to the ownership or use of any Vessel or property
now or hereafter owned or operated by the Borrower or any of its Subsidiaries,
will within a reasonable time period pay or cause to be paid all costs and
expenses incurred in connection with such compliance (except to the extent being
contested in good faith), and will keep or cause to be kept all such Vessel or
property free and clear of any Liens imposed pursuant to such Environmental
Laws.  Neither the Borrower nor any of its Subsidiaries will generate,
use, treat, store, release or dispose of, or permit the generation, use,
treatment, storage, release or disposal of, Hazardous Materials on any Vessel or
property now or hereafter owned or operated or occupied by the Borrower or any
of its Subsidiaries, or transport or permit the transportation of Hazardous
Materials to or from any ports or property except in material compliance with
all applicable Environmental Laws and as reasonably required by the trade in
connection with the operation, use and maintenance of any such property or
otherwise in connection with their businesses.  The Borrower will, and
will cause each of its Subsidiaries to, maintain insurance on the Vessels in at
least such amounts as are in accordance with normal industry practice for
similarly situated insureds, against losses from oil spills and other
environmental pollution.

     

    (b)    At the
written request of the Administrative Agent or the Required Lenders, which
request shall specify in reasonable detail the basis therefore, at any time and
from time to time, the Borrower will provide, at the Borrower’s sole cost and
expense, an environmental assessment of any Vessel by such Vessel’s
classification society (to the extent such classification society is listed on
Schedule VIII hereto) or another internationally recognized classification
society acceptable to the Administrative Agent.  If said
classification society, in its assessment, indicates that such Vessel is not in
compliance with the Environmental Laws, said society shall set forth potential
costs of the remediation of such non-compliance; provided that, such request
may be made only if (i) there has occurred and is continuing an Event of
Default, (ii) the Administrative Agent or the Required Lenders reasonably
and in good faith believe that the Borrower, any of its Subsidiaries or any such
Vessel is not in compliance with Environmental Law and such non-compliance could
reasonably be expected to have a Material Adverse Effect, or
(iii) circumstances exist that reasonably could be expected to form the
basis of

     

     

     

    
      
        
        

      

      
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    a
material Environmental Claim against the Borrower or any of its Subsidiaries or
any such Vessel.  If the Borrower fails to provide the same within 90
days after such request was made, the Administrative Agent may order the same
and the Borrower shall grant and hereby grants to the Administrative Agent and
the Lenders and their agents access to such Vessel and specifically grants the
Administrative Agent and the Lenders an irrevocable non-exclusive license,
subject to the rights of tenants, to undertake such an assessment, all at the
Borrower’s expense.

     

    8.07    ERISA.  As
soon as reasonably possible and, in any event, within ten (10) days after the
Borrower or any of its Subsidiaries or any ERISA Affiliate knows or has reason
to know of the occurrence of any of the following, the Borrower will deliver to
the Administrative Agent, with sufficient copies for each of the Lenders, a
certificate of the senior financial officer of the Borrower setting forth the
full details as to such occurrence and the action, if any, that the Borrower,
such Subsidiary or such ERISA Affiliate is required or proposes to take,
together with any notices required or proposed to be given to or filed with or
by the Borrower, the Subsidiary, the ERISA Affiliate, the PBGC, a Plan
participant or the Plan administrator with respect thereto:  that a
Reportable Event has occurred (except to the extent that the Borrower has
previously delivered to the Administrative Agent a certificate and notices (if
any) concerning such event pursuant to the next clause hereof); that a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan
subject to Title IV of ERISA is subject to the advance reporting requirement of
PBGC Regulation Section 4043.61 (without regard to subparagraph (b)(1) thereof),
and an event described in subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC
Regulation Section 4043 is reasonably expected to occur with respect to such
Plan within the following 30 days; that an accumulated funding deficiency,
within the meaning of Section 412 of the Code or Section 302 of ERISA, has been
incurred or an application may be or has been made for a waiver or modification
of the minimum funding standard (including any required installment payments) or
an extension of any amortization period under Section 412 of the Code or Section
303 or 304 of ERISA with respect to a Plan; that any contribution required to be
made with respect to a Plan or Foreign Pension Plan has not been timely made and
such failure could result in a material liability for the Borrower or any of its
Subsidiaries; that a Plan has been or may be reasonably expected to be
terminated, reorganized, partitioned or declared insolvent under Title IV of
ERISA with a material amount of unfunded benefit liabilities; that a Plan (in
the case of a Multiemployer Plan, to the best knowledge of the Borrower or any
of its Subsidiaries or ERISA Affiliates) has a material Unfunded Current
Liability; that proceedings may be reasonably expected to be or have been
instituted by the PBGC to terminate or appoint a trustee to administer a Plan
which is subject to Title IV of ERISA; that a proceeding has been instituted
pursuant to Section 515 of ERISA to collect a material delinquent contribution
to a Plan; that the Borrower, any of its Subsidiaries or any ERISA Affiliate
will or may reasonably expect to incur any material liability (including any
indirect, contingent, or secondary liability) to or on account of the
termination of or withdrawal from a Plan under Section 4062, 4063, 4064, 4069,
4201, 4204 or 4212 of ERISA or with respect to a Plan under Section 401(a)(29),
4971, 4975 or 4980 of the Code or Section 409 or 502(i) or 502(l) of ERISA or
with respect to a group health plan (as defined in Section 607(1) of ERISA or
Section 4980B(g)(2) of the Code) under Section 4980B of the Code; or that the
Borrower, or any of its Subsidiaries may incur any material liability pursuant
to any employee welfare benefit plan (as defined in Section 3(1) of ERISA) that
provides benefits to retired employees or other former employees (other than as
required by Section 601 of ERISA) or any Plan or any Foreign Pension
Plan.  Upon request, the Borrower

     

     

     

    
      
        
        

      

      
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    will
deliver to the Administrative Agent with sufficient copies to the Lenders
(i) a complete copy of the annual report (on Internal Revenue Service Form
5500-series) of each Plan (including, to the extent required, the related
financial and actuarial statements and opinions and other supporting statements,
certifications, schedules and information) required to be filed with the
Internal Revenue Service and (ii) copies of any records, documents or other
information that must be furnished to the PBGC with respect to any Plan pursuant
to Section 4010 of ERISA.  In addition to any certificates or notices
delivered to the Lenders pursuant to the first sentence hereof, copies of annual
reports and any records, documents or other information required to be furnished
to the PBGC, and any notices received by the Borrower, any of its Subsidiaries
or any ERISA Affiliate with respect to any Plan or Foreign Pension Plan with
respect to any circumstances or event that could reasonably be expected to
result in a material liability shall be delivered to the Lenders no later than
ten (10) days after the date such annual report has been filed with the Internal
Revenue Service or such records, documents and/or information has been furnished
to the PBGC or such notice has been received by the Borrower, such Subsidiary or
such ERISA Affiliate, as applicable.

     

    8.08    End of Fiscal Years; Fiscal
Quarters.  The Borrower will cause (i) each of its, and
each of its Subsidiaries’, fiscal years to end on December 31 of each year and
(ii) each of its and its Subsidiaries’ fiscal quarters to end on March 31,
June 30, September 30 and December 31 of each year.

     

    8.09    Performance of
Obligations.  The Borrower will, and will cause each of its
Subsidiaries to, perform all of its obligations under the terms of each
mortgage, indenture, security agreement and other debt instrument (including,
without limitation, the Documents) by which it is bound, except such
non-performances as could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     

    8.10    Payment of
Taxes.  The Borrower will pay and discharge, and will cause
each of its Subsidiaries to pay and discharge, all material taxes, assessments
and governmental charges or levies imposed upon it or upon its income or
profits, or upon any properties belonging to it, in each case on a timely basis,
and all lawful claims for sums that have become due and payable which, if
unpaid, might become a Lien not otherwise permitted under Section 9.01(i),
provided that neither the Borrower nor any of its Subsidiaries shall be required
to pay any such tax, assessment, charge, levy or claim which is being contested
in good faith and by proper proceedings if it has maintained adequate reserves
with respect thereto in accordance with generally accepted accounting
principles.

     

    8.11    Further
Assurances.  (a)  The Borrower, and each other Credit
Party, agrees that at any time and from time to time, at the expense of the
Borrower or such other Credit Party, it will promptly execute and deliver all
further instruments and documents, and take all further action that may be
reasonably necessary, or that the Administrative Agent may reasonably require,
to perfect and protect any Lien granted or purported to be granted hereby or by
the other Credit Documents, or to enable the Collateral Agent to exercise and
enforce its rights and remedies with respect to any
Collateral.  Without limiting the generality of the foregoing, the
Borrower will execute and file, or cause to be filed, such financing or
continuation statements under the UCC (or any non-U.S. equivalent thereto), or
amendments thereto, such amendments or supplements to the Vessel Mortgages
(including any amendments required to

     

     

     

    
      
        
        

      

      
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    maintain
Liens granted by such Vessel Mortgages pursuant to the effectiveness of this
Agreement), and such other instruments or notices, as may be reasonably
necessary, or that the Administrative Agent may reasonably require, to protect
and preserve the Liens granted or purported to be granted hereby and by the
other Credit Documents.

     

    (b)    The
Borrower hereby authorizes the Collateral Agent to file one or more financing or
continuation statements under the UCC (or any non-U.S. equivalent thereto), and
amendments thereto, relative to all or any part of the Collateral without the
signature of the Borrower, where permitted by law.  The Collateral
Agent will promptly send the Borrower a copy of any financing or continuation
statements which it may file without the signature of the Borrower and the
filing or recordation information with respect thereto.

     

    (c)    To the
extent that any Vessel Exchange is made by a Subsidiary of the Borrower which is
not a Credit Party at the time of such acquisition (and which has not otherwise
executed and delivered the documents described below in this Section 8.11(c)),
the Borrower will cause such Subsidiary (and any Subsidiary which directly owns
the stock of such Subsidiary to the extent not a Credit Party) to execute and
deliver to the Administrative Agent a counterpart of the Pledge Agreement
(including any supplemental agreement required to give effect to such security
interests purported to be created by the Pledge Agreement under applicable local
law), the Guaranty, Assignment of Earnings, Assignment of Insurances, Assignment
of Charters (if applicable) and the appropriate Vessel Mortgage(s), together
with all related documentation (including, without limitation, opinions of
counsel, corporate documents and proceedings and officer’s certificates) as such
Subsidiary would have been required to deliver pursuant to Sections 4 and 5 of
this Agreement had such Subsidiary been a Credit Party on a Borrowing
Date.

     

    8.12    Deposit of
Earnings.  Each Credit Party will use its best efforts to cause
the earnings derived from each of the respective Vessels, to the extent
constituting Earnings and Insurance Collateral, to be deposited or remitted by
the respective account debtor in respect of such earnings into one or more of
the Operating Accounts maintained for such Credit Party or the Borrower from
time to time.  Without limiting any Credit Party’s obligations in
respect of this Section 8.12, each Credit Party agrees that, in the event it
receives any earnings constituting Earnings and Insurance Collateral, or any
such earnings are deposited other than in one of the Operating Accounts, it
shall promptly deposit all such proceeds into one of the Operating Accounts
maintained for such Credit Party or the Borrower from time to time.

     

    8.13    Ownership of
Subsidiaries.  The Borrower shall cause each Subsidiary
Guarantor, to at all times, be directly wholly-owned by one or more Credit
Parties.

     

    8.14    Flag of the Vessels; Vessel
Classifications.  (a)  When required by the terms
hereof, the Borrower will, and will cause each of its Subsidiaries to, cause
each Vessel to be registered under the laws and flag of (x) Hong Kong,
(y) the Republic of Marshall Islands or (z) any other jurisdiction
acceptable to the Required Lenders (each jurisdiction in clauses (x), (y) or
(z), an “Acceptable
Flag Jurisdiction”).  Notwithstanding the foregoing, any Credit
Party may transfer a Vessel registered in an Acceptable Flag Jurisdiction to
another Acceptable Flag Jurisdiction pursuant to a Flag Jurisdiction
Transfer.

     

     

    
      
        
        

      

      
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    (b)    The
Borrower will, and will cause each of its Subsidiaries to, insure that the
representation set forth in Section 7.23 is true and correct in all respects at
all times.

     

    (c)    The Borrower
or the respective Subsidiary Guarantor will, and will cause each of its
subsidiaries, to comply with and ensure that their respective Vessel shall
comply with the requirements of the ISM Code, the ISPS Code and Annex VI in
accordance with the respective implementation schedules thereof, including (but
not limited to) the maintenance and renewal of valid certificates pursuant
thereto throughout the term of the Facility.

     

    (d)    The Borrower
or the respective Subsidiary Guarantor will, and will cause each of its
subsidiaries, to insure that they immediately notify the Administrative Agent of
any actual or threatened withdrawal of a SMC, DOC, ISSC or IAPPC.

     

    8.15    Consent to Assignment of
Charters.  The Borrower will, and will cause each of its
Subsidiaries to, use its commercially reasonable efforts to cause each charter
counterparty which is party to a charter with respect to each Vessel that is one
year or more in duration to execute and deliver to the Administrative Agent a
Charterers’ Consent and Agreement in substantially the form attached as Annex 1
to Exhibit B to the Assignment of Charters with such changes as may be approved
by the Administrative Agent.

     

    SECTION
9.    Negative
Covenants.  The Borrower hereby covenants and agrees that on
and after the Effective Date and until this Agreement has terminated and the
Loans, the Notes and Unpaid Drawings, together with interest, Commitment
Commission and all other Obligations incurred hereunder and thereunder, are paid
in full:

     

    9.01    Liens.  The
Borrower will not, and will not permit any of its Subsidiaries to, create,
incur, assume or suffer to exist any Lien upon or with respect to any
Collateral, whether now owned or hereafter acquired, or sell any such Collateral
subject to an understanding or agreement, contingent or otherwise, to repurchase
such Collateral (including sales of accounts receivable with recourse to the
Borrower or any of its Subsidiaries), or assign any right to receive income or
permit the filing of any financing statement under the UCC or any other similar
notice of Lien under any similar recording or notice statute with respect to any
Collateral; provided that the provisions of this Section 9.01 shall not prevent
the creation, incurrence, assumption or existence of the following (Liens
described below are herein referred to as “Permitted
Liens”):

     

    (i)    inchoate
Liens for taxes, assessments or governmental charges or levies not yet due and
payable or Liens for taxes, assessments or governmental charges or levies being
contested in good faith and by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP;

     

    (ii)    Liens
imposed by law, which were incurred in the ordinary course of business and do
not secure Indebtedness for borrowed money, such as carriers’, warehousemen’s,
materialmen’s and mechanics’ liens, liens for necessaries, salvage liens,
general average liens, liens in respect of or covered by insurance (including
permitted deductibles) and other similar Liens arising in the ordinary course of
business, and (x) which do not in the aggregate materially detract from the
value of the Collateral and do not materially impair the use thereof in the

     

     

     

    
      
        
        

      

      
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    operation
of the business of the Borrower or such Subsidiary or (y) which are being
contested in good faith by appropriate proceedings, which proceedings (or orders
entered in connection with such proceedings) have the effect of preventing the
forfeiture or sale of the Collateral subject to any such Lien;

     

    (iii)    Permitted
Encumbrances;

     

    (iv)    Liens
created pursuant to the Security Documents;

     

    (v)    Liens
arising out of judgments, awards, decrees or attachments with respect to which
the Borrower or any of its Subsidiaries shall in good faith be prosecuting an
appeal or proceedings for review, provided that the
aggregate amount of all such judgments, awards, decrees or attachments shall not
constitute an Event of Default under Section 10.09;

     

    (vi)    Liens
(other than any Lien imposed by ERISA) incurred or deposits made in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance and other types of social security, Liens to secure the performance of
tenders, statutory obligations (other than excise taxes), surety, stay, customs
and appeal bonds, statutory bonds, bids, leases, government contracts, trade
contracts, performance and return of money bonds and other similar obligations
in each case incurred in the ordinary course of business (exclusive of
obligations for the payment of borrowed money) and Liens arising by virtue of
deposits made in the ordinary course of business to secure liability for
premiums to insurance carriers; provided that the
aggregate value of all cash and property at any time encumbered pursuant to this
clause (vi) shall not exceed $2,500,000; and

     

    (vii)    Liens in
respect of seamen’s wages which are not past due and other maritime Liens for
amounts not past due arising in the ordinary course of business and not yet
required to be removed or discharged under the terms of the respective Vessel
Mortgages.

     

    In
connection with the granting of Liens described above in this Section 9.01 by
the Borrower or any of its Subsidiaries, the Administrative Agent and the
Collateral Agent shall be authorized to take any actions deemed appropriate by
it in connection therewith (including, without limitation, by executing
appropriate lien subordination agreements in favor of the holder or holders of
such Liens, in respect of the item or items of equipment or other assets subject
to such Liens).

     

    9.02    Consolidation, Merger, Sale
of Assets, etc.  The Borrower will not, and will not permit any
Subsidiary Guarantor to, wind up, liquidate or dissolve its affairs or enter
into any transaction of merger or consolidation, or convey, sell, lease or
otherwise dispose of all or substantially all of its assets or any of the
Collateral, or enter into any sale-leaseback transactions involving any of the
Collateral, except that:

     

    (i)    the
Borrower and each of its Subsidiaries may sell, lease or otherwise dispose of
any Vessel, provided that,
(x)(A) such sale is made at fair market value

     

     

     

    
      
        
        

      

      
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    (as
determined in accordance with the Appraisals most recently delivered to the
Administrative Agent (or obtained by the Administrative Agent) pursuant to
Sections 5.08(vi) and 8.01(c) or delivered at the time of such sale to the
Administrative Agent by the Borrower), (B) 100% of the consideration in
respect of such sale shall consist of cash or Cash Equivalents received by the
Borrower, or the respective Subsidiary Guarantor which owned such Vessel, on the
date of consummation of such sale, (C) at the time of such sale or other
disposition, the Borrower shall apply the proceeds of such sale as required by
Section 3.03(b) to repay the outstanding Loan relating to such Vessel or
(y) so long as no Default or Event of Default has occurred and is
continuing (or would arise after giving effect thereto) and so long as all
representations and warranties made by the Borrower pursuant to Section 7 of
this Agreement are true and correct both before and after any such exchange,
such Vessel is exchanged for a Acceptable Replacement Vessel pursuant to a
Vessel Exchange; provided further, that in the
case of both clause (x) and (y) above, that the Borrower shall have delivered to
the Administrative Agent an officer’s certificate, certified by the senior
financial officer of the Borrower, demonstrating pro forma compliance
(giving effect to such Collateral Disposition and, in the case of calculations
involving the Appraised Value of Vessels, using valuations consistent with the
Appraisals most recently delivered to the Administrative Agent (or obtained by
the Administrative Agent) pursuant to Sections 5.08(vi) and 8.01(c) or the
definition of Vessel Exchange) with each of the covenants set forth in Sections
9.07 through 9.11, inclusive, for the most recently ended Test Period (or at the
time of such sale or exchange, as applicable) and projected compliance with such
covenants for the one year period following such Collateral Disposition, in each
case setting forth the calculations required to make such determination in
reasonable detail;

     

    (ii)    the
Borrower and its Subsidiaries may sell or discount, in each case without
recourse and in the ordinary course of business, overdue accounts receivable
arising in the ordinary course of business, but only in connection with the
compromise or collection thereof consistent with customary industry practice
(and not as part of any bulk sale);

     

    (iii)    (A) any
Subsidiary Guarantor may transfer assets or lease to or acquire or lease assets
from any other Subsidiary Guarantor and (B) any Subsidiary of the Borrower
(other than a Subsidiary Guarantor) may transfer assets or lease to or acquire
or lease assets from any other Subsidiary of the Borrower (other than a
Subsidiary Guarantor) or any Subsidiary of the Borrower (other than a Subsidiary
Guarantor) may be merged into any Subsidiary of the Borrower (other than a
Subsidiary Guarantor) or any Subsidiary Guarantor may be merged into any other
Subsidiary Guarantor, in each case so long as all actions necessary or desirable
to preserve, protect and maintain the security interest and Lien of the
Collateral Agent in any Collateral held by any Person involved in any such
transaction are taken to the satisfaction of the Administrative
Agent;

     

     

    
      
        
        

      

      
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    (iv)    following
a Collateral Disposition permitted by this Agreement, the Subsidiary Guarantor
which owned the Vessel that is the subject of such Collateral Disposition may
dissolve, provided that, (x) all
proceeds from such Collateral Disposition shall have been applied to repayment
of the Loan relating to such Vessel to the extent required in Section 3.03 of
this Agreement, (y) all of the proceeds of such dissolution shall be paid
only to the Borrower and (z) no Event of Default is continuing unremedied
at the time of such dissolution; and

     

    (v)    the
Borrower may consolidate or merge with any other Person if (A) at the time
of such transaction and after giving effect thereto, no Default or Event of
Default shall have occurred and be continuing and (B) the surviving entity
in such consolidation or merger shall be the Borrower and the Borrower shall
have delivered to the Administrative Agent, not less than ten (10) Business Days
in advance of such consolidation or merger, an officer’s certificate signed by a
senior financial officer of the Borrower, certifying (i) that no Default or
Event of Default has occurred and is continuing (or would arise after giving
effect to the intended consolidation or merger) and (ii) pro forma financial
statements of the Borrower demonstrating the compliance of the Borrower with all
covenants under this Agreement after giving effect to such merger or
consolidation.

     

    Notwithstanding
the foregoing, the Borrower will not, and will not permit any Subsidiary
Guarantor to, enter into any bareboat charter of any Vessel without the prior
written consent of the Required Lenders.

     

    To the
extent the Required Lenders waive the provisions of this Section 9.02 with
respect to the sale of any Collateral, or any Collateral is sold as permitted by
this Section 9.02, such Collateral (unless sold to the Borrower or a Subsidiary
of the Borrower) shall be sold free and clear of the Liens created by the
Security Documents, and the Administrative Agent and Collateral Agent shall be
authorized to take any actions deemed appropriate in order to effect the
foregoing.

     

    9.03    Dividends.  The
Borrower will not, and will not permit any of its Subsidiaries to, authorize,
declare or pay any Dividends with respect to the Borrower or any of its
Subsidiaries, except that:

     

    (i)    (x) any
Subsidiary of the Borrower which is not a Subsidiary Guarantor may pay Dividends
to the Borrower or any Wholly-Owned Subsidiary of the Borrower, (y) any
Subsidiary Guarantor may pay Dividends to the Borrower or any other Subsidiary
Guarantor and (z) if the respective Subsidiary is not a Wholly-Owned
Subsidiary of the Borrower, such Subsidiary may pay cash dividends to its
shareholders generally so long as the Borrower and/or its respective
Subsidiaries which own equity interests in the Subsidiary paying such Dividends
receive at least their proportionate share thereof (based upon their relative
holdings of the equity interests in the Subsidiary paying such Dividends and
taking into account the relative preferences, if any, of the various classes of
equity interests of such Subsidiary);

     

     

     

    
      
        
        

      

      
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    (ii)    the
Borrower may make, pay or declare cash Dividends; provided that, for all
Dividends paid pursuant to this clause (ii), (A) Dividends shall be paid
within 90 days of the declaration thereof; (B) Dividends paid in respect of
a fiscal quarter shall only be paid after the date of delivery of quarterly or
annual financial statements for such fiscal quarter, pursuant to Sections
8.01(a) and (b), as the case may be, and on or prior to 45 days after the last
day of the immediately succeeding fiscal quarter, (C) no Default or Event
of Default has occurred and is continuing at the time of declaration,
(D) no Default or Event of Default has occurred and is continuing (or would
arise after giving effect thereto) at the time of payment, (E) the
aggregate amount of all Dividends paid plus the aggregate amount of any share
repurchases or redemptions pursuant to Section 9.03(iii) in respect of a fiscal
quarter shall not exceed the Permitted Dividend Amount for such fiscal quarter
and (F) on or prior to the declaration and payment of a Dividend, the
Borrower shall deliver to the Administrative Agent an officer’s certificate
signed by the senior financial officer of the Borrower, certifying that the
requirements set forth in preceding clauses (A) through (E) are satisfied and
setting forth the calculation of the Permitted Dividend Amount in reasonable
detail

     

    (iii)    the
Borrower may purchase or redeem shares of common stock of the Borrower in market
purchases under Rule 10b-18 or other purchases approved by the Borrower’s Board
of Directors, any committee thereof or any authorized officer in an amount up to
the Permitted Dividend Amount for the immediately preceding fiscal quarter less
any Dividends previously paid; provided that, (A) no
Default or Event of Default has occurred and is continuing at the time of any
such purchases, (B) no Default or Event of Default would arise after giving
effect to any such purchases and (C) the Borrower in the exercise of its rights
under this Section 9.03(iii) shall not be permitted to purchase or redeem shares
beneficially owned directly or indirectly by Peter Georgiopoulos;
and

     

    (iv)    the
Borrower may authorize, declare and distribute a dividend of Rights (as such
term is defined and which are convertible into other securities as set forth in
the Shareholder Rights Agreement) as contemplated by the Shareholder Rights
Agreement.

     

    9.04    Indebtedness.  (a)  The
Borrower will not, and will not permit any of its Subsidiaries to, contract,
create, incur, assume or suffer to exist any Indebtedness (other than
Indebtedness incurred pursuant to this Agreement, the other Credit Documents and
the Existing Credit Facility) except that:

     

    (i)    the
Borrower and its Subsidiaries (other than a Subsidiary Guarantor) may incur
Indebtedness so long as (x) no Default or Event of Default has occurred and
is continuing, (y) such Indebtedness would not cause any Default or Event
of Default, either on a pro forma basis for the
most recently ended Test Period (or at the time of such incurrence, as
applicable), or on a projected basis for the one year period following such
incurrence, with each of the covenants set forth in Sections 9.07 through 9.11,
inclusive, and (z) the Borrower shall have delivered an

     

     

    
      
        
        

      

      
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    officer’s
certificate from the senior financial officer of the Borrower certifying that
the conditions set forth in clause (x) and (y) above are satisfied and setting
forth the calculations of the pro forma compliance
described in clause (y) above in reasonable detail; and

     

    (ii)    the
Borrower and its Subsidiaries may enter into and remain liable under Interest
Rate Protection Agreements and Other Hedging Agreements entered into in the
ordinary course of business and not for speculative purposes; provided that the
Borrower’s and the Subsidiaries’ obligations thereunder are fully subordinate to
their obligations hereunder on terms satisfactory to the Administrative
Agent.

     

    (b)    Notwithstanding
anything to the contrary set forth above in this Section 9.04, (i) no
Subsidiary Guarantor shall incur any Indebtedness for borrowed money (including
Contingent Obligations in respect thereof) except for (x) Indebtedness
incurred pursuant to this Agreement and the other Credit Documents and
(y) intercompany Indebtedness permitted pursuant to Section 9.05(iii) and
(ii) the Borrower and the Subsidiary Guarantors shall not assume, incur or
suffer to exist any Contingent Obligations in respect of any Indebtedness of any
of its Subsidiaries which is not a Credit Party.

     

    9.05    Advances, Investments and
Loans.  The Borrower will not, and will not permit any of its
Subsidiaries to, directly or indirectly, lend money or credit or make advances
to any Person, or purchase or acquire any Equity Interests, or make any capital
contribution to any other Person (each of the foregoing an “Investment” and,
collectively, “Investments”) except
that the following shall be permitted:

     

    (i)    the
Borrower and its Subsidiaries may acquire and hold accounts receivable owing to
any of them;

     

    (ii)    so long
as no Event of Default exists or would result therefrom, the Borrower and its
Subsidiaries may make loans and advances in the ordinary course of business to
its employees so long as the aggregate principal amount thereof at any time
outstanding which are made on or after the Effective Date (determined without
regard to any write-downs or write-offs of such loans and advances) shall not
exceed $500,000;

     

    (iii)    the
Subsidiary Guarantors may make intercompany loans and advances to the Borrower
and between or among one another, and Subsidiaries of the Borrower other than
the Subsidiary Guarantors may make intercompany loans and advances to the
Borrower or any other Subsidiary of the Borrower, provided that any
loans or advances to the Borrower or any Subsidiary Guarantors pursuant to this
Section 9.05(iii) shall be subordinated to the Obligations of the
respective Credit Party pursuant to written subordination provisions
substantially in the form of Exhibit J;

     

    (iv)    the
Borrower and its Subsidiaries may sell or transfer assets to the extent
permitted by Section 9.02;

     

     

    
      
        
        

      

      
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    (v)    the
Borrower may make Investments in the Subsidiary Guarantors and, so long as no
Event of Default exists and is continuing, the Borrower may make Investments in
its other Wholly-Owned Subsidiaries so long as management of the Borrower in
good faith believe that, after giving effect to such Investment, the Borrower
shall be able to meet its payment obligations in respect of this
Agreement;

     

    (vi)    so long
as no Event of Default exists or could reasonably be expected to result
therefrom, the Borrower and its Subsidiaries (other than the Subsidiary
Guarantors) may make Investments in joint ventures in the ordinary course of
business; and.

     

    (vii)    so long
as no Event of Default exists or could reasonably be expected to result
therefrom, the Borrower and its Subsidiaries (other than the Subsidiary
Guarantors) may make Investments in a Person engaged in drybulk shipping
operations.

     

    9.06    Transactions with
Affiliates.  The Borrower will not, and will not permit any of
its Subsidiaries to, enter into any transaction or series of related
transactions, whether or not in the ordinary course of business, with any
Affiliate of such Person, other than in the ordinary course of business and on
terms and conditions no less favorable to such Person as would be obtained by
such Person at that time in a comparable arm’s-length transaction with a Person
other than an Affiliate, except that:

     

    (i)    Dividends
may be paid to the extent provided in Section 9.03;

     

    (ii)    loans and
other Investments may be made and other transactions may be entered into between
the Borrower and its Subsidiaries to the extent permitted by Sections 9.04 and
9.05;

     

    (iii)    the
Borrower may pay customary director’s fees;

     

    (iv)    the
Borrower and its Subsidiaries may enter into employment agreements or
arrangements with their respective officers and employees in the ordinary course
of business; and

     

    (v)    the
Borrower and its Subsidiaries may pay management fees to Wholly-Owned
Subsidiaries of the Borrower in the ordinary course of business.

     

    9.07    Consolidated Interest
Coverage Ratio.  The Borrower will not permit the Consolidated
Interest Coverage Ratio for any Test Period, in each case taken as one
accounting period, ending on the last day of any fiscal quarter of the Borrower
(commencing with the fiscal quarter ending September 30, 2008), to be less than
2.00:1.00.

     

    9.08    Maximum Leverage
Ratio.  The Borrower will not permit the Leverage Ratio on the
last day of any fiscal quarter of the Borrower ended on or after the Effective
Date, to be greater than 5.50:1.00.

     

     

     

    
      
        
        

      

      
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    9.09    Collateral
Maintenance.  The Borrower will not permit the Aggregate
Appraised Value at any time to equal less than 130% of the aggregate principal
amount of outstanding Loans at such time, provided that, so long as any Default
in respect of this Section 9.09 is not caused by any voluntary Collateral
Disposition or a Vessel Exchange, such Default shall not constitute an Event of
Default so long as within 30 days after such shortfall, the Borrower makes such
repayments of Loans in an amount sufficient to cure such Default (it being
understood that any action taken in respect of this proviso shall only be
effective to cure such default pursuant to this Section 9.09 to the extent that
no Default or Event of Default exists hereunder immediately after giving effect
thereto).

     

    9.10    Minimum Cash
Balance.  The Borrower will not permit the aggregate amount of
all (x) cash and Cash Equivalents held by the Borrower and its Subsidiaries
which is subject to the Lien of the Security Documents and (y) all undrawn
credit facilities to the extent the proceeds thereof are available to fund the
working capital requirements of the Borrower and the Subsidiary Guarantors with
maturities in excess of twelve months on the last day of any fiscal quarter
(commencing with and including the fiscal quarter ended June 30, 2008) to be
less than $500,000 per vessel owned by the Borrower or any of its
Subsidiaries.

     

    9.11    Minimum Consolidated Net
Worth.  The Borrower will not permit its Consolidated Net Worth
at any time to be less than the Minimum Consolidated Net Worth.

     

    9.12    Limitation on Modifications
of Certificate of Incorporation and By-Laws;
etc.  (a)  The Borrower will not, and will not permit
any Subsidiary Guarantor to, amend, modify or change its Certificate of
Incorporation, Certificate of Formation (including, without limitation, by the
filing or modification of any certificate of designation), By-Laws, limited
liability company agreement, partnership agreement (or equivalent organizational
documents) or any agreement entered into by it with respect to its capital stock
or membership interests (or equivalent equity interests), or enter into any new
agreement with respect to its capital stock or membership interests (or
equivalent interests), other than the Shareholders Rights Agreement, the
Certificate of Designations of Series A Preferred Stock in substantially the
form attached thereto as Exhibit A or any amendments, modifications or changes
or any such new agreements which are not in any way materially adverse to the
interests of the Lenders.

     

    (b)    Notwithstanding
the foregoing provisions of this Section 9.12 or Section 8.04, upon not less
than 30 days prior written notice to the Administrative Agent and so long as no
Default or Event of Default exists and is continuing, any Subsidiary Guarantor
may (x) change its jurisdiction of organization to another jurisdiction and
(y) change its form of organization to another form, in each case to the
extent reasonably satisfactory to the Administrative Agent, provided that, such Subsidiary
Guarantor shall promptly take all actions reasonably deemed necessary by the
Collateral Agent to preserve, protect and maintain, without interruption, the
security interest and Lien of the Collateral Agent in any Collateral owned by
such Subsidiary Guarantor to the satisfaction of the Collateral Agent, and such
Subsidiary Guarantor shall have provided to the Administrative Agent and the
Lenders such opinions of counsel as may be reasonably requested by the
Administrative Agent to assure itself that the conditions of this proviso have
been satisfied.

     

     

     

    
      
        
        

      

      
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    9.13    Limitation on Certain
Restrictions on Subsidiaries.  The Borrower will not, and will
not permit any of its Subsidiaries to, directly or indirectly, create or
otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any such Subsidiary to (a) pay dividends or
make any other distributions on its capital stock or any other interest or
participation in its profits owned by the Borrower or any Subsidiary of the
Borrower, or pay any Indebtedness owed to the Borrower or a Subsidiary of the
Borrower, (b) make loans or advances to the Borrower or any of the
Borrower’s Subsidiaries or (c) transfer any of its properties or assets to
the Borrower or any of the Borrower’s Subsidiaries, except for such encumbrances
or restrictions existing under or by reason of (i) applicable law,
(ii) this Agreement and the other Documents, (iii) customary
provisions restricting subletting or assignment of any lease governing a
leasehold interest of the Borrower or a Subsidiary of the Borrower,
(iv) customary provisions restricting assignment of any agreement entered
into by the Borrower or a Subsidiary of the Borrower in the ordinary course of
business, (v) any holder of a Permitted Lien may restrict the transfer of
the asset or assets subject thereto and (vi) restrictions which are not
more restrictive than those contained in this Agreement.

     

    9.14    Limitation on Issuance of
Capital Stock.  (a)  The Borrower will not permit any
Subsidiary to issue any preferred stock (or equivalent equity
interests).

     

    (b)    The
Borrower will not permit any Subsidiary Guarantor to issue any capital stock
(including by way of sales of treasury stock) or any options or warrants to
purchase, or securities convertible into, capital stock, except (i) for
transfers and replacements of then outstanding shares of capital stock,
(ii) for stock splits, stock dividends and additional issuances which do
not decrease the percentage ownership of the Borrower or any of its Subsidiaries
in any class of the capital stock of such Subsidiary and (iii) in the case
of Foreign Subsidiaries of the Borrower, to qualify directors to the extent
required by applicable law.  All capital stock of any Subsidiary
Guarantor issued in accordance with this Section 9.14(b) shall be delivered to
the Collateral Agent pursuant to the Pledge Agreement.

     

    9.15    Business.  (a)  The
Borrower and its Subsidiaries will not engage in any business other than the
businesses in which they are engaged in as of the Effective Date and activities
directly related thereto, and similar or related businesses.

     

    (b)    The
Borrower will not, and will not permit any of its Subsidiaries to, (i) be
engaged in (A) the retailing, wholesaling, trading or importing of goods or
services for or with residents of the Republic of the Marshall Islands;
(B) any extractive industry in the Republic of Marshall Islands;
(C) any regulated professional service activity in the Republic of the
Marshall Islands; (D) the export of any commodity or goods manufactured,
processed, mined or made in the Republic of the Marshall Islands; or
(E) the ownership of real property in the Republic of the Marshall Islands;
and (ii) do business in the Republic of the Marshall Islands except that
the Borrower and their Subsidiaries may (A) have its registered office in
the Republic of the Marshall Islands and maintain their respective registered
agent in the Republic of the Marshall Islands as required by the provisions of
the Associations Law of 1990 of the Republic of the Marshall Islands, as
amended; and (B) secure and maintain registry in the Republic of the
Marshall Islands solely related to the operation or disposition of any vessel
outside of the Republic of the Marshall Islands.

     

     

    
      
        
        

      

      
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    9.16    Bank
Accounts.  The Borrower will not, and will not permit any
Subsidiary Guarantor to, maintain any deposit, savings, investment or other
similar accounts other than the Operating Accounts, except that the Borrower may
open and maintain any such account provided that it shall have granted to the
Administrative Agent a first priority security interest in such account to
secure the Obligations pursuant to documentation reasonably satisfactory to the
Administrative Agent and all actions necessary or advisable in the reasonable
opinion of the Administrative Agent to perfect such security interest shall have
been taken.

     

    SECTION
10.    Events of
Default.  Upon the occurrence of any of the following specified
events (each an “Event
of Default”):

     

    10.01    Payments.  The
Borrower shall (i) default in the payment when due of any Unpaid Drawings
or any principal of any Loan or any Note or (ii) default, and such default
shall continue unremedied for three or more Business Days, in the payment when
due of any interest on any Loan or Note, Unpaid Drawing or any Commitment
Commission or any other amounts owing hereunder or thereunder; or

     

    10.02    Representations,
etc.  Any representation, warranty or statement made or deemed
made by any Credit Party herein or in any other Credit Document or in any
certificate delivered pursuant hereto or thereto shall prove to be untrue in any
material respect on the date as of which made or deemed made; or

     

    10.03    Covenants.  Any
Credit Party shall (i) default in the due performance or observance by it
of any term, covenant or agreement contained in Sections 8.01(f)(i),
8.03(a)(ii), 8.13, 8.14 or Section 9 or (ii) default in the due performance
or observance by it of any other term, covenant or agreement contained in this
Agreement and, in the case of this clause (ii), such default shall continue
unremedied for a period of 30 days after written notice to the Borrower by the
Administrative Agent or any of the Lenders; or

     

    10.04    Default Under Other
Agreements.  (i) The Borrower or any of its Subsidiaries
shall default in any payment of any Indebtedness (other than the Obligations)
beyond the period of grace, if any, provided in the instrument or agreement
under which such Indebtedness was created or (ii) the Borrower or any of
its Subsidiaries shall default in the observance or performance of any agreement
or condition relating to any Indebtedness (other than the Obligations) or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which
default or other event or condition is to cause, or to permit the holder or
holders of such Indebtedness (or a trustee or agent on behalf of such holder or
holders) to cause (determined without regard to whether any notice is required),
any such Indebtedness to become due prior to its stated maturity, or
(iii) any Indebtedness (other than the Obligations) of the Borrower or any
of its Subsidiaries shall be declared to be due and payable, or required to be
prepaid other than by a regularly scheduled required prepayment, prior to the
stated maturity thereof, provided that it shall not be a Default or Event of
Default under this Section 10.04 unless the aggregate principal amount of all
Indebtedness as described in preceding clauses (i) through (iii),
inclusive, exceeds $5,000,000 at any time; or

     

     

    
      
        
        

      

      
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    10.05    Bankruptcy,
etc.  The Borrower or any of its Subsidiaries shall commence a
voluntary case concerning itself under Title 11 of the United States Code
entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto
(the “Bankruptcy
Code”); or an involuntary case is commenced against the Borrower or any
of its Subsidiaries and the petition is not controverted within 20 days after
service of summons, or is not dismissed within 60 days, after commencement of
the case; or a custodian (as defined in the Bankruptcy Code) is appointed for,
or takes charge of, all or substantially all of the property of the Borrower or
any of its Subsidiaries or the Borrower or any of its Subsidiaries commences any
other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Borrower or any
of its Subsidiaries or there is commenced against the Borrower or any of its
Subsidiaries any such proceeding which remains undismissed for a period of 60
days, or the Borrower or any of its Subsidiaries is adjudicated insolvent or
bankrupt; or any order of relief or other order approving any such case or
proceeding is entered; or the Borrower or any of its Subsidiaries suffers any
appointment of any custodian or the like for it or any substantial part of its
property to continue undischarged or unstayed for a period of 60 days; or the
Borrower or any of its Subsidiaries makes a general assignment for the benefit
of creditors; or any corporate action is taken by the Borrower or any of its
Subsidiaries for the purpose of effecting any of the foregoing; or

     

    10.06    ERISA.  (a)  Any
Plan shall fail to satisfy the minimum funding standard required for any plan
year or part thereof under Section 412 of the Code or Section 302 of ERISA or a
waiver of such standard or extension of any amortization period is sought or
granted under Section 412 of the Code or Section 303 or 304 of ERISA, a
Reportable Event shall have occurred, a contributing sponsor (as defined in
Section 4001(a)(13) of ERISA) of a Plan subject to Title IV of ERISA shall be
subject to the advance reporting requirement of PBGC Regulation Section 4043.61
(without regard to subparagraph (b)(1) thereof) and an event described in
subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043
shall be reasonably expected to occur with respect to such Plan within the
following 30 days, any Plan which is subject to Title IV of ERISA shall have had
or is reasonably likely to have a trustee appointed to administer such Plan, any
Plan which is subject to Title IV of ERISA is, shall have been or is reasonably
likely to be terminated or to be the subject of termination proceedings under
ERISA, any Plan shall have an Unfunded Current Liability, a contribution
required to be made with respect to a Plan or a Foreign Pension Plan is not
timely made, the Borrower or any of its Subsidiaries or any ERISA Affiliate has
incurred or events have happened, or reasonably expected to happen, that will
cause it to incur any liability to or on account of a Plan under Section 409,
502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or
Section 401(a)(29), 4971 or 4975 of the Code or on account of a group health
plan (as defined in Section 607(1) of ERISA or Section 4980B(g)(2) of the Code)
under Section 4980B of the Code, or the Borrower, or any of its Subsidiaries,
has incurred or is reasonably likely to incur liabilities pursuant to one or
more employee welfare benefit plans (as defined in Section 3(1) of ERISA) that
provide benefits to retired employees or other former employees (other than as
required by Section 601 of ERISA) or Plans or Foreign Pension Plans;
(b) there shall result from any such event or events the imposition of a
lien, the granting of a security interest, or a liability or a material risk of
incurring a liability; and (c) such lien, security interest or liability,
either

     

     

     

    
      
        
        

      

      
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    individually
and/or in the aggregate, in the reasonable opinion of the Required Lenders, has
had, or could reasonably be expected to have, a Material Adverse Effect;
or

     

    10.07    Security
Documents.  At any time after the execution and delivery
thereof, any of the Security Documents shall cease to be in full force and
effect, or shall cease in any material respect to give the Collateral Agent for
the benefit of the Secured Creditors the Liens, rights, powers and privileges
purported to be created thereby (including, without limitation, a perfected
security interest in, and Lien on, all of the Collateral), in favor of the
Collateral Agent, superior to and prior to the rights of all third Persons
(except in connection with Permitted Liens), and subject to no other Liens
(except Permitted Liens), or any Credit Party shall default in the due
performance or observance of any term, covenant or agreement on its part to be
performed or observed pursuant to any of the Security Documents and such default
shall continue beyond any grace period (if any) specifically applicable thereto
pursuant to the terms of such Security Document, or any “event of default” (as
defined in any Vessel Mortgage) shall occur in respect of any Vessel Mortgage;
or

     

    10.08    Guaranty.  After
the execution and delivery thereof, the Guaranty, or any provision thereof,
shall cease to be in full force or effect as to the relevant Subsidiary
Guarantor (unless such  Subsidiary Guarantor is no longer a Subsidiary
by virtue of a liquidation, sale, merger or consolidation permitted by Section
9.02) or any Subsidiary Guarantor (or Person acting by or on behalf of such
Subsidiary Guarantor) shall deny or disaffirm such Subsidiary Guarantor’s
obligations under the Guaranty, or Subsidiary Guarantor, shall default in the
due performance or observance of any term, covenant or agreement on its part to
be performed or observed pursuant to the Guaranty beyond any grace period (if
any) provided therefore; or

     

    10.09    Judgments.  One
or more judgments or decrees shall be entered against the Borrower or any of its
Subsidiaries involving in the aggregate for the Borrower and its Subsidiaries a
liability (not paid or fully covered by a reputable and solvent insurance
company to the satisfaction of the Administrative Agent) and such judgments and
decrees either shall be final and non-appealable or shall not be vacated,
discharged or stayed or bonded pending appeal for any period of 60 consecutive
days, and the aggregate amount of all such judgments, to the extent not covered
by insurance, exceeds $5,000,000 at any time; or

     

    10.10    Change of
Control.  A Change of Control shall occur;

     

    then, and
in any such event, and at any time thereafter, if any Event of Default shall
then be continuing, the Administrative Agent, upon the written request of the
Required Lenders, shall by written notice to the Borrower, take any or all of
the following actions, without prejudice to the rights of the Administrative
Agent, any Lender or the holder of the Note to enforce its claims against any
Credit Party (provided that, if an Event of Default specified in Section 10.05
shall occur, the result which would occur upon the giving of written notice by
the Administrative Agent to the Borrower as specified in clauses (i), (ii) and
(iv) below shall occur automatically without the giving of any such
notice):  (i) declare the Commitments terminated, whereupon all
Commitments of each Lender shall forthwith terminate immediately and any
Commitment Commission shall forthwith become due and payable without any other
notice of any kind; (ii) declare the principal of and any accrued interest
in respect of all Loans and the Notes and all Obligations owing hereunder and
thereunder to be, whereupon the same shall become, forthwith

     

     

     

    
      
        
        

      

      
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    due and
payable without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by each Credit Party; and (iii)  enforce, as
Collateral Agent, all of the Liens and security interests created pursuant to
the Security Documents.

     

    SECTION
11.    Definitions and Accounting
Terms.

     

    11.01    Defined
Terms.  Capitalized terms used as defined terms shall have the
meaning attributed to them in Appendix A hereto.

     

    SECTION
12.    Agency and Security Trustee
Provisions.

     

    12.01    Appointment.  (a)  The
Lenders hereby designate Nordea Bank Finland Plc, acting through its New York
branch, as Administrative Agent (for purposes of this Section 12, the term
“Administrative
Agent” shall include Nordea Bank Finland Plc, acting through its New York
branch (and/or any of its affiliates) in its capacity as Collateral Agent
pursuant to the Security Documents and in its capacity as security trustee
pursuant to the Vessel Mortgages) to act as specified herein and in the other
Credit Documents.  The Lenders hereby designate Nordea Bank Finland
Plc, acting through its New York branch, Bayerische Hypo- und Vereinsbank AG,
Sumitomo Mitsui Banking Corporation, acting through its Brussels branch, and DnB
NOR Bank ASA, as Mandated Lead Arrangers to act as specified herein and in the
other Credit Documents.  Each Lender hereby irrevocably authorizes,
and each holder of any Note by the acceptance of such Note shall be deemed
irrevocably to authorize, the Agents to take such action on its behalf under the
provisions of this Agreement, the other Credit Documents and any other
instruments and agreements referred to herein or therein and to exercise such
powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Agents by the terms hereof and thereof and such
other powers as are reasonably incidental thereto.  The Agents may
perform any of its duties hereunder by or through its respective officers,
directors, agents, employees or affiliates and, may assign from time to time any
or all of its rights, duties and obligations hereunder and under the Security
Documents to any of its banking affiliates.

     

    (b)    The
Lenders hereby irrevocably appoint Nordea Bank Finland Plc, acting through its
New York branch as security trustee solely for the purpose of holding legal
title to the Vessel Mortgages on each of the Vessels on behalf of the applicable
Lenders, from time to time, with regard to the (i) security, powers,
rights, titles, benefits and interests (both present and future) constituted by
and conferred on the Lenders or any of them or for the benefit thereof under or
pursuant to the Vessel Mortgages (including, without limitation, the benefit of
all covenants, undertakings, representations, warranties and obligations given,
made or undertaken by any Lender in the Vessel Mortgages), (ii) all money,
property and other assets paid or transferred to or vested in any Lender or any
agent of any Lender or received or recovered by any Lender or any agent of any
Lender pursuant to, or in connection with the Vessel Mortgages, whether from the
Borrower or any Subsidiary Guarantor or any other person and (iii) all
money, investments, property and other assets at any time representing or
deriving from any of the foregoing, including all interest, income and other
sums at any time received or receivable by any Lender or any agent of any Lender
in respect of the same (or any part thereof).  Nordea Bank Finland
Plc, acting through its New York branch, hereby accepts such appointment as
security trustee.

     

     

     

    
      
        
        

      

      
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    12.02    Nature of
Duties.  The Agents shall have no duties or responsibilities
except those expressly set forth in this Agreement and the Security
Documents.  None of the Agents nor any of their respective officers,
directors, agents, employees or affiliates shall be liable for any action taken
or omitted by it or them hereunder or under any other Credit Document or in
connection herewith or therewith, unless caused by such Person’s gross
negligence or willful misconduct (any such liability limited to the applicable
Agent to whom such Person relates).  The duties of each of the Agents
shall be mechanical and administrative in nature; none of the Agents shall have
by reason of this Agreement or any other Credit Document any fiduciary
relationship in respect of any Lender or the holder of any Note; and nothing in
this Agreement or any other Credit Document, expressed or implied, is intended
to or shall be so construed as to impose upon any Agents any obligations in
respect of this Agreement or any other Credit Document except as expressly set
forth herein or therein.

     

    12.03    Lack of Reliance on the
Agents.  Independently and without reliance upon the Agents,
each Lender and the holder of each Note, to the extent it deems appropriate, has
made and shall continue to make (i) its own independent investigation of
the financial condition and affairs of the Borrower and its Subsidiaries in
connection with the making and the continuance of the Loans and the taking or
not taking of any action in connection herewith and (ii) its own appraisal
of the creditworthiness of the Borrower and its Subsidiaries and, except as
expressly provided in this Agreement, none of the Agents shall have any duty or
responsibility, either initially or on a continuing basis, to provide any Lender
or the holder of any Note with any credit or other information with respect
thereto, whether coming into its possession before the making of the Loans or at
any time or times thereafter.  None of the Agents shall be responsible
to any Lender or the holder of any Note for any recitals, statements,
information, representations or warranties herein or in any document,
certificate or other writing delivered in connection herewith or for the
execution, effectiveness, genuineness, validity, enforceability, perfection,
collectibility, priority or sufficiency of this Agreement or any other Credit
Document or the financial condition of the Borrower and its Subsidiaries or be
required to make any inquiry concerning either the performance or observance of
any of the terms, provisions or conditions of this Agreement or any other Credit
Document, or the financial condition of the Borrower and its Subsidiaries or the
existence or possible existence of any Default or Event of Default.

     

    12.04    Certain Rights of the
Agents.  If any of the Agents shall request instructions from
the Required Lenders with respect to any act or action (including failure to
act) in connection with this Agreement or any other Credit Document, the Agents
shall be entitled to refrain from such act or taking such action unless and
until the Agents shall have received instructions from the Required Lenders; and
the Agents shall not incur liability to any Person by reason of so
refraining.  Without limiting the foregoing, no Lender or the holder
of any Note shall have any right of action whatsoever against the Agents as a
result of any of the Agents acting or refraining from acting hereunder or under
any other Credit Document in accordance with the instructions of the Required
Lenders.

     

    12.05    Reliance.  Each
of the Agents shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, statement, certificate,
telex, teletype or telecopier message, cablegram, radiogram, order or other
document or telephone message signed, sent or made by any Person that the
applicable Agent believed to be the proper

     

     

    
      
        
        

      

      
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    Person,
and, with respect to all legal matters pertaining to this Agreement and any
other Credit Document and its duties hereunder and thereunder, upon advice of
counsel selected by the Administrative Agent.

     

    12.06    Indemnification.  To
the extent any of the Agents is not reimbursed and indemnified by the Borrower,
the Lenders will reimburse and indemnify the applicable Agents, in proportion to
their respective “percentages” as used in determining the Required Lenders, for
and against any and all liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, costs, expenses or disbursements of whatsoever kind
or nature which may be imposed on, asserted against or incurred by such Agents
in performing their respective duties hereunder or under any other Credit
Document, in any way relating to or arising out of this Agreement or any other
Credit Document; provided that no Lender shall be liable in respect to an Agent
for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from such
Agent’s gross negligence or willful misconduct.

     

    12.07    The Administrative Agent in
its Individual Capacity.  With respect to its obligation to
make Loans under this Agreement, each of the Agents shall have the rights and
powers specified herein for a “Lender” and may exercise the same rights and
powers as though it were not performing the duties specified herein; and the
term “Lenders,” “Secured Creditors”, “Required Lenders”, “holders of Notes” or
any similar terms shall, unless the context clearly otherwise indicates, include
each of the Agents in their respective individual capacity.  Each of
the Agents may accept deposits from, lend money to, and generally engage in any
kind of banking, trust or other business with any Credit Party or any Affiliate
of any Credit Party as if it were not performing the duties specified herein,
and may accept fees and other consideration from the Borrower or any other
Credit Party for services in connection with this Agreement and otherwise
without having to account for the same to the Lenders.

     

    12.08    Holders.  The
Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes hereof unless and until a written notice of the
assignment, transfer or endorsement thereof, as the case may be, shall have been
filed with the Administrative Agent.  Any request, authority or
consent of any Person who, at the time of making such request or giving such
authority or consent, is the holder of any Note shall be conclusive and binding
on any subsequent holder, transferee, assignee or endorsee, as the case may be,
of such Note or of any Note or Notes issued in exchange therefore.

     

    12.09    Resignation by the
Administrative Agent.  (a)  The Administrative Agent
may resign from the performance of all its functions and duties hereunder and/or
under the other Credit Documents at any time by giving 15 Business Days’ prior
written notice to the Borrower and the Lenders.  Such resignation
shall take effect upon the appointment of a successor Administrative Agent
pursuant to clauses (b) and (c) below or as otherwise provided
below.  

     

    (b)    Upon any
such notice of resignation by the Administrative Agent, the Required Lenders
shall appoint a successor Administrative Agent hereunder or thereunder who shall
be a commercial bank or trust company reasonably acceptable to the
Borrower.

     

     

    
      
        
        

      

      
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    (c)    If a
successor Administrative Agent shall not have been so appointed within such 15
Business Day period, the Administrative Agent, with the consent of the Borrower
(which shall not be unreasonably withheld or delayed), shall then appoint a
commercial bank or trust company with capital and surplus of not less than
$500,000,000 as successor Administrative Agent who shall serve as Administrative
Agent hereunder or thereunder until such time, if any, as the Lenders appoint a
successor Administrative Agent as provided above.

     

    (d)    If no
successor Administrative Agent has been appointed pursuant to clause (b) or (c)
above by the 25th Business Day after the date such notice of resignation was
given by the Administrative Agent, the Administrative Agent’s resignation shall
become effective and the Required Lenders shall thereafter perform all the
duties of the Administrative Agent hereunder and/or under any other Credit
Document until such time, if any, as the Required Lenders appoint a successor
Administrative Agent as provided above.

     

    SECTION
13.    Miscellaneous.

     

    13.01    Payment of Expenses,
etc.  The Borrower agrees that it
shall:  (i) whether or not the transactions herein contemplated
are consummated, pay all reasonable out-of-pocket costs and expenses of each of
the Agents (including, without limitation, the reasonable fees and disbursements
of Seward & Kissel LLP, Mayer Brown JSM, other counsel to the Administrative
Agent and local counsel) in connection with the preparation, execution and
delivery of this Agreement and the other Credit Documents and the documents and
instruments referred to herein and therein and any amendment, waiver or consent
relating hereto or thereto, of the Agents in connection with their respective
syndication efforts with respect to this Agreement and of the Agents and each of
the Lenders in connection with the enforcement of this Agreement and the other
Credit Documents and the documents and instruments referred to herein and
therein (including, without limitation, the reasonable fees and disbursements of
counsel (including in-house counsel) for each of the Agents and for each of the
Lenders); (ii) pay and hold each of the Lenders harmless from and against
any and all present and future stamp, documentary, transfer, sales and use,
value added,  excise and other similar taxes with respect to the
foregoing matters and save each of the Lenders harmless from and against any and
all liabilities with respect to or resulting from any delay or omission (other
than to the extent attributable to such Lender) to pay such taxes; and
(iii) indemnify the Agents, the Collateral Agent and each Lender, and each
of their respective officers, directors, trustees, employees, representatives
and agents from and hold each of them harmless against any and all liabilities,
obligations (including removal or remedial actions), losses, damages, penalties,
claims, actions, judgments, suits, costs, expenses and disbursements (including
reasonable attorneys’ and consultants’ fees and disbursements) incurred by,
imposed on or assessed against any of them as a result of, or arising out of, or
in any way related to, or by reason of, (a) any investigation, litigation
or other proceeding (whether or not any of the Agents, the Collateral Agent or
any Lender is a party thereto) related to the entering into and/or performance
of this Agreement or any other Credit Document or the proceeds of any Loans
hereunder or the consummation of any transactions contemplated herein, or in any
other Credit Document or the exercise of any of their rights or remedies
provided herein or in the other Credit Documents, or (b) the actual or
alleged presence of Hazardous Materials on any Vessel or in the air, surface
water or groundwater or on the surface or subsurface of any property at any time
owned or operated by the Borrower or any of its

     

     

     

    
      
        
        

      

      
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    Subsidiaries,
the generation, storage, transportation, handling, disposal or Environmental
Release of Hazardous Materials at any location, whether or not owned or operated
by the Borrower or any of its Subsidiaries, the non-compliance of any Vessel or
property with foreign, federal, state and local laws, regulations, and
ordinances (including applicable permits thereunder) applicable to any Vessel or
property, or any Environmental Claim asserted against the Borrower, any of its
Subsidiaries or any Vessel or property at any time owned or operated by the
Borrower or any of its Subsidiaries, including, in each case, without
limitation, the reasonable fees and disbursements of counsel and other
consultants incurred in connection with any such investigation, litigation or
other proceeding (but excluding any losses, liabilities, claims, damages,
penalties, actions, judgments, suits, costs, disbursements or expenses to the
extent incurred by reason of the gross negligence or willful misconduct of the
Person to be indemnified).  To the extent that the undertaking to
indemnify, pay or hold harmless each of the Agents or any Lender set forth in
the preceding sentence may be unenforceable because it violates any law or
public policy, the Borrower shall make the maximum contribution to the payment
and satisfaction of each of the indemnified liabilities which is permissible
under applicable law.  Notwithstanding the foregoing, neither any
Agent nor any Lender, nor any of their respective Affiliates, Subsidiaries,
officers, directors and employees shall be responsible to any Person for any
consequential, indirect, special or punitive damages which may be alleged by
such Person arising out of this Agreement or the other Credit
Documents.

     

    13.02    Right of
Setoff.  In addition to any rights now or hereafter granted
under applicable law or otherwise, and not by way of limitation of any such
rights, upon the occurrence and during the continuance of an Event of Default,
each Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to any Subsidiary or
the Borrower or to any other Person, any such notice being hereby expressly
waived, to set off and to appropriate and apply any and all deposits (general or
special) and any other Indebtedness at any time held or owing by such Lender
(including, without limitation, by branches and agencies of such Lender wherever
located) to or for the credit or the account of the Borrower or any Subsidiary
but in any event excluding assets held in trust for any such Person against and
on account of the Obligations and liabilities of the Borrower or such
Subsidiary, as applicable, to such Lender under this Agreement or under any of
the other Credit Documents, including, without limitation, all interests in
Obligations purchased by such Lender pursuant to Section 13.06(b), and all other
claims of any nature or description arising out of or connected with this
Agreement or any other Credit Document, irrespective of whether or not such
Lender shall have made any demand hereunder and although said Obligations,
liabilities or claims, or any of them, shall be contingent or
unmatured.

     

    13.03    Notices.  Except
as otherwise expressly provided herein, all notices and other communications
provided for hereunder shall be in writing (including telexed, telegraphic or
telecopier communication) and mailed, telexed, telecopied or
delivered:  if to the Borrower, at the Borrower’s address specified
under its signature below; if to any Lender, at its address specified opposite
its name on Schedule II below; and if to the Administrative Agent, at its Notice
Office; or, as to any other Credit Party, at such other address as shall be
designated by such party in a written notice to the other parties hereto and, as
to each Lender, at such other address as shall be designated by such Lender in a
written notice to the Borrower and the Administrative Agent.  All such
notices and communications shall, (i) when mailed, be
effective

     

     

     

    
      
        
        

      

      
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    three
Business Days after being deposited in the mails, prepaid and properly addressed
for delivery, (ii) when sent by overnight courier, be effective one
Business Day after delivery to the overnight courier prepaid and properly
addressed for delivery on such next Business Day, or (iii) when sent by
telex or telecopier, be effective when sent by telex or telecopier, except that
notices and communications to the Administrative Agent shall not be effective
until received by the Administrative Agent.

     

    13.04    Benefit of
Agreement.  (a)  This Agreement shall be binding upon
and inure to the benefit of and be enforceable by the respective successors and
assigns of the parties hereto; provided, however, that (i) no Credit Party
may assign or transfer any of its rights, obligations or interest hereunder or
under any other Credit Document without the prior written consent of the
Lenders, (ii) although any Lender may transfer, assign or grant
participations in its rights hereunder, such Lender shall remain a “Lender” for
all purposes hereunder (and may not transfer or assign all or any portion of its
Commitments hereunder except as provided in Section 13.04(b)) and the
transferee, assignee or participant, as the case may be, shall not constitute a
“Lender” hereunder and (iii) no Lender shall transfer or grant any
participation under which the participant shall have rights to approve any
amendment to or waiver of this Agreement or any other Credit Document except to
the extent such amendment or waiver would (x) extend the final scheduled
maturity of any Loan or Note in which such participant is participating, or
reduce the rate or extend the time of payment of interest or Commitment
Commission thereon (except in connection with a waiver of applicability of any
post-default increase in interest rates) or reduce the principal amount thereof,
or increase the amount of the participant’s participation over the amount
thereof then in effect (it being understood that a waiver of any Default or
Event of Default or of a mandatory reduction in the Total Commitments shall not
constitute a change in the terms of such participation, and that an increase in
any Commitment or Loan shall be permitted without the consent of any participant
if the participant’s participation is not increased as a result thereof),
(y) consent to the assignment or transfer by the Borrower of any of its
rights and obligations under this Agreement or (z) release all or
substantially all of the Collateral under all of the Security Documents (except
as expressly provided in the Credit Documents) securing the Loans hereunder in
which such participant is participating.  In the case of any such
participation, the participant shall not have any rights under this Agreement or
any of the other Credit Documents (the participant’s rights against such Lender
in respect of such participation to be those set forth in the agreement executed
by such Lender in favor of the participant relating thereto) and all amounts
payable by the Borrower hereunder shall be determined as if such Lender had not
sold such participation.

     

    (b)    Notwithstanding
the foregoing, any Lender (or any Lender together with one or more other
Lenders) may (i) assign all or a portion of its Commitment and/or its
outstanding Loans to its (x) parent company and/or any affiliate of such
Lender which is at least 50% owned by such Lender or its parent company or
(y) in the case of any Lender that is a fund that invests in bank loans,
any other fund that invests in bank loans and is managed or advised by the same
investment advisor of such Lender or by an Affiliate of such investment advisor
or (z) to one or more Lenders, or (ii) assign with the consent of the
Borrower (which consent shall not be unreasonably withheld or delayed and shall
not be required if any Event of Default is then in existence) all, or if less
than all, a portion equal to at least $5,000,000 in the aggregate for the
assigning Lender or assigning Lenders, of such Commitments and outstanding
principal amount

     

     

     

    
      
        
        

      

      
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    of Loans
hereunder to one or more Eligible Transferees (treating any fund that invests in
bank loans and any other fund that invests in bank loans and is managed or
advised by the same investment advisor of such fund or by an Affiliate of such
investment advisor as a single Eligible Transferee), each of which assignees
shall become a party to this Agreement as a Lender by execution of an Assignment
and Assumption Agreement; provided that (1) at such
time Schedule I shall be deemed modified to reflect the Commitments (and/or
outstanding Loans, as the case may be) of such new Lender and of the existing
Lenders, (2)  new Notes will be issued, at the Borrower’s expense, to such
new Lender and to the assigning Lender upon the request of such new Lender or
assigning Lender, such new Notes to be in conformity with the requirements of
Section 1.05 (with appropriate modifications) to the extent needed to reflect
the revised Commitments (and/or outstanding Loans, as the case may be),
(3) the consent of the Administrative Agent and each Issuing Bank shall be
required in connection with any assignment pursuant to preceding clause
(ii) (which consent shall not be unreasonably withheld or delayed), and
(4) the Administrative Agent shall receive at the time of each such
assignment, from the assigning or assignee Lender, the payment of a
non-refundable assignment fee of $3,500.  To the extent of any
assignment pursuant to this Section 13.04(b), the assigning Lender shall be
relieved of its obligations hereunder with respect to its assigned Commitments
(it being understood that the indemnification provisions under this Agreement
(including, without limitation, Sections 1.09, 1.10, 3.05, 13.01 and 13.06)
shall survive as to such assigning Lender).  To the extent that an
assignment of all or any portion of a Lender’s Commitments and related
outstanding Obligations pursuant to Section 1.12 or this Section 13.04(b) would,
at the time of such assignment, result in increased costs under Section 1.09,
1.10, or 3.05 from those being charged by the respective assigning Lender prior
to such assignment, then the Borrower shall not be obligated to pay such
increased costs (although the Borrower shall be obligated to pay any other
increased costs of the type described above resulting from changes after the
date of the respective assignment).

     

    (c)    Nothing
in this Agreement shall prevent or prohibit any Lender from pledging its Loans
hereunder to a Federal Reserve Bank in support of borrowings made by such Lender
from such Federal Reserve Bank and, with the consent of the Administrative
Agent, any Lender which is a fund may pledge all or any portion of its Notes or
Loans to a trustee for the benefit of investors and in support of its obligation
to such investors.

     

    13.05    No Waiver; Remedies
Cumulative.  No failure or delay on the part of the
Administrative Agent or any Lender or any holder of any Note in exercising any
right, power or privilege hereunder or under any other Credit Document and no
course of dealing between the Borrower or any other Credit Party and the
Administrative Agent or any Lender or the holder of any Note shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder or under any other Credit Document preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
hereunder or thereunder.  The rights, powers and remedies herein or in
any other Credit Document expressly provided are cumulative and not exclusive of
any rights, powers or remedies which the Administrative Agent or

     

     

    
      
        
        

      

      
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    any
Lender or the holder of any Note would otherwise have.  No notice to
or demand on any Credit Party in any case shall entitle any Credit Party to any
other or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of the Administrative Agent or any Lender or
the holder of any Note to any other or further action in any circumstances
without notice or demand.

     

    13.06    Payments Pro
Rata.  (a)  Except as otherwise provided in this
Agreement, the Administrative Agent agrees that promptly after its receipt of
each payment from or on behalf of the Borrower in respect of any Obligations
hereunder, it shall distribute such payment to the Lenders (other than any
Lender that has consented in writing to waive its pro rata share of any such
payment) pro rata based upon their respective shares, if any, of the Obligations
with respect to which such payment was received.

     

    (b)    Each of
the Lenders agrees that, if it should receive any amount hereunder (whether by
voluntary payment, by realization upon security, by the exercise of the right of
setoff or banker’s lien, by counterclaim or cross action, by the enforcement of
any right under the Credit Documents, or otherwise), which is applicable to the
payment of the principal of, or interest on, the Loans or Commitment Commission,
of a sum which with respect to the related sum or sums received by other Lenders
is in a greater proportion than the total of such Obligation then owed and due
to such Lender bears to the total of such Obligation then owed and due to all of
the Lenders immediately prior to such receipt, then such Lender receiving such
excess payment shall purchase for cash without recourse or warranty from the
other Lenders an interest in the Obligations of the respective Credit Party to
such Lenders in such amount as shall result in a proportional participation by
all the Lenders in such amount; provided that if all
or any portion of such excess amount is thereafter recovered from such Lender,
such purchase shall be rescinded and the purchase price restored to the extent
of such recovery, but without interest.

     

    13.07    Calculations;
Computations.  (a)  The financial statements to be
furnished to the Lenders pursuant hereto shall be made and prepared in
accordance with generally accepted accounting principles in the United States
consistently applied throughout the periods involved (except as set forth in the
notes thereto or as otherwise disclosed in writing by the Borrower to the
Lenders).  In addition, all computations determining compliance with
Sections 9.07 through 9.11, inclusive, shall utilize accounting principles and
policies in conformity with those in effect on the Effective Date (with the
foregoing generally accepted accounting principles, subject to the preceding
proviso, herein called “GAAP”).  Unless
otherwise noted, all references in this Agreement to “generally accepted
accounting principles” shall mean generally accepted accounting principles as in
effect in the United States.

     

    (b)    All
computations of interest and Commitment Commission hereunder shall be made on
the basis of a year of 360 days for the actual number of days (including the
first day but excluding the last day) occurring in the period for which such
interest or Commitment Commission are payable.

     

    13.08    GOVERNING LAW; SUBMISSION TO
JURISDICTION; VENUE; WAIVER OF JURY TRIAL.  (a)  THIS AGREEMENT AND THE
OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
AND THEREUNDER SHALL, EXCEPT AS OTHERWISE PROVIDED IN CERTAIN OF THE VESSEL
MORTGAGES, BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE
STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES (OTHER THAN TITLE
14

     

     

     

    
      
        
        

      

      
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    OF ARTICLE 5 OF THE GENERAL
OBLIGATIONS LAW).  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE
OF NEW YORK LOCATED IN THE COUNTY OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
THE BORROWER HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
COURTS.  THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES THEREOF BY REGISTERED MAIL, POSTAGE PREPAID, TO THE
BORROWER AT ITS ADDRESS SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO
BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  NOTHING HEREIN SHALL
AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT UNDER THIS AGREEMENT, ANY LENDER OR
THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY CREDIT PARTY IN
ANY OTHER JURISDICTION.  IF AT ANY TIME DURING WHICH THIS AGREEMENT OR
ANY OTHER CREDIT DOCUMENT REMAINS IN EFFECT, THE BORROWER DOES NOT MAINTAIN A
REGULARLY FUNCTIONING OFFICE IN NEW YORK CITY, IT WILL DULY APPOINT, AND AT ALL
TIMES MAINTAIN, AN AGENT IN NEW YORK CITY FOR THE SERVICE OF PROCESS OR SUMMONS,
AND WILL PROVIDE TO THE ADMINISTRATIVE AGENT AND THE LENDERS WRITTEN NOTICE OF
THE IDENTITY AND ADDRESS OF SUCH AGENT FOR SERVICE OF PROCESS OR SUMMONS;
PROVIDED THAT ANY FAILURE ON THE PART OF  THE BORROWER TO COMPLY WITH
THE FOREGOING PROVISIONS OF THIS SENTENCE SHALL NOT IN ANY WAY PREJUDICE OR
LIMIT THE SERVICE OF PROCESS OR SUMMONS IN ANY OTHER MANNER DESCRIBED ABOVE IN
THIS SECTION 13.08 OR OTHERWISE PERMITTED BY LAW.

     

    (b)    THE
BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT
BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER
IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY
SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

     

    (c)    EACH
OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

     

     

    
      
        
        

      

      
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    13.09    Counterparts.  This
Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one
and the same instrument.  A set of counterparts executed by all the
parties hereto shall be lodged with the Borrower and the Administrative
Agent.

     

    13.10    Effectiveness.  This
Agreement shall become effective on the date (the “Effective Date”) on
which the Borrower, the Administrative Agent and each of the Lenders who are
initially parties hereto shall have signed a counterpart hereof (whether the
same or different counterparts) and shall have delivered the same to the
Administrative Agent or, in the case of the Lenders, shall have given to the
Administrative Agent telephonic (confirmed in writing), written or facsimile
notice (actually received) at such office that the same has been signed and
mailed to it.  The Administrative Agent will give the Borrower and
each Lender prompt written notice of the occurrence of the Effective
Date.

     

    13.11    Headings
Descriptive.  The headings of the several sections and
subsections of this Agreement are inserted for convenience only and shall not in
any way affect the meaning or construction of any provision of this
Agreement.

     

    13.12    Amendment or Waiver;
etc.  (a)  Neither this Agreement nor any other
Credit Document nor any terms hereof or thereof may be changed, waived,
discharged or terminated unless such change, waiver, discharge or termination is
in writing signed by the respective Credit Parties party thereto and the
Required Lenders, provided that no such
change, waiver, discharge or termination shall, without the consent of each
Lender (with Obligations being directly affected in the case of following clause
(i) and, in the case of the following clause (vi), to the extent that any
such Lender would be required to make a Loan in excess of its pro rata portion
provided for in this Agreement or would receive a payment or prepayment of Loans
or a commitment reduction that (in any case) is less than its pro rata portion
provided for in this Agreement, in each case, as a result of any such amendment,
modification or waiver referred to in the following clause (vi)),
(i) extend the final scheduled maturity of any Loan or Note, extend the
timing for or reduce the principal amount of any repayment pursuant to Section
3.03(b) or (c) or reduce the rate or extend the time of payment of interest
on any Loan or Note or Commitment Commission (except in connection with the
waiver of applicability of any post-default increase in interest rates), or
reduce the principal amount thereof (except to the extent repaid in cash),
(ii) release any Vessel Mortgage (except as expressly provided in the
Credit Documents), (iii) amend, modify or waive any provision of this
Section 13.12(a), (iv) reduce the percentage specified in the definition of
Required Lenders (it being understood that, with the consent of the Required
Lenders, additional extensions of credit pursuant to this Agreement may be
included in the determination of the Required Lenders on substantially the same
basis as the extensions of Loans and Commitments are included on the Effective
Date), (v) consent to the assignment or transfer by the Borrower of any of
its rights and obligations under this Agreement, (vi) amend, modify or
waive Section 1.06 or amend, modify or waive any other provision in this
Agreement to the extent providing for payments or prepayments of Loans or
reductions in Commitments, in each case, to be applied pro rata among the
Lenders entitled to such payments or prepayments of Loans or reductions in
Commitments (it being understood that the provision of additional extensions of
credit pursuant to this Agreement, or the waiver of reduction or
any

     

     

    
      
        
        

      

      
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    mandatory
prepayment of Loans by the Required Lenders shall not constitute an amendment,
modification or waiver for purposes of this clause (vi)), or (vii) release
any Subsidiary Guarantor from a Guaranty to the extent same owns a Vessel; provided, further, that no such
change, waiver, discharge or termination shall (x) increase the Commitments
of any Lender over the amount thereof then in effect without the consent of such
Lender (it being understood that waivers or modifications of conditions
precedent, covenants, Defaults or Events of Default shall not constitute an
increase of the Commitment of any Lender, and that an increase in the available
portion of any Commitment of any Lender shall not constitute an increase in the
Commitment of such Lender), or (y) without the consent of each Agent,
amend, modify or waive any provision of Section 12 as same applies to such Agent
or any other provision as same relates to the rights or obligations of such
Agent or without the consent of the Collateral Agent, amend, modify or waive any
provision relating to the rights or obligations of the Collateral
Agent.  

     

    (b)    If, in
connection with any proposed change, waiver, discharge or termination to any of
the provisions of this Agreement as contemplated by clauses (i) through (v),
inclusive, of the first proviso to Section 13.12(a), the consent of the Required
Lenders is obtained but the consent of one or more of such other Lenders whose
consent is required is not obtained, then the Borrower shall have the right, so
long as all non-consenting Lenders whose individual consent is required are
treated as described in either clauses (A) or (B) below, to either
(A) replace each such non-consenting Lender or Lenders with one or more
Replacement Lenders pursuant to Section 1.12 so long as at the time of such
replacement, each such Replacement Lender consents to the
proposed  change, waiver, discharge or termination or
(B) terminate such non-consenting Lender’s Commitment, and repay such
non-consenting Lender’s outstanding Loans, in accordance with
Sections 2.02(b) and/or 3.02(iv), provided that, unless
the Commitments are terminated, and Loans repaid, pursuant to preceding
clause (B) are immediately replaced in full at such time through the
addition of new Lenders or the increase of the Commitments and/or outstanding
Loans of existing Lenders (who in each case must specifically consent thereto),
then in the case of any action pursuant to preceding clause (B) the
Required Lenders (determined before giving effect to the proposed action) shall
specifically consent thereto, provided, further, that in any
event the Borrower shall not have the right to replace a Lender, terminate its
Commitment or repay its Loans solely as a result of the exercise of such
Lender’s rights (and the withholding of any required consent by such Lender)
pursuant to the second proviso to Section 13.12(a).

     

    13.13    Survival.  All
indemnities set forth herein including, without limitation, in Sections 1.09,
1.10, 3.05, 13.01 and 13.06 shall, subject to Section 13.15 (to the extent
applicable), survive the execution, delivery and termination of this Agreement
and the Notes and the making and repayment of the Loans.

     

    13.14    Domicile of
Loans.  Each Lender may transfer and carry its Loans at, to or
for the account of any office, Subsidiary or Affiliate of such
Lender.  Notwithstanding anything to the contrary contained herein, to
the extent that a transfer of Loans pursuant to this Section 13.14 would,
at the time of such transfer, result in increased costs under Section 1.09,
1.10, or 3.05 from those being charged by the respective Lender prior to such
transfer, then the Borrower shall not be obligated to pay such increased costs
(although the Borrower shall be

     

     

    
      
        
        

      

      
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    obligated
to pay any other increased costs of the type described above resulting from
changes after the date of the respective transfer).

     

    13.15    Limitation on Additional
Amounts, etc.  Notwithstanding anything to the contrary
contained in Sections 1.09, 1.10 or 3.05 of this Agreement, unless a Lender
gives notice to the Borrower that it is obligated to pay an amount under any
such Section within one year after the later of (x) in the case of Taxes,
the date the Lender receives notice from the relevant taxing authority of the
respective increased cost, Tax, loss, expense or liability, and in all other
cases the date the Lender incurs the respective increased cost, loss, expense or
liability, reduction in amounts received or receivable or reduction in return on
capital or (y) the date such Lender has actual knowledge of its incurrence
of the respective increased costs, Taxes, loss, expense or liability, reductions
in amounts received or receivable or reduction in return on capital, then such
Lender shall only be entitled to be compensated for such amount by the Borrower
pursuant to said Section 1.09, 1.10, or 3.05, as the case may be, to the extent
the costs, Taxes, loss, expense or liability, reduction in amounts received or
receivable or reduction in return on capital are incurred or suffered on or
after the date which occurs one year prior to such Lender giving notice to the
Borrower that it is obligated to pay the respective amounts pursuant to said
Section 1.09, 1.10, or 3.05, as the case may be.  This Section 13.15
shall have no applicability to any Section of this Agreement other than said
Sections 1.09, 1.10, and 3.05.

     

    13.16    Confidentiality.  (a)  Subject
to the provisions of clause (b) of this Section 13.16, each Lender agrees
that it will use its best efforts not to disclose without the prior consent of
the Borrower (other than to its employees, auditors, advisors or counsel or to
another Lender if the Lender or such Lender’s holding or parent company or board
of trustees in its sole discretion determines that any such party should have
access to such information, provided such Persons shall be subject to the
provisions of this Section 13.16 to the same extent as such Lender)
any  information with respect to the Borrower or any of its
Subsidiaries which is now or in the future furnished pursuant to this Agreement
or any other Credit Document, provided that any Lender may disclose any such
information (a) as has become generally available to the public other than
by virtue of a breach of this Section 13.16(a) by the respective Lender,
(b) as may be required in any report, statement or testimony submitted to
any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such Lender or to the Federal Reserve Board or the Federal
Deposit Insurance Corporation or similar organizations (whether in the United
States or elsewhere) or their successors, (c) as may be required in respect
to any summons or subpoena or in connection with any litigation, (d) in
order to comply with any law, order, regulation or ruling applicable to such
Lender, (e) to the Administrative Agent or the Collateral Agent and
(f) to any prospective or actual transferee or participant in connection
with any contemplated transfer or participation of any of the Notes or
Commitments or any interest therein by such Lender, provided that such
prospective transferee expressly agrees to be bound by the confidentiality
provisions contained in this Section 13.16.

     

    (b)    The
Borrower hereby acknowledges and agrees that each Lender may share with any of
its affiliates any information related to the Borrower or any of its
Subsidiaries (including, without limitation, any nonpublic customer information
regarding the creditworthiness of the Borrower or its Subsidiaries), provided
such Persons shall be subject to the provisions of this Section 13.16 to the
same extent as such Lender.

     

     

    
      
        
        

      

      
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    13.17    Register.  The
Borrower hereby designates the Administrative Agent to serve as the Borrower’s
agent, solely for purposes of this Section 13.17, to maintain a register (the
“Register”) on
which it will record the Commitments from time to time of each of the Lenders,
the Loans made by each of the Lenders and each repayment and prepayment in
respect of the principal amount of the Loans of each Lender.  Failure
to make any such recordation, or any error in such recordation  shall
not affect the Borrower’s obligations in respect of such Loans.  With
respect to any Lender, the transfer of the Commitments of such Lender and the
rights to the principal of, and interest on, any Loan made pursuant to such
Commitments shall not be effective until such transfer is recorded on the
Register maintained by the Administrative Agent with respect to ownership of
such Commitments and Loans and prior to such recordation all amounts owing to
the transferor with respect to such Commitments and Loans shall remain owing to
the transferor.  The registration of assignment or transfer of all or
part of any Commitments and Loans shall be recorded by the Administrative Agent
on the Register only upon the acceptance by the Administrative Agent of a
properly executed and delivered Assignment and Assumption Agreement pursuant to
Section 13.04(b).  Coincident with the delivery of such an Assignment
and Assumption Agreement to the Administrative Agent for acceptance and
registration of assignment or transfer of all or part of a Loan, or as soon
thereafter as practicable, the assigning or transferor Lender shall surrender
the Note evidencing such Loan, and thereupon one or more new Notes in the same
aggregate principal amount shall be issued to the assigning or transferor Lender
and/or the new Lender.  The Borrower agrees to indemnify the
Administrative Agent from and against any and all losses, claims, damages and
liabilities of whatsoever nature which may be imposed on, asserted against or
incurred by the Administrative Agent in performing its duties under this Section
13.17, except to the extent caused by the Administrative Agent’s own gross
negligence or willful misconduct.

     

    13.18    Judgment
Currency.  If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due from the Borrower hereunder or under
any of the Notes in the currency expressed to be payable herein or under the
Notes (the “specified
currency”) into another currency, the parties hereto agree, to the
fullest extent that they may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the specified currency with such other
currency at the Administrative Agent’s New York office on the Business Day
preceding that on which final judgment is given.  The obligations of
the Borrower in respect of any sum due to any Lender or the Administrative Agent
hereunder or under any Note shall, notwithstanding any judgment in a currency
other than the specified currency, be discharged only to the extent that on the
Business Day following receipt by such Lender or the Administrative Agent (as
the case may be) of any sum adjudged to be so due in such other currency such
Lender or the Administrative Agent (as the case may be) may in accordance with
normal banking procedures purchase the specified currency with such other
currency; if the amount of the specified currency so purchased is less than the
sum originally due to such Lender or the Administrative Agent, as the case may
be, in the specified currency, the Borrower agrees, to the fullest extent that
it may effectively do so, as a separate obligation and notwithstanding any such
judgment, to indemnify such Lender or the Administrative Agent, as the case may
be, against such loss, and if the amount of the specified currency so purchased
exceeds the sum originally due to any Lender or the Administrative Agent, as the
case may be, in the specified currency, such Lender or the Administrative Agent,
as the case may be, agrees to remit such excess to the Borrower.

     

     

    
      
        
        

      

      
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    13.19    Language.  All
correspondence, including, without limitation, all notices, reports and/or
certificates, delivered by any Credit Party to the Administrative Agent, the
Collateral Agent or any Lender shall, unless otherwise agreed by the respective
recipients thereof, be submitted in the English language or, to the extent the
original of such document is not in the English language, such document shall be
delivered with a certified English translation thereof.

     

    13.20    Waiver of
Immunity.  The Borrower, in respect of itself, each other
Credit Party, its and their process agents, and its and their properties and
revenues, hereby irrevocably agrees that, to the extent that the Borrower, any
other Credit Party or any of its or their properties has or may hereafter
acquire any right of immunity from any legal proceedings, whether in the United
States, the Republic of the Marshall Islands, Hong Kong or elsewhere, to enforce
or collect upon the Obligations of the Borrower or any other Credit Party
related to or arising from the transactions contemplated by any of the Credit
Documents, including, without limitation, immunity from service of process,
immunity from jurisdiction or judgment of any court or tribunal, immunity from
execution of a judgment, and immunity of any of its property from attachment
prior to any entry of judgment, or from attachment in aid of execution upon a
judgment, the Borrower, for itself and on behalf of the other Credit Parties,
hereby expressly waives, to the fullest extent permissible under applicable law,
any such immunity, and agrees not to assert any such right or claim in any such
proceeding, whether in the United States, the Republic of the Marshall Islands,
Hong Kong or elsewhere.

     

    13.21    USA PATRIOT Act
Notice.  Each Lender hereby notifies each Credit Party that
pursuant to the requirements of the USA PATRIOT Act (Title III of Pub.: 107-56
(signed into law October 26, 2001)) (the “PATRIOT Act”), it is
required to obtain, verify, and record information that identifies each Credit
Party, which information includes the name of each Credit Party and other
information that will allow such Lender to identify each Credit Party in
accordance with the PATRIOT Act, and each Credit Party agrees to provide such
information from time to time to any Lender.

     

     

     

    *     *     *

     

     

     

     

    61

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      IN
WITNESS WHEREOF, the parties hereto have caused their duly authorized officers
to execute and deliver this Agreement as of the date first above
written.

       

      
                                        

        
          	
                   
      

                	
                  GENCO
      SHIPPING & TRADING LIMITED,

                    
      as Borrower

                

        

      

                                     

      
        	
                 
      

              	
                By: /s/ John C.
      Wobensmith                        
      

                Name:
      John C. Wobensmith

              

      

      
        	
                 
      

              	
                Title:
      CFO

              

      

      
        	
                 
      

              	
                Address:
      299 Park Avenue, 20th
      floor, New York, NY 10171

              

      

      
        	
                 
      

              	
                Telephone:
      +1 (646) 443-8550

              

      

      
        	
                 
      

              	
                Facsimile:
      +1 (646) 443-8551

              

      

                                     

      
        
          	
                   
      

                	
                  NORDEA
      BANK FINLAND PLC, acting through its New York

                    
      branch as Administrative Agent, Collateral Agent and 

                      
      Mandated Lead Arranger

                  

                

        

                                       

      

      
        	
                 
      

              	
                By:
      /s/ Colleen
      Durkin                                   

                Name:
      Colleen Durkin

                Title:
      Vice President

              

      

                                     

      
        	
                 
      

              	
                By:
      /s/ Hans
      Kjelsrud                                    
      

                Name:
      Hans Kjelsrud

                Title:
      Executive Vice President

              

      

       

      
        	
                 
      

              	
                BAYERISCHE
      HYPO- UND VEREINSBANK AG 

                    
      Mandated Lead Arranger

                

              

      

      
                                       

      

      
        	
                 
      

              	
                By:  /s/
      Göhring                                          
      

                Name:
      Göhring

                Title:

              

      

                                      

      
        	
                 
      

              	
                By:
      /s/
      Wenner                                           
      

                Name:
      Wenner

                Title:

              

      

       

      
      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
         

                                        

        
          	
                   
      

                	
                  DNB
      NOR BANK ASA,

                    
      Mandated Lead Arranger

                

        

         

                                       

      

      
        	
                 
      

              	
                By:
      /s/ Nikolai A.
      Nachamkin               
      

                Name:
      Nikolai A. Nachamkin

                Title:
      Senior Vice President

              

      

       

      
                                       

      

      
        	
                 
      

              	
                By:
      /s/ Cathleen
      Buckley               
            

                Name:
      Cathleen Buckley

                Title:
      Vice President

              

      

       

       

      
        	
                 
      

              	
                SUMITOMO
      MITSUI BANKING CORPORATION, 

                  
      acting through its Brussels branch, 

                    
      Mandated Lead Arranger

                

              

      

       

      
                                       

      

      
        	
                 
      

              	
                By:
      /s/ Eric
      Schipper                     
              

                Name:
      Eric Schipper

                Title:
      Assistant General Manager

              

      

       

                                      

      
        
          	
                   
      

                	
                  By:_________________________ 

                  Name:

                  Title: 

                

        

         

        
        

      

       

      
         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

                            

         

      

      
        	
                 
      

              	
                The
      Lenders:

              

      

       

      
        
          	
                   
      

                	
                  NORDEA
      BANK NORGE ASA,

                    
      acting through its Cayman Islands
branch,

                

        

         

      

      
        	
                 
      

              	
                By: /s/ Colleen
      Durkin                 
      

                Name: Colleen
      Durkin

                Title: Vice
      President 

              

      

       

      
        	
                 
      

              	
                By: /s/ Hans
      Kjelsrud                
      

                Name:
      Hans Kjelsrud

                Title:
      Executive Vice President

              

      

       

      
        
          	
                   
      

                	
                  BAYERISCHE
      HYPO- UND VEREINSBANK AG

                

        

                                         

      

      
        	
                 
      

              	
                By:
      /s/
      Göhring                        

                Name:
      Göhring

                Title:

              

      

                                     

      
        	
                 
      

              	
                By:
      /s/
      Wenner                       
      

                Name:
      Wenner

                Title:

              

      

       

      
        	
                 
      

              	
                DNB
      NOR BANK ASA

              

      

       

      
        	
                 
      

              	
                By:
      /s/ Nikolai A.
      Nachamkin          
       

                Name:
      Nikolai A. Nachamkin 

                  Title:
      Senior Vice President

                

              

      

       

      
        	
                 
      

              	
                By:
      /s/ Cathleen
      Buckley                  
      

                Name:
      Cathleen Buckley 

                  Title:
      Vice President

                

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                                                                                           
DEUTSCHE SCHIFFSBANK AKTIENGESELLSCHAFT

       

      
        	
                 
      

              	
                By:
      /s/ Tanja
      Lauerer                       
      

                Name:
      Tanja Lauerer 

                  Title:
      Assistant General Manager

                

              

      

       

      
        	
                 
      

              	
                By:
      /s/ Gert
      Wiechmann                 
      

                Name:
      Gert Wiechmann 

                  Title:
      Assistant General Manager

                

              

      

       

                                                                                           
SUMITOMO MITSUI BANKING CORPORATION, 

                                                                                              
acting through its Brussels Branch

       

      
        	
                 
      

              	
                By:
      /s/ Eric
      Schipper                      
      

                Name:
      Eric Schipper 

                  Title:
      Assistant General Manager

                

              

      

       

      
        	
                 
      

              	
                By:

                Name:
      

                  Title:

                

              

      

       

      
        	
                 
      

              	
                 

              

      

       

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    APPENDIX
A

     

    DEFINITIONS

     

    PART I

     

    

     

    RULES OF
CONSTRUCTION

     

    The
following rules of usage shall apply to the Credit Agreement, the Notes and the
Credit Documents (and each appendix, schedule, exhibit and annex thereto) unless
otherwise required by the context or unless otherwise specified
therein:

     

    
      	
              1.  

            	
              Unless
      otherwise specified, definitions set forth herein, in the Credit
      Agreement, the Notes or any Credit Document shall be equally applicable to
      the singular and plural forms of the terms
  defined.

            

    

    

    
      	
              2.  

            	
              References
      to any Person in the Credit Agreement, the Note or any Credit Document
      shall include such Person, its successors and permitted assigns and
      transferees.

            

    

    

    
      	
              3.  

            	
              References
      to any law in the Credit Agreement, the Notes or any Credit Document shall
      include any amendment or modification to such law and any rules or
      regulations issued thereunder or any law enacted in substitution or
      replacement thereof.

            

    

    

    
      	
              4.  

            	
              Words
      such as “hereunder”, “hereto”, “hereof” and “herein” and other words of
      like import used in the Credit Agreement, the Notes or any Credit Document
      shall, unless the context clearly indicates to the contrary, refer to the
      whole of such document and not to any particular article, section,
      subsection, paragraph or clause
thereof.

            

    

     

    PART II

     

    GLOSSARY OF
TERMS

     

    “Acceptable Flag
Jurisdiction” shall have the meaning provided in Section
8.14.

     

    “Acceptable Replacement
Vessel” shall mean, with respect to a Vessel, any other vessel with an
equal or greater fair market value than the Appraised Value of such Vessel;
provided that
(A) such Acceptable Replacement Vessel must (i) be of the same type and age
as the Vessel it replaces, (ii) have a class complying with the
requirements of Section 8.14, and (iii) be registered and flagged in an
Acceptable Flag Jurisdiction, and (B) there is no Event of Default as defined in
Section 10.

     

    “Administrative Agent”
shall have the meaning provided in the first paragraph of this Agreement, and
shall include any successor thereto.

     

     

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

     

    “Affiliate” shall
mean, with respect to any Person, any other Person (including, for purposes of
Section 9.06 only, all directors, officers and partners of such Person) directly
or indirectly controlling, controlled by, or under direct or indirect common
control with, such Person; provided, however, that for
purposes of Section 9.06, an Affiliate of the Borrower shall include any Person
that directly or indirectly owns more than 5% of any class of the capital stock
of the Borrower and any officer or director of the Borrower or any of its
Subsidiaries.  A Person shall be deemed to control another Person if
such Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of such other Person, whether through
the ownership of voting securities, by contract or
otherwise.  Notwithstanding anything to the contrary contained above,
for purposes of Section 9.06, neither the Administrative Agent, nor the
Collateral Agent, nor the Mandated Lead Arrangers nor any Lender (or any of
their respective affiliates) shall be deemed to constitute an Affiliate of the
Borrower or its Subsidiaries in connection with the Credit Documents or its
dealings or arrangements relating thereto.

     

    “Agents” shall mean,
collectively, the Administrative Agent, the Collateral Agent and the Mandated
Lead Arrangers.

     

    “Aggregate Appraised
Value” shall mean at any time, the sum of the Appraised Value of all
Vessels owned by the Borrower and its Subsidiaries at such time.

     

    “Agreement” shall mean
this Credit Agreement, as modified, supplemented, amended or restated from time
to time.

     

    “Allocated Loan
Amount” shall mean, with respect to any Vessel, the amount of the
Facility to be made available to the Borrower in a single Loan attributable to
such Vessel in accordance with Schedule III.

     

    “Annex VI” shall mean
Regulations for the Prevention of Air Pollution from Ships to the International
Convention for the Prevention of Pollution from Ships 1973 (as modified in 1978
and 1997).

     

    “Annual Fleet Maintenance
Reserve Amount” shall mean, for any fiscal year, the aggregate amount of
funds budgeted by the Borrower for such fiscal year to maintain and drydock the
Borrower’s fleet during such fiscal year in order to maintain each Vessel in the
fleet in accordance with the provisions contained in this Agreement and the
other Credit Documents, such amount to be approved by the Borrower’s Board of
Directors acting reasonably and in good faith.

     

    “Annual Fleet Renewal Reserve
Amount” shall mean, for any fiscal year, the amount determined by the
Borrower’s Board of Directors acting reasonably to be an amount which should be
reserved and/or expended during such fiscal year for renewal capital
expenditures and/or vessel acquisitions to insure the indefinite renewal of the
Borrower’s fleet, such determination to take into account, inter alia the remaining
life and prevailing asset value of the fleet.

     

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

     

    “Applicable Margin”
shall mean 1.25% per annum; provided, however, that if at
any time after December 31, 2009, the Borrower’s Leverage Ratio, measured on a
quarterly basis, is 3.00:1.00 or less, then during such period the Applicable
Margin for the immediately succeeding quarter will be 1.20% per
annum.

     

    “Appraisal” shall
mean, with respect to a Vessel, a written appraisal by an Approved Appraiser of
the fair market value of such Vessel on an individual charter free
basis.

     

    “Appraised Value” of
any Vessel at any time shall mean the arithmetic average of the fair market
values of such Vessel on an individual charter free basis as set forth on the
Appraisals of at least two Approved Appraisers most recently delivered to, or
obtained by, the Administrative Agent prior to such time pursuant to Sections
5.08(vi), 8.01(c) and 9.02(i) or the definition of Vessel Exchange.

     

    “Approved Appraiser”
shall mean H. Clarksons & Company Limited, Fearnleys Ltd., R.S. Platou
Shipbrokers a.s., ICAP Hyde & Company, Ltd., Simpson Spence & Young Ltd.
or such other independent appraisal firm as may be acceptable to the Required
Lenders.

     

    “Assignment and Assumption
Agreement” shall mean the Assignment and Assumption Agreement
substantially in the form of Exhibit K (appropriately completed).

     

    “Assignment of
Charters” shall have the meaning provided in the Earnings Assignment and
substantially in the form of Exhibit B to the Assignment of
Earnings.

     

    “Assignment of
Earnings” shall mean the assignment in respect of the earnings of a
Vessel from any and all sources to be executed by the relevant Subsidiary
Guarantor in favor of the Collateral Agent pursuant to Section 5.05 and
substantially in the form Exhibit H-1.

     

    “Assignment of
Insurances” shall mean the assignment in respect of the insurances of a
Vessel to be executed by the relevant Subsidiary Guarantor in favor of the
Collateral Agent pursuant to Section 5.05 and substantially in the form Exhibit
H-2.

     

    “Authorized Officer”
shall mean, with respect to (i) the delivery of Notices of Borrowing, the
chairman of the board, or the treasurer of the Borrower, or any other officer of
the Borrower designated in writing to the Administrative Agent by the chief
executive officer, president or treasurer of the Borrower as being authorized to
give notices under this Agreement, (ii) delivery of financial documents and
officer’s certificates pursuant to this Agreement, the chairman of the board,
the president, any vice president, the treasurer, any other financial officer or
an authorized manager of any Credit Party and (iii) any other matter in
connection with this Agreement or any other Credit Document, any officer (or a
Person or Persons so designated by any two officers) of any Credit Party, in
each case to the extent reasonably acceptable to the Administrative
Agent.

     

    “Available Cash” shall
mean, for any period, Consolidated Net Income for such period plus Consolidated
Interest Expense for such period plus, without
duplication, the amortization of deferred finance charges and restricted stock
expenses and Non-Cash Charges

     

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

     

    for such
period and the amount of all depreciation and amortization deducted in
determining Consolidated Net Income for such period.

     

    “Availability Termination
Date” shall mean, January 31, 2010, or such other later date as the
Lenders and the Borrower may agree.

     

    “Average Consolidated Net
Indebtedness” shall mean, on any date of determination, the average
of  the Consolidated Net Indebtedness on the last Business Day of each
calendar month during the most recently ended Test Period and on such date of
determination.

     

    “Balloon Payment”
shall mean One Hundred Eighty-One Million Two Hundred Thousand Dollars
(US$181,200,000), as such amount may be reduced from time to time pursuant to
the terms hereof.

     

    “Bankruptcy Code”
shall have the meaning provided in Section 10.05.

     

    “Base Rate” shall
mean, for any day, a rate of interest per annum equal to the higher of
(i) the Prime Rate for such day and (ii) the sum of the Federal Funds
Rate for such day plus 1⁄2 of 1% per annum.

     

    “Borrower” shall have
the meaning provided in the first paragraph of this Agreement.

     

    “Borrowing” shall mean
the borrowing of a Loan or Loans from all the Lenders on a given date having the
same Interest Period.

     

    “Borrowing Date(s)”
shall mean each date (including the Initial Borrowing Date) on which Loans are
incurred by the Borrower.

     

    “Business Day” shall
mean any day except Saturday, Sunday and any day which shall be in New York
City, Hong Kong or London a legal holiday or a day on which banking institutions
are authorized or required by law or other government action to
close.

     

    “Capitalized Lease
Obligations” of any Person shall mean all rental obligations which, under
generally accepted accounting principles, are or will be required to be
capitalized on the books of such Person, in each case taken at the amount
thereof accounted for as indebtedness in accordance with such
principles.

     

    “Cash Equivalents”
shall mean (i) securities issued or directly and fully guaranteed or
insured by the United States or any agency or instrumentality thereof (provided that the
full faith and credit of the United States is pledged in support thereof) having
maturities of not more than one year from the date of acquisition,
(ii) time deposits and certificates of deposit of any commercial bank
having, or which is the principal banking subsidiary of a bank holding company
having capital, surplus and undivided profits aggregating in excess of
$200,000,000, with maturities of not more than one year from the date of
acquisition by such

     

     

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

     

    Person,
(iii) repurchase obligations with a term of not more than 90 days for
underlying securities of the types described in clause (i) above entered
into with any bank meeting the qualifications specified in clause (ii) above,
(iv) commercial paper issued by any Person incorporated in the United States
rated at least A-1 or the equivalent thereof by S&P or at least P-1 or the
equivalent thereof by Moody’s and in each case maturing not more than one year
after the date of acquisition by such Person, and (v) investments in money
market funds substantially all of whose assets are comprised of securities of
the types described in clauses (i) through (iv) above.

     

    “CERCLA” shall mean
the Comprehensive Environmental Response, Compensation, and Liability Act of
1980, as the same may be amended from time to time, 42 U.S.C. § 9601 et seq.

     

    “Change of Control”
shall mean (i) the Borrower shall at any time and for any reason fail to
own, directly or indirectly, 100% of the capital stock or other equity interests
of each Subsidiary Guarantor, (ii) the sale, lease or transfer of all or
substantially all of the Borrower’s assets to any Person or group (as such term
is used in Section 13(d)(3) of the Exchange Act), (iii) the liquidation or
dissolution of the Borrower, (iv) any Person or group (as such term is used
in Section 13(d)(3) of the Exchange Act), other than one or more of the
Permitted Holders, shall at any time become the owner, directly or indirectly,
beneficially or of record, of shares representing more than 30% of the
outstanding voting or economic equity interests of the Borrower, (v) the
replacement of a majority of the directors on the board of directors of the
Borrower over a two-year period from the directors who constituted the board of
directors of the Borrower at the beginning of such period, and such replacement
shall not have been approved by a vote of at least a majority of the board of
directors of the Borrower then still in office who either were members of such
board of directors at the beginning of such period or whose election as a member
of such Board of Directors was previously so approved, (vi) a “change of
control” or similar event shall occur as provided in any outstanding
Indebtedness of Borrower or any of its Subsidiaries (or the documentation
governing the same) or (vii) the Borrower’s common stock shall cease to be
traded on the New York Stock Exchange or any other internationally recognized
stock exchange.

     

    “Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.  Section references to the
Code are to the Code as in effect at the date of this Agreement and any
subsequent provisions of the Code, amendatory thereof, supplemental thereto or
substituted therefore.

     

    “Collateral” shall
mean all property (whether real or personal) with respect to which any security
interests have been granted (or purported to be granted) pursuant to any
Security Document, including, without limitation, all Pledge Agreement
Collateral, all Earnings and Insurance Collateral, all Vessels, and all cash and
Cash Equivalents at any time delivered as collateral thereunder or as required
hereunder.

     

    “Collateral Agent”
shall mean the Administrative Agent acting as mortgagee, security trustee or
collateral agent for the Secured Creditors pursuant to the Security
Documents.

     

     

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

     

    “Collateral
Disposition” shall mean (i) the sale, lease, transfer or other
disposition other than pursuant to a charter by the Borrower or any of its
Subsidiaries to any Person other than the Borrower or a Subsidiary Guarantor of
any Vessel or (ii) any Event of Loss of any Vessel.

     

    “Commitment” shall
mean, for each Lender, the amount set forth opposite such Lender’s name in
Schedule I hereto, as same may be (x) reduced from time to time pursuant to
Sections 2.02, 2.03, 3.01, 3.03 and/or 10 or (y) adjusted from time to time
as a result of assignments to or from such Lender pursuant to Section 1.12 or
13.04.

     

    “Commitment
Commission” shall have the meaning provided in Section
2.01(a).

     

    “Commitment Commission
Payment Date” shall mean the last Business Day of each March, June,
September and December, commencing with September 30, 2008, and through, and
including, the Availability Termination Date.

     

    “Consolidated EBIT”
shall mean, for any period, the Consolidated Net Income for such period, before
interest expense and provision for taxes based on income and without giving
effect to any extraordinary gains or losses or gains or losses from sales of
assets other than inventory sold in the ordinary course of
business.

     

    “Consolidated EBITDA”
shall mean, for any period, Consolidated EBIT, adjusted by adding thereto the
amount of (i) all amortization of intangibles and depreciation,
(ii) non-cash management incentive compensation, (iii) the
amortization of fees and expenses paid in connection with the Transaction, and
(iv) any Non-Cash Charges in each case that were deducted in arriving at
Consolidated EBITDA for such period.

     

    “Consolidated
Indebtedness” shall mean, as at any date of determination, the aggregate
stated balance sheet amount of all Indebtedness (but including in any event the
then outstanding principal amount of all Loans, all Capitalized Lease
Obligations and all letters of credit outstanding but excluding Indebtedness of
a type described in clause (vii) of the definition thereof) of the Borrower
and its Subsidiaries on a consolidated basis as determined in accordance with
GAAP; provided
that (i) Indebtedness outstanding pursuant to trade payables and accrued
expenses incurred in the ordinary course of business, and (ii) guarantees
of operating leases assigned to any of the Borrower or any Wholly-Owned
Subsidiary of the Borrower to the extent such lease
is not prohibited hereunder and such obligation does not exceed that which would
otherwise be attributed to such Person under such operating lease, shall be
excluded in determining Consolidated Indebtedness.

     

    “Consolidated Interest
Coverage Ratio” shall mean, for any period, the ratio of
(i) Consolidated EBITDA for such period to (ii) Consolidated Interest
Expense for such period.

     

    “Consolidated Interest
Expense” shall mean, for any period, (i) the total consolidated
interest expense of the Borrower and its Subsidiaries for such period
(calculated without regard to any limitations on the payment thereof) plus,
without duplication, that portion of Capitalized Lease Obligations of the
Borrower and its Subsidiaries representing the interest

     

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

     

    factor
for such period, minus (ii) cash interest income of the Borrower and its
Subsidiaries for such period and the amortization of any deferred financing
costs and Non-Cash Charges incurred in connection with the Transaction to the
extent otherwise included in the calculations thereof.

     

    “Consolidated Net
Income” shall mean, for any period, the consolidated net after tax income
of the Borrower and its Subsidiaries for such period determined in accordance
with GAAP; provided that solely for any calculation of the “Permitted Dividend
Amount” and “Consolidated EBIT” the “Consolidated Net Income” component of
"Available Cash" shall not include any gains or losses arising from any Interest
Rate Protection Agreement and Other Hedging Agreements.

     

    “Consolidated Net
Indebtedness” shall mean, as at any date of determination, the remainder
of (i) the Consolidated Indebtedness on such date minus (ii) the
aggregate amount of Unrestricted cash and Cash Equivalents of the Borrower and
its Subsidiaries on such date.

     

    “Consolidated Net
Worth” shall mean the Net Worth of the Borrower and its Subsidiaries
determined on a consolidated basis in accordance with GAAP after appropriate
deduction for any minority interests in Subsidiaries.

     

    “Contingent
Obligation” shall mean, as to any Person, any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness, leases, dividends or
other obligations (“primary obligations”)
of any other Person (the “primary obligor”) in
any manner, whether directly or indirectly, including, without limitation, any
obligation of such Person, whether or not contingent, (i) to purchase any
such primary obligation or any property constituting direct or indirect security
therefore, (ii) to advance or supply funds (x) for the purchase or
payment of any such primary obligation or (y) to maintain working capital
or equity capital of the primary obligor or otherwise to maintain the net worth
or solvency of the primary obligor, (iii) to purchase property, securities
or services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the holder of such
primary obligation against loss in respect thereof; provided, however, that the
term Contingent Obligation shall not include endorsements of instruments for
deposit or collection in the ordinary course of business and any products
warranties extended in the ordinary course of business.  The amount of
any Contingent Obligation shall be deemed to be an amount equal to the stated or
determinable amount of the primary obligation in respect of which such
Contingent Obligation is made (or, if the less, the maximum amount of such
primary obligation for which such Person may be liable pursuant to the terms of
the instrument evidencing such Contingent Obligation) or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such Person is required to perform thereunder) as determined by such
Person in good faith.

     

    “Credit Documents”
shall mean this Agreement, each Note, each Security Document, the Guaranty and,
after the execution and delivery thereof, each additional guaranty or additional
security document executed pursuant to Section 8.11.

     

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

     

     

    “Credit Party” shall
mean the Borrower, each Subsidiary Guarantor, and any other Subsidiary of the
Borrower which at any time executes and delivers any Credit
Document.

     

    “Default” shall mean
any event, act or condition which with notice or lapse of time, or both, would
constitute an Event of Default.

     

    “Dividend” with
respect to any Person shall mean that such Person has declared or paid a
dividend or returned any equity capital to its stockholders, partners or members
or authorized or made any other distribution, payment or delivery of property
(other than common stock or the right to purchase any of such stock of such
Person) or cash to its stockholders, partners or members as such, or redeemed,
retired, purchased or otherwise acquired, directly or indirectly, for a
consideration any shares of any class of its capital stock or partnership or
membership interests outstanding on or after the Effective Date (or any options
or warrants issued by such Person with respect to its capital stock), or set
aside any funds for any of the foregoing purposes, or shall have permitted any
of its Subsidiaries to purchase or otherwise acquire for a consideration any
shares of any class of the capital stock of, or equity interests in, such Person
outstanding on or after the Effective Date (or any options or warrants issued by
such Person with respect to its capital stock or other equity
interests).  Without limiting the foregoing, “Dividends” with
respect to any Person shall also include all payments made or required to be
made by such Person with respect to any stock appreciation rights, plans, equity
incentive or achievement plans or any similar plans or setting aside of any
funds for the foregoing purposes.

     

    “DOC” means a document
of compliance issued to an Operator in accordance with Rule 13 of the ISM
Code.

     

    “Dollars” and the sign
“$” shall each
mean lawful money of the United States.

     

    “Earnings and Insurance
Collateral” shall mean all “Earnings Collateral” and “Insurance
Collateral”, as the case may be, as defined in the respective Assignment of
Earnings and the Assignment of Insurances.

     

    “Effective Date” shall
have the meaning provided in Section 13.10.

     

    “Eligible Transferee”
shall mean and include a commercial bank, insurance company, financial
institution, fund or other Person which regularly purchases interests in loans
or extensions of credit of the types made pursuant to this Agreement, any other
Person which would constitute a “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act as in effect on the Effective Date
or other “accredited investor” (as defined in Regulation D of the Securities
Act).

     

    “Environmental Claims”
shall mean any and all administrative, regulatory or judicial actions, suits,
demands, demand letters, directives, claims, liens, notices of noncompliance or
violation, investigations or proceedings relating in any way to any
Environmental Law or any permit issued, or any approval given, under any such
Environmental Law (hereafter, “Claims”), including,
without limitation, (a) any and all Claims by governmental or regulatory
authorities for enforcement, cleanup, removal, response, remedial or other
actions

     

     

     

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

     

     

    or
damages pursuant to any applicable Environmental Law, and (b) any and all
Claims by any third party seeking damages, contribution, indemnification, cost
recovery, compensation or injunctive relief in connection with alleged injury or
threat of injury to health, safety or the environment due to the presence of
Hazardous Materials.

     

    “Environmental Law”
shall mean any applicable Federal, state, foreign or local statute, law, rule,
regulation, ordinance, code, binding and enforceable guideline, binding and
enforceable written policy and rule of common law now or hereafter in effect and
in each case as amended, and any judicial or administrative interpretation
thereof, including any judicial or administrative order, consent decree or
judgment, to the extent binding on the Borrower or any of its Subsidiaries,
relating to the environment, and/or Hazardous Materials, including, without
limitation, CERCLA; OPA; the Federal Water Pollution Control Act, 33 U.S.C.
§ 1251 et
seq.; the
Hazardous Material Transportation Act, 49 U.S.C. § 1801 et seq.; the
Occupational Safety and Health Act, 29 U.S.C. § 651 et seq. (to the extent
it regulates occupational exposure to Hazardous Materials); and any state and
local or foreign counterparts or equivalents, in each case as amended from time
to time.

     

    “Environmental
Release” shall mean any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping, disposing or
migration into the environment.

     

    “Equity Interests” of
any Person means any and all shares, interests, rights to purchase, warrants,
options, participations or other equivalents of or interests in (however
designated) equity of such Person, including any preferred stock, any limited or
general partnership interest and any limited liability company membership
interest.

     

    “ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and the regulations promulgated and rulings issued
thereunder.  Section references to ERISA are to ERISA, as in effect at
the date of this Agreement and any subsequent provisions of ERISA, amendatory
thereof, supplemental thereto or substituted therefore.

     

    “ERISA Affiliate”
shall mean each person (as defined in Section 3(9) of ERISA) which together with
the Borrower or a Subsidiary of the Borrower would be deemed to be a “single
employer” within the meaning of Section 414(b), (c), (m) or (o) of the
Code.

     

    “Event of Default”
shall have the meaning provided in Section 10.

     

    “Event of Loss” shall
mean any of the following events:  (x) the actual or constructive
total loss of a Vessel or the agreed or compromised total loss of a Vessel; or
(y) the capture, condemnation, confiscation, requisition, purchase, seizure
or forfeiture of, or any taking of title to, a Vessel.  An Event of
Loss shall be deemed to have occurred:  (i) in the event of an
actual loss of a Vessel, at the time and on the date of such loss or if that is
not known at noon Greenwich Mean Time on the date which such Vessel was last
heard from; (ii) in the event of damage which results in a constructive or
compromised or arranged total loss of a Vessel, at the

     

     

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

    

     

     

    time and
on the date of the event giving rise to such damage; or (iii) in the case
of an event referred to in clause (y) above, at the time and on the date on
which such event is expressed to take effect by the Person taking such
action.  Notwithstanding the foregoing, if such Vessel shall have been
returned to any Credit Party following any event referred to in clause
(y) above prior to the date upon which a mandatory repayment of the Loans
is required to be made under Section 4.02 hereof, no Event of Loss shall be
deemed to have occurred by reason of such event.

     

    “Exchange Act” shall
mean the Securities Exchange Act of 1934.

     

    “Existing Credit
Facility” shall mean the Senior Secured Revolving Credit Agreement among,
inter alios, Genco
Shipping & Trading Limited and DnB NOR Bank ASA, New York Branch, as
Administrative Agent, Collateral Agent, Mandated Lead Arranger and Bookrunner
dated as of July 20, 2007.

     

    “Facility Amount”
shall mean the amount of the credit facility granted by the Lenders to the
Borrower pursuant to this Credit Agreement available to the Borrower from time
to time pursuant to the terms hereof in principal amount at no time to exceed
Three Hundred Twenty Million United States Dollars
(US$320,000,000).

     

    “Federal Funds Rate”
shall mean, for any day, an interest rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as
published for such day (or, if such day is not a Business Day, for the
immediately preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 11:00 A.M. (New York time) on such
day on such transactions received by the Administrative Agent from three Federal
funds brokers of recognized standing selected by the Administrative Agent in its
sole discretion.

     

    “Fee Letter” shall
mean the mandate letter dated July __, 2008 entered into by and between the
Borrower and the Mandated Lead Arrangers in respect of the fees to be paid by
the Borrower.

     

    “Final Payment” means
the amount equal to the sum of (i) the Balloon Payment plus (ii) the amount
which is necessary to repay accrued but unpaid interest and (iii) any other
amounts owing by the Borrower to the Lenders necessary to reduce the Facility to
zero on the Maturity Date pursuant to this Agreement or any Security
Document.

     

    “Flag Jurisdiction
Transfer” shall mean the transfer of the registration and flag of a
Vessel from one Acceptable Flag Jurisdiction to another Acceptable Flag
Jurisdiction, provided that the following conditions are satisfied with respect
to such transfer:

     

    (i) On each
Flag Jurisdiction Transfer Date, the Credit Party which is consummating a Flag
Jurisdiction Transfer on such date shall have duly authorized, executed and
delivered, and caused to be recorded in the appropriate vessel registry a Vessel
Mortgage with respect to the Vessel being transferred (the “Transferred Vessel”)
and such Vessel Mortgage shall be effective to create in

     

     

    
      
        
        

      

      
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    favor of
the Collateral Agent and/or the Lenders a legal, valid and enforceable first
priority security interest, in and lien upon such Transferred Vessel, subject
only to Permitted Liens.  All filings, deliveries of instruments and
other actions necessary or desirable in the reasonable opinion of the Collateral
Agent to perfect and preserve such security interests shall have been duly
effected and the Collateral Agent shall have received evidence thereof in form
and substance reasonably satisfactory to the Collateral Agent.

     

    (ii) On each
Flag Jurisdiction Transfer Date, the Administrative Agent shall have received
from counsel to the Credit Parties consummating the relevant Flag Jurisdiction
Transfer reasonably satisfactory to the Administrative Agent practicing in those
jurisdictions in which the Transferred Vessel is registered and/or the Credit
Party owning such Transferred Vessel is organized, opinions which shall be
addressed to the Administrative Agent and each of the Lenders and dated such
Flag Jurisdiction Transfer Date, which shall (x) be in form and substance
reasonably acceptable to the Administrative Agent and (y) cover the
perfection of the security interests granted pursuant to the Vessel Mortgage(s)
and such other matters incident thereto as the Administrative Agent may
reasonably request.

     

    (iii) On each
Flag Jurisdiction Transfer Date:

     

    (A) The
Administrative Agent shall have received (x) certificates of ownership from
appropriate authorities showing (or confirmation updating previously reviewed
certificates and indicating) the registered ownership of the Transferred Vessel
transferred on such date by the relevant Subsidiary Guarantor and (y) the
results of maritime registry searches with respect to the Transferred Vessel
transferred on such date, indicating no record liens other than Liens in favor
of the Collateral Agent and/or the Lenders and Permitted Liens; and

     

    (B) The
Administrative Agent shall have received a report, in form and scope reasonably
satisfactory to the Administrative Agent, from a firm of independent marine
insurance brokers reasonably acceptable to the Administrative Agent with respect
to the insurance maintained by the Credit Party in respect of the Transferred
Vessel transferred on such date, together with a certificate from such broker
certifying that such insurances (i) are placed with such insurance
companies and/or underwriters and/or clubs, in such amounts, against such risks,
and in such form, as are customarily insured against by similarly situated
insureds for the protection of the Administrative Agent and/or the Lenders as
mortgagee and (ii) conform with the insurance requirements of the
respective Vessel Mortgages.

     

    (iv) On or
prior to each Flag Jurisdiction Transfer Date, the Administrative Agent shall
have received a certificate, dated the Flag Jurisdiction Transfer Date, signed
by an Authorized Officer, member or general partner of the Credit
Party

     

     

    
      
        
        

      

      
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    consummating
such Flag Jurisdiction Transfer, certifying that (A) all necessary
governmental (domestic and foreign) and third party approvals and/or consents in
connection with the Flag Jurisdiction Transfer being consummated on such date
and otherwise referred to herein shall have been obtained and remain in effect,
(B) there exists no judgment, order, injunction or other restraint
prohibiting or imposing materially adverse conditions upon such Flag
Jurisdiction Transfer or the other transactions contemplated by this Agreement
and (C) copies of resolutions approving the Flag Jurisdiction Transfer of
such Credit Party and any other matters the Administrative Agent may reasonably
request.

     

    (v) On each
Flag Jurisdiction Transfer Date, the Administrative Agent shall have received
such other agreements, documents and certificates as it shall have reasonably
requested.

     

    “Flag Jurisdiction Transfer
Date” shall mean the date on which a Flag Jurisdiction Transfer
occurs.

     

    “Fleet Maintenance
Reserve” shall mean for a fiscal quarter one quarter of the Annual Fleet
Maintenance Reserve Amount for the fiscal year in which such fiscal quarter
occurs.

     

    “Fleet Renewal
Reserve” shall mean for a fiscal quarter one quarter of the Annual Fleet
Reserve Renewal Amount for the fiscal year in which such fiscal quarter
occurs.

     

    “Foreign Pension Plan”
shall mean any plan, fund (including, without limitation, any superannuation
fund) or other similar program established or maintained outside the United
States of America by the Borrower or any one or more of its Subsidiaries
primarily for the benefit of employees of the Borrower or such Subsidiaries
residing outside the United States of America, which plan, fund or other similar
program provides, or results in, retirement income, a deferral of income in
contemplation of retirement or payments to be made upon termination of
employment, and which plan is not subject to ERISA or the Code.

     

    “GAAP” shall have the
meaning provided in Section 13.07(a).

     

    “Guaranty” shall have
the meaning provided in Section 5.03.

     

    “Hazardous Materials”
shall mean: (a) any petroleum or petroleum products, radioactive materials,
asbestos in any form that is or could become friable, urea formaldehyde foam
insulation, transformers or other equipment that contain dielectric fluid
containing levels of polychlorinated biphenyls, and radon gas; (b) any
chemicals, materials or substances defined as or included in the definition of
“hazardous substances,” “hazardous waste,” “hazardous materials,” “extremely
hazardous substances,” “restricted hazardous waste,” “toxic substances,” “toxic
pollutants,” “contaminants,” or “pollutants,” or words of similar import, under
any applicable Environmental Law; and (c) any other chemical, material or
substance, exposure to which is prohibited, limited or regulated by any
governmental authority under Environmental Laws.

     

     

     

    
      
        
        

      

      
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    “IAPPC” shall mean a
valid international air pollution prevention certificate for a vessel issued
under Annex VI.

     

    “Indebtedness” shall
mean, as to any Person, without duplication, (i) all indebtedness
(including principal, interest, fees and charges) of such Person for borrowed
money or for the deferred purchase price of property or services, (ii) the
maximum amount available to be drawn under all letters of credit (including
letters of credit) issued for the account of such Person and all unpaid drawings
(including unpaid drawings) in respect of such letters of credit, (iii) all
Indebtedness of the types described in clause (i), (ii), (iv), (v), (vi) or
(vii) of this definition secured by any Lien on any property owned by such
Person, whether or not such Indebtedness has been assumed by such Person (to the
extent of the value of the respective property), (iv) the aggregate amount
required to be capitalized under leases under which such Person is the lessee,
(v) all obligations of such person to pay a specified purchase price for
goods or services, whether or not delivered or accepted, i.e., take-or-pay and
similar obligations, (vi) all Contingent Obligations of such Person and
(vii) all obligations under any Interest Rate Protection Agreement or Other
Hedging Agreement or under any similar type of agreement; provided that
Indebtedness shall in any event not include trade payables and expenses accrued
in the ordinary course of business.

     

    “Initial Borrowing
Date” shall mean the date occurring on or after the Effective Date on
which the initial Borrowing of Loans hereunder occurs.

     

    “Interest Determination
Date” shall mean, with respect to any Loan, the second Business Day prior
to the commencement of any Interest Period relating to such Loan.

     

    “Initial Payment Date”
shall mean June 30, 2009.

     

    “Interest Period”
shall have the meaning provided in Section 1.08.

     

    “Interest Rate Protection
Agreement” shall mean any interest rate swap agreement, interest rate cap
agreement, interest collar agreement, interest rate hedging agreement, interest
rate floor agreement or other similar agreement or arrangement.

     

    “Investments” shall
have the meaning provided in Section 9.05.

     

    “ISM Code” means in
relation to its application the Shipowner, the Vessel and its
operation:

     

    (a) ‘The
International Management Code for the Safe Operation of Ships and for Pollution
Prevention’, currently known or referred to as the ‘ISM Code’, adopted by the
Assembly of the International Maritime Organization by Resolution A.741(18) on 4
November 1993 and incorporated on 19 May 1994 into Chapter IX of the
International Convention for the Safety of Life at Sea 1974 (SOLAS 1974);
and

     

     

    
      
        
        

      

      
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    (b) all
further resolutions, circulars, codes, guidelines, regulations and
recommendations which are now or in the future issued by or on behalf of the
International Maritime Organization or any other entity with responsibility for
implementing the ISM Code, including without limitation, the ‘Guidelines on
implementation or administering of the International Safety Management (ISM)
Code by Administrations’ produced by the International Maritime Organization
pursuant to Resolution A.788(19) adopted on 25 November 1995,

     

    as the
same may be amended, supplemented or replaced from time to time.

     

    “ISPS Code” means the
International Ship and Port Facility Security Code constituted pursuant to
resolution A.924(22) of the International Maritime Organization (“IMO”) adopted
by a Diplomatic conference of the IMO on Maritime Security on 13 December 2002
and now set out in Chapter XI-2 of the Safety of Life at Sea Convention (SOLAS)
1974 (as amended) adopted on July 1, 2004.

     

    “ISSC” shall mean a
valid and current International Ship Security Certificate issued under the ISPS
Code.

     

    “Leaseholds” of any
Person means all the right, title and interest of such Person as lessee or
licensee in, to and under leases or licenses of land, improvements and/or
fixtures.

     

    “Lender” shall mean
each financial institution listed on Schedule I, as well as any Person which
becomes a “Lender” hereunder
pursuant to 13.04(b).

     

    “Lender Default” shall
mean (i) the refusal (which has not been retracted) or other failure (which
has not been cured) of a Lender to make available its portion of any Borrowing
required to be made in accordance with the terms of this Agreement as then in
effect or (ii) a Lender having notified in writing the Borrower and/or the
Administrative Agent that it does not intend to comply with its obligations
under Section 1.01.

     

    “Leverage Ratio” shall
mean, at any date of determination, the ratio of Average Consolidated Net
Indebtedness on such date of determination to Consolidated EBITDA for the most
recently ended Test Period.

     

    “LIBOR” shall mean the
rate for deposits of Dollars for a period equivalent to the relevant Interest
Period at or about 11:00 a.m. (London time) on the second London Banking
Day before the first day of such period as set by the British Bankers’
Association as published on Reuters screen BBALIBORS; provided that if on
such date no such rate is available from the British Bankers’ Association for
the relevant Interest Period, LIBOR for such period shall be the arithmetic
mean (rounded upward to four decimal places) of the rates respectively
quoted by the Mandated Lead Arrangers (including, without limitation, Nordea) to
the Administrative Agent as the offered rate for deposits of Dollars in an
amount approximately equal to the amount in relation to which LIBOR is to be
determined for a period equivalent to the relevant Interest Period to prime
banks in the London Interbank Market at or about 11:00 a.m. (London time)
on the second Banking Day before the first day of such period.

     

     

     

    
      
        
        

      

      
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    “Lien” shall mean any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), preference, priority or other security agreement of
any kind or nature whatsoever (including, without limitation, any conditional
sale or other title retention agreement, any financing or similar statement or
notice filed under the UCC or any other similar recording or notice statute, and
any lease having substantially the same effect as any of the
foregoing).

     

    “Loan” shall have the
meaning provided in Section 1.01.

     

    “Management
Agreements” shall have the meaning provided in Section
5.09(i).

     

    “Mandated Lead
Arranger” shall have the meaning provided in the first paragraph of the
Recital of this Agreement.

     

    “Margin Stock” shall
have the meaning provided in Regulation U.

     

    “Material Adverse
Effect” shall mean a material adverse effect on the (i) Transaction,
(ii) business, property, assets, liabilities, condition (financial or
otherwise), operations or prospects (x) of the Vessels or (y) the
Borrower and the Subsidiary Guarantors taken as a whole, (iii) the
rights and remedies of the Administrative Agent or the Lenders or (iv) the
ability of any Credit Party to perform its obligations under the Credit
Documents to which it is a party.

     

    “Maturity Date” shall
mean the Earlier of (i) the fifth anniversary of the Initial Borrowing Date and
(ii) December 31, 2013.

     

     “Minimum Consolidated Net
Worth” shall mean not less than US$263,300,000 plus 80% of the Net
Proceeds received as a result of any new equity issues by the Borrower from and
after June 30, 2007.

     

    “Moody’s” shall mean
Moody’s Investors Service, Inc. and its successors.

     

     “Multiemployer Plan”
shall mean a Plan which is defined in Section 3(37) of ERISA.

     

    “NAIC” shall mean the
National Association of Insurance Commissioners (and its successors from time to
time).

     

    “Net Worth” shall
mean, as to any Person, the sum of its capital stock, capital in excess of par
or stated value of shares of its capital stock, retained earnings and any other
account which, in accordance with GAAP, constitutes stockholders’ equity, but
excluding any treasury stock.

     

    “Note” shall have the
meaning provided in Section 1.05(a).

     

    “Notice of Borrowing”
shall have the meaning provided in Section 1.03(a).

     

     

     

    
      
        
        

      

      
        A-15

        
          

        

      

      
        
        

      

    

     

     

    “Notice Office” shall
mean the office of the Administrative Agent located at 437 Madison Avenue, New
York, NY 10022, or such other office as the Administrative Agent may hereafter
designate in writing as such to the other parties hereto.

     

    “Obligations” shall
mean all amounts owing to the Administrative Agent, the Collateral Agent, each
Issuing Lender or any Lender pursuant to the terms of this Agreement or any
other Credit Document.

     

    “OPA” shall mean the
Oil Pollution Act of 1990, as amended, 33 U.S.C. § 2701 et seq.

     

    “Operating Account”
shall mean all of the Subsidiary Guarantors’ deposit accounts maintained with
Nordea Bank Finland PLC, New York Branch or any other financial institution
reasonably acceptable to the Administrative Agent.

     

    “Operator” shall mean,
in respect of the Vessel, the Person who is concerned with the operation of the
Vessel and falls within the definition of “Company” set out in Rule 1.1.2 of the
ISM Code

     

    “Other Hedging
Agreement” shall mean any foreign exchange contracts, currency swap
agreements, commodity agreements, forward freight agreements or other similar
agreements or arrangements designed to protect against the fluctuations in
currency or commodity values.

     

    “PATRIOT Act” shall
have the meaning provided in Section 13.21.

     

    “Payment Date” shall
mean the last Business Day of each June and December, commencing with June 30,
2009 and through, and including, the Maturity Date.

     

    “Payment Office” shall
mean the office of the Administrative Agent located at 437 Madison Avenue, New
York, NY 10022, or such other office as the Administrative Agent may hereafter
designate in writing as such to the other parties hereto.

     

    “PBGC” shall mean the
Pension Benefit Guaranty Corporation established pursuant to Section 4002 of
ERISA, or any successor thereto.

     

    “Permitted Dividend
Amount” shall mean, for each fiscal quarter of the Borrower, (i) the sum
of (x) Available Cash for such fiscal quarter and (y) the Permitted Dividend
Carry Forward Amount for the immediately preceding fiscal quarter minus (ii) the sum of
(a) the Fleet Maintenance Reserve for such fiscal quarter (b) the Fleet Renewal
Reserve for such fiscal quarter, and (c) Consolidated Interest Expense for such
fiscal quarter; provided that the aggregate
amount of all Dividends made pursuant to sub-clause (y) and Sections 9.03(ii)
and (iii) shall not exceed US$150,000,000.

     

    “Permitted Dividend Carry
Forward Amount” shall mean (i) for the fiscal quarter ending June 30,
2005, zero, and (ii) for each fiscal quarter thereafter, the Permitted
Dividend

     

     

     

    
      
        
        

      

      
        A-16

        
          

        

      

      
        
        

      

    

     

     

    Amount
for such fiscal quarter; provided that, to the extent
the Permitted Dividend Amount for any fiscal quarter is a positive amount, only
the portion of the Permitted Dividend Amount that has not been distributed as a
Dividend pursuant to Sections 9.03(ii) and (iii) shall be included in the
calculation of this clause (ii).

     

    “Permitted
Encumbrance” shall mean easements, rights-of-way, restrictions,
encroachments, exceptions to title and other similar charges or encumbrances on
any Vessel or any other property of the Borrower or any of its Subsidiaries
arising in the ordinary course of business which do not materially detract from
the value of such Vessel or the property subject thereto.

     

    “Permitted Holders”
shall mean (i) Peter Georgiopoulos (including his immediate family members
and trusts for his benefit and/or for the benefit of his immediate family
members) and any corporation or other entity directly or indirectly controlled
by Peter Georgiopoulos and (ii) Oaktree Capital Management, LLC and any
corporation or other entity directly or indirectly controlled by Oaktree Capital
Management, LLC.

     

    “Permitted Liens”
shall have the meaning provided in Section 9.01.

     

    “Person” shall mean
any individual, partnership, joint venture, firm, corporation, association,
trust or other enterprise or any government or political subdivision or any
agency, department or instrumentality thereof.

     

    “Plan” shall mean any
pension plan as defined in Section 3(2) of ERISA, which is maintained or
contributed to by (or to which there is an obligation to contribute of) the
Borrower or a Subsidiary of the Borrower or any ERISA Affiliate, and each such
plan for the five-year period immediately following the latest date on which the
Borrower, or a Subsidiary of the Borrower or any ERISA Affiliate maintained,
contributed to or had an obligation to contribute to such plan.

     

    “Pledge Agreement”
shall have the meaning provided in Section 5.04.

     

    “Pledge Agreement
Collateral” shall mean all “Collateral” as defined in the Pledge
Agreements.

     

    “Pledged Securities”
shall mean “Securities” as defined in the Pledge Agreements pledged (or required
to be pledged) pursuant thereto.

     

    “Prime Rate” shall
mean the rate which the Administrative Agent announces from time to time as its
prime lending rate, the Prime Rate to change when and as such prime lending rate
changes.  The Prime Rate is a reference rate and does not necessarily
represent the lowest or best rate actually charged to any customer. The
Administrative Agent may make commercial loans or other loans at rates of
interest at, above or below the Prime Rate.

     

    “Purchase Contract”
means one or more of the Memoranda of Agreement entered into by the Borrower or
a Subsidiary Guarantor in respect of the Vessels.

     

     

     

    
      
        
        

      

      
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    “Real Property” of any
Person shall mean all the right, title and interest of such Person in and to
land, improvements and fixtures, including Leaseholds.

     

    “Register” shall have
the meaning provided in Section 13.17.

     

    “Regulation D” shall
mean Regulation D of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor to all or a portion thereof
establishing reserve requirements.

     

    “Regulation T” shall
mean Regulation T of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor to all or a portion
thereof.

     

    “Regulation U” shall
mean Regulation U of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor to all or a portion
thereof.

     

    “Regulation X” shall
mean Regulation X of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor to all or a portion
thereof.

     

    “Replaced Lender”
shall have the meaning provided in Section 1.12.

     

    “Replacement Lender”
shall have the meaning provided in Section 1.12.

     

    “Reportable Event”
shall mean an event described in Section 4043(c) of ERISA with respect to a Plan
that is subject to Title IV of ERISA other than those events as to which the
30-day notice period is waived under subsection .22, .23, .25, .27 or .28 of
PBGC Regulation Section 4043.

     

    “Required Lenders”
shall mean Lenders the sum of whose outstanding Commitments (or, after the
termination thereof, the then principal amount of all outstanding Loans) at such
time represent 50% of the Total Commitment at such time (or, after termination
thereof, the then principal amount of all outstanding Loans); provided that in the
event the Bookrunners have Commitments, in the aggregate, constituting 50% or
more of the Total Commitment, Required Lenders shall mean Lenders the sum of
whose Commitments at such time represents 66 2/3% of the Total Commitment (or
after termination thereof, the then principal amount of all outstanding
Loans).

     

    “Restricted” shall
mean, when referring to cash or Cash Equivalents of the Borrower or any of its
Subsidiaries, that such cash or Cash Equivalents (i) appears (or would be
required to appear) as “restricted” on a consolidated balance sheet of the
Borrower or of any such Subsidiary (unless such appearance is related to the
Credit Documents or Liens created thereunder), (ii) are subject to any Lien in
favor of any Person other than the Collateral Agent for the benefit of the
Secured Creditors or (iii) are not otherwise generally available for use by the
Borrower or such Subsidiary.

     

     

     

    
      
        
        

      

      
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    “Returns” shall have
the meaning provided in Section 7.09.

     

    “S&P” shall mean
Standard & Poor’s Rating Services, a division of the McGraw-Hill Companies,
Inc., and its successors.

     

    “Secured Creditors”
shall mean the “Secured Creditors” as defined in the Security
Documents.

     

    “Securities Act” shall
mean the Securities Act of 1933, as amended.

     

    “Security Documents”
shall mean each Pledge Agreement, each Assignment of Earnings, each Assignment
of Insurances, each Assignment of Charters, each Vessel Mortgage and, after the
execution and delivery thereof, each additional security document executed
pursuant to Section 8.11.

     

    “Service Agreements”
shall have the meaning provided in Section 5.09(ii).

     

    “Shareholder Rights
Agreement” shall mean the Shareholders Rights Agreement entered into as
of March 1, 2007 by and between the Borrower and Mellon Investor Services LLC, a
New Jersey limited liability company, as Rights Agent without giving effect to
any amendments, modifications or supplements thereto.

     

    “SMC” means a safety
management certificate issued in respect of the Collateral Rigs in accordance
with Rule 13 of the ISM Code.

     

    “Subsidiary” shall
mean, as to any Person, (i) any corporation more than 50% of whose stock of
any class or classes having by the terms thereof ordinary voting power to elect
a majority of the directors of such corporation (irrespective of whether or not
at the time stock of any class or classes of such corporation shall have or
might have voting power by reason of the happening of any contingency) is at the
time owned by such Person and/or one or more Subsidiaries of such Person and
(ii) any partnership, limited liability company, association, joint venture
or other entity in which such Person and/or one or more Subsidiaries of such
Person has more than a 50% equity interest at the time.

     

    “Subsidiary Guarantor”
shall mean each direct and indirect Subsidiary of the Borrower listed in
Schedule III of this Credit Agreement which owns a Vessel and is party to the
Guaranty, or which executes a counterpart thereof after the Effective
Date.

     

    “Tax Benefit” shall
have the meaning provided in Section 3.05(c).

     

    “Taxes” shall have the
meaning provided in Section 3.05(a).

     

    “Test Period” shall
mean each period of four consecutive fiscal quarters then last ended, in each
case taken as one accounting period, provided that in the case of any first
quarter ending prior to December 31, 2008, the “Test Period” shall be the period
commencing on January 1, 2008 and ending on the last day of such fiscal
quarter.

     

     

     

    
      
        
        

      

      
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    “Total Commitment”
shall mean, at any time, the sum of the Commitments of each of the Lenders at
such time.

     

    “Total Facility
Amount” has the meaning provided in the second (2nd)
recital paragraph.

     

    “Transaction” shall
mean, collectively, (i)  the entering into of the Credit Documents and the
incurrence of Loans hereunder, and (ii) the payment of all fees and
expenses in connection with the foregoing.

     

    “Transferred Vessel”
shall have the meaning provided in the definition of “Flag Jurisdiction
Transfer” in this Appendix A.

     

    “UCC” shall mean the
Uniform Commercial Code as from time to time in effect in the relevant
jurisdiction.

     

    “Unfunded Current
Liability” of any Plan shall mean the amount, if any, by which the value
of the accumulated plan benefits under the Plan determined on a plan termination
basis in accordance with actuarial assumptions at such time consistent with
those prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds the
fair market value of all plan assets allocable to such liabilities under Title
IV of ERISA (excluding any accrued but unpaid contributions).

     

    “United States” and
“U.S.” shall
each mean the United States of America.

     

    “Unrestricted” shall
mean, when referring to cash or Cash Equivalents of the Borrower or any of its
Subsidiaries, that such cash or Cash Equivalents are not
Restricted.

     

    “Unutilized
Commitment” shall mean, with respect to any Lender, at any time, an
amount equal to (i) such Lender’s Commitment at such time, less
(ii) the sum of the aggregate principal amount of Loans made by such Lender
then outstanding.

     

    “Vessel” shall mean
the six (6) dry-bulk carriers listed in Schedule III hereto.

     

    “Vessel Acquisition”
shall mean the acquisition of each of the Vessels.

     

    “Vessel Exchange”
shall mean the exchange of a Vessel for another vessel which vessel shall
constitute an Acceptable Replacement Vessel and provided that the following
conditions are satisfied with respect to such exchange:

     

    (i) On each
Vessel Exchange Date, if the Subsidiary owning the Acceptable Replacement Vessel
is not a Credit Party, (A) such Subsidiary shall (1) grant to the
Collateral Agent a first priority Lien (subject only to Permitted Liens) on all
property of such Subsidiary by executing and delivering a counterpart of the
Pledge Agreement, taking all actions required pursuant to Section 25 of the
Pledge Agreement to become a Pledgor thereunder, and taking any other
action

     

     

     

    
      
        
        

      

      
        A-20

        
          

        

      

      
        
        

      

    

     

     

    reasonably
requested by the Administrative Agent and (2) execute and deliver a
counterpart of the Guaranty and (B) the Borrower shall pledge and deliver,
or cause to be pledged and delivered, all of the capital stock of such
Subsidiary owned by any Credit Party to the Collateral Agent.

     

    (ii) On each
Vessel Exchange Date, the Administrative Agent shall have received from counsel
to the Credit Parties acceptable to the Administrative Agent consummating the
relevant Vessel Exchange opinions reasonably satisfactory to the Administrative
Agent practicing in those jurisdictions in which the Acceptable Replacement
Vessel is registered and/or the Credit Party owning such Acceptable Replacement
Vessel is organized, which opinions shall be addressed to the Administrative
Agent and each of the Lenders and dated such Vessel Exchange Date, which shall
(x) be in form and substance reasonably acceptable to the Administrative
Agent and (y) cover the perfection of the security interests granted
pursuant to the Vessel Mortgage(s) and such other matters incident thereto as
the Administrative Agent may reasonably request.

     

    (iii) On each
Vessel Exchange Date, the Credit Party which is consummating a Vessel Exchange
on such date shall have duly authorized, executed and delivered an Assignment of
Earnings, an Assignment of Insurances, and (if applicable) an Assignment of
Charters, together covering all of such Credit Party’s present and future
Earnings and Insurance Collateral, in each case together with:

     

    (A) proper
Financing Statements (Form UCC-1) fully executed for filing under the UCC or in
other appropriate filing offices of each jurisdiction as may be necessary or, in
the reasonable opinion of the Collateral Agent, desirable to perfect the
security interests purported to be created by the Assignment of Earnings, the
Assignment of Insurances and the Assignment of Charters;

     

    (B) certified
copies of Requests for Information or Copies (Form UCC-11), or equivalent
reports, listing all effective financing statements that name any Credit Party
as debtor and that are filed in the jurisdictions referred to in clause
(A) above, together with copies of such other financing statements (none of
which shall cover the Collateral except to the extent evidencing Permitted Liens
unless in respect of which the Collateral Agent shall have received Form UCC-3
Termination Statements (or such other termination statements as shall be
required by local law) fully executed for filing if required by applicable
laws); and

     

    (C) evidence
that all other actions necessary or, in the reasonable opinion of the Collateral
Agent, desirable to perfect and protect the security interests purported to be
created by the Assignment of Earnings, the Assignment of Insurances and (if
applicable) the Assignment of Charters have been taken.

     

     

     

    
      
        
        

      

      
        A-21

        
          

        

      

      
        
        

      

    

     

     

    (iv) On each
Vessel Exchange Date, the Credit Party which is consummating a Vessel Exchange
on such date shall have duly authorized, executed and delivered, and caused to
be recorded in the appropriate vessel registry a Vessel Mortgage with respect to
each of such Acceptable Replacement Vessel and such Vessel Mortgages shall be
effective to create in favor of the Collateral Agent and/or the Lenders a legal,
valid and enforceable first priority security interest, in and lien upon such
Acceptable Replacement Vessels, subject only to Permitted
Liens.  Except as specifically provided above, all filings, deliveries
of instruments and other actions necessary or desirable in the reasonable
opinion of the Administrative Agent to perfect and preserve such security
interests shall have been duly effected and the Administrative Agent shall have
received evidence thereof in form and substance reasonably satisfactory to the
Administrative Agent.

     

    (v) On each
Vessel Exchange Date, the Administrative Agent shall have received each of the
following with respect to the relevant Acceptable Replacement
Vessel:

     

    (A) certificates
of ownership from appropriate authorities showing (or confirmation updating
previously reviewed certificates and indicating) the registered ownership of
such Acceptable Replacement Vessel by the relevant Subsidiary
Guarantor,

     

    (B) the
results of maritime registry searches with respect to such Acceptable
Replacement Vessel, indicating no record liens other than Liens in favor of the
Collateral Agent and/or the Lenders and Permitted Liens,

     

    (C) class
certificates from a classification society listed on Schedule VIII hereto or
another internationally recognized classification society acceptable to the
Administrative Agent, indicating that such Acceptable Replacement Vessel meets
the criteria specified in Section 7.23,

     

    (D) Appraisals
of recent date and from at least two Approved Appraisers in scope, form and
substance reasonably satisfactory to the Administrative Agent, and

     

    (E) a report,
in form and scope reasonably satisfactory to the Administrative Agent, from a
firm of independent marine insurance brokers reasonably acceptable to the
Administrative Agent with respect to the insurance maintained by the Credit
Party in respect of such Acceptable Replacement Vessel, together with a
certificate from such broker certifying that such insurances (i) are placed
with such insurance companies and/or underwriters and/or clubs, in such amounts,
against such risks, and in such form, as are customarily insured against by
similarly situated insureds for the protection of the Administrative
Agent

     

     

     

    
      
        
        

      

      
        A-22

        
          

        

      

      
        
        

      

    

     

     

    and/or
the Lenders as mortgagee and (ii) conform with the insurance requirements
of the respective Vessel Mortgages.

     

    (vi) On or
prior to each Vessel Exchange Date:

     

    (A) the
Administrative Agent shall have received a certificate, dated the Vessel
Exchange Date, signed by the senior financial officer of the Borrower which
certificate shall set forth the calculations required to establish whether the
Borrower is in compliance with the provisions of Section 9.09 after giving
effect to such Vessel Exchange,

     

    (B) the
Administrative Agent shall have received a certificate, dated the Vessel
Exchange Date, signed by an Authorized Officer, member or general partner of the
Credit Party commencing such Vessel Exchange, certifying that (1) all
necessary governmental (domestic and foreign) and third party approvals and/or
consents (including any necessary anti-trust approvals or consents) in
connection with the Vessel Exchange being consummated on such date and otherwise
referred to herein shall have been obtained and remain in effect, and all
applicable waiting periods shall have expired without any action being taken by
any competent authority which, in the reasonable judgment of the Administrative
Agent, restrains, prevents or imposes materially adverse conditions upon the
consummation of such Vessel Exchange or the transactions contemplated by this
Agreement and (2) there exists no judgment, order, injunction or other
restraint prohibiting or imposing materially adverse conditions upon such Vessel
Exchange or the other transactions contemplated by this Agreement,
and

     

    (C) the
Administrative Agent shall have received such other documents, certificates and
opinions as it shall have reasonably requested.

     

    “Vessel Exchange Date”
shall mean each date on which a Vessel Exchange is consummated.

     

    “Vessel Mortgage”
shall mean a first preferred mortgage in substantially the form of Exhibit L-1
or L-2, or such other form as may be reasonably satisfactory to the
Administrative Agent, as such first preferred mortgage may be amended, modified
or supplemented from time to time in accordance with the terms hereof and
thereof.

     

    “Wholly-Owned
Subsidiary” shall mean, as to any Person, (i) any corporation 100%
of whose capital stock (other than director’s qualifying shares) is at the time
owned by such Person and/or one or more Wholly-Owned Subsidiaries of such Person
and (ii) any partnership, limited liability company, association, joint
venture or other entity in which such Person and/or one or more Wholly-Owned
Subsidiaries of such Person has a 100% equity interest at such
time.

     

     

    A-23

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     SCHEDULE
I 

     

     

     

    THE LENDERS AND THE
COMMITMENTS

     

    
      	
              Lender

            	 	
              Commitment

            	 
	 	 	 	 	 
	
              NORDEA
      BANK NORGE ASA,

              acting
      through its Cayman Islands branch

            	 	$	103,000,000
    	 
	 	 	 	 	 
	
              BAYERISCHE
      HYPO- UND VEREINSBANK AG

            	 	$	82,000,000
    	 
	 	 	 	 	 
	
              SUMITOMO
      MITSUI BANKING CORPORATION

            	 	$	61,000,000	 
	 	 	 	 	 
	
              DNB
      NOR BANK ASA

            	 	$	41,000,000	 
	 	 	 	 	 
	
              DEUTSCHE
      SCHIFFSBANK AKTIENGESELLSCHAFT

            	 	$	33,000,000	 
	 	 	 	 	 
	
              Totals

            	 	$	320,000,000	 

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
II

     

     

    THE
LENDERS’ ADDRESSES

     

    
      	
              INSTITUTIONS

            	
              ADDRESSES

            
	 	 
	
              NORDEA
      BANK NORGE ASA,

              acting
      through its Cayman Islands branch

            	
              Nordea
      Bank Norge ASA

              437
      Madison Avenue,

              New
      York, NY  10022

              Attn:  Hans
      Kjelsrud

                        Colleen
      Durkin

              Telephone:  (212)
      318-9634

                                   
      (212) 318-9636

              Facsimile:    (212)
      421-4420

              e-mail:  hans.kjelsrud@nordea.com

                           colleen.durkin@nordea.com

            
	 	 
	
              BAYERISCHE
      HYPO- UND VEREINSBANK AG

            	
              Bayerische
      Hypo- Und Vereinsbank AG

              Alter
      Wall 22

              20457
      Hamburg

              Germany

              Attention:  Stephan
      Somitsch

              Telephone:
      +49 40 3692 4625

              Facsimile:
      +49 40 3692 3894

              e-mail:

            
	 	 
	
              DNB
      NOR BANK ASA

            	
              DnB
      NOR Bank ASA

              200
      Park Avenue, 31st
      Floor

              New
      York, NY  10166-0396

              Attn:  Nikolai
      Nachamkin

                Cathleen
      Buckley

              Telephone:  (212)-681-3863

                            (212)-681-3861

              Facsimile:    
      (212)-681-3900

              e-mail:  nikolai.nachamkin@dnbnor.no

                   cathleen.buckley@dnbnor.no

            
	 	 
	
              SUMITOMO
      MITSUI BANKING CORPORATION,

              acting
      through its Brussels Branch

            	
              Sumitomo
      Mitsui Banking Corporation,

              acting
      through its Brussels branch

              Avenue
      des Arts 58, Box 18, 1000

              Brussels,
      Belgium

              Attn:  Guillaume
      Dufour

              Telephone
      +33 1 44 71 40 30

              Facsimile:
      +33 1 44 71 40 50

              e-mail:
      guillaume_dufour@fr.smbcgroup.com

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
II

    Page 2

     

    
 

    
      	
              DEUTSCHE
      SCHIFFSBANK AKTIENGESELLSCHAFT

            	
              Deutsche
      Schiffsbank Aktiengesellschaft

              Domshof
      17

              D-28195
      Bremen

              Germany

              Attn:  Dr.
      Matthias Fischer

              Telephone
      +49 421 3609 324

              Facsimile:
      +49 421 3609 329

              e-mail:
      matthias.fischer@schiffsbank.com

            

    

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     SCHEDULE III 

     

     

     

    SUBSIDIARY GUARANTORS,
VESSELS AND ALLOCATED LOAN AMOUNT

    

    

    
      	
              Vessel Name

            	
              Vessel Owner

            	
              Builder

            	
              Builder’s Hull 

              Number

            	 
      	
              Allocated Loan Amount

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              Genco
      Aurelius

            	
              Genco
      Aurelius Limited

            	
              Daehan

            	
              HN1005

            	 
      	
              $81,300,000

            
	
              Genco
      Julian

            	
              Genco
      Julian Limited

            	
              Daehan

            	
              HN1006

            	 
      	
              $74,700,000

            
	
              Genco
      Valerian

            	
              Genco
      Valerian Limited

            	
              Daehan

            	
              HN1007

            	 
      	
              $67,400,000

            
	
              Genco
      Eagle

            	
              Genco
      Eagle Limited

            	
              Jinse

            	
              JS2031

            	 
      	
              $32,200,000

            
	
              Genco
      Falcon

            	
              Genco
      Falcon Limited

            	
              Jinse

            	
              JS2032

            	 
      	
              $32,200,000

            
	
              Genco
      Hawk

            	
              Genco
      Hawk Limited

            	
              Jinse

            	
              JS2033

            	 
      	
              $32,200,000

            

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
SCHEDULE IV

     

     

    INDEBTEDNESS

     

    

     

    That
certain Senior Secured Revolving Credit Agreement among, inter alios, Genco Shipping
& Trading Limited and DnB NOR Bank ASA, New York Branch, as Administrative
Agent, Collateral Agent, Mandated Lead Arranger and Bookrunner dated as of July
20, 2007, of which $1,052,150,000 is currently outstanding.

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     SCHEDULE
V 

     

     

     

    INSURANCE

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     SCHEDULE
VI 

     

     

     

     

     

    
      ERISA

    

     

     

     

    NONE.

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
       SCHEDULE
VII 

    

     

     

     

    SUBSIDIARIES

    

    
      	
               

              Name
      of Subsidiary

            	
               

              Direct
      Owner(s)

            	
              Percent(%)
      

              Ownership

            	
              Jurisdiction
      of

              Organization

            
	 	 	 	 
	
              Genco
      Acheron Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Commander Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Surprise Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Muse Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Pioneer Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Carrier Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Explorer Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Vigour Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Wisdom Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Success Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Sugar Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Beauty Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Knight Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Reliance Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Trader Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Prosperity Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Progress Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Marine Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               

              Name
      of Subsidiary

            	
               

              Direct
      Owner(s)

            	
              Percent(%)
      

              Ownership

            	
              Jurisdiction
      of

              Organization

            
	 

    

    
      	
              Genco
      Leader Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Augustus Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Constantine Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      London Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Maximus Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Tiberius Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Titus Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Cavalier LLC

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Challenger Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Champion Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Charger Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Hunter Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Predator Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Raptor LLC

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Warrior Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Ship Management LLC

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Delaware

            
	 	 	 	 
	
              Genco
      Aurelius Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Julian Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Valerian Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Eagle Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               

              Name
      of Subsidiary

            	
               

              Direct
      Owner(s)

            	
              Percent(%)
      

              Ownership

            	
              Jurisdiction
      of

              Organization

            
	 

    

    
      	
              Genco
      Falcon Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 
      	 
      	 
      	 
      
	
              Genco
      Hawk Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Thunder LLC

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Hadrian Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Commodus Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Claudius Limited

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            
	 	 	 	 
	
              Genco
      Investments LLC

            	
              Genco
      Shipping & Trading Limited

            	
              100%

            	
              Marshall
      Islands

            

    

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

       SCHEDULE
VIII 

    

     

     

     

    

    APPROVED CLASSIFICATION
SOCIETIES

     

     

    American
Bureau of Shipping

    Nippon
Kaiji Kyokai

    Germanischer
Lloyd

    Lloyd’s
Register of Shipping

    Bureau
Veritas

    Det
Norske Veritas

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

       SCHEDULE
IX 

    

    
 

    REPAYMENT

    

    

    
      
        	
                Payment

                Number

              	 	 	
                32k
      Jinse #1

              	 	 	
                32k
      Jinse #2

              	 	 	
                32k
      Jinse #3

              	 	 	
                170k
      Daehan #1

              	 	 	
                170k
      Daehan #2

              	 	 	
                170k
      Daehan #3

              	 	 	
                Total
      Repayment

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                1

              	 	 	 	2,900,000.00	 	 	 	2,900,000.00	 	 	 	2,900,000.00	 	 	 	7,300,000.00	 	 	 	-	 	 	 	-	 	 	 	16,000,000.00	 
	 	
                2

              	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	4,000,000.00	 	 	 	3,900,000.00	 	 	 	3,600,000.00	 	 	 	16,000,000.00	 
	 	
                3

              	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	4,000,000.00	 	 	 	3,900,000.00	 	 	 	3,600,000.00	 	 	 	16,000,000.00	 
	 	
                4

              	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	4,000,000.00	 	 	 	3,900,000.00	 	 	 	3,600,000.00	 	 	 	16,000,000.00	 
	 	
                5

              	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	4,000,000.00	 	 	 	3,900,000.00	 	 	 	3,600,000.00	 	 	 	16,000,000.00	 
	 	
                6

              	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	 	4,000,000.00	 	 	 	3,900,000.00	 	 	 	3,600,000.00	 	 	 	16,000,000.00	 
	 	
                7

              	 	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	 	2,700,000.00	 	 	 	2,600,000.00	 	 	 	2,400,000.00	 	 	 	10,700,000.00	 
	 	
                8

              	 	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	 	2,700,000.00	 	 	 	2,600,000.00	 	 	 	2,400,000.00	 	 	 	10,700,000.00	 
	 	
                9

              	 	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	 	2,700,000.00	 	 	 	2,600,000.00	 	 	 	2,400,000.00	 	 	 	10,700,000.00	 
	 	
                10

              	 	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	 	2,700,000.00	 	 	 	2,600,000.00	 	 	 	2,400,000.00	 	 	 	10,700,000.00	 
	
                
                  Balloon
      Payment

                

              	 	 	 	17,800,000.00
    	 	 	 	17,800,000.00
    	 	 	 	17,800,000.00
    	 	 	 	43,200,000.00
    	 	 	 	44,800,000.00
    	 	 	 	39,800,000.00
    	 	 	 	181,200,000.00
    	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Total

              	 	 	 	32,200,000.00	 	 	 	32,200,000.00	 	 	 	32,200,000.00	 	 	 	81,300,000.00	 	 	 	74,700,000.00	 	 	 	67,400,000.00	 	 	 	320,000,000.00	 

      

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      EXHIBIT
A

       

       

      FORM OF NOTICE OF
BORROWING

       

      [Date]

       

      Nordea
Bank Finland Plc,

      acting
through its New York branch,

         as
Administrative Agent for the Lenders party

         to
the Credit Agreement

         referred
to below

      437
Madison Avenue, 21st
Floor

      New York,
New York  10022

      

       

      Attention:  Loan
Administration

       

      Ladies
and Gentlemen:

       

      The
undersigned, Genco Shipping & Trading Limited (the “Borrower”), refers to
the Credit Agreement, dated as of September 4, 2008 (as amended, restated,
modified and/or supplemented from time to time, the “Credit Agreement,”
the terms defined therein being used herein as therein defined), among the
Borrower, the lenders from time to time party thereto (the “Lenders”), you, as
Administrative Agent, Mandated Lead Arranger, Bookrunner and Collateral Agent
for such Lenders, and hereby gives you notice, irrevocably, pursuant to Section
1.03 of the Credit Agreement, that the undersigned hereby requests a Borrowing
under the Credit Agreement, and in that connection set forth below the
information relating to such Borrowing (the “Proposed Borrowing”)
as required by Section 1.03 of the Credit Agreement:

       

      (i)           The
aggregate principal amount of the Proposed Borrowing is
$____________.

       

      (ii)           The
Business Day of the Proposed Borrowing is ____________.1

       

      (iii)           The
initial Interest Period for the Proposed Borrowing is _____ [months(s)].2

       

       

       

       

       

       

       

      ----------------------------------

        

      
        
          
            	
                    1

                  	
                    Shall
      be a Business Day at least two Business Days after the date hereof, provided that
      (in each case) any such notice shall be deemed to have been given on a
      certain day only if given before 4:00 p.m. (New York time) on such
      day.

                  

          

            

          
            
              
                	
                        2

                      	
                        The initial Interest Period for
      any Loan shall commence on the date of the Borrowing of such Loan and each
      Interest Period occurring thereafter in respect of such Loan shall
      commence on the day on which the immediately preceding Interest Period
      applicable thereto expires, and shall be a one, three, six or, to the
      extent available and agreed by all Lenders, nine or twelve month period or
      less than 30 days subject to approval of the Administrative
      Agent.

                      

              

               

          

           

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT A

      Page 2

       

       

       

       

      (iv)           The
proceeds of the Proposed Borrowing shall be used to finance the acquisition of
the Vessel[s] [___________].

       

      (v)           The
proceeds of the Proposed Borrowing shall be deposited in the following
account:  Account No. [________________], Account Name
[________________].

       

      (vi)           The
Aggregate Appraised Value shall be at least 130% of the aggregate amount of all
Loans outstanding (determined on a pro forma basis giving
effect to the Proposed Borrowing).

       

      The
undersigned hereby certifies on behalf of the Borrower that the following
statements are true on the date hereof, and will be true on the date of the
Proposed Borrowing:

       

      (A)           the
representations and warranties made by each Credit Party in or pursuant to the
Credit Documents shall be true and correct in all material respects, on and as
of such date of the Proposed Borrowing as if made on and as of the date of the
Proposed Borrowing, unless stated to relate to a specific earlier date, in which
case such representations and warranties shall be true and correct in all
material respects as of such earlier date;

       

      (B)           all
of the conditions set forth in Sections 4, 5 and 6 of the Credit Agreement have
been satisfied and will be satisfied on the date of the Proposed Borrowing;
and

       

      (C)           no
Default or Event of Default shall have occurred and be continuing on the date of
the Proposed Borrowing or after giving effect to the Proposed Borrowing made on
such date.

       

                  Very truly yours,

       

       

      
                                                        GENCO SHIPPING &
TRADING LIMITED

         

         

                                                        By:__________________________

                                                           Name:

                                                           Title:

      

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT B

       

       

       

      
        FORM OF
NOTE

         

        $________ 

        New York,
New York

        [Date]

         

        FOR VALUE
RECEIVED, GENCO SHIPPING & TRADING LIMITED, a corporation organized under
the laws of the Republic of Marshall Islands (the “Borrower”), hereby
promises to pay to [NORDEA BANK FINLAND PLC, acting through its New York branch
or its registered assigns (the “Administrative
Agent”)]/[____________ or its registered assigns (the “Lender”)], in
lawful money of the United States of America in immediately available funds, at
the office of [the Administrative Agent]/[NORDEA BANK FINLAND PLC, acting
through its New York branch (the “Administrative
Agent”)] located at 437 Madison Avenue, 21st Floor,
New York, NY 10022, on the Maturity Date (as defined in the Credit Agreement
referred to below) the principal sum of _____________ DOLLARS ($_____) or, if
less, the then aggregate unpaid principal amount of all Loans (as defined in the
Credit Agreement) made by the Lender pursuant to the Credit
Agreement.

         

        The
Borrower also promises to pay interest on the unpaid principal amount hereof in
like money at said office from the date hereof until paid at the rates and at
the times provided in Section 1.07 of the Credit Agreement.

         

        This Note
is one of the Notes referred to in the Credit Agreement, dated as of September
4, 2008, among the Borrower, the lenders from time to time party thereto
(including, without limitation, the Lender), Nordea Bank Finland Plc, acting
through its New York branch, as Administrative Agent (as amended, restated,
modified and/or supplemented from time to time, the “Credit Agreement”),
and is entitled to the benefits thereof and of the other Credit Documents (as
defined in the Credit Agreement).  This Note is secured by the
Security Documents (as defined in the Credit Agreement) and is entitled to the
benefits of the Guaranty (as defined in the Credit Agreement).  This
Note is subject to voluntary prepayment and mandatory repayment prior to the
Maturity Date, in whole or in part, as provided in the Credit
Agreement.

         

        If an
Event of Default (as defined in the Credit Agreement) shall occur and be
continuing, the principal of and accrued interest on this Note may become or be
declared to be due and payable in the manner and with the effect provided in the
Credit Agreement.

         

        The
Borrower hereby waives presentment, demand, protest or notice of any kind in
connection with this Note.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
           

          EXHIBIT B

          Page 2

           

        

         

         

         

        THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE
STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.

         

                    GENCO SHIPPING &
TRADING LIMITED

         

         

                    By
________________________

                          Name:

                          Title:

         

        

         

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
C-1

       

       

       

      K
R A M E R  L E V I N   N A F T A L I S &  F R A N K E
L  LLP

      
        

         

        ________
__, 200[_]

         

        Nordea
Bank Finland Plc, as Administrative Agent

        437
Madison Avenue, 21st
Floor

        New York,
NY     10022

         

        Re:           Genco Shipping & Trading
Limited

         

        Ladies
and Gentlemen:

         

        We have
acted as special New York counsel to Genco Shipping & Trading Limited, a
corporation incorporated under the laws of the Republic of the Marshall Islands
(the “Company”)
and each of the Subsidiary Guarantors that is listed on Annex A hereto (the
“Subsidiary
Guarantors” and together with the Company, the “Credit Parties”) in
connection with the Credit Agreement (the “Credit Agreement”),
dated as of September 4, 2008, by and among the Company, the Lenders party
thereto, each of the Subsidiary Guarantors, and Nordea Bank Finland Plc, acting
through its New York branch, as administrative agent (in such capacity, the
“Administrative
Agent”), as mandated lead arranger, as bookrunner and as collateral agent
(in such capacity, the “Collateral
Agent”).  This opinion is delivered pursuant to Section
[4.01(a)]/[5.01(i)] of the Credit Agreement.  Capitalized terms used
but not defined herein have the meanings assigned to them in the Credit
Agreement.

         

        In
rendering this opinion, we have examined and relied upon executed copies of
those documents referenced in clauses (a) through (h) (collectively, those
documents referenced in clauses (a) through (d), the “Transaction
Documents”):

         

        (a)           the
Credit Agreement;

         

        (b)           the
promissory note[s], [each] dated as of [DATE], 2008, issued by the Company and
delivered to the Administrative Agent;

         

        (c)           the
pledge and security agreement, dated as of [DATE], 2008, among the Company, the
Subsidiary Guarantors and the Administrative Agent, as pledgee (the “Pledge
Agreement”);

         

        (d)           the
guaranty dated as of [DATE], 2008 signed by each of the Subsidiary Guarantors in
favor of the Administrative Agent;

         

        (e)           the
fee letter dated as of [DATE], 2008, between the Borrower and the
Lenders;

         

        (f)           each
of the assignment[s] of insurances, dated as of [DATE], 2008 and entered into by
each Assignor as is a party thereto (the “Assignment[s] of
Insurances”);

         

         

         

         

         

         

         

         

         

         

         

         

        1177
AVENUE OF THE AMERICAS   NEW YORK NY 10036-2714   PHONE
212.715.9100   FAX 212.715.8000 
 WWW.KRAMERLEVIN.COM

        ALSO AT
47 AVENUE HOCHE   75008 PARIS FRANCE

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-1

           

          K R A M E R  L E V I
N   N A F T A L I S &  F R A N K E L  LLP

           

          DnB
NOR Bank ASA

          _____
__, 200[_]

          Page
2

           

           

        

         

        (g)           each
of the assignment[s] of charters, dated as of [DATE], 2008 and entered into by
each Assignor as is a party thereto (the “Assignment[s] of
Charters”); and

         

        (h)           each
of the assignment[s] of earnings, dated as of [DATE], 2008 and entered into by
each Assignor as is a party thereto (the “Assignment[s] of
Earnings”, together with the Assignment[s] of Earnings, Assignment[s] of
Insurances and Assignment[s] of Charters, the “Assignments”).

         

        We have
also reviewed such other documents and made such other investigations as we have
deemed appropriate.  As to various questions of fact material to this
opinion, we have relied upon the representations and warranties of the Credit
Parties contained in the Credit Agreement and the Pledge Agreement and upon the
statements, representations and certificates of officers or representatives of
the Credit Parties, public officials and others.  We have not
independently verified the facts so relied on.

         

        Based on
the foregoing, and subject to the qualifications, limitations and assumptions
set forth herein, we are of the opinion that:

         

        
          	
                  1.  

                	
                  Each
      of the Transaction Documents constitutes a valid and binding obligation of
      the Credit Parties, enforceable against the Credit Parties in accordance
      with its terms.

                

        

         

        
          	
                  2.  

                	
                  The
      execution and delivery by the Credit Parties of the Transaction Documents
      and the consummation by the Credit Parties of the transactions
      contemplated thereby do not result in the violation of any Relevant Law
      (as hereinafter defined).

                

        

         

        
          	
                  3.  

                	
                  The
      execution and delivery by the Credit Parties of the Transaction Documents
      and the consummation by the Credit Parties of the transactions
      contemplated thereby do not require approval from or any filings with any
      governmental authority under any Relevant Law other than the filing of
      financing statements under the Uniform Commercial
  Code.

                

        

         

        
          	
                  4.  

                	
                  Each
      of the Pledge Agreement and the Assignments are sufficient to create in
      favor of the Collateral Agent a security interest in those items and types
      of Collateral described therein in which a security interest can be
      created under Article 9 of the Uniform Commercial Code as in effect in the
      State of New York (the “New York
      UCC”).

                

        

         

        
          	
                  5.  

                	
                  No
      Credit Party is an “investment company” within the meaning of the
      Investment Company Act of 1940, as
amended.

                

        

         

        
          	
                  6.  

                	
                  The
      Collateral Agent’s security interest in the issued and outstanding capital
      stock of the Subsidiary Guarantors, represented by the stock
      certificates identified in
      Annex C (“List
      of Stock”) to the Pledge Agreement and Annex B hereto (the “Certificated
      Securities”) will be perfected upon delivery to the Collateral
      Agent in the State of New York of the certificates representing such
      Certificated Securities together with the executed and undated stock
      powers and endorsed instruments of assignment and
      transfer.  This opinion in paragraph 6 assumes that the
      Certificated Securities constitute “securities” within the meaning of the
      New York UCC.

                

        

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
           

          EXHIBIT
C-1

           

          K R A M E R  L E V I
N   N A F T A L I S &  F R A N K E L  LLP

           

          DnB
NOR Bank ASA

          _____
__, 200[_]

          Page
3

        

         

         

         

        
          	
                  7.  

                	
                  The
      financing statements on Form UCC-1, copies of which are attached hereto as
      Annex C
      (the “Financing
      Statements”), are in appropriate form for filing with the
      Department of State of the State of New York under the New York
      UCC.  The financing statements on Form UCC-1, copies of which
      are attached hereto as Annex C-2 (the "DC Financing Statements"), are in
      appropriate form for filing with the Recorder of Deeds of the District of
      Columbia under the Uniform Commercial code as in effect in the District of
      Columbia (the "DC UCC").  The security interest created in favor
      of the Collateral Agent by the Pledge Agreement and the Assignments in
      those items and types of Collateral described in the Pledge Agreement and
      the Assignments, in each case, in which a security interest may be
      perfected by the filing of a financing statement under the New York UCC
      will be perfected upon the filing of the NY Financing Statements with the
      Department of State of the State of New York and the DC Financing
      Statements with the Recorder of Deeds of the District of Columbia, in each
      case, together with the payment of any requisite filing or recording
      fees.

                

        

         

        
          	
                  8.

                	
                  The Collateral Agent’s security
      interest in the Operating Accounts (as defined in the Pledge Agreement)
      will be perfected upon the execution and delivery by the Depositary Bank,
      the Company, each Subsidiary Guarantor listed in Annex A hereto and the
      Collateral Agent of the Control Agreement wherein the Depositary Bank
      agrees that it will comply with instructions originated by the Collateral
      Agent directing disposition of the funds in the Operating Accounts without
      further consent by the Company or any Subsidiary
      Guarantor.  Under the New York UCC, such security interest has
      priority over any other security interests in the Operating
      Accounts.  The opinion expressed in this paragraph 8 assumes
      that no person other than the Collateral Agent has control over the
      Operating Accounts on the date hereof and we express no opinion as to any
      security interest claimed by the Depositary Bank in the Operating
      Accounts.

                

        

         

        The
opinion set forth herein is subject to and limited by the
following:

         

        (a) The
opinion set forth in paragraphs 1, 4, 6, 7 and 8 is qualified (i) by the effects
of applicable laws relating to bankruptcy, insolvency, fraudulent conveyance or
transfer, and other similar laws relating to or affecting the rights and
remedies of creditors generally, (ii) with respect to the remedies of specific
performance and injunctive and other forms of equitable relief, by the
availability of equitable defenses and the discretion of the court before which
any enforcement thereof may be brought and (iii) by general principles of
equity, including, without limitation, concepts of materiality, reasonableness,
good faith and fair dealing (regardless of whether considered in a proceeding in
equity or at law).

         

        (b) We
express no opinion as to the validity, binding effect or enforceability of (i)
provisions that purport to establish evidentiary standards, (ii) provisions
relating to

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-1

           

          K R A M E R  L E V I
N   N A F T A L I S &  F R A N K E L  LLP

           

          DnB
NOR Bank ASA

          _____
__, 200[_]

          Page
4

        

         

         

         

        severability,
indemnity, contribution, set off, delay or omission of enforcement of rights or
remedies, (iii) provisions purporting to waive rights or defenses, (iv)
provisions that purport to restrict available remedies or establish remedies,
(v) provisions relating to consent to jurisdiction, choice of forum or choice of
law, or (vi) any provision if and to the extent that such provision (x) is a
liquidated damages provision or (y) provides a remedy for breach that may be
deemed to be disproportionate to actual damages or may be deemed to be a
penalty.

         

        (c) We
express no opinion with respect to any matters which require us to perform a
mathematical calculation or make a financial or accounting
determination.  Without limiting the forgoing, we express no opinion
with respect to the Credit Parties’ compliance with any financial covenants set
forth in the Transaction Documents.

         

        (d) The
opinion in paragraphs 4 and 8 is limited to Article 9 of the New York
UCC.  The opinion in paragraph 6 is limited to Articles 8 and 9 of the
New York UCC.  The opinion in paragraph 7 is limited to Article 9 of
the New York UCC and Article 9 of the DC UCC (but based solely on our review
thereof as set forth in the CCH Secured Transaction Guide).

         

        (e) Certain
of the remedial provisions in the Pledge Agreement may be further limited or
rendered unenforceable by applicable law, but in our opinion, subject to
exceptions (a) and (b) above, such law does not make the remedies afforded by
the Transaction Documents inadequate for the practical realization of the
principal benefits intended to be provided.

         

        (f) We
express no opinion as to the limitations contained in the federal Bankruptcy
Code upon the extent to which property acquired after the commencement of a case
under the federal Bankruptcy Code may be subjected to a security interest
arising from an agreement entered into prior to the commencement of such
case.

         

        (g) With
respect to the opinion expressed in paragraph 1, we have assumed that each party
to the Transaction Documents: (i) is validly existing and in good standing under
the laws of its jurisdiction or organization, and (ii) has the power to execute
and consummate their respective obligations under the Transaction Documents; and
(iii) has duly authorized, executed and delivered the Transaction
Documents.  With respect to the opinion expressed in paragraph 1, we
have also assumed that the Transaction Documents constitute the valid and
binding obligation of such party other than the Credit Parties, enforceable
against such party in accordance with its terms.

         

        We
express no opinion as to any laws other than the laws of the State of New York,
and the federal laws of the United States of America, that in each case, in our
experience, we recognize are normally applicable to transactions of the type
contemplated by the Transaction Documents (the “Relevant
Laws”).  Without limiting the foregoing, we express no opinion
with respect to federal or state securities laws or antitrust laws.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-1

           

           

          K R A M E R  L E V I
N   N A F T A L I S &  F R A N K E L  LLP

           

          DnB
NOR Bank ASA

          _____
__, 200[_]

          Page
5

        

         

         

         

         

        The
opinion expressed herein is based upon the Relevant Laws and interpretations
thereof in effect on the date hereof, and the facts and circumstances in
existence on the date hereof, and we assume no obligation to revise or
supplement this opinion letter should any such law or interpretation be changed
by legislative action, judicial decision or otherwise or should there be any
change in such facts or circumstances.

         

        This
opinion letter is being delivered to you in connection with the transactions
described in the Transaction Documents and may not be relied on or otherwise
used by any other Person or by you for any other purpose.

         

                    Very truly
yours,

        

        

        

                    Kramer Levin Naftalis
& Frankel LLP

         

         

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-1

           

           

          K R A M E R  L E V I
N   N A F T A L I S &  F R A N K E L  LLP

           

        

         

         

        ANNEX
A

         

        SUBSIDIARY
GUARANTORS

         

        
          	
                  1.  

                	
                  Genco
      Aurelius Limited

                

        

        
          	
                  2.  

                	
                  Genco
      Julian Limited

                

        

        
          	
                  3.  

                	
                  Genco
      Valerian Limited

                

        

        
          	
                  4.  

                	
                  Genco
      Eagle Limited

                

        

        
          	
                  5.  

                	
                  Genco
      Falcon Limited

                

        

        
          	
                  6.  

                	
                  Genco
      Hawk Limited

                

        

        

         

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          
            EXHIBIT
C-1

             

             

            K R A M E R  L E V I
N   N A F T A L I S &  F R A N K E L  LLP

             

          

        

         

        

        
          	
                   
      

                	
                  ANNEX
      B

                

        

         

        CERTIFICATED
SECURITIES

         

        
          	
                  1.  

                	
                  Genco
      Aurelius
      Limited                                                           (Certificate
      No. 1)

                

        

        
          	
                  2.  

                	
                  Genco
      Julian
      Limited                                                                (Certificate
      No. 1)

                

        

        
          	
                  3.  

                	
                  Genco
      Valerian
      Limited                                                            (Certificate
      No. 1)

                

        

        
          	
                  4.  

                	
                  Genco
      Eagle
      Limited                                                               
       (Certificate No. 1)

                

        

        
          	
                  5.  

                	
                  Genco
      Falcon
      Limited                                                               (Certificate
      No. 1)

                

        

        
          	
                  6.  

                	
                  Genco
      Hawk Limited       
                                                               (Certificate
      No. 1)

                

        

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          
             

            EXHIBIT
C-1

             

             

            K R A M E R  L E V I
N   N A F T A L I S &  F R A N K E L  LLP

          

        

         

         

        ANNEX
C

        LIST
OF STOCK

         

        

         

         

         

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT
C-1

             

             

            K R A M E R  L E V I
N   N A F T A L I S &  F R A N K E L  LLP

             

          

        

         

         

        ANNEX
C-2

         

        NEW
YORK FINANCING STATEMENTS

         

      

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
C-2

       

       

      
        REEDER
& SIMPSON P.C.

        ATTORNEYS
AT LAW

        

        

        P.O.
Box 601                                                                        Telephone:
011-692-625-3602

        RRE
Commercial Center                                                   Facsimile:
011-692-625-3603

        Majuro,
MH 96960                                                                      Email:
dreeder@ntamar.net

                                                                                         simpson@otenet.gr

                                                                                                            

                                                                                                            

         

        Nordea
Bank Finland Plc,

        acting
through its New York branch (“Nordea”)

        437
Madison Avenue, 21st Floor

        New York,
New York 10022

        

        [DATE],
200[_]

        

        Re: Genco Shipping &
Trading Limited (the "Company")

        

        Ladies
and Gentlemen:

        

        We are licensed to practice law in the
Republic of the Marshall Islands (the "RMI"),  and
are members in good standing of the Bar of the RMI.  We are acting as
special RMI counsel on issues of RMI law for the Company and those of its
subsidiaries as listed on the attached Schedule 1 (collectively the “Subsidiary
Guarantors”), all of which are RMI non-resident domestic corporations, in
connection with that certain credit facility agreement dated as of September 4,
2008, by and among the Company, the Lenders party thereto (the “Lenders”),
Nordea Bank Finland Plc, acting through its New York branch, as Administrative
Agent, Collateral Agent, Mandated Lead Arranger, and Bookrunner (the “Credit
Agreement”).  This opinion is delivered pursuant to Section
[4.01(b)]/[5.01(ii)]/[5.01(iii)] of the Credit Agreement.  Capitalized
terms used but not defined herein have the meanings assigned to them in the
Credit Documents (as defined in the Credit Agreement).

        

        In connection with this opinion, we
have examined electronic copies of the following:

        

        1.  the Credit
Agreement;

        

        2.  the promissory note[s],
[each ]dated as of [DATE], 2008, issued by the Company and delivered to the
Administrative Agent;

        

        3.  the pledge and security
agreement, dated as of [DATE], 2008, among the Company, the Subsidiary
Guarantors named therein and the Collateral Agent as pledgee (the “Pledge
Agreement”);

        

        4.  the guaranty, dated as of
[DATE], 2008, made by the Company’s Subsidiary Guarantors named therein in favor
of the Collateral Agent;

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
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        [5.  The Marshall Islands
vessel mortgage[s], dated as of [DATE], 2008 and entered into by each Subsidiary
Guarantor which owns a vessel, as mortgagor, as is a party thereto [(the “Mortgage”]/[(each a
“Mortgage” and
together, the “Mortgages”);]

        

        [6.  the assignment[s] of
earnings, [each ]dated as of [DATE], 2008 and entered into by each Subsidiary
Guarantor which owns a mortgaged vessel (herein, the “Assignor”) as is a party
thereto;]

        

        [7.  the assignments of
insurances, [each ]dated as of [DATE], 2008 and entered into by each Assignor as
is a party thereto;]

        

        [8.  the assignments of
charters, [each ]dated as of [DATE], 2008 and entered into by each Assignor as
is a party thereto; and]

        

        [5]/[9].  The articles of
incorporation and by laws of the Company and each of the Subsidiary Guarantors,
resolutions of the Board of Directors of the Company and each of the
Subsidiaries, and a certificate of good standing for the Company and each of the
Subsidiary Guarantors.

        

        The documents listed in paragraphs
1-[5]/[9] are collectively referred to as the “Transaction
Documents”.

        

        Unless otherwise indicated, capitalized
terms used herein but not otherwise defined herein shall have the respective
meanings set forth in the Credit Facility.

        

        We have also made such examinations of
matters of law as we deem necessary in connection with the opinions expressed
herein.  In rendering this opinion, we have examined and relied upon
originals or copies of Transaction Documents and all such other documents,
affidavits, corporate records, or certificates or other statements of RMI
government officials and officers of the Company and such other instruments as
we have considered necessary and appropriate.

        

        Whenever our opinion is indicated to be
based on our knowledge or awareness, it is intended to signify that we have not
undertaken any independent investigation specifically for the purpose of
rendering this opinion other than those procedures referred to herein and our
knowledge will be limited to those matters of which we have actual
knowledge.  Whenever we have stated that we have assumed any matter,
it is intended that we assume such matter without making any factual, legal, or
other inquiry or investigation and without expressing any opinion or conclusion
of any kind concerning such matter.

        

        In rendering this opinion we have
assumed with your permission and without independent verification:

        

        1. The genuineness of all signatures,
the legal capacity of natural persons and of all parties which are not RMI
entities, the authenticity of all items submitted to us, and the

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
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        conformity
with originals of all items submitted to us as copies, facsimile, electronic, or
otherwise.  We assume that when the parties, other than the
Company,  executed and delivered the Transaction Documents, along with
all other agreements, instruments, associated documents, and resolutions, that
such parties were duly organized, validly existing, and in good standing under
the laws of their respective jurisdictions, that such parties were duly
qualified to engage in the transactions covered by this opinion, that such
parties had the power and authority to enter into and perform their obligations
thereunder, that such parties had duly authorized, executed and delivered the
Transaction Documents, that the Transaction Documents constitute the legal,
valid, and binding obligations of such parties, that the due authorization,
execution, enforceability and delivery of the Transaction Documents complies
with all relevant laws other than the laws of the RMI which are the subject of
this opinion, and that all actions required to be taken by such parties have
been duly accomplished including all conditions precedent; and

        

        2.  The truth, accuracy, and
completeness of all representations and warranties in the Transaction Documents
as to factual matters but not as to conclusions of law that are the subject of
this opinion letter.

        

        We express no opinion as to matters
governed by, or the effect or applicability of any laws of any jurisdiction
other than the laws of the RMI which are in effect as of the date
hereof.  This opinion speaks as of the date hereof, and it should be
recognized that changes may occur after the date of this letter which may affect
the opinions set forth herein.  We assume no obligation to advise the
parties, their counsel, or any other party seeking to rely upon this opinion, of
any such changes, whether or not material, or of any other matter which
may

        hereinafter
be brought to our attention.

        

        This opinion is furnished solely for
your benefit, the benefit of your successors, assigns, and participants and may
not be used for any other purpose or relied upon by, nor copies delivered to,
any other persons without our prior written consent in each case.

        

        Based upon and subject to the
assumptions, qualifications and limitations herein, we are of the opinion
that:

        

        1.  The Company and each of
the Subsidiary Guarantors are non-resident domestic corporations duly organized
and incorporated and validly existing and in good standing under the laws of the
RMI.

        

        2.  The execution, delivery
and performance by the Company or the Subsidiary Guarantors of the Transaction
Documents to which it is a party, is within its corporate powers and has been
duly authorized by all necessary corporate action.

        

        3.  Each of the Transaction
Documents to which the Company or any of the Subsidiary Guarantors is a party
constitutes upon execution and delivery thereof legal, valid and binding
obligations of the Company and each such Subsidiary Guarantors, enforceable
against each of them in accordance with their respective terms.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
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        4.  Under RMI conflict of
laws principles, the stated choice of New York law to govern the Transaction
Documents will be honored by the courts of the RMI and the
Transaction  Documents will be construed in accordance with, and will
be treated as being governed by, the law of the State of New York. However, if
the Transaction Documents were stated to be governed by and construed in
accordance with the law of RMI, or if a RMI court were to apply the law of the
RMI to the Transaction Documents, each Transaction Document would constitute the
legal, valid and binding obligation of the Company, enforceable against it in
accordance with its terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights of creditors generally.

        

        5.  To ensure the validity
and enforceability of the Transaction Documents in the RMI, it is not necessary
[, except for the Mortgage,] that they be registered in any register kept by, or
filed with, or recorded or notarized in any governmental authority or regulatory
body in the RMI, or that any other instrument relating thereto be signed,
delivered, filed, registered or recorded or that any tax or duty be paid or any
other action whatever be taken in the RMI.  No authorization, approval
or consent of any governmental or regulatory authority or agency of the RMI is
required on the part of the Company or any of the Subsidiary Guarantors for the
execution, delivery or performance of the Transaction Documents.

        

        6.  The execution, delivery
and performance by the Company or any of the Subsidiary Guarantors of and the
consummation by the Company or any of the Subsidiary Guarantors of the
transactions contemplated by each of the Transaction Documents do not and will
not (a) violate the organizational documents of the Company or any of the
Subsidiary Guarantors, (b) violate any applicable RMI law, rule or regulation of
general application to which the Company or any of the Subsidiary Guarantors is
subject, or (c) violate any RMI order, writ, injunction or decree of any court
or governmental authority or agency or any arbitral award applicable to the
Company or any of the Subsidiary Guarantors.

        

        7.  We have no knowledge
(after due inquiry) of any legal or arbitral proceedings, or any proceedings by
or before any RMI governmental or regulatory authority or agency, now pending or
threatened against the Company or any of the Subsidiary Guarantors or any of
their properties.

        

        8.  On the basis of our
searches of RMI Registrar of Corporations and RMI High Court docket records, no
currently valid order or resolution for winding up of the Company or any of the
Subsidiary Guarantors and no current notice of appointment of a receiver over
the Company or any of the Subsidiary Guarantors or of their assets appears on
the records maintained in respect of the Company or the Subsidiary Guarantors by
the RMI Registrar of Corporations.

        

        9.  The laws of the RMI
currently do not generally require information concerning the existence of a
nonpossessory security interest to be made generally available in a filing,
recording or registration system as a condition or result of the security
interest’s obtaining priority over the rights of a lien creditor with respect to
the collateral.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
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        10.  A judgment of obtained
against the Company in the United States District Court for the Southern
District of New York or any New York State court sitting in New York City would
be given full faith and credit by the Courts of RMI.

        

        11.  No stamp duty or similar
or other tax or duty is payable in the RMI on the enforcement of a foreign
judgment.  No tax is required to be withheld by any governmental
authority in the RMI with respect to any payments made under any of the
Transaction Documents.

        

        Sincerely,

        

        

        

        

        Reeder
& Simpson PC

        Dennis J.
Reeder

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
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        SCHEDULE
1 - THE SUBSIDIARY GUARANTORS

        

        
          	
                   

                  Name
      of Subsidiary

                	
                   

                  Direct
      Owner(s)

                	
                  Percent(%)
      Ownership

                	
                  Jurisdiction
      of

                  Organization

                
	 	 	 	 
	
                  Genco
      Aurelius Limited

                	
                  Genco
      Shipping & Trading Limited

                	
                  100%

                	
                  Marshall
      Islands

                
	 	 	 	 
	
                  Genco
      Julian Limited

                	
                  Genco
      Shipping & Trading Limited

                	
                  100%

                	
                  Marshall
      Islands

                
	 	 	 	 
	
                  Genco
      Valerian Limited

                	
                  Genco
      Shipping & Trading Limited

                	
                  100%

                	
                  Marshall
      Islands

                
	 	 	 	 
	
                  Genco
      Eagle Limited

                	
                  Genco
      Shipping & Trading Limited

                	
                  100%

                	
                  Marshall
      Islands

                
	 	 	 	 
	
                  Genco
      Falcon Limited

                	
                  Genco
      Shipping & Trading Limited

                	
                  100%

                	
                  Marshall
      Islands

                
	 	 	 	 
	
                  Genco
      Hawk Limited

                	
                  Genco
      Shipping & Trading Limited

                	
                  100%

                	
                  Marshall
      Islands

                

        

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
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        SCHEDULE
2 - THE LENDERS

        

        Nordea
Bank Norge ASA, acting through its Cayman Islands branch

        

        Bayerische
Hypo- und Vereinsbank AG

        

        Sumitomo
Mitsui Banking Corporation, acting through its Brussels branch

        

        DnB NOR
Bank, ASA

        

      

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT
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        Constantine
P. Georgiopoulos

        Attorney-At-Law

        775
Searsdale Road

        tuckahoe,
NY 10707

        E-Mail:  Pamisos@Att.Net

         

         

                                    _______,
200_

         

        Nordea
Bank Finland, acting through its New York branch,

        as
Administrative Agent, Collateral Agent, Mandated Lead Arranger

        and
Bookrunner

        437
Madison Avenue, 21st
Floor

        New York,
New York 10022

         

        and

         

        the
Lenders listed on Schedule I
hereto

         

        Ladies
and Gentlemen:

         

        I have
acted as special New York maritime counsel to [________], a Marshall Islands
corporation (the “Guarantor”) and wholly owned subsidiary of Genco Shipping
& Trading Limited, a Marshall Islands corporation (the “Borrower”) in
connection with the Credit Agreement, dated as of September 4, 2008, by and
among the Borrower, the Lenders party thereto (the “Lenders”), Nordea Bank
Finland Plc, acting through its New York branch, as Administrative Agent,
Collateral Agent and Mandated Lead Arranger (the “Credit
Agreement”).

         

        This
opinion is delivered pursuant to Section 5.01(iii) of the Credit
Agreement.  The Borrower and the Guarantor are collectively referred
to herein as the “Credit Parties” and
each a “Credit
Party.” Capitalized terms used but not defined herein have the meanings
assigned to them in the Credit Documents (as defined in the Credit Agreement) in
connection with the Credit Agreement and the Security Documents (as hereinafter
defined).

         

        This
opinion letter is limited to the execution by the Guarantor of the Security
Documents (hereinafter defined) in connection with the purchase by the Guarantor
of  the [______] registered motor vessel [________], of about [______]
gross tons, [______] net tons, Official No. [_______], (the “Vessel”) from
[SELLER’S NAME], of [SELLER’S ADDRESS] (the “Seller”) pursuant to a Memorandum
of Agreement dated [DATE] (together with any supplements, amendments and addenda
thereto from time to time the “MOA”), for the price of [SALES PRICE] United
States of America Dollars (US$[________]).  The Vessel was today
registered under the laws of [the Republic of the Marshall Islands (“RMI”)]/[the
Hong Kong Special Administrative Region of the Peoples Republic of China (“Hong Kong”)] under
official number [____] and has been named [VESSEL’S NEW NAME].

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
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        We have
also examined the following documents (the “Security Documents”)
each dated [DATE] executed and delivered by the Guarantor, as we have deemed
necessary or appropriate as a basis for the opinions set forth
herein:

         

        (a)    [the
first preferred mortgage]/[the first priority statutory mortgage and Deed of
Covenants collateral thereto] (the “Vessel Mortgage”),
[each ]dated as of [DATE] and entered into by the Guarantor which owns the
mortgaged vessel (the “Vessel”) for the purpose of creating a mortgage lien on
the Vessel owned by the Guarantor;

         

        (b)    the
assignment of earnings, dated as of [DATE] and entered into by the Guarantor
with respect to the Vessel (the “Assignment[s] of
Earnings”);

         

        (c)    the
assignment of insurances, dated as of [DATE] and entered into by the Guarantor
with respect to the Vessel (herein, an “Assignor”) (the
“Assignment[s] of
Insurances”);

         

        (d)    the
assignment of charters, dated as of [DATE] with respect to the time charter
between the Guarantor, as owner, and [CHARTERER”S NAME], as charterer, with
respect to the Vessel(the “Assignment[s] of
Charters”);

         

        (e)    UCC-1
Financing Statements to be filed in the filing offices listed on Schedule II hereto
(the “Filing
Offices”), copies of which are attached hereto as Schedule III and
Schedule IV and
(collectively, the “Financing
Statements”).

         

        (f)    [a
facsimile copy of a transcript of register (each a “Transcript of
Register”, collectively, the “Transcripts of
Register”) relating to the Vessel issued by the Marine Department (the
“Ship Registry
Office”), of the Hong Kong Special Administrative Region of the People's
Republic of China (“Hong Kong”), on
[DATE] as evidence that each Vessel is (i) owned by the Guarantor,
(ii) duly registered in Hong Kong and (iii) duly encumbered with the
Vessel Mortgage.]/[a facsimile copy of the certificate of ownership and
encumbrance (each a “Certificate of Ownership and
Encumbrance”, collectively, the “Certificates of Ownership
and Encumbrances”) issued by the Republic of the Marshall Islands (“RMI”) Deputy
Commissioner of Maritime Affairs, Port of New York (the “RMI Commissioner”) on
[DATED] as evidence that each Vessel is (i) owned by the Guarantor, (ii) duly
registered with the RMI Commissioner, and (iii) is duly encumbered with the
Vessel Mortgage.]

         

        We also
have examined such other public and corporate documents and records and such
laws, regulations and enactments of the United States of America and the State
of New York as deemed necessary or appropriate in connection with this
opinion.

         

        In our
examination we have assumed the genuineness of all signatures (other than the
signatures of the respective officers and directors of the Credit Parties), the
authenticity of all documents submitted to us as originals, the conformity to
original documents of all documents submitted to us as certified or photographic
reproductions or facsimile or pdf copies of such originals and the authenticity
of the originals of such copies.  As to questions of fact not
independently verified by us we have relied, to the extent we have deemed
appropriate, upon certificates of the respective officers, and directors of the
Credit Parties.  We have been provided

         

         

        
          
            
            

          

          
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          EXHIBIT
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        with
copies of documents of public officials of [RMI Commissioner]/[Ship Registry Office]
and the aforementioned [Transcript[s] of Registry]/[Certificate[s] of Ownership
and Encumbrance] relating to each Vessel which we assume are authentic and
accurate insofar as the information contained therein.

         

        A.    We have
made the following assumptions that apply to the Guarantor:

         

        1.    The
Guarantor (i) is a corporation duly organized and incorporated or formed
and validly existing and in good standing under the laws of the RMI,
(ii) has all the corporate or company power and authority to own its
property and assets and to transact the business in which it is engaged and
presently proposes to engage in and to enter into and perform its respective
obligations under the Security Documents to which it is a party, and
(iii) is duly qualified and is authorized to do business and is in good
standing in each jurisdiction where the conduct of its business required such
qualification except for failures to be so qualified which, either individually
or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

         

        2.    The
Guarantor has the corporate or company power and authority to execute, deliver
and perform the terms and provisions of the Security Documents, as and when such
Security Documents will be executed and delivered, to which it is a party and
has taken all necessary corporate or company action to authorize the execution,
delivery and performance by it of each of such Security
Documents.  The Guarantor has duly executed and delivered each of the
Security Documents to which it is a party which are required of the Guarantor as
of the date hereof, and each of the executed Security Documents to which it is a
party constitutes the legal, valid and binding obligation of the
Guarantor.

         

        3.    Neither
the execution, delivery or performance by the Guarantor of the Security
Documents to which it is a party (including, without limitation, the granting of
Liens pursuant to the Security Documents), nor compliance by it respectively
with the terms and provisions thereof as of the date of the execution and
delivery to you of such Security Documents (i) will contravene any
provisions of any applicable [RMI]/[Hong Kong] statute, rule or regulation
(ii) will contravene any provision of any applicable [RMI]/[Hong Kong]
order, writ, injunction or decree of any [RMI]/[Hong Kong] court or governmental
instrumentality applicable to the Guarantor, (iii) will be inconsistent
with or result in any breach of any of the terms, covenants, conditions or
provisions of, or constitute a default under, or result in the creation or
imposition of (or the obligation to create or impose) any Lien (except pursuant
to the Credit Documents) upon any of the property or assets of the Guarantor
pursuant to the terms of any indenture, mortgage, deed of trust, credit
agreement or loan agreement, or any other material agreement or instrument to
which the Guarantor is a party or by which it any of its property or assets is
bound or to which it may be subject or (iv) with respect to the Guarantor
only will violate any provision of the certificate or articles of incorporation
or by-laws of the Guarantor.

         

        4.    Except as
noted in paragraphs B(5) hereunder, no [RMI]/[Hong Kong] order, consent,
approval, license, authorization, or validation of, or filing, recording or
registration with, or exemption by any [RMI]/[Hong Kong] governmental or public
body or authority, or any subdivision thereof, is required to authorize, or is
required in connection with: (i) the entry into, execution, delivery and
performance of any Security

         

         

         

        
          
            
            

          

          
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        Documents
or (ii) the legality, validity, binding effect or enforceability of any
such Security Documents, except (a) for the registration of the Vessel
Mortgage at the Ship Registry Office, and (b) the compliance with certain
filing or registration requirements mandated by [RMI]/[Hong Kong] law within
five weeks of the creation of a security interest.

         

        B.    We have
made the following assumptions with respect to the Vessel[s] which are
documented at the [RMI Commissioner]/[Ship Registry
Office]:

         

        1.    It is not
necessary or advisable, in order to maintain the Vessel Mortgage as a valid
first preferred ship mortgage, that the Guarantor file any of the Security
Documents or any other instrument relating thereto with any [RMI]/[Hong Kong],
court, agency or governmental instrumentality except for the recording of a
Vessel Mortgage at the [RMI Commissioner]/[Ship Registry
Office].

         

        2.    All
permits, licenses, consents, and approvals of any [RMI]/[Hong Kong] governmental
authority as a condition to the validity and enforceability of the registration
of the Vessel registered in [RMI]/[Hong Kong] and the Vessel Mortgage, have been
duly obtained, are in full force and effect as of the date thereof and are valid
and sufficient for their respective purposes.

         

        3.    The
Vessel is duly registered under the laws and flag of [RMI]/[Hong Kong] at the
[RMI Commissioner]/[Ship Registry Office]
in the name of the Guarantor, free of any liens, claims, charges, debts or
encumbrances other than the Vessel Mortgage.

         

        4.    The [RMI
Commissioner]/[Ship
Registry Office] is a central office within the meaning of Section
31301(6) (B) of Title 46 of the United States Code.

         

        5.    The
Vessel Mortgage (i) has been duly executed and delivered, (ii) has
been duly recorded at the [RMI Commissioner ]/[Ship Registry Office]
(iii) constitutes and will constitute a valid and binding first preferred
mortgage lien upon the Vessel securing the “Indebtedness hereby secured” as
defined therein, with effect and priority from the date and time of recording
pursuant to the laws of [RMI]/[Hong Kong], (iv) is or will be enforceable
in accordance with each of their terms, all in accordance with the laws of
[RMI]/[Hong Kong] governing ship mortgages, and the performance of the Vessel
Mortgage and will not violate or conflict with any [RMI]/[Hong Kong] law,
statutes or regulations, and (v) will maintain their validity and priority
and without it being necessary or appropriate for it to be re-recorded or
re-filed.

         

        6.    Under the
laws of the [RMI and,]/[Hong Kong,] the choice of New York law to govern the
Security Documents (other than the Vessel Mortgage) by the parties thereto is a
valid choice of law, and the submission to the jurisdiction of the courts of the
State of New York, located in New York City, or of the United States for the
Southern District of New York is valid and binding upon the
parties.

         

        Subject
to the foregoing assumptions we are of the opinion, with respect to the
Guarantor as the owner of the Vessel, that:

         

         

         

        
          
            
            

          

          
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          EXHIBIT
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        1.    The
Guarantor is a corporation duly organized and validly existing and in good
standing under the laws of the RMI.

         

        2.    The
Guarantor has the power and authority to enter into, observe and perform the
terms and obligations on its part to be observed and performed under the
Security Documents to which each is a party and have taken all necessary
corporate or company action to authorize the execution and delivery of the
Security Documents and the performance of its obligations in accordance with
their terms.

         

        3.    The
Vessel Mortgage constitutes the equivalent of a “preferred mortgage” within the
meaning of Section 31301(6)(B) of Title 46 of the United States Code, entitled
to the benefits accorded a preferred mortgage on a foreign registered vessel
under Sections 31325 and 31326 of Title 46 of the United States Code and
(ii) perfects the rights of the Collateral Agent, as assignee, under the
Assignment of Insurances respecting the Vessel.

         

        Subject
to the foregoing we are of the further opinion, with respect to the Assignment
of Insurances and the Assignment of Earning:

         

        1.    The
rights of the Collateral Agent, as assignee, under the Assignment of Insurances
granted by the Guarantor is, or will be, perfected by (i) the recording of
the Vessel Mortgage at the Ship Registry Office, and (ii) the giving of
notice to, and consent of, underwriters where policy provisions so provide and
(iii) the compliance with any filing or registration requirements mandated
by [RMI]/[Hong Kong] law.  Nevertheless, we recommend that
precautionary Financing Statements should be filed at the Office of the New York
Secretary of State and the Recorder of Deeds, Washington, D.C. (the “Filing Offices”) with
respect to the Assignment of Insurances.

         

        2.    We have
examined the Financing Statements to be filed in the Filing Offices for the
Guarantor, and upon the filing of such Financing Statements in the Filing
Offices, the security interests granted by the Guarantor to the Collateral Agent
under the Assignment of Earnings and the Assignment of Charter in respect of all
such Collateral thereunder will constitute a perfected security interest therein
in favor of the Collateral Agent in each case to the extent that such earnings
consists of the type of property in which a security interest may be perfected
by filing a financing statement under the UCC, subject to the giving of notice
to any relevant debtor.

         

        The
opinions set forth herein are subject to and limited by the
following:

         

        A.    The
effect of bankruptcy, insolvency, reorganization, fraudulent conveyance,
fraudulent transfer, moratorium and other laws and court decisions or other
legal or equitable principles relating to, limiting or affecting the enforcement
of creditors' rights generally.

         

        B.    The
discretion of any court of competent jurisdiction in awarding equitable remedies
(regardless of whether considered in a proceeding in equity or at law),
including, but not limited to, specific performance or injunctive
relief.

         

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-3

        

         

         

         

        C.    The
enforceability of the Security Documents may be subject to: (i) compliance
with, and limitations imposed by, procedural requirements relating to the
exercise of remedies; (ii) general principles of equity (including, but not
limited to, commercial reasonableness, good faith and fair dealing and the
requirement that the right, remedy, damages or compensation sought be
proportionate to the breach, default, or injury); (iii) provisions of
applicable law limiting certain rights and remedies of the Administrative Agent,
the Collateral Agent and the Lenders or the effect of certain waivers or
agreements, but the inclusion of such provisions in the Credit Documents does
not, in our opinion, render any Credit Documents invalid as a whole and, in our
opinion, subject to the limitations referred to in clause (A) above, the
Credit Documents contain adequate provisions for the practical realization by
the Administrative Agent, the Collateral Agent and the Lenders of the principal
benefits intended to be provided by the Credit Documents.

         

        D.    We
express no opinion with respect to the enforceability of (i) provisions to
the effect that failure to exercise or delay in exercising a right or remedy
will not operate as a waiver of the right or remedy or of provisions to the
effect that rights or remedies are not exclusive, that every right or remedy is
cumulative and may be exercised in addition to or with any other right or
remedy, or that the election of some particular right or rights or remedy or
remedies does not preclude recourse to one or more others; (ii) provisions
providing indemnification for or contribution with respect to securities law
liabilities, the enforceability of which may be limited by applicable securities
laws and general principles of public policy; (iii) provisions indemnifying
a person against or prospectively releasing a person from liability for such
person's own wrongful or negligent acts or where the release or indemnification
is contrary to public policy; (iv) provisions purporting to preclude the
modification of the Credit Documents through conduct, custom, or course of
performance, action or dealing; (v) provisions requiring the payment or
reimbursement of fees, costs, expenses, or other amounts without regard to
whether they are reasonable in nature or amount; (vi) provisions that
purport to establish evidentiary standards; or (vii) provisions purporting
to appoint the Collateral Agent as the attorney-in-fact of the
Guarantor.

         

        E.    We
express no opinion as to the creation of Liens in governmental licenses, permits
and approvals.  The creation of such Liens may be limited, prohibited
or ineffective under applicable law or governmental policy.

         

        F.    Any
purported assignment of any agreement or any governmental approval, license or
permit may be subject to restrictions upon assignment or transfer which,
although not necessarily applicable to assignments intended as security, may be
required to be satisfied before the Collateral Agent will be treated as an
assignee thereof, except to the extent that consents to or approvals of such
assignment have been obtained from the appropriate governmental body or other
Person.

         

        G.    We
express no opinion as to any security interests relating to property in which
security interests cannot be granted under the UCC, or as to the perfection of
security interests granted by the Guarantor which may be perfected by any means
other than by filing a financing statement pursuant to the UCC or, in the case
of instruments (as such term is defined in Section 9-102(a) (47) of the UCC), by
possession by the secured party.

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
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        H.    The
perfection of security interests which are perfected by the filing of financing
statements is limited both in extent and as to continuation by various
provisions of the UCC, including, but not limited to, those relating to
non-identifiable or commingled cash proceeds and the need to file continuation
statements and/or new financing statements if the classification of any
Collateral under the UCC changes because of a change in the use of such
Collateral, or upon the lapse of time or if any Shipowners change its name,
identity, corporate structure or location of the chief executive office, chief
place of business or the places where it keeps the Collateral or its records
with respect thereto.

         

        I.    We
express no opinion as to the validity or legally binding effect of any provision
of any Document that requires or relates to payment of any interest at a rate or
in an amount, which a court would determine in the circumstances under
applicable law to be usurious, commercially unreasonable or a penalty or
forfeiture.

         

        J.    We
express no opinion as to the limitations contained in the Federal Bankruptcy
Code upon the extent to which property acquired after the commencement of a case
under the Federal Bankruptcy Code may be subjected to a security interest
arising from an agreement entered into prior to the commencement of such
case.

         

        K.    As used
in this opinion, “to our knowledge” or comparable terms means or refers to the
actual knowledge of the undersigned.  We have not, except as otherwise
set forth herein, undertaken any independent investigation to determine the
existence or absence of those matters, and no inference as to our knowledge of
the existence or absence of those matters should be drawn from our
representation of the Guarantor.

         

        L.    We have
no knowledge of [RMI]/[Hong Kong] law.  We are members of the Bar of
the State of New York and do not purport to be expert or express any opinion
except as to matters involving the laws of such State and the federal laws of
the United States of America.  We are not licensed to practice law in
the Marshall Islands or Hong Kong.

         

        M.    The
enforcement of the Vessel Mortgage will be subject to the laws of any
jurisdiction where enforcement thereof may be sought.

         

        We have
assumed with your permission that no agreement or understanding exists which
would modify, supplement or amend any Security Document.  In addition,
all other matters stated in this opinion as having been assumed by us have been
so assumed with your permission.

         

        The
opinions expressed herein is based upon the laws and interpretations in effect
on the date hereof, and we assume no obligations to review or supplement this
opinion letter should any such law be changed by legislative action, judicial
decision or otherwise.  In addition, we do not undertake to advise you
of matters which occur subsequent to the date hereof and which affect the
opinion expressed herein.

         

        This
opinion is rendered only to NORDEA BANK FINLAND PLC, acting through its New York
branch, as Administrative Agent, and Collateral Agent, and the Lenders and their
respective successors and assigns, and is solely for their benefit in connection
with the Credit Agreement and the Security Documents.  This opinion
may not be relied upon by the Collateral

         

         

         

        
          
            
            

          

          
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          EXHIBIT
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        Agent,
Administrative Agent or any such Lender for any other purpose, or quoted to or
relied upon by any other person, firm or corporation for any purpose without our
prior written consent.

         

         

                    Very truly
yours,

         

                    Constantine P.
Georgiopoulos

         

         

         

         

        
          
            
            

          

          
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          EXHIBIT
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        SCHEDULE
I

         

        Lenders

         

        Nordea
Bank Norge ASA, acting through its Cayman Islands branch

         

        Bayerische
Hypo- und Vereinsbank AG

         

        Sumitomo
Mitsui Banking Corporation, acting through its Brussels branch

         

        DnB NOR
Bank, ASA

         

        Deutsche
Schiffsbank Aktiengesellschaft

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          EXHIBIT
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        SCHEDULE
II

         

        Filing
Offices

         

        Secretary
of State of the State of New York

         

        Recorder
of Deed of the District of Columbia

         

        

        
 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        EXHIBIT
C-4

      

       

       

       

      
        
          	
                  PRIVATE AND CONFIDENTIAL

                	
                  Our
      Ref:

                
	 
      	 
      
	 
      	
                  Your
      Ref:

                
	
                  Nordea
      Bank Finland Plc, acting through its New York branch

                	
                  Direct
      Tel: (852) 2843 4366/4256

                
	
                  437
      Madison Avenue, 21st Floor

                	
                  Direct
      Fax: (852) 2103 5990/5959

                
	
                  New
      York, NY 10022

                	 
      
	
                  (as
      Administrative Agent and Collateral Agent

                	
                  Date:
      __________, 200_

                
	
                  for
      and on behalf of the Lenders defined below)

                	 
      
	 
      	 
      

        

         

        Dear
Sirs,

         

        Secured
revolving loan facility to Genco Shipping & Trading Limited

         

        
          	
                      1.  

                	
                  Introduction

                

        

         

        We have
acted as your Hong Kong legal advisers in connection with a credit agreement
(the “Credit Agreement”)
dated September 4, 2008, by and among (1) GENCO SHIPPING & TRADING LIMITED,
a corporation organized and existing under the laws of the Republic of the
Marshall Islands (the “Borrower”), (2) the
banks and financial institutions acceptable to the Borrower and Mandated Lead
Arranger (as defined below) listed in Schedule I of this Credit Agreement, as
lenders (the “Lenders”), and (3)
Nordea Bank Finland Plc, acting through its New York branch (“Nordea”) as
Administrative Agent (in such capacity, the “Administrative
Agent”), mandated lead arranger (the “Mandated Lead
Arranger”), as bookrunner, as security trustee and as collateral agent
under the Security Documents (in such capacity, the “Collateral Agent”)
under which the Lenders have agreed to make available to the Borrower a senior
secured credit facility based on a commitment of up to Three Hundred Twenty
Million United States Dollars (US$320,000,000).  Pursuant to the terms
and conditions of the Credit Agreement, each of the Borrower’s subsidiaries
listed in the attached Schedule (each a “Subsidiary
Guarantor”, together the “Subsidiary
Guarantors”) is required to execute certain guaranties, pledge
agreements, vessel mortgages, assignments of earnings, assignments of insurances
and assignments of charters, in respect of vessels owned or acquired by the
relevant Subsidiary Guarantor as security for amounts loaned to the Borrower
pursuant to the Credit Agreement.

         

        Words and
expressions having defined meanings in the Agreement shall have the same
meanings when used in this letter.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-4

        

         

         

        
          	
                      2.  

                	
                  Documents
      Examined

                

        

         

        For the
purposes of giving the opinions expressed in this letter we have
examined:-

         

        
          	
                  (1)  

                	
                  a
      copy of the Credit Agreement;

                

        

         

        
          	
                  (2)  

                	
                  a
      copy of the executed promissory note[s], [each ]dated as of [DATE], 2008,
      issued by the Borrower and delivered to the Administrative
      Agent;

                

        

         

        
          	
                  (3)  

                	
                  a
      copy of the executed pledge and security agreement, dated as of [DATE],
      2008, among the Borrower, the Subsidiary Guarantor named therein and the
      Collateral Agent as pledge[;]

                

        

         

        
          	
                  (4)  

                	
                  a
      copy of the executed guaranty, dated as of [DATE], 2008, made by [each of
      ]the Company’s Subsidiary Guarantor named therein in favor of the
      Collateral Agent;

                

        

         

        
          	
                  (5)  

                	
                  [a
      copy of the executed Hong Kong vessel mortgage[s], dated as of [DATE] and
      entered into by [the]/[each] Subsidiary Guarantor which owns [the]/[a]
      mortgaged vessel, as mortgagor, as is a party thereto (the “Vessel
      Mortgage[s]”);]

                

        

         

        
          	
                  (6)  

                	
                  [a
      copy of the executed assignment[s] of earnings, dated as of [DATE] and
      entered into by [the]/[each] Subsidiary Guarantor which owns [the]/[a]
      mortgaged vessel (herein, the “Assignor”) as
      is a party thereto;]

                

        

         

        
          	
                  (7)  

                	
                  [a
      copy of the executed assignment[s] of insurances, dated as of [DATE] and
      entered into by [the]/[each] Assignor as is a party
    thereto;]

                

        

         

        
          	
                  (8)  

                	
                  [a
      copy of the executed assignment[s] of charters, dated as of [DATE] and
      entered into by [the]/[each] Assignor as is a party
    thereto;]

                

        

         

        
          	
                  (9)  

                	
                  a
      copy of the executed articles of incorporation and by-laws of the Borrower
      and [each of ]the Subsidiary Guarantor[s], resolutions of the Board of
      Directors of the Borrower and each of the Subsidiary Guarantor[s], the
      powers of attorney issued by the Borrower and [each of ]the Subsidiary
      Guarantor[s] (collectively, the “POAs” and each a “POA”) and a certificate
      of good standing for the Borrower and [each of ]the Subsidiary
      Guarantor[s];

                

        

         

        The
documents specified at paragraph 2(1) to (9) (inclusive) are herein together
referred to as the “Documents”.

         

        We have
undertaken a search against each Subsidiary’s files on [_______] and a search of
the Cause Book kept at the High Court of Hong Kong on [_________].

         

        We have
examined a transcript of register (the “Transcript of
Register” in respect of the motor vessel[s][VESSEL NAME[S]], issued by
the Registrar of Ships at the Port of Authority of Hong Kong (bearing details of
the recorded mortgage[s]

         

         

         

        
          
            
            

          

          
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          EXHIBIT
C-4

           

        

         

         

        in
respect of the aforementioned vessel[s], [the “Vessel
Search”]/[collectively the “Vessel Searches”]).

         

        
          	
                      3.  

                	
                  Applicable
      Law

                

        

         

        Our
opinion relates solely to Hong Kong law at the date of this letter and we have
assumed due compliance with the laws of any other countries the laws of which
may be applicable to the execution, delivery, performance or enforcement of the
Documents. We have made no independent investigation into the laws of any other
state or country, including in particular, but without limitation, the laws of
the State of New York, United States of America and the jurisdiction where the
parties to the Documents (other than each Subsidiary Guarantor) are
incorporated.

         

        
          	
                      4.  

                	
                  Assumptions

                

        

         

        For the
purposes of this letter, we have assumed:-

         

        
          	
                  (a)  

                	
                  that
      the Documents have each been duly authorised, executed and delivered by
      each of the parties thereto (save as specifically mentioned herein) and
      that each such party has obtained any necessary consent or authorisation
      or is otherwise qualified or empowered to enter into and perform its
      obligations under the Documents to which it is a party and that no
      provision of law of or relating to the jurisdiction of the incorporation
      of any of the other parties (other than the laws of Hong Kong) or any
      other law will affect the validity and enforceability of the Documents
      against any of the parties thereto;

                

        

         

        
          	
                  (b)  

                	
                  that
      the Documents to which each is a party constitute legal, valid and binding
      obligations of the Subsidiary Guarantors under all applicable laws (other
      than the laws of Hong Kong);

                

        

         

        
          	
                  (c)  

                	
                  that
      there are no provisions of the laws of any jurisdiction, other than Hong
      Kong as they apply to the Subsidiary Guarantors and in respect of which we
      are opining in this letter, which would have any implications on the
      opinions we express;

                

        

         

        
          	
                  (d)  

                	
                  the
      absence of any other or collateral arrangements between any of the parties
      to the Documents which modify or supersede any of the terms of the
      Documents;

                

        

         

        
          	
                  (e)  

                	
                  that
      each of the Subsidiary Guarantors’ Resolutions provided to us for
      inspection are respectively a faithful record of resolutions either duly
      passed by the Board of Directors in writing or at a meeting duly convened
      and held, or by telephonic conference, of the Board of Directors of each
      Subsidiary Guarantor and have not been amended or rescinded and are in
      full force and effect;

                

        

         

        
          	
                  (f)  

                	
                  that
      each of the POAs has been duly issued by the relevant Subsidiary Guarantor
      and has not been amended or rescinded and is in full force and
      effect;

                

        

         

         

        
          
            
            

          

          
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          EXHIBIT
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                  (g)  

                	
                  the
      genuineness of all signatures and seals on all documents or on the
      originals thereof;

                

        

         

        
          	
                  (h)  

                	
                  the
      completeness and conformity to original documents of all copies submitted
      to us and that no alteration has been made to the Subsidiary Guarantors
      from the copies thereof provided to us for
  inspection;

                

        

         

        
          	
                  (i)  

                	
                  the
      accuracy of translation of any document submitted to us for inspection in
      English translated from the foreign language of the
    original;

                

        

         

        
          	
                  (j)  

                	
                  that
      the information disclosed by our searches at the Hong Kong Companies
      Registry against the Subsidiary Guarantors has not since the date of our
      searches been materially altered and that such searches did not fail to
      disclose any material information which had been delivered for filing or
      registration but was not disclosed, or, as the case may be, did not appear
      on the public files at the time of our
searches;

                

        

         

        
          	
                  (k)  

                	
                  that
      insofar as any obligation under the Documents falls to be performed in any
      jurisdiction outside Hong Kong, its performance will not be illegal or
      ineffective by virtue of the laws of that
  jurisdiction;

                

        

         

        
          	
                  (l)  

                	
                  that
      each of the Subsidiary Guarantors was fully solvent immediately after
      entry into the Documents to which it is respectively a party and that the
      obligations assumed by each of the Subsidiary Guarantors under the
      Documents to which it is respectively a party were in its best interests
      and that the directors of each Subsidiary Guarantor honestly and
      reasonably considered them to be in the best interests of each Subsidiary
      Guarantor respectively;

                

        

         

        
          	
                  (m)  

                	
                  none
      of the Lenders, the Administrative Agent and the Collateral Agent nor any
      of their respective officers or employees has notice of (i) any matter
      which would adversely affect the validity of any of the Subsidiary
      Guarantors’ Resolutions or (ii) any other matter which would affect the
      bona fides of the execution and delivery by each Subsidiary Guarantor of
      the Documents to which each is respectively a
  party;

                

        

         

        
          	
                  (n)  

                	
                  there
      are no grounds to believe that the opinion of the directors of each
      Subsidiary Guarantor as to the commercial benefit to that Subsidiary
      Guarantor to be derived from each Subsidiary Guarantor entering into the
      Documents to which each is respectively a party and guaranteeing and/or
      securing the Borrower’s obligations under the Agreement reflected in the
      Subsidiary Guarantors’ Resolutions was not an opinion honestly and
      reasonably held by those directors;

                

        

         

        
          	
                  (o)  

                	
                  the
      Borrower has not established a place of business in Hong
    Kong;

                

        

         

         

         

        
          
            
            

          

          
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          EXHIBIT
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                  (p)  

                	
                  that
      the Lenders, the Administrative Agent and the Collateral Agent have
      complied with all laws and regulations relating to their businesses which
      are relevant to the Documents;

                

        

         

        
          	
                  (q)  

                	
                  the
      accuracy of all representations and statements as to factual matters
      contained in the Documents and the Subsidiary Guarantors’
      Resolutions;

                

        

         

        
          	
                  (r)  

                	
                  that
      the information disclosed by the Vessel Searches has not, since the date
      hereof, been altered or added to and that the Vessel Searches disclosed
      all information which had been delivered for filing and registration;
      and

                

        

         

        
          	
                  (s)  

                	
                  that
      the written notices of assignments contained in the Documents have been,
      or will be served on the relevant addressees, in accordance with the
      provisions of the Documents.

                

        

         

        
          	
                      5.  

                	
                  Opinion

                

        

         

        On the
basis of the foregoing and subject to the qualifications set out in paragraph 6
below, we are of the opinion that:-

         

        
          	
                  (a)  

                	
                  each
      of the Subsidiary Guarantors is registered as an oversea company with an
      established place of business in Hong Kong under Part XI of the Companies
      Ordinance (Cap. 32) of the Laws of Hong Kong; our searches at the Hong
      Kong Companies Registry and at the High Court of Hong Kong did not reveal
      any winding-up order against the Subsidiary Guarantors, any resolution of
      the shareholders voluntarily to wind-up the Subsidiary Guarantors, any
      order for the appointment of any receiver of the Subsidiary Guarantors or
      any statutory declaration by the directors of the Subsidiary Guarantors
      pursuant to Section 228A of the Companies Ordinance (Cap.32) of the Laws
      of Hong Kong;

                

        

         

        
          	
                  (b)  

                	
                  the
      Documents including any charges granted therein, to the extent that Hong
      Kong law applies to them, to which they are respectively parties and as
      executed and delivered, constitute valid and legally binding obligations
      of each Subsidiary Guarantor, enforceable against each Subsidiary
      Guarantor in accordance with their
terms;

                

        

         

        
          	
                  (c)  

                	
                  the
      motor vessel “[VESSEL NAME]” is duly registered in the name of
      [SHIPOWNER’S NAME] under and pursuant to the laws and flag of Hong Kong
      with Official Number [HK-] free and clear all registered mortgages save
      for the Vessel Mortgage in respect of the “[VESSEL
  NAME]”;

                

        

         

        
          	
                  (d)  

                	
                  the
      Vessel Mortgage in respect of the “[VESSEL NAME]” has been duly executed
      by [SHIPOWNER’S NAME] and registered at the Hong Kong Shipping Registry.
      This Vessel Mortgage constitutes a valid first priority mortgage lien on
      the motor vessel “[VESSEL NAME]”;

                

        

         

         

        
          
            
            

          

          
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          EXHIBIT
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                  (e)  

                	
                  no
      consent, authorisation, licence or approval (including exchange control
      approvals) of or registration with or declaration to any Hong Kong
      governmental or public body or authority or court is required to
      authorize, or is required by the Subsidiary Guarantors in connection with,
      the execution, delivery, legality, validity, priority, admissibility in
      evidence or effectiveness of the Documents to which they are respectively
      a party;

                

        

         

        
          	
                  (f)  

                	
                  no
      stamp duty or registration or similar taxes or charges are payable in Hong
      Kong in respect of the Documents.

                

        

         

        
          	
                  (g)  

                	
                  there
      is, at the date of this opinion letter, no Hong Kong withholding or other
      tax to be deducted from any payment whether of principal or interest or
      otherwise to be made by the Subsidiary Guarantors pursuant to any of the
      provisions of the Documents;

                

        

         

        
          	
                  (h)  

                	
                  the
      execution and delivery of, the performance of its obligations under, and
      compliance by the Subsidiary Guarantors with the provisions of the
      Documents to which they are respectively a party, do not contravene any
      existing Hong Kong law, statute, rule or regulation to which each
      Subsidiary Guarantor is subject;

                

        

         

        
          	
                  (i)  

                	
                  save
      only for the registration of the Vessel Mortgage[s] at the Hong Kong
      Shipping Registry and the registration of particulars of charges created
      by the Documents (to the extent that such Documents contain a charge and
      are executed by a company incorporated under the laws of Hong Kong or
      registered as an overseas company in Hong Kong) at the Hong Kong Companies
      Registry within five weeks of their creation, no further action need be
      taken to ensure the legality, validity, enforceability or admissibility in
      evidence in Hong Kong of the Documents or the priority of the security
      interests created thereunder;

                

        

         

        
          	
                  (j)  

                	
                  under
      Hong Kong law, the choice of New York law to govern the Documents (other
      than the Vessel Mortgage[s] is a valid choice of law, assuming that such
      choice is made bona fide by each Subsidiary Guarantor and so long as the
      choice is not made by each Subsidiary Guarantor with the intention of
      avoiding the mandatory application of the laws of another jurisdiction and
      is valid and binding upon each Subsidiary Guarantor under New York
      law;

                

        

         

        
          	
                  (k)  

                	
                  the
      Lenders, the Administrative Agent or the Collateral Agent will not be
      deemed to be resident, domiciled, carrying on business or subject to
      taxation in Hong Kong by reason only of the negotiation, preparation,
      execution, performance or enforcement of, and/or receipt of any payment
      from the Subsidiary Guarantors under, the
  Documents.

                

        

         

        
          	
                      6.  

                	
                  Qualifications

                

        

         

        This
letter is subject to the following qualifications:-

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
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                  (a)  

                	
                  enforcement
      of the obligations of the parties to the Documents in a Hong Kong court
      may be limited by prescription or lapse of time or by bankruptcy,
      insolvency, liquidation, winding-up, reorganisation, reconstruction or
      similar laws affecting creditor’s rights generally. In particular, and
      notwithstanding any provisions in the Documents regarding waivers, under
      Hong Kong law failure to exercise a right of action for more than six
      years (or twelve years in the case of a document executed under seal or
      intended to take effect as a deed) will operate as a bar to the exercise
      of such right, and failure to exercise such right for a lesser period may
      result in such right being waived;

                

        

         

        
          	
                  (b)  

                	
                  the
      availability of certain equitable remedies, such as injunction and
      specific performance, will be at the discretion of the court and a court
      might make an award of damages where specific performance of an
      obligation, or some other equitable remedy, is
  sought;

                

        

         

        
          	
                  (c)  

                	
                  any
      provision of any of the Documents providing that certain calculations
      and/or certificates will be conclusive and binding will riot be effective
      if such calculations or certificates are erroneous on their face or
      fraudulent and will not necessarily prevent judicial enquiry into the
      merits of any claim by an aggrieved
party;

                

        

         

        
          	
                  (d)  

                	
                  where
      a party under any of the Documents is vested with a discretion, or may
      determine a matter in its opinion, Hong Kong law may require that such
      discretion is exercised reasonably or that such opinion is based upon
      reasonable grounds;

                

        

         

        
          	
                  (e)  

                	
                  any
      currency indemnity provision of the Documents may not be enforceable in
      the Hong Kong courts in relation to any judgment delivered by any court
      and expressed in a currency other than that in which the relevant sum is
      payable;

                

        

         

        
          	
                  (f)  

                	
                  where
      any of the Documents is to be performed in jurisdictions outside Hong
      Kong, it may not be enforced in such jurisdiction to the extent that such
      performance would be illegal or contrary to public policy under the laws
      of any such jurisdiction;

                

        

         

        
          	
                  (g)  

                	
                  the
      severability of provisions of any of the Documents which are illegal,
      invalid or unenforceable is, as a matter of Hong Kong law, at the
      discretion of the court;

                

        

         

        
          	
                  (h)  

                	
                  proceedings
      in a Hong Kong court may be stayed if concurrent proceedings are being
      brought elsewhere or where it is shown that there is some other forum,
      having competent jurisdiction, which is more appropriate for the trial of
      the action on the basis that the case can be tried more suitably for the
      interests of all parties and the ends of justice, save where the court’s
      discretion to stay an action may be excluded by statute or
      convention;

                

        

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-4

        

         

         

        
          	
                  (i)  

                	
                  a
      Hong Kong court may refuse to give effect to any undertaking for
      reimbursement or indemnity against expenses in respect of the costs of
      unsuccessful litigation brought before such a
  court;

                

        

         

        
          	
                  (j)  

                	
                  the
      searches against the filed particulars of the Subsidiary Guarantors who
      have registered as an oversea company with an established place of
      business in Hong Kong under Part XI of the Companies Ordinance (Cap.32) of
      the Laws of Hong Kong referred to in paragraph 2 above are not
      conclusively capable of revealing whether or
  not:

                

        

         

        
          	
                  (i)  

                	
                  a
      winding up order has been made or a resolution passed for the winding up
      of such Subsidiary Guarantor ;

                

        

         

        
          	
                  (ii)  

                	
                  any
      order for the appointment of any receiver of such Subsidiary Guarantor has
      been made; or

                

        

         

        
          	
                  (iii)  

                	
                  a
      receiver or liquidator has been appointed;
or

                

        

         

        
          	
                  (iv)  

                	
                  any
      statutory declaration by the directors of such Subsidiary Guarantor
      pursuant to Section 228A of the Companies Ordinance, (Cap.32) of the Laws
      of Hong Kong has been made

                

        

         

        since
notice of these matters may not be filed with the Registrar of Companies
immediately and, when filed, may not be entered on the public files of such
Subsidiary Guarantor immediately. In addition, such searches are not capable of
revealing, prior to the making of the relevant order, whether or not a winding
up petition or an application to the court for the appointment of a receiver has
been presented, or any matters which have been lodged for registration but have
not actually been registered at the date the copy of the relevant file was made
available to us;

         

        
          	
                  (k)  

                	
                  under
      the rules of procedure applicable, a Hong Kong court may, at its
      discretion, order a plaintiff in an action, being a party who is not
      ordinarily resident in some part of Hong Kong, to provide security for
      costs;

                

        

         

        
          	
                  (l)  

                	
                  the
      search of the High Court cause book referred to in paragraph 2 is not
      capable of revealing conclusively whether any litigation or proceeding is
      in progress (either in Hong Kong or in any other jurisdiction) involving
      or otherwise concerning the Subsidiary
  Guarantors;

                

        

         

        
          	
                  (m)  

                	
                  we
      express no view on any provision in any of the Documents requiring written
      amendments and waivers of any of the provisions of such Document in so far
      as it suggests that oral or other modifications, amendments or waivers
      could not be effectively agreed upon or granted by or between the parties
      or implied by the course of conduct of the
  parties;

                

        

         

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-4

           

        

         

        
          	
                  (n)  

                	
                  save
      as provided in paragraph [5(c) and (d)], we express no opinion as to the
      title of any of the Subsidiary Guarantors to any of the security assets
      being the subject of the Security Documents or the ranking of any security
      created or to be created by such documents, as to the nature of the
      security created thereby or as to the marketability of or rights of
      enforcement over such security
assets;

                

        

         

        
          	
                  (o)  

                	
                  the
      effectiveness of terms relieving a party from a liability or duty
      otherwise owed are limited by law;

                

        

         

        
          	
                  (p)  

                	
                  Section
      24 of the Money Lenders Ordinance (Cap.163) of the Laws of Hong Kong makes
      it illegal to lend or offer to lend money at any effective rate of
      interest which exceeds sixty per centum (60%) per annum and makes any
      agreement for the repayment of any loan or the payment of interest on any
      loan and any security therefor unenforceable in any case in which the
      effective rate of interest exceeds such rate;
  and

                

        

         

        
          	
                  (q)  

                	
                  Section
      25 of the Money Lenders Ordinance (Cap.163) of the Laws of Hong Kong
      provides that a Hong Kong court may “reopen the transaction so as to do
      justice between the parties” if the transaction is “extortionate”. For
      this purpose a loan in respect of which the effective rate of interest
      exceeds forty eight per centum (48%) per annum is presumed to be
      “extortionate”.

                

        

         

        
          	
                      7.  

                	
                  The Basic
      Law

                

        

         

        Without
prejudice to the generality of the foregoing, it should be noted that on 1st
July 1997 Hong Kong became the Hong Kong Special Administrative Region (the
“HKSAR”) of the People’s Republic of
China (the “PRC”) and the Basic Law of the
HKSAR (the “Basic Law”) adopted on 4th April 1990
by the National People’s Congress (the “NPC”) of the PRC is now
applicable to Hong Kong. Article 8 of the Basic Law provides that the laws
previously in force in Hong Kong, that is, the common law, rules of equity,
ordinances, subordinate legislation and customary law shall be maintained,
except for any that contravene the Basic Law, and subject to any amendment by
the legislature of the HKSAR. Under Article 160 of the Basic Law, the Laws of
Hong Kong in force at 30th June 1997 were adopted as laws of the HKSAR except
for those which the Standing Committee of the NPC (the “Standing
Committee”)
declared to be in contravention of the Basic Law. On 23rd February 1997 the
Standing Committee on its 24th sitting decided that the laws previously in force
in Hong Kong, including the common law, rules of equity, ordinances, subsidiary
legislation and customary law shall, unless they contravene the Basic Law, be
adopted as the laws of the HKSAR. However, the Standing Committee also decided
that certain laws and provisions (namely those listed in Schedules 1 and 2 of
the decision) will not be so adopted as they contravene the Basic Law. These
unadopted laws however appear to us to have no bearing on those Laws of Hong
Kong which are relevant to what is stated in this opinion.

         

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-4

        

         

         

        To give
effect to (inter alia) the said decision of the Standing Committee, the Hong
Kong Reunification Ordinance was adopted by the HKSAR’s legislature on 1st July
1997 (Ordinance No.110 of 1997). Section 7 of this Ordinance reiterates in
essence what is stated in the decision of the Standing Committee, namely “the
laws previously in force in Hong Kong, that is the common law, rules of equity,
ordinances, subsidiary legislation and customary law, which have been adopted as
the laws of the HKSAR, shall continue to apply”. The Hong Kong Reunification
Ordinance also introduced an amendment to the Interpretation and General Clauses
Ordinance (Cap. 1) of the Laws of Hong Kong by inserting a new Article 2A which
provides (inter alia) that “all laws previously in force shall be construed with
such modifications, adaptations, limitations and exceptions as may be necessary
so as not to contravene the Basic Law and to bring them into conformity with the
status of Hong Kong as a Special Administrative Region of the People’s Republic
of China”. The expression “laws previously in force” was defined thereunder to
mean “the common law, rules of equity, ordinances, subsidiary legislation and
customary law in force immediately before 1st July 1997 and adopted as laws of
the Hong Kong Special Administrative Region”. The Laws of Hong Kong which are
relevant to what is stated in this opinion do not appear to us to contravene the
Basic Law nor do they appear to require any modifications, adaptations,
limitations and exceptions in any material manner in order to bring them in
conformity with the status of Hong Kong as a Special Administrative Region of
PRC. Furthermore, we are not aware of any other amendment made by the
legislature of the HKSAR to those Laws of Hong Kong which are relevant to what
is stated in this opinion, which would require us to opine
otherwise.

         

        
          	
                      8.  

                	
                  Benefit

                

        

         

        This
opinion is addressed to you personally for your sole benefit and is not to be
relied upon by any other person other than the Lenders (and their assigns and
participants) and:

         

        
          	
                  (a)  

                	
                  it
      is not to be disclosed in whole or in part by you or the Lenders to anyone
      other than persons who in the ordinary course of your or their business
      have access to your or their papers and records and on the basis that such
      persons will similarly make no further disclosure;
  and

                

        

         

        
          	
                  (b)  

                	
                  it
      is not to be filed with any governmental agency or authority or quoted in
      any public document without, in any such case, our prior written
      consent.

                

        

         

        
          	
                      9.  

                	
                  Scope

                

        

         

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-4

        

         

         

        This
letter is strictly limited to the matters stated herein and is not to be read as
extending by implication to any other matter in connection with the Subsidiary
Guarantors, the Documents or otherwise.

         

        Yours
faithfully,

        

        

        /s/ Mayer
Brown JSM

        Mayer
Brown JSM

         

         

         

        11

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
C-4

        

         

         

         

         

        Schedule

        

         

        List of Subsidiary
Guarantors/Vessels

         

        
          	
                  Vessel Name

                	
                  Vessel Owner

                	
                  Registry Number

                	
                  Jurisdiction of Registry

                	
                  Flag

                
	 
      	 
      	 
      	 
      	 
      
	
                  Genco
      Aurelius

                	
                  Genco
      Aurelius Limited

                	 
      	 
      	 
      
	 	 	 	 	 
	
                  Genco
      Julian

                	
                  Genco
      Julian Limited

                	 
      	 
      	 
      
	 	 	 	 	 
	
                  Genco
      Valerian

                	
                  Genco
      Valerian Limited

                	 
      	 
      	 
      
	 	 	 	 	 
	
                  Genco
      Eagle

                	
                  Genco
      Eagle Limited

                	 
      	 
      	 
      
	 	 	 	 	 
	
                  Genco
      Falcon

                	
                  Genco
      Falcon Limited

                	 
      	 
      	 
      
	 	 	 	 	 
	
                  Genco
      Hawk

                	
                  Genco
      Hawk Limited

                	 
      	 
      	 
      

        

        

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT D

       

       

      
         

        FORM OF OFFICER’S
CERTIFICATE

         

        I, the
undersigned, [Chairman of the Board/Chief Executive Officer/President/Vice
President/Treasurer/Manager] of [Name of
Credit Party], a corporation organized and existing under the laws of the
Republic of the Marshall Islands (the “Company”), do hereby
certify on behalf of the Company that:

         

        1.           This
Certificate is furnished pursuant to Section [4.02(a)]/[5.02(i)] of the Credit
Agreement, dated as of September 4, 2008, among Genco Shipping & Trading
Limited, the lenders from time to time party thereto Nordea Bank Finland Plc,
acting through its New York branch, as Administrative Agent (such Credit
Agreement, as in effect on the date of this Certificate, being herein called the
“Credit
Agreement”).  Unless otherwise defined herein, capitalized
terms used in this Certificate shall have the meanings set forth in the Credit
Agreement.

         

        2.           The
following named individuals are elected officers of the Company, each holds the
office of the Company set forth opposite his or her name and has held such
office since _________ __, ____.1  The signature written opposite the
name and title of each such officer is his or her genuine
signature.

         

             Name2                                                          Office           
                                             Signature           

         

        ______________                                                ___________                                          _____________

         

        ______________                                                ___________                                          _____________

         

        ______________                                                ___________                                          _____________

         

        3.           Attached
hereto as Exhibit A is a certified copy of the Certificate of Incorporation and
Articles of Incorporation of the Company, as filed in the Office of the
Registrar of Corporations of the Republic of the Marshall Islands on
___________, ____, together with all amendments thereto adopted through the date
hereof.

         

        4.           Attached
hereto as Exhibit B is a true and correct copy of the Amended and Restated By
Laws of the Company which were duly adopted, are in full force and effect on the
date hereof, and have been in effect since _____________, ____.

         

         

         

         

         

         

        ----------------------------------------

         

        
          
            	
                    1

                  	
                    Insert a date prior to the time
      of any corporate action relating to the Credit Documents or related
      documentation.

                  

          

           

        

        
          
            	
                    2

                  	
                    Include name, office and
      signature of each officer who will sign any Credit Document, including the
      officer who will sign the certification at the end of this Certificate or
      related documentation.

                  

          

           

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            EXHIBIT
D

          

           

           

           

        

        5.           Attached
hereto as Exhibit C is a true and correct copy of resolutions which were duly
adopted on __________, 20__ [by unanimous written consent of the Board of
Directors of the Company]/[by a meeting of the Board of Directors of the Company
at which a quorum was present and acting throughout], and said resolutions have
not been rescinded, amended or modified.  Except as attached hereto as
Exhibit C, no resolutions have been adopted by the Board of Directors of the
Company which deal with the execution, delivery or performance of any of the
Credit Documents to which the Company is party.

         

        [6.           On
the date hereof, all of the applicable conditions set forth in Sections 4, 5 and
6 of the Credit Agreement have been satisfied.

         

        7.           Attached
hereto as Exhibit D is a true and correct copy of all Management
Agreements.

         

        8.           Attached
hereto as Exhibit E is a true and correct copy of all Service Agreements.]3

         

        [6]/[9].  On
the date hereof, the representations and warranties contained in the Credit
Agreement and in the other Credit Documents are true and correct in all material
respects with the same effect as though such representations and warranties had
been made on the date hereof, both before and after giving effect to the
incurrence of Loans on the date hereof and the application of the proceeds
thereof, unless stated to relate to a specific earlier date, in which case such
representations and warranties were true and correct in all material respects as
of such earlier date.

         

        [7]/[10].  On
the date hereof, no Default or Event of Default has occurred and is continuing
or would result from the Borrowing to occur on the date hereof or from the
application of the proceeds thereof.

         

        [8]/[11].  There
is no proceeding for the dissolution or liquidation of the Company or
threatening its existence.

         

        

         

         

         

         

         

        ------------------------------------

          
          
            	
                    3

                  	
                    Insert only in Officer’s
      Certificate of the Borrower.

                  

          

           

           

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

          
            EXHIBIT
D

          

           

           

           

           

        

        IN
WITNESS WHEREOF, I have hereunto on behalf of the Company set my hand this ____
day of ________________, 20__.

         

                [NAME OF CREDIT
PARTY]

         

                By
______________________________

                     Name:

                     Title:

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

           

          EXHIBIT
D

        

         

         

         

        

        I, the
undersigned, [Secretary]/[Assistant Secretary] of the Company, do hereby certify on behalf
of the Company that:

         

        1.           [Name
of Person making above certifications] is the duly elected and qualified
[Chairman of the Board/Chief Executive Officer/President/Vice
President/Treasurer] of the Company and the signature above is his or her
genuine signature.

         

        2.           The
certifications made by [name of Person making above certifications] on behalf of
the Company in Items 2, 3, 4, 5 and [8]/[11] above are true and
correct.

         

        IN
WITNESS WHEREOF, I have hereunto on behalf of the Company set my hand this ____
day of _________, 20__.

         

                    [NAME OF CREDIT
PARTY]

         

         

                    By
______________________________

                         
Name:

                          Title:

        

         

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT E

       

       

      
        GUARANTY

         

        GUARANTY,
dated as of [DATE], 2008 (as amended, modified, restated and/or supplemented
from time to time, this “Guaranty”), made by
each of the undersigned guarantors (each a “Guarantor” and,
together with any other entity that becomes a guarantor hereunder pursuant to
Section 25 hereof, the “Guarantors”).  Except
as otherwise defined herein, capitalized terms used herein and defined in the
Credit Agreement (as defined below) shall be used herein as therein
defined.

         

        W I T N E S S E T H :

         

        WHEREAS,
Genco Shipping & Trading Limited (the “Borrower”), the
lenders from time to time party thereto (the “Lenders”), Nordea
Bank Finland Plc, acting through its New York branch, as Administrative Agent
and as Collateral Agent (in such capacity, together with any successor
Administrative Agent, the “Administrative
Agent”), have entered into a Credit Agreement, dated as of September 4,
2008 (as amended, modified, restated and/or supplemented from time to time, the
“Credit
Agreement”), providing for the making of Loans to the Borrower as
contemplated therein (the Lenders, the Collateral Agent and the Administrative
Agent are herein called the “Lender
Creditors”);

         

        WHEREAS,
the Borrower may at any time and from time to time enter into, or guaranty the
obligations of one or more other Guarantors or any of their respective
Subsidiaries under, one or more Interest Rate Protection Agreements or Other
Hedging Agreements with respect to the Borrower’s obligations under the Credit
Agreement with respect to the outstanding Loans and/or Commitment from time to
time with one or more Lenders or any affiliate thereof (each such Lender or
affiliate, even if the respective Lender subsequently ceases to be a Lender
under the Credit Agreement for any reason, together with such Lender’s or
affiliate’s successors and assigns, if any, collectively, the “Other Creditors” and,
together with the Lender Creditors, the “Secured
Creditors”);

         

        WHEREAS,
each Guarantor is a direct or indirect Subsidiary of the Borrower;

         

        WHEREAS,
it is a condition to the making of any Loan to the Borrower under the Credit
Agreement that each Guarantor shall have executed and delivered this Guaranty;
and

         

        WHEREAS,
each Guarantor will obtain benefits from the incurrence of Loans to the Borrower
under the Credit Agreement and the entering into by the Borrower of Interest
Rate Protection Agreements or Other Hedging Agreements and, accordingly, desires
to execute this Guaranty in order to satisfy the conditions described in the
preceding paragraph;

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        EXHIBIT E

         

         

         

        NOW,
THEREFORE, in consideration of the foregoing and other benefits accruing to each
Guarantor, the receipt and sufficiency of which are hereby acknowledged, each
Guarantor hereby makes the following representations and warranties to the
Secured Creditors and hereby covenants and agrees with each Secured Creditor as
follows:

         

        1.    Each
Guarantor, jointly and severally, irrevocably, absolutely and unconditionally
guarantees:  (i) to the Lender Creditors the full and prompt payment
when due (whether at the stated maturity, by acceleration or otherwise) of (x)
the principal of, premium, if any, and interest on any Note issued by, and the
Loans made to, the Borrower under the Credit Agreement, and (y) all other
obligations (including obligations which, but for the automatic stay under
Section 362(a) of the Bankruptcy Code, would become due), liabilities and
indebtedness owing by the Borrower to the Lender Creditors (in the capacities
referred to in the definition of Lender Creditors) under the Credit Agreement
and each other Credit Document to which the Borrower is a party (including,
without limitation, indemnities, fees and interest thereon (including any
interest accruing after the commencement of any bankruptcy, insolvency,
receivership or similar proceeding at the rate provided for in the Credit
Agreement, whether or not such interest is an allowed claim in any such
proceeding)), whether now existing or hereafter incurred under, arising out of
or in connection with the Credit Agreement and any such other Credit Document
and the due performance and compliance by the Borrower with all of the terms,
conditions and agreements contained in all such Credit Documents (all such
principal, premium, interest, liabilities, indebtedness and obligations being
herein collectively called the “Credit Document
Obligations”); and (ii) to each Other Creditor the full and prompt
payment when due (whether at the stated maturity, by acceleration or otherwise)
of all obligations (including obligations which, but for the automatic stay
under Section 362(a) of the Bankruptcy Code, would become due), liabilities and
indebtedness (including any interest accruing after the commencement of any
bankruptcy, insolvency, receivership or similar proceeding at the rate provided
for in the respective Interest Rate Protection Agreements or Other Hedging
Agreements, whether or not such interest is an allowed claim in any such
proceeding) owing by the Borrower under any Interest Rate Protection Agreement
or Other Hedging Agreement entered into in respect of the Borrower’s obligations
with respect to the outstanding Loans and/or Commitments from time to time,
whether now in existence or hereafter arising, and the due performance and
compliance by the Borrower with all of the terms, conditions and agreements
contained in each such Interest Rate Protection Agreement and Other Hedging
Agreement to which it is a party (all such obligations, liabilities and
indebtedness being herein collectively called the “Other Obligations”
and, together with the Credit Document Obligations, the “Guaranteed
Obligations”).  As used herein, the term “Guaranteed Party”
shall mean the Borrower party to or as guarantor of any Guarantor or its
Subsidiaries party to any Interest Rate Protection Agreement or Other Hedging
Agreement with an Other Creditor.  Each Guarantor understands, agrees
and confirms that the Secured Creditors may enforce this Guaranty up to the full
amount of the Guaranteed Obligations against such Guarantor without proceeding
against any other Guarantor, the Borrower, any other Guaranteed Party, against
any security for the Guaranteed Obligations, or under any other guaranty
covering all or a portion of the Guaranteed Obligations.

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        EXHIBIT E

        page 3

         

        2.    Additionally,
each Guarantor, jointly and severally, unconditionally, absolutely and
irrevocably, guarantees the payment of any and all Guaranteed Obligations
whether or not due or payable by the Borrower or any other Guaranteed Party upon
the occurrence in respect of the Borrower or any such other Guaranteed Party of
any of the events specified in Section 10.05 of the Credit Agreement, and
unconditionally and irrevocably, jointly and severally, promises to pay such
Guaranteed Obligations to the Secured Creditors, or order, on
demand.  This Guaranty shall constitute a guaranty of payment, and not
of collection.

         

        3.    The liability
of each Guarantor hereunder is primary, absolute, joint and several, and
unconditional and is exclusive and independent of any security for or other
guaranty of the indebtedness of the Borrower or any other Guaranteed Party
whether executed by such Guarantor, any other Guarantor, any other guarantor or
by any other party, and the liability of each Guarantor hereunder shall not be
affected or impaired by any circumstance or occurrence whatsoever, including,
without limitation:  (a) any direction as to application of payment by
the Borrower or any other Guaranteed Party or by any other party, (b) any other
continuing or other guaranty, undertaking or maximum liability of a guarantor or
of any other party as to the Guaranteed Obligations, (c) any payment on or in
reduction of any such other guaranty or undertaking, (d) any dissolution, change
in corporate structure, termination or increase, decrease or change in
personnel, by the Borrower or any other Guaranteed Party, (e) to the extent
permitted by applicable law, any payment made to any Secured Creditor on the
indebtedness which any Secured Creditor repays the Borrower or any other
Guaranteed Party pursuant to court order in any bankruptcy, reorganization,
arrangement, moratorium or other debtor relief proceeding, and each Guarantor
waives any right to the deferral or modification of its obligations hereunder by
reason of any such proceeding, (f) any action or inaction by the Secured
Creditors as contemplated in Section 6 hereof or (g) any invalidity,
irregularity or unenforceability of all or any part of the Guaranteed
Obligations or of any security therefor, including, without limitation, any such
invalidity, irregularity or unenforceability caused by a change in
law.

         

        4.    The
obligations of each Guarantor hereunder are independent of the obligations of
any other Guarantor, any other guarantor, the Borrower or any other Guaranteed
Party, and a separate action or actions may be brought and prosecuted against
each Guarantor whether or not action is brought against any other Guarantor, any
other guarantor, the Borrower or any other Guaranteed Party and whether or not
any other Guarantor, any other guarantor, the Borrower or any other Guaranteed
Party be joined in any such action or actions.  Each Guarantor waives,
to the fullest extent permitted by law, the benefits of any statute of
limitations affecting its liability hereunder or the enforcement
thereof.  Any payment by the Borrower or any other Guaranteed Party or
other circumstance which operates to toll any statute of limitations as to the
Borrower or any other Guaranteed Party shall operate to toll the statute of
limitations as to each Guarantor.

         

        5.    Any Secured
Creditor may at any time and from time to time without the consent of, or notice
to, any Guarantor, without incurring responsibility to such Guarantor, without
impairing or releasing the obligations of such Guarantor hereunder, upon or
without any terms or conditions and in whole or in part:

         

        (a)    change the
manner, place or terms of payment of, and/or change, increase or extend the time
of payment of, renew or alter, any of the Guaranteed Obligations (including
any

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT E

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        increase
or decrease in the rate of interest thereon or the principal amount thereof),
any security therefor, or any liability incurred directly or indirectly in
respect thereof, and the guaranty herein made shall apply to the Guaranteed
Obligations as so changed, extended, renewed or altered;

         

        (b)    take and hold
security for the payment of the Guaranteed Obligations and sell, exchange,
release, surrender, impair, realize upon or otherwise deal with in any manner
and in any order any property by whomsoever at any time pledged or mortgaged to
secure, or howsoever securing, the Guaranteed Obligations or any liabilities
(including any of those hereunder) incurred directly or indirectly in respect
thereof or hereof, and/or any offset there against;

         

        (c)    exercise or
refrain from exercising any rights against the Borrower, any
other  Guaranteed Party, any other Credit Party, any Subsidiary
thereof or otherwise act or refrain from acting;

         

        (d)    release or
substitute any one or more endorsers, Guarantors, other guarantors, the
Borrower, any other Guaranteed Party, or other obligors;

         

        (e)    settle or
compromise any of the Guaranteed Obligations, any security therefor or any
liability (including any of those hereunder) incurred directly or indirectly in
respect thereof or hereof, and may subordinate the payment of all or any part
thereof to the payment of any liability (whether due or not) of the Borrower or
any other Guaranteed Party to creditors of the Borrower or such other Guaranteed
Party other than the Secured Creditors;

         

        (f)    apply any
sums by whomsoever paid or howsoever realized to any liability or liabilities of
the Borrower or any other Guaranteed Party to the Secured Creditors regardless
of what liabilities of the Borrower or such other Guaranteed Party remain
unpaid;

         

        (g)    consent to or
waive any breach of, or any act, omission or default under, any of the Interest
Rate Protection Agreements or Other Hedging Agreements, the Credit Documents or
any of the instruments or agreements referred to therein, or otherwise amend,
modify or supplement (in accordance with their terms) any of the Interest Rate
Protection Agreements or Other Hedging Agreements, the Credit Documents or any
of such other instruments or agreements;

         

        (h)    act or fail
to act in any manner which may deprive such Guarantor of its right to
subrogation against the Borrower or any other Guaranteed Party to recover full
indemnity for any payments made pursuant to this Guaranty; and/or

         

        (i)    take any
other action which would, under otherwise applicable principles of common law,
give rise to a legal or equitable discharge of such Guarantor from its
liabilities under this Guaranty.

         

        6.    This Guaranty
is a continuing one and all liabilities to which it applies or may apply under
the terms hereof shall be conclusively presumed to have been created in reliance
hereon.  No failure or delay on the part of any Secured Creditor in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of

         

         

        
          
            
            

          

          
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        any other
right, power or privilege hereunder.  The rights and remedies herein
expressly specified are cumulative and not exclusive of any rights or remedies
which any Secured Creditor would otherwise have hereunder.  No notice
to or demand on any Guarantor in any case shall entitle such Guarantor to any
other further notice or demand in similar or other circumstances or constitute a
waiver of the rights of any Secured Creditor to any other or further action in
any circumstances without notice or demand.  It is not necessary for
any Secured Creditor to inquire into the capacity or powers of the Borrower or
any other Guaranteed Party or the officers, directors, partners or agents acting
or purporting to act on its or their behalf, and any indebtedness made or
created in reliance upon the professed exercise of such powers shall be
guaranteed hereunder.

         

        7.    Any
indebtedness of the Borrower or any other Guaranteed Party now or hereafter held
by any Guarantor is hereby subordinated to the indebtedness of the Borrower or
such other Guaranteed Party to the Secured Creditors, and such indebtedness of
the Borrower or such other Guaranteed Party to any Guarantor, if the
Administrative Agent or the Collateral Agent, after the occurrence and during
the continuance of an Event of Default, so requests, shall be collected,
enforced and received by such Guarantor as trustee for the Secured Creditors and
be paid over to the Secured Creditors on account of the indebtedness of the
Borrower or the other Guaranteed Parties to the Secured Creditors, but without
affecting or impairing in any manner the liability of such Guarantor under the
other provisions of this Guaranty.  Without limiting the generality of
the foregoing, each Guarantor hereby agrees with the Secured Creditors that it
will not exercise any right of subrogation which it may at any time otherwise
have as a result of this Guaranty (whether contractual, under Section 509 of the
Bankruptcy Code or otherwise) until all Guaranteed Obligations have been
irrevocably paid in full in cash.

         

        8.    (a)  Each
Guarantor waives any right (except as shall be required by applicable law and
cannot be waived) to require the Secured Creditors to:  (i) proceed
against the Borrower, any other Guaranteed Party, any other Guarantor, any other
guarantor of the Guaranteed Obligations or any other party; (ii) proceed against
or exhaust any security held from the Borrower, any other Guaranteed Party, any
other Guarantor, any other guarantor of the Guaranteed Obligations or any other
party; or (iii) pursue any other remedy in the Secured Creditors’ power
whatsoever.  Each Guarantor waives any defense based on or arising out
of any defense of the Borrower, any other Guaranteed Party, any other Guarantor,
any other guarantor of the Guaranteed Obligations or any other party other than
payment in full of the Guaranteed Obligations, including, without limitation,
any defense based on or arising out of the disability of the Borrower, any other
Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed
Obligations or any other party, or the unenforceability of the Guaranteed
Obligations or any part thereof from any cause, or the cessation from any cause
of the liability of the Borrower or any other Guaranteed Party other than
payment in full of the Guaranteed Obligations.  The Secured Creditors
may, at their election, foreclose on any security held by the Administrative
Agent, the Collateral Agent or the other Secured Creditors by one or more
judicial or nonjudicial sales, whether or not every aspect of any such sale is
commercially reasonable, or exercise any other right or remedy the Secured
Creditors may have against the Borrower, any other Guaranteed Party or any other
party, or any security, without affecting or

         

         

        
          
            
            

          

          
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        impairing
in any way the liability of any Guarantor hereunder except to the extent the
Guaranteed Obligations have been paid in full in cash.  Each Guarantor
waives any defense arising out of any such election by the Secured Creditors,
even though such election operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of such Guarantor against
the Borrower, any other Guaranteed Party or any other party or any
security.

         

        (b)    Each
Guarantor waives all presentments, promptness, diligence, demands for
performance, protests and notices, including, without limitation, notices of
nonperformance, notices of protest, notices of dishonor, notices of acceptance
of this Guaranty, and notices of the existence, creation or incurring of new or
additional indebtedness.  Each Guarantor assumes all responsibility
for being and keeping itself informed of the Borrower’s and each other
Guaranteed Party’s financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations
and the nature, scope and extent of the risks which such Guarantor assumes and
incurs hereunder, and agrees that the Secured Creditors shall have no duty to
advise any Guarantor of information known to them regarding such circumstances
or risks.

         

        Each
Guarantor warrants and agrees that each of the waivers set forth above in this
Section 8 is made with full knowledge of its significance and consequences and
that if any of such waivers are determined to be contrary to any applicable law
or public policy, such waivers shall be effective only to the maximum extent
permitted by law.

         

        9.    (a)       The
Secured Creditors agree that this Guaranty may be enforced only by the action of
the Administrative Agent or the Collateral Agent, in each case acting upon the
instructions of the Lenders (or, after the date on which all Credit Document
Obligations have been paid in full, the holders of at least a majority of the
outstanding Other Obligations) and that no other Secured Creditors shall have
any right individually to seek to enforce or to enforce this Guaranty, it being
understood and agreed that such rights and remedies may be exercised by the
Administrative Agent or the Collateral Agent or, after all the Credit Document
Obligations have been paid in full, by the holders of at least a majority of the
outstanding Other Obligations, as the case may be, for the benefit of the
Secured Creditors upon the terms of this Guaranty.  The Secured
Creditors further agree that this Guaranty may not be enforced against any
director, officer, employee, partner, member or stockholder of any Guarantor
(except to the extent such partner, member or stockholder is also a Guarantor
hereunder).

         

        (b)    The
Administrative Agent and Collateral Agent will hold in accordance with this
Guaranty all collateral at any time received under this Guaranty.  It
is expressly understood and agreed by each Secured Creditor that by accepting
the benefits of this Guaranty each such Secured Creditor acknowledges and agrees
that the obligations of the Administrative Agent and Collateral Agent as
enforcer of this Guaranty and interests herein are only those expressly set
forth in this Guaranty and in Section 12 of the Credit Agreement.  The
Administrative Agent and the Collateral Agent shall act hereunder on the terms
and conditions set forth herein and in Section 12 of the Credit
Agreement.

         

        10.    In order to
induce the Lenders to make Loans to the Borrower pursuant to the Credit
Agreement, and in order to induce the Other Creditors to execute, deliver and
perform the 

         

         

        
          
            
            

          

          
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        Interest
Rate Protection Agreements and Other Hedging Agreements, each Guarantor
represents, warrants and covenants that:

         

        (a)    Such
Guarantor (i) is a duly organized and validly existing corporation in good
standing under the laws of the jurisdiction of its incorporation, (ii) has the
corporate power and authority to own its property and assets and to transact the
business in which it is currently engaged and presently proposes to engage and
(iii) is duly qualified and is authorized to do business and is in good standing
in each jurisdiction where the conduct of its business as currently conducted
requires such qualification, except for failures to be so qualified which,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

         

        (b)    Such
Guarantor has the corporate power and authority to execute, deliver and perform
the terms and provisions of this Guaranty and each other Credit Document to
which it is a party and has taken all necessary corporate action to authorize
the execution, delivery and performance by it of this Guaranty and each such
other Credit Document.  Such Guarantor has duly executed and delivered
this Guaranty and each other Credit Document to which it is a party, and this
Guaranty and each such other Credit Document constitutes the legal, valid and
binding obligation of such Guarantor enforceable against such Guarantor in
accordance with its terms, except to the extent that the enforceability hereof
or thereof may be limited by applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws generally affecting
creditors’ rights and by equitable principles (regardless of whether enforcement
is sought in equity or at law).

         

        (c)    Neither the
execution, delivery or performance by such Guarantor of this Guaranty or any
other Credit Document to which it is a party, nor compliance by it with the
terms and provisions hereof and thereof, will (i) contravene any provision of
any applicable law, statute, rule or regulation or any applicable order, writ,
injunction or decree of any court or governmental instrumentality, (ii) conflict
with or result in any breach of any of the terms, covenants, conditions or
provisions of, or constitute a default under, or result in the creation or
imposition of (or the obligation to create or impose) any Lien (except pursuant
to the Security Documents) upon any of the material properties or assets of such
Guarantor or any of its Subsidiaries pursuant to the terms of any indenture,
mortgage, deed of trust, loan agreement or credit agreement, or any other
material agreement, contract or instrument, to which such Guarantor or any of
its Subsidiaries is a party or by which it or any of its material property or
assets is bound or to which it may be subject or (iii) violate any provision of
the Articles of Incorporation or Amended and Restated By-Laws of such Guarantor
or any of its Subsidiaries.

         

        (d)    No order,
consent, approval, license, authorization or validation of, or filing, recording
or registration with (except as have been obtained or made or, in the case of
any filings or recordings of the Security Documents (other than the Vessel
Mortgages) executed on or before the Initial Borrowing Date, will be made within
10 days of the Initial Borrowing Date), or exemption by, any governmental or
public body or authority, or any subdivision thereof, is required to authorize,
or is required in connection with, (i) the execution, delivery and performance
of this Guaranty by such Guarantor or any other Credit Document to which
such

         

         

        
          
            
            

          

          
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        Guarantor
is a party or (ii) the legality, validity, binding effect or enforceability of
this Guaranty or any other Credit Document to which such Guarantor is a
party.

         

        (e)    There are no
actions, suits, investigations or proceedings pending or, to such Guarantor’s
knowledge, threatened (i) with respect to this Guaranty or any other Credit
Document to which such Guarantor is a party or (ii) with respect to such
Guarantor or any of its Subsidiaries that, either individually or in the
aggregate, could reasonably be expected to have a Material Adverse
Effect.

         

        11.    Each
Guarantor covenants and agrees that on and after the Effective Date and until
the termination of the Commitments and all Interest Rate Protection Agreements
and Other Hedging Agreements entered into with respect to the Loans and until
such time as no Notes remain outstanding and all Guaranteed Obligations have
been paid in full, such Guarantor will comply, and will cause each of its
Subsidiaries to comply, with all of the applicable provisions, covenants and
agreements contained in Sections 8 and 9 of the Credit Agreement, and will take,
or will refrain from taking, as the case may be, all actions that are necessary
to be taken or not taken so that it is not in violation of any provision,
covenant or agreement contained in Section 8 or 9 of the Credit Agreement, and
so that no Default or Event of Default is caused by the actions of such
Guarantor or any of its Subsidiaries.

         

        12.    The
Guarantors hereby jointly and severally agree to pay all reasonable
out-of-pocket costs and expenses of (i) each Secured Creditor in connection with
the enforcement of this Guaranty (including, without limitation, the reasonable
fees and disbursements of counsel employed by each Secured Creditor) and (ii)
the Administrative Agent in connection with any amendment, waiver or consent
relating hereto (including, without limitation, the reasonable fees and
disbursements of counsel employed by the Administrative Agent).

         

        13.    This Guaranty
shall be binding upon each Guarantor and its successors and assigns and shall
inure to the benefit of the Secured Creditors and their successors and
assigns.

         

        14.    Neither this
Guaranty nor any provision hereof may be changed, waived, discharged or
terminated except with the written consent of each Guarantor directly affected
thereby and with the written consent of (x) the Administrative Agent (or, to the
extent required by Section 13.12 of the Credit Agreement, with the written
consent of the Required Lenders) at all times prior to the time on which all
Credit Document Obligations have been paid in full or (y) the holders of at
least a majority of the outstanding Other Obligations at all times after the
time on which all Credit Document Obligations have been paid in full; provided, that any
change, waiver, modification or variance affecting the rights and benefits of a
single Class (as defined below) of Secured Creditors (and not all Secured
Creditors in a like or similar manner) shall also require the written consent of
the Requisite Creditors (as defined below) of such Class of Secured Creditors
(it being understood that the addition or release of any Guarantor hereunder
shall not constitute a change, waiver, discharge or termination affecting any
Guarantor other than the Guarantor so added or released).  For the
purpose of this Guaranty, the term “Class” shall mean
each class of Secured Creditors, i.e., whether (x) the
Lender Creditors as holders of the Credit Document Obligations or (y) the Other
Creditors as the holders of the Other Obligations.  For the purpose of
this Guaranty, the term “Requisite Creditors”
of any Class shall mean (x) with

         

         

        
          
            
            

          

          
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        respect
to the Credit Document Obligations, the Required Lenders (or, to the extent
required by Section 13.12 of the Credit Agreement, each Lender) and (y) with
respect to the Other Obligations, the holders of at least a majority of all
obligations outstanding from time to time under the Interest Rate Protection
Agreements and Other Hedging Agreements entered into with respect to the Loans
(and/or the Commitments).

         

        15.    Each
Guarantor acknowledges that an executed (or conformed) copy of each of the
Credit Documents and each existing Interest Rate Protection Agreements or Other
Hedging Agreements has been made available to a senior officer of such Guarantor
and such officer is familiar with the contents thereof.

         

        16.    In addition
to any rights now or hereafter granted under applicable law (including, without
limitation, Section 151 of the New York Debtor and Secured Creditor Law) and not
by way of limitation of any such rights, upon the occurrence and during the
continuance of an Event of Default (such term to mean and include any “Event of Default” as
defined in the Credit Agreement and any payment default under any Interest Rate
Protection Agreement or Other Hedging Agreement continuing after any applicable
grace period), each Secured Creditor is hereby authorized, at any time or from
time to time, without notice to any Guarantor or to any other Person, any such
notice being expressly waived, to set off and to appropriate and apply any and
all deposits (general or special) and any other indebtedness at any time held or
owing by such Secured Creditor to or for the credit or the account of such
Guarantor, against and on account of the obligations and liabilities of such
Guarantor to such Secured Creditor under this Guaranty, irrespective of whether
or not such Secured Creditor shall have made any demand hereunder and although
said obligations, liabilities, deposits or claims, or any of them, shall be
contingent or unmatured.

         

        17.    Except as
otherwise expressly provided herein, all notices and other communications
provided for hereunder shall be in writing (including telexed, telegraphic or
telecopier communication) and mailed, telexed, telecopied or
delivered:  if to any Guarantor, at c/o Genco Ship Management LLC., as
agent, 299 Park Avenue, 20th Floor, New York, New York 10171; if to any Secured
Creditor, at its address specified opposite its name on Schedule II to the
Credit Agreement; and if to the Administrative Agent, at its address specified
opposite its name on Schedule II to the Credit Agreement; or, as to any other
Credit Party, at such other address as shall be designated by such party in a
written notice to the other parties hereto and, as to each Secured Creditor, at
such other address as shall be designated by such Secured Creditor in a written
notice to the Borrower and the Administrative Agent.  All such notices
and communications shall, (i) when mailed, be effective three Business Days
after being deposited in the mails, prepaid and properly addressed for delivery,
(ii) when sent by overnight courier, be effective one Business Day after
delivery to the overnight courier prepaid and properly addressed for delivery on
such next Business Day, or (iii) when sent by telex or telecopier, be effective
when sent by telex or telecopier, except that notices and communications to the
Administrative Agent or any Guarantor shall not be effective until received by
the Administrative Agent or such Guarantor, as the case may be.

        

        18.    If claim is
ever made upon any Secured Creditor for repayment or recovery of any amount or
amounts received in payment or on account of any of the Guaranteed
Obligations

         

         

        
          
            
            

          

          
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        and any
of the aforesaid payees repays all or part of said amount by reason of (i) any
judgment, decree or order of any court or administrative body having
jurisdiction over such payee or any of its property or (ii) any settlement or
compromise of any such claim effected by such payee with any such claimant
(including the Borrower or any other Guaranteed Party) then and in such event
each Guarantor agrees that any such judgment, decree, order, settlement or
compromise shall be binding upon such Guarantor, notwithstanding any revocation
hereof or other instrument evidencing any liability of the Borrower or any other
Guaranteed Party, and such Guarantor shall be and remain liable to the aforesaid
payees hereunder for the amount so repaid or recovered to the same extent as if
such amount had never originally been received by any such payee.

         

        19.    (a)  THIS SUBSIDIARIES GUARANTY AND THE
OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
AND THEREUNDER SHALL, EXCEPT AS OTHERWISE PROVIDED IN CERTAIN OF THE VESSEL
MORTGAGES, BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE
STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES (OTHER THAN TITLE
14 OF ARTICLE 5 OF THE GENERAL OBLIGATIONS LAW).  Any legal
action or proceeding with respect to this Guaranty or any other Credit Document
to which any Guarantor is a party may be brought in the courts of the State of
New York or of the United States of America for the Southern District of New
York in each case which are located in the City of New York, and, by execution
and delivery of this Guaranty, each Guarantor hereby irrevocably accepts for
itself and in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts.  Each Guarantor hereby further
irrevocably waives (to the fullest extent permitted by applicable law) any claim
that any such court lacks personal jurisdiction over such Guarantor, and agrees
not to plead or claim in any legal action or proceeding with respect to this
Guaranty or any other Credit Document to which such Guarantor is a party brought
in any of the aforesaid courts that any such court lacks personal jurisdiction
over such Guarantor.  Each Guarantor further irrevocably consents to
the service of process out of any of the aforementioned courts in any such
action or proceeding by the mailing of copies thereof by registered or certified
mail, postage prepaid, to such Guarantor at its address set forth in Section 17
hereof, such service to become effective 30 days after such
mailing.  Each Guarantor hereby irrevocably waives (to the fullest
extent permitted by applicable law) any objection to such service of process and
further irrevocably waives and agrees not to plead or claim in any action or
proceeding commenced hereunder or under any other Credit Document to which such
Guarantor is a party that such service of process was in any way invalid or
ineffective. Nothing herein shall affect the right of any of the Secured
Creditors to serve process in any other manner permitted by law or to commence
legal proceedings or otherwise proceed against each Guarantor in any other
jurisdiction.

         

        (b)    Each
Guarantor hereby irrevocably waives (to the fullest extent permitted by
applicable law) any objection which it may now or hereafter have to the laying
of venue of any of the aforesaid actions or proceedings arising out of or in
connection with this Guaranty or any other Credit Document to which such
Guarantor is a party brought in the courts referred to in clause (a) above and
hereby further irrevocably waives (to the fullest extent permitted
by

         

         

         

        
          
            
            

          

          
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        applicable
law) and agrees not to plead or claim in any such court that such action or
proceeding brought in any such court has been brought in an inconvenient
forum.

         

        (c)    EACH
GUARANTOR AND EACH SECURED CREDITOR (BY ITS ACCEPTANCE OF THE BENEFITS OF THIS
GUARANTY) HEREBY IRREVOC­ABLY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN ANY
ACTION, PRO­CEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
GUARANTY, THE OTHER CREDIT DOCUMENTS TO WHICH SUCH GUARANTOR IS A PARTY OR THE
TRANSACTIONS CONTEMPLATED HERE­BY OR THEREBY.

         

        20.    In the event
that all of the capital stock or other equity interests of one or more
Guarantors is sold or otherwise disposed of or liquidated in compliance with the
requirements of Section 9.02 of the Credit Agreement (or such sale or other
disposition has been approved in writing by the Required Lenders (or all the
Lenders if required by Section 13.12 of the Credit Agreement)) and the proceeds
of such sale, disposition or liquidation are applied in accordance with the
provisions of the Credit Agreement, to the extent applicable, such Guarantor
shall upon consummation of such sale or other disposition (except to the extent
that such sale or disposition is to the Borrower or another Subsidiary thereof)
be released from this Guaranty automatically and without further action and this
Guaranty shall, as to each such Guarantor or Guarantors, terminate, and have no
further force or effect (it being understood and agreed that the sale of one or
more Persons that own, directly or indirectly, all of the capital stock or other
equity interests of any Guarantor shall be deemed to be a sale of such Guarantor
for the purposes of this Section 20).

         

        21.    At any time a
payment in respect of the Guaranteed Obligations is made under this Guaranty,
the right of contribution of each Guarantor against each other Guarantor shall
be determined as provided in the immediately following sentence, with the right
of contribution of each Guarantor to be revised and restated as of each date on
which a payment (a “Relevant Payment”) is
made on the Guaranteed Obligations under this Guaranty.  At any time
that a Relevant Payment is made by a Guarantor that results in the aggregate
payments made by such Guarantor in respect of the Guaranteed Obligations to and
including the date of the Relevant Payment exceeding such Guarantor’s
Contribution Percentage (as defined below) of the aggregate payments made by all
Guarantors in respect of the Guaranteed Obligations to and including the date of
the Relevant Payment (such excess, the “Aggregate Excess
Amount”), each such Guarantor shall have a right of contribution against
each other Guarantor who has made payments in respect of the Guaranteed
Obligations to and including the date of the Relevant Payment in an aggregate
amount less than such other Guarantor’s Contribution Percentage of the aggregate
payments made to and including the date of the Relevant Payment by all
Guarantors in respect of the Guaranteed Obligations (the aggregate amount of
such deficit, the “Aggregate Deficit
Amount”) in an amount equal to (x) a fraction the numerator of which is
the Aggregate Excess Amount of such Guarantor and the denominator of which is
the Aggregate Excess Amount of all Guarantors multiplied by (y) the Aggregate
Deficit Amount of such other Guarantor.  A Guarantor’s right of
contribution pursuant to the preceding sentences shall arise at the time of each
computation, subject to adjustment to the time of each computation; provided that no
Guarantor may take any action to enforce such right until the Guaranteed
Obligations have been paid in full in cash, it being expressly recognized and
agreed by all parties hereto that

         

         

        
          
            
            

          

          
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        any
Guarantor’s right of contribution arising pursuant to this Section 21 against
any other Guarantor shall be expressly junior and subordinate to such other
Guarantor’s obligations and liabilities in respect of the Guaranteed Obligations
and any other obligations owing under this Guaranty.  As used in this
Section 21:  (i) each Guarantor’s “Contribution
Percentage” shall mean the percentage obtained by dividing (x) the
Adjusted Net Worth (as defined below) of such Guarantor by (y) the aggregate
Adjusted Net Worth of all Guarantors; (ii) the “Adjusted Net Worth”
of each Guarantor shall mean the greater of (x) the Net Worth (as defined below)
of such Guarantor and (y) zero; and (iii) the “Net Worth” of each
Guarantor shall mean the amount by which the fair saleable value of such
Guarantor’s assets on the date of any Relevant Payment exceeds its existing
debts and other liabilities (including contingent liabilities, but without
giving effect to any Guaranteed Obligations arising under this Guaranty or any
guaranteed obligations arising under any guaranty of the Senior Notes) on such
date.  All parties hereto recognize and agree that, except for any
right of contribution arising pursuant to this Section 21, each Guarantor who
makes any payment in respect of the Guaranteed Obligations shall have no right
of contribution or subrogation against any other Guarantor in respect of such
payment until all of the Guaranteed Obligations have been irrevocably paid in
full in cash.  Each of the Guarantors recognizes and acknowledges that
the rights to contribution arising hereunder shall constitute an asset in favor
of the party entitled to such contribution.  In this connection, each
Guarantor has the right to waive its contribution right against any Guarantor to
the extent that after giving effect to such waiver such Guarantor would remain
solvent, in the determination of the Required Lenders.

         

        22.    Each
Guarantor and each Secured Creditor (by its acceptance of the benefits of this
Guaranty) hereby confirms that it is its intention that this Guaranty not
constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy
Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act
or any similar Federal, state or other law.  To effectuate the
foregoing intention, each Guarantor and each Secured Creditor (by its acceptance
of the benefits of this Guaranty) hereby irrevocably agrees that the Guaranteed
Obligations guaranteed by such Guarantor shall be limited to such amount as
will, after giving effect to such maximum amount and all other (contingent or
otherwise) liabilities of such Guarantor that are relevant under such laws and
after giving effect to any rights to contribution pursuant to any agreement
providing for an equitable contribution among such Guarantor and the other
Guarantors, result in the Guaranteed Obligations of such Guarantor in respect of
such maximum amount not constituting a fraudulent transfer or
conveyance.

         

        23.    This Guaranty
may be executed in any number of counterparts and by the different parties
hereto on separate counterparts, each of which when so executed and delivered
shall be an original (including if delivered by facsimile transmission), but all
of which shall together constitute one and the same instrument.  A set
of counterparts executed by all the parties hereto shall be lodged with the
Guarantors and the Administrative Agent.

         

        24.    (a) All
payments made by any Guarantor hereunder will be made without setoff,
counterclaim or other defense, will be made in the currency or currencies in
which the respective Guaranteed Obligations are then due and payable and will be
made on the same basis as payments are made by the Borrower under Sections 3.04
and 3.05 of the Credit Agreement.

         

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT E

            page 13

          

        

         

         

         

        (b)    The
Guarantors’ obligations hereunder to make payments in the respective currency or
currencies in which the respective Guaranteed Obligations are required to be
paid (such currency being herein called the “Obligation Currency”)
shall not be discharged or satisfied by any tender or recovery pursuant to any
judgment expressed in or converted into any currency other than the Obligation
Currency, except to the extent that such tender or recovery results in the
effective receipt by the Administrative Agent, the Collateral Agent or the
respective other Secured Creditor of the full amount of the Obligation Currency
expressed to be payable to the Administrative Agent, the Collateral Agent or
such other Secured Creditor under this Guaranty or the other Credit Documents or
any Interest Rate Protection Agreement or Other Hedging Agreement, as
applicable.  If for the purpose of obtaining or enforcing judgment
against any Guarantor in any court or in any jurisdiction, it becomes necessary
to convert into or from any currency other than the Obligation Currency (such
other currency being hereinafter referred to as the “Judgment Currency”)
an amount due in the Obligation Currency, the conversion shall be made, at the
rate of exchange (quoted by the Administrative Agent, determined, in each case,
as of the date immediately preceding the day on which the judgment is given
(such Business Day being hereinafter referred to as the “Judgment Currency Conversion
Date”).

         

        (c)    If there is a
change in the rate of exchange prevailing between the Judgment Currency
Conversion Date and the date of actual payment of the amount due, the Guarantors
jointly and severally covenant and agree to pay, or cause to be paid, such
additional amounts, if any (but in any event not a lesser amount), as may be
necessary to ensure that the amount paid in the Judgment Currency, when
converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of Judgment Currency stipulated in the judgment or judicial
award at the rate or exchange prevailing on the Judgment Currency Conversion
Date.

         

        (d)    For purposes
of determining the Relevant Currency Equivalent or any other rate of exchange
for this Section 24, such amounts shall include any premium and costs payable in
connection with the purchase of the Obligation Currency.

         

        25.    It is
understood and agreed that any Subsidiary of the Borrower that is required to
execute a counterpart of this Guaranty after the date hereof pursuant to the
Credit Agreement shall automatically become a Guarantor hereunder by executing a
counterpart hereof and/or a Subsidiary assumption agreement, in each case in
form and substance satisfactory to the Administrative Agent, and delivering the
same to the Administrative Agent.

         

         

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

         

         

        
          
            EXHIBIT E

            page 14

          

        

        
 

         

        IN
WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and
delivered as of the date first above written.

         

                    [                                         ]

        
                                                      as Guarantors

        

        

        

        
                                                      By:____________________________

        

        
                                                         Name:

        

        
                                                         Title:

        

        

        

        

        NORDEA
BANK FINLAND PLC,

        acting
through its New York branch,

        as
Administrative Agent

        

        
          	
                  By:_____________________________

                	
                   

                

        

             Name:

        
               Title:

        

         

         

        
          	
                  By:_____________________________

                	 	 

        

             Name:

        
               Title:

           

        

         

         

        14

         

         

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT F

       

       

      
        PLEDGE AND SECURITY
AGREEMENT

         

        PLEDGE
AND SECURITY AGREEMENT (as amended, modified, restated and/or supplemented from
time to time, this “Agreement”), dated as
of [DATE], 2008, made by each of the undersigned pledgors (each a “Pledgor” and,
together with any other entity that becomes a pledgor hereunder pursuant to
Section 25 hereof, the “Pledgors”) to NORDEA
BANK FINLAND PLC, acting through its New York branch (“Nordea”), as
collateral agent (in such capacity, together with any successor collateral
agent, the “Pledgee”), for the
benefit of the Secured Creditors (as defined below) and Nordea, as Deposit
Account Bank (in such capacity, the “Deposit Account
Bank”).

         

        W I T N E S S E T H
:

         

        WHEREAS,
Genco Shipping & Trading Limited (the “Borrower”), the
various lenders from time to time party thereto (the “Lenders”) and Nordea
Bank Finland Plc, acting through its New York branch, as Administrative Agent
and Collateral Agent (in such capacity, together with any successor
Administrative Agent, the “Administrative
Agent”), have entered into a Credit Agreement, dated as of September 4,
2008 (as amended, modified, restated and/or supplemented from time to time, the
“Credit
Agreement”), providing for the making of Loans to the Borrower as
contemplated therein (the Lenders holding from to time outstanding Loans (and/or
Loan Commitments), the Administrative Agent and each Pledgee, in each of the
aforementioned capacities, are herein called the “Lender
Creditors”);

         

        WHEREAS,
pursuant to Section 1.2 hereof, each applicable Pledgor and the Deposit Account
Bank are entering into the Control Agreement attached hereto as Annex H
simultaneously herewith;

         

        WHEREAS,
the Borrower may at any time and from time to time after the date hereof enter
into, or guaranty the obligations of one or more other Pledgors or any of their
respective Subsidiaries under, one or more Interest Rate Protection Agreements
or Other Hedging Agreements with respect to the Borrower’s obligations under the
Credit Agreement with respect to the outstanding Loans and/or Commitments from
time to time with one or more Lenders or any affiliate thereof (each such Lender
or affiliate, even if the respective Lender subsequently ceases to be a Lender
under the Credit Agreement for any reason, together with such Lender's or
affiliate's successors and assigns, if any, collectively, the “Other Creditors” and,
together with the Lenders holding from to time outstanding Loans (and/or
Commitments), are herein called the “Secured
Creditors”);

         

        WHEREAS,
it is a condition precedent to the making of the Loans to the Borrower under the
Credit Agreement that each Pledgor shall have executed and delivered to the
Pledgee this Agreement; and

         

        WHEREAS,
each Pledgor desires to enter into this Agreement in order to satisfy the
condition described in the preceding paragraph;

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT F

        page 2

         

         

         

        NOW,
THEREFORE, in consideration of the foregoing and other benefits accruing to each
Pledgor, the receipt and sufficiency of which are hereby acknowledged, each
Pledgor hereby makes the following representations and warranties to the Pledgee
for the benefit of the Secured Creditors and hereby covenants and agrees with
the Pledgee for the benefit of the Secured Creditors as follows:

         

        1.  SECURITY
FOR OBLIGATIONS; ESTABLISHMENT OF OPERATING ACCOUNT.

         

        1.1.
Security.  This
Agreement is made by each Pledgor for the benefit of the Secured Creditors to
secure:

         

                      (i)the full and prompt payment when due
(whether at the stated maturity, by acceleration or otherwise) of all
obligations, liabilities and indebtedness (including, without limitation,
principal, premium, interest, fees and indemnities (including, without
limitation, all interest that accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency,
reorganization or similar proceeding of any Pledgor at the rate provided for in
the respective documentation, whether or not a claim for post-petition interest
is allowed in any such proceeding)) of such Pledgor to the Lender Creditors
whether now existing or hereafter incurred under, arising out of, or in
connection with, the Credit Agreement and the other Credit Documents to which
such Pledgor is a party (including, in the case of each Pledgor that is a
Subsidiary Guarantor, all such obligations, liabilities and indebtedness of such
Pledgor under the Guaranty) and the due performance and compliance by such
Pledgor with all of the terms, conditions and agreements contained in the Credit
Agreement and in such other Credit Documents (all such obligations, liabilities
and indebtedness under this clause (i), except to the extent consisting of
obligations, liabilities or indebtedness with respect to Interest Rate
Protection Agreements or Other Hedging Agreements, being herein
collec­tively called the “Credit Document
Obligations”);

         

                      (ii)the full and prompt payment when due
(whether at the stated maturity, by acceleration or otherwise) of all
obligations, liabilities and indebtedness (including, without limitation, all
interest that accrues after the commencement of any case, proceeding or other
action relating to the bankruptcy, insolvency, reorganization or similar
proceeding of any Pledgor at the rate provided for in the respective
documentation, whether or not a claim for post-petition interest is allowed in
any such proceeding) owing by such Pledgor to the Other Creditors under, or with
respect to (including, in the case of each Pledgor that is a Subsidiary
Guarantor, all such obligations, liabilities and indebtedness of such Pledgor
under the Guaranty), any Interest Rate Protection Agreement or Other Hedging
Agreement entered into in respect of the Borrower’s obligations with respect to
the outstanding Loans and/or Commitments from time to time, whether such
Interest Rate Protection Agreement or Other Hedging Agreement is now in
existence or hereafter arising, and the due performance and compliance by such
Pledgor with all of the terms, conditions and agreements contained therein (all
such obligations, liabilities and indebtedness described in this clause (ii)
being herein collectively called the “Other
Obligations”);

         

                      (iii)any and all sums advanced by the
Pledgee in order to preserve the Collateral (as hereinafter defined) or preserve
its security interest in the Collateral;

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT F

          page 3

        

         

         

                      (iv)in the event of any proceeding for the
collection or enforcement of any indebtedness, obligations or liabilities of
such Pledgor referred to in clauses (i) and (ii) above, after an Event of
Default shall have occurred and be continuing, the reasonable expenses of
retaking, holding, preparing for sale or lease, selling or otherwise disposing
of or realizing on the Collateral, or of any exercise by the Pledgee of its
rights hereunder, together with reasonable attorneys’ fees and court costs;
and

         

                      (v)all amounts paid by any Secured
Creditor as to which such Secured Creditor has the right to reimbursement under
Section 11 of this Agreement;

         

        all such
obligations, liabilities, sums and expenses set forth in clauses (i) through (v)
of this Section 1.1 being herein collectively called the “Obligations,” it
being acknowledged and agreed that the “Obligations” shall include extensions of
credit of the types described above, whether outstanding on the date of this
Agreement or extended from time to time after the date of this
Agreement.

         

        1.2.  Operating Accounts; Reserve
Accounts.  (a) The relevant Pledgor and the Pledgee have
established, or shall establish, in the name and for the benefit of the Pledgee,
as agent for the Secured Creditors, the Operating Accounts for purposes of this
Agreement and the other relevant Credit Documents, which Operating Accounts are
or shall be maintained with the Deposit Account Bank located at 437 Madison
Avenue, 21st Floor,
New York, New York 10022 (the “Deposit Account
Bank”).  Each relevant Pledgor, the Pledgee and the Deposit
Account Bank are, simultaneously herewith, entering into, or shall enter into,
the Control Agreement attached hereto as Annex H (the “Control Agreement”)
simultaneously herewith, which provides that the Operating Accounts shall be
under the control of the Pledgee, as agent for the Secured Creditors, and the
Pledgee shall have the right to direct withdrawals from the Operating Accounts
and to exercise all rights with respect to all of the Earnings Collateral (as
defined below).  All  Earnings Collateral delivered to, or
held by or on behalf of, the Pledgee pursuant to each of the Assignments of
Earnings shall be held in the Operating Accounts in accordance with the
provisions hereof and of the Control Agreement.

         

        (b)           Until
such time as the Collateral Agent shall have delivered a Notice of Exclusive
Control (as defined in the Control Agreement) (which the Collateral Agent agrees
to do only during the continuance of an Event of Default), the relevant Pledgor
may apply amounts in the Operating Accounts to the payment of operating expenses
and other expenditures permitted under the Credit Agreement of the Borrower and
the other Pledgors.  After the delivery of a Notice of Exclusive
Control (as defined in the Control Agreement), only the Collateral Agent shall
be entitled to withdraw funds from the Operating Accounts, to give any
instructions in respect of the Operating Accounts and any funds held therein or
credited thereto or otherwise deal with the Operating Accounts.

         

        2.  DEFINITIONS.
 (a)  Unless otherwise defined herein, all capitalized terms used
herein and defined in the Credit Agreement shall be used herein as therein
defined.  Reference to singular terms shall include the plural and
vice versa.

         

        (b)           The
following capitalized terms used herein shall have the definitions specified
below:

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT F

          page 4

        

        

         

        “Administrative Agent”
has the meaning set forth in the Recitals hereto.

         

        “Adverse Claim” has
the meaning given such term in Section 8-102(a)(1) of the UCC.

         

        “Agreement” has the
meaning set forth in the first paragraph hereof.

         

        “Borrower” has the
meaning set forth in the Recitals hereto.

         

        “Certificated
Security” has the meaning given such term in Section 8-102(a)(4) of the
UCC.

         

        “Clearing Corporation”
has the meaning given such term in Section 8-102(a)(5) of the UCC.

         

        “Collateral” has the
meaning set forth in Section 3.1 hereof.

         

        “Control Agreement”
shall have the meaning provided in Section 1.2.

         

        “Credit Agreement” has
the meaning set forth in the Recitals hereto.

         

        “Credit Document
Obligations” has the meaning set forth in Section 1.1(i)
hereof.

         

        “Deposit Account Bank”
shall have the meaning provided such term in Section 1.2 hereof.

         

        “Earnings Collateral”
shall mean, collectively, all of the collateral granted, sold, conveyed,
assigned, transferred, mortgaged and pledged pursuant to, and in accordance
with, Section 1 of each Assignment of Earnings.

         

        “Event of Default”
means any Event of Default under, and as defined in, the Credit Agreement and
any payment default under any Interest Rate Protection Agreement or Other
Hedging Agreement entered into in respect of the Borrower’s obligations with
respect to the outstanding Loans and/or Commitments from time to time, after any
applicable grace period.

         

        “Indemnitees” has the
meaning set forth in Section 11 hereof.

         

        “Lender Creditors” has
the meaning set forth in the Recitals hereto.

         

        “Lenders” has the
meaning set forth in the Recitals hereto.

         

        “Limited Liability Company
Assets” means all assets, whether tangible or intang­ible and whether
real, personal or mixed (including, without limitation, all limited liability
com­pany capital and interest in other limited liability companies), at any
time owned or represented by any Limited Liability Company
Interest.

         

        
          “Limited Liability Company
Interests” means the entire limited liability company membership interest
at any time owned by any Pledgor in any limited liability
company.

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT F

          page 5

        

         

         

        “Obligations” has the
meaning set forth in Section 1.1 hereof.

         

        “Operating Accounts”
shall mean, collectively, the accounts listed on Annex I hereto and all other
accounts established at any time by any Pledgor and pledged in favor of the
Pledgee pursuant to the terms of this Agreement or the Credit
Agreement.

         

        “Other Creditors” has
the meaning set forth in the Recitals hereto.

         

        “Other Obligations”
has the meaning set forth in Section 1.1(ii) hereof.

         

        “Partnership Assets”
means all assets, whether tangible or intangible and whether real, personal or
mixed (including, without limitation, all partnership capital and interest in
other partnerships), at any time owned or represented by any Partnership
Interest.

         

        “Partnership Interest”
shall mean the entire general partnership interest or limited partnership
interest at any time owned by any Pledgor in any general partnership or limited
partnership.

         

        “Person” means any
individual, partnership, joint venture, firm, corporation, association, limited
liability company, trust or other enterprise or any government or political
subdivision or any agency, department or instrumentality thereof.

         

        “Pledgee” has the
meaning set forth in the first paragraph hereof.

         

        “Pledgor” has the
meaning set forth in the first paragraph hereof.

         

        “Proceeds” has the
meaning given such term in Section 9-102(64) of the UCC.

         

        “Required Secured
Creditors” means (i) at any time when any Credit Document Obligations are
outstanding or any Commitments under the Credit Agreement exist, the Required
Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement,
each of the Lenders), and (ii) at any time after all of the Credit Document
Obligations have been paid in full in cash and all Commitments under the Credit
Agreement have been terminated and if any Other Obligations are outstanding, the
holders of a majority of the Other Obligations.

         

        “Secured Creditors”
has the meaning set forth in the Recitals hereto.

         

        “Secured Debt
Agreements” means and includes this Agreement, the other Credit Documents
and the Interest Rate Protection Agreements and Other Hedging Agreements entered
into with any Other Creditors entered into in respect of the Borrower’s
obligations with respect to the outstanding Loans and/or Commitments from time
to time.

         

        “Securities Act” means
the Securities Act of 1933, as amended, as in effect from time to
time.

         

        “Security” and “Securities” has the
meaning given such term in Section 8-102(a)(15) of the UCC and shall in any
event also include all Stock.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 6

          

        

         

         

        “Security Entitlement”
has the meaning given such term in Section 8-102(a)(17) of the UCC.

         

        “Stock” means all of
the issued and outstanding shares of capital stock of any corporation at any
time owned by any Pledgor.

         

        “Subsidiary” means, as
to any Person, (i) any corporation more than 50% of whose stock of any class or
classes having by the terms thereof ordinary voting power to elect a majority of
the directors of such corporation (irrespective of whether or not at the time
stock of any class or classes of such corporation shall have or might have
voting power by reason of the happening of any contingency) is at the time owned
by such Person and/or one or more Subsidiaries of such Person and (ii) any
partnership, limited liability company, association, joint venture or other
entity in which such Person and/or one or more Subsidiaries of such Person has
more than a 50% equity interest at the time.

         

        “Termination Date” has
the meaning set forth in Section 20 hereof.

         

        “UCC” means the
Uniform Commercial Code as in effect in the State of New York from time to
time; provided
that, all
references herein to specific sections or sub­sections of the UCC are
references to such sections or subsections, as the case may be, of the Uniform
Commercial Code as in effect in the State of New York on the date
hereof.

         

        “Uncertificated
Security” has the meaning given such term in Section 8-102(a)(18) of the
UCC.

         

        3.  PLEDGE
OF STOCK, ACCOUNTS, ETC.

         

        3.1  Pledge.  To
secure the Obligations now or hereafter owed or to be performed by such Pledgor,
each Pledgor does hereby grant and pledge to the Pledgee for the benefit of the
Secured Creditors, and does hereby create a continuing first priority security
interest in favor of the Pledgee for the benefit of the Secured Creditors in,
all of the right, title and interest in and to the following, whether now
existing or hereafter from time to time acquired (collectively, the “Collateral”):

         

        (a)           the
Operating Accounts, together with all of such Pledgor’s right, title and
interest in and to all sums of property (including cash equivalents and other
investments) now or at any time hereafter on deposit therein, credited thereto
or payable thereon, and all instruments, documents and other writings evidencing
the Operating Accounts;

         

        (b)           all
Stock of any Subsidiary Guarantor owned by such Pledgor from time to time and
all options and warrants owned by such Pledgor from time to time to purchase
Stock of any such Subsidiary Guarantor;

         

        (c)           all
Limited Liability Company Interests in any Subsidiary Guarantor owned by such
Pledgor from time to time and all of its right, title and interest in each
limited liability company to which each such interest relates, whether now
existing or hereafter acquired, including, without limitation, to the fullest
extent permitted under the terms and

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          
            EXHIBIT F

            page 7

          

        

         

        provisions
of the documents and agreements governing such Limited Liability Company
Interests and applicable law:

         

        (A)           all
the capital thereof and its interest in all profits, losses, Limited Liability
Company Assets and other distributions to which such Pledgor shall at any time
be entitled in respect of such Limited Liability Company Interests;

         

        (B)           all
other payments due or to become due to such Pledgor in respect of Limited
Liability Company Interests, whether under any limited liability company
agreement or otherwise, whether as contractual obligations, damages, insurance
proceeds or otherwise;

         

        (C)           all
of such Pledgor’s claims, rights, powers, privileges, authority, options,
security interests, liens and remedies, if any, under any limited liability
company agree­ment or operating agreement, or at law or otherwise in respect
of such Limited Liability Company Interests;

         

        (D)           all
present and future claims, if any, of such Pledgor against any such limited
liability company for moneys loaned or advanced, for services rendered or
otherwise;

         

        (E)           all
of such Pledgor’s rights under any limited liability company agreement or
operating agreement or at law to exercise and enforce every right, power,
remedy, authority, option and privilege of such Pledgor relating to such Limited
Liability Company Interests, including any power to terminate, cancel or modify
any limited liability company agreement or operating agreement, to execute any
instruments and to take any and all other action on behalf of and in the name of
such Pledgor in respect of such Limited Liability Company Interests and any such
limited liability company, to make determinations, to exercise any election
(including, but not limited to, election of remedies) or option or to give or
receive any notice, consent, amendment, waiver or approval, together with full
power and authority to demand, receive, enforce, collect or receipt for any of
the foregoing or for any Limited Liability Company Asset, to enforce or execute
any checks, or other instruments or orders, to file any claims and to take any
action in connection with any of the foregoing; and

         

        (F)           all
other property hereafter delivered in substitution for or in addition to any of
the foregoing, all certificates and instruments representing or evidencing such
other property and all cash, securities, interest, dividends, rights and other
property at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof;

         

        (d)           all
Partnership Interests in any Subsidiary Guarantor owned by such Pledgor from
time to time and all of its right, title and interest in each partnership to
which each such interest relates, whether now existing or hereafter acquired,
including, without limitation, to the fullest extent permitted under the terms
and provisions of the documents and agreements governing such Partnership
Interests and applicable law:

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 8

             

          

        

         

        (A)           all
the capital thereof and its interest in all profits, losses, Partnership Assets
and other distributions to which such Pledgor shall at any time be entitled in
respect of such Partnership Interests;

         

        (B)           all
other payments due or to become due to such Pledgor in respect of such
Partnership Interests, whether under any partnership agreement or otherwise,
whether as contractual obligations, damages, insurance proceeds or
otherwise;

         

        (C)           all
of its claims, rights, powers, privileges, authority, options, security
interests, liens and remedies, if any, under any partnership agreement or
operating agreement, or at law or otherwise in respect of such Partnership
Interests;

         

        (D)           all
present and future claims, if any, of such Pledgor against any such partnership
for moneys loaned or advanced, for services rendered or otherwise;

         

        (E)           all
of such Pledgor’s rights under any partnership agreement or operating agreement
or at law to exercise and enforce every right, power, remedy, authority, option
and privilege of such Pledgor relating to such Partnership Interests, including
any power to terminate, cancel or modify any partnership agreement or operating
agreement, to execute any instruments and to take any and all other action on
behalf of and in the name of any of such Pledgor in respect of such Partnership
Interests and any such partnership, to make determinations, to exercise any
election (including, but not limited to, election of remedies) or option or to
give or receive any notice, consent, amendment, waiver or approval, together
with full power and authority to demand, receive, enforce, collect or receipt
for any of the foregoing or for any Partnership Asset, to enforce or execute any
checks, or other instruments or orders, to file any claims and to take any
action in connection with any of the foregoing; and

         

        (F)           all
other property hereafter delivered in substitution for or in addition to any of
the foregoing, all certificates and instruments representing or evidencing such
other property and all cash, securities, interest, dividends, rights and other
property at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof;
and

         

         (e)           all
Proceeds of any and all of the foregoing.

         

        3.2.  Procedures.
(a)  To the extent that any Pledgor at any time or from time to time
owns, acquires or obtains any right, title or interest in any Collateral, such
Collateral shall automatically (and without the taking of any action by such
Pledgor) be pledged pursuant to Section 3.1 of this Agreement and, in addition
thereto, such Pledgor shall (to the extent provided below) take, or, in the case
of Section 3.2(a)(v), authorize the Pledgee to take, the following actions as
set forth below (as promptly as practicable and, in any event, within 30 days
after it obtains such Collateral) for the benefit of the Pledgee and the Secured
Creditors:

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
          
             

            EXHIBIT F

            page 9

             

          

        

         

                      (i)with respect to a Certificated Security
(other than a Certificated Security credited on the books of a Clearing
Corporation), such Pledgor shall deliver such Certificated Security to the
Pledgee with powers executed in blank;

         

                      (ii)with respect to an Uncertificated
Security (other than an Uncertificated Security credited on the books of a
Clearing Corporation), such Pledgor shall cause the issuer of such
Uncertificated Security (or, in the case of an issuer that is not a Subsidiary
of such Pledgor, will use reasonable efforts to cause such issuer) to duly
authorize and execute, and deliver to the Pledgee, an agreement for the benefit
of the Pledgee and the other Secured Creditors substantially in the form of
Annex G hereto (appropriately completed to the reasonable satisfaction of the
Pledgee and with such modifications, if any, as shall be reasonably satisfactory
to the Pledgee) pursuant to which such issuer agrees to comply with any and all
instructions originated by the Pledgee without further consent by the registered
owner and not to comply with instructions regarding such Uncertificated Security
originated by any other Person other than a court of competent
jurisdiction;

         

                      (iii)with respect to a Certificated
Security, Uncertificated Security, Partnership Interest or Limited Liability
Company Interest credited on the books of a Clearing Corporation (including a
Federal Reserve Bank, Participants Trust Company or The Depository Trust
Company), such Pledgor shall promptly notify the Pledgee thereof and shall
promptly take all actions required (i) to comply in all material respects with
the applicable rules of such Clearing Corporation and (ii) to perfect the
security interest of the Pledgee under applicable law (including, in any event,
under Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the
UCC).  Such Pledgor further agrees to take such actions as the Pledgee
deems reasonably necessary to effect the foregoing;

         

                      (iv)with respect to a Partnership Interest
or a Limited Liability Company Interest (other than a Partnership Interest or
Limited Liability Interest credited on the books of a Clearing Corporation), (1)
if such Partnership Interest or Limited Liability Company Interest is
represented by a certificate and is a Security for purposes of the UCC, the
procedure set forth in Section 3.2(a)(i) hereof, and (2) if such Partnership
Interest or Limited Liability Company Interest is not represented by a
certificate or is not a Security for purposes of the UCC, the procedure set
forth in Section 3.2(a)(ii) hereof; and

         

                      (v)with respect to cash proceeds from any
of the Collateral described in Section 3.1 hereof which are not released to such
Pledgor in accordance with Section 6 hereof, (i) establishment by the Pledgee of
a cash account in the name of such Pledgor over which the Pledgee shall have
exclusive and absolute control and dominion (and no withdrawals or transfers may
be made therefrom by any Person except with the prior written consent of the
Pledgee) and (ii) deposit of such cash in such cash account.

         

                      (b)In addition to the actions required to
be taken pursuant to Section 3.2(a) hereof, each Pledgor shall take the
following additional actions with respect to the Collateral:

         

                      (i)with respect to all Collateral of such
Pledgor whereby or with respect to which the Pledgee may obtain “control” thereof
within the meaning of Section 8-106 of the UCC (or under any provision of the
UCC as same may be amended or supplemented from time to

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 10

          

        

         

         

         

        time, or
under the laws of any relevant State other than the State of New York),
such Pledgor shall take all actions as may be reasonably requested from time to
time by the Pledgee so that “control” of such Collateral is obtained and at all
times held by the Pledgee; and

         

                      (ii)each Pledgor shall from time to time
cause appropriate financing statements (on Form UCC-1 or other appropriate form)
under the Uniform Commercial Code as in effect in the various relevant states,
covering all Collateral hereunder (with the form of such financing statements to
be satisfactory to the Pledgee), to be filed in the relevant filing offices so
that at all times the Pledgee has a security interest in all Collateral which is
perfected by the filing of such financing statements (in each case to the
maximum extent perfection by filing may be obtained under the laws of the
relevant states, including, without limitation, Section 9-312(a) of the
UCC).

         

        3.3.  Subsequently Acquired
Collateral.  If any Pledgor shall acquire (by purchase, stock
dividend or similar distribution or otherwise) any additional Collateral at any
time or from time to time after the date hereof, such Collateral shall
automatically (and without any further action being required to be taken) be
subject to the pledge and security interests created pursuant to Section 3.1
hereof and, furthermore, such Pledgor will promptly thereafter take (or cause to
be taken) all action with respect to such Collateral in accordance with the
procedures set forth in Section 3.2 hereof, and will promptly thereafter deliver
to the Pledgee (i) a certificate executed by a principal executive officer of
such Pledgor describing such Collateral and certifying that the same has been
duly pledged in favor of the Pledgee (for the benefit of the Secured Creditors)
hereunder and (ii) supplements to Annexes A through F hereto as are reasonably
necessary to cause such annexes to be complete and accurate at such
time.

         

        3.4.  Transfer
Taxes.  Each pledge of Collateral under Section 3.1 or Section
3.3 hereof shall be accompanied by any transfer tax stamps required in
connection with the pledge of such Collateral.

         

        3.5.  Certain Representations and
Warranties Regarding the Collateral.  Each Pledgor represents
and warrants that on the date hereof: (i) the jurisdiction of organization of
such Pledgor, and such Pledgor’s organizational identification number, is listed
on Annex A hereto; (ii) each Subsidiary of such Pledgor that is a Subsidiary
Guarantor is listed in Annex B hereto; (iii) the Stock (and any warrants or
options to purchase Stock) of any Subsidiary Guarantor held by such Pledgor
consists of the number and type of shares of the stock (or warrants or options
to purchase any stock) of the corporations as described in Annex C hereto; (iv)
such Stock constitutes that percentage of the issued and outstanding capital
stock of the respective Subsidiary Guarantors as is set forth in Annex C hereto;
(v) the Limited Liability Company Interests in any and all Subsidiary Guarantors
held by such Pledgor consist of the number and type of interests of the
respective Subsidiary Guarantors described in Annex D hereto; (vi) each such
Limited Liability Company Interest constitutes that percentage of the issued and
outstanding equity interest of the respective Subsidiary Guarantors as set forth
in Annex D hereto; (vii) the Partnership Interests held by such Pledgor in any
and all Subsidiary Guarantors consist of the number and type of interests of the
respective Subsidiary Guarantors described in Annex E hereto; (viii) each such
Partnership Interest constitutes that percentage or portion of the entire
partnership interest of the Partnership as set forth in Annex E hereto; (ix)
such Pledgor has complied with the respec­tive procedure set forth in
Section 3.2(a) hereof with respect to each item of Collateral described in
Annexes B through E hereto; and (xi) on

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 11

          

        

         

         

         

        the date
hereof, such Pledgor owns no other Stock, Limited Liability Company Interests or
Partnership Interests of, in each case, any Subsidiary Guarantor.

         

        4.  APPOINTMENT
OF SUB-AGENTS; ENDORSEMENTS, ETC.  If and to the extent necessary to
enable the Pledgee to perfect its security interest in any of the Collateral or
to exercise any of its remedies hereunder, the Pledgee shall have the right to
appoint one or more sub-agents for the purpose of retaining physical possession
of the Collateral, which may be held (in the discretion of the Pledgee) in the
name of the relevant Pledgor, endorsed or assigned in blank or in favor of the
Pledgee or any nominee or nominees of the Pledgee or a sub-agent appointed by
the Pledgee.

         

        5.  VOTING,
ETC., WHILE NO EVENT OF DEFAULT.  Unless and until there shall have
occurred and be continuing an Event of Default, each Pledgor shall be entitled
to exercise any and all voting and other consensual rights pertaining to the
Collateral owned by it, and to give consents, waivers or ratifications in
respect thereof; provided that, in each case,
no vote shall be cast or any consent, waiver or ratification given or any action
taken or omitted to be taken which would violate or be inconsistent with any of
the terms of any Secured Debt Agreement, or which could reasonably be expected
to have the effect of impairing the value of the Collateral or any part thereof
or the position or interests of the Pledgee or any other Secured Creditor in the
Collateral unless expressly permitted by the terms of the Secured Debt
Agreements.  All such rights of each Pledgor to vote and to give
consents, waivers and ratifications shall cease in case an Event of Default has
occurred and is continuing, and Section 7 hereof shall become
applicable.

         

        6.  DIVIDENDS
AND OTHER DISTRIBUTIONS.  Unless and until there shall have occurred
and be continuing an Event of Default, all cash dividends, cash distributions,
cash Proceeds and other cash amounts payable in respect of the Collateral shall
be paid to the Pledgors.  The Pledgee shall be entitled to receive
directly, and to retain as part of the Collateral:

         

                      (i)all other or additional stock, notes,
limited liability company interests, partner­ship interests, instruments or
other securities or property (including, but not limited to, cash dividends
other than as set forth above in the first sentence of this Section 6) paid or
distributed by way of dividend or otherwise in respect of the
Collateral;

         

                      (ii)all other or additional stock, notes,
limited liability company interests, partner­ship interests, instruments or
other securities or property (including, but not limited to, cash) paid or
distributed in respect of the Collateral by way of stock-split, spin-off,
split-up, reclassification, combination of shares or similar rearrangement;
and

         

                      (iii)all other or additional stock, notes,
limited liability company interests, partner­ship interests, instruments or
other securities or property (including, but not limited to, cash) which may be
paid in respect of the Collateral by reason of any consolidation, merger,
exchange of stock, conveyance of assets, liquidation or similar corporate or
other reorganization.

         

        All
dividends, distributions or other payments which are received by any Pledgor
contrary to the provisions of this Section 6 and Section 7 hereof shall be
received in trust for the benefit of the Pledgee, shall be segregated from other
property or funds of such Pledgor and shall be forthwith paid

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 12

          

        

         

         

        over
and/or delivered to the Pledgee as Collateral in the same form as so received
(with any necessary endorsement).

         

        7.  REMEDIES
IN CASE OF AN EVENT OF DEFAULT.  If there shall have occurred and be
continuing an Event of Default, then and in every such case, the Pledgee shall
be entitled to exercise all of the rights, powers and remedies (whether vested
in it by this Agreement, any other Secured Debt Agreement or by law) for the
protection and enforcement of its rights in respect of the Collateral, and the
Pledgee shall be entitled to exercise all the rights and remedies of a secured
party under the Uniform Commercial Code as in effect in any relevant
jurisdiction and also shall be entitled, without limitation, to exercise the
following rights, which each Pledgor hereby agrees to be commercially
reasonable:

         

                      (i)to receive all amounts payable in
respect of the Collateral otherwise payable under Section 6 hereof to the
Pledgors;

         

                      (ii)to transfer all or any part of the
Collateral into the Pledgee’s name or the name of its nominee or
nominees;

         

                      (iii)to vote all or any part of the
Collateral (whether or not transferred into the name of the Pledgee) and give
all consents, waivers and ratifications in respect of the Collateral and
otherwise act with respect thereto as though it were the outright owner thereof
(each Pledgor hereby irrevocably constituting and appointing the Pledgee the
proxy and attorney-in-fact of such Pledgor, with full power of substitution to
do so);

         

                      (iv)at any time and from time to time to
sell, assign and deliver, or grant options to purchase, all or any part of the
Collateral, or any interest therein, at any public or private sale, without
demand of performance, advertisement or notice of intention to sell or of the
time or place of sale or adjournment thereof or to redeem or otherwise (all of
which are hereby waived by each Pledgor), for cash, on credit or for other
property, for immediate or future delivery without any assumption of credit
risk, and for such price or prices and on such terms as the Pledgee in its
absolute discretion may determine, provided that, at least 10
days’ written notice of the time and place of any such sale shall be given to
the Pledgors.  The Pledgee shall not be obligated to make any such
sale of Collateral regardless of whether any such notice of sale has theretofore
been given.  Each Pledgor hereby waives and releases to the fullest
extent permitted by law any right or equity of redemption with respect to the
Collateral, whether before or after sale hereunder, and all rights, if any, of
marshalling the Collateral and any other security for the Obligations or
otherwise.  At any such sale, unless prohibited by applicable law, the
Pledgee on behalf of the Secured Creditors may bid for and purchase all or any
part of the Collateral so sold free from any such right or equity of redemption.
Neither the Pledgee nor any other Secured Creditor shall be liable for failure
to collect or realize upon any or all of the Collateral or for any delay in so
doing nor shall any of them be under any obligation to take any action
whatsoever with regard thereto;

         

                      (v)to set-off any and all Collateral
against any and all Obligations; and

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 12

          

        

         

         

         

                      (vi)apply any monies constituting
collateral or proceeds thereof (including, without limitation, amounts on
deposit in the Operating Accounts) in accordance with the provisions of Section
9.

         

        8.  REMEDIES,
ETC., CUMULATIVE.  Each and every right, power and remedy of the
Pledgee provided for in this Agreement or in any other Secured Debt Agreement,
or now or hereafter existing at law or in equity or by statute shall be
cumulative and concurrent and shall be in addition to every other such right,
power or remedy. The exercise or beginning of the exercise by the Pledgee or any
other Secured Creditor of any one or more of the rights, powers or remedies
provided for in this Agreement or any other Secured Debt Agreement or now or
hereafter existing at law or in equity or by statute or otherwise shall not
preclude the simultaneous or later exercise by the Pledgee or any other Secured
Creditor of all such other rights, powers or remedies, and no failure or delay
on the part of the Pledgee or any other Secured Creditor to exercise any such
right, power or remedy shall operate as a waiver thereof.  No notice
to or demand on any Pledgor in any case shall entitle it to any other or further
notice or demand in similar or other circumstances or constitute a waiver of any
of the rights of the Pledgee or any other Secured Creditor to any other or
further action in any circumstances without notice or demand.  The
Secured Creditors agree that this Agreement may be enforced only by the action
of the Pledgee, in each case acting upon the instructions of the Required
Lenders (or, after the date on which all Credit Document Obligations have been
paid in full, the holders of at least a majority of the outstanding Other
Obligations) and that no other Secured Creditor shall have any right
individually to seek to enforce or to enforce this Agreement or to realize upon
the security to be granted hereby, it being understood and agreed that such
rights and remedies may be exercised by the Pledgee for the benefit of the
Secured Creditors upon the terms of this Agreement.

         

        9.  APPLICATION
OF PROCEEDS.  (a)  All monies collected by the Pledgee upon
any sale or other disposition of the Collateral of each Pledgor and any other
collateral under any other Security Document (including, without limitation, the
Vessel Mortgage, Assignments of Earnings, Assignments of Insurance, together
with all other monies received by the Pledgee hereunder and under any other
Security Document (except to the extent released in accordance with the
applicable provisions of this Agreement or any other Credit Document), shall be
applied to the payment of the Obligations as follows:

         

        (i)           first,
to the payment of all amounts owing the Pledgee of the type described in clauses
(iii) and (iv) of Section 1.1;

         

        (ii)           second,
to the extent proceeds remain after the application pursuant to the preceding
clause (i), an amount equal to the outstanding Primary Obligations (as defined
below) constituting Credit Document Obligations shall be paid to the Lenders as
provided in Section 9(d) hereof, with each Lender receiving an amount equal to
such outstanding Primary Obligations constituting Credit Document Obligations
or, if the proceeds are insufficient to pay in full all such Primary Obligations
constituting Credit Document Obligations, its Pro Rata Share (as defined below)
of the amount remaining to be distributed;

         

        (iii)           third,
to the extent proceeds remain after the application pursuant to the preceding
clauses (i) and (ii), an amount equal to the outstanding Primary Obligations
constituting Other Obligations shall be paid to the Other Creditors as provided
in Section 9(d) hereof, with each Other Creditor receiving an amount equal to
such outstanding Primary Obligations constituting Other Obligations or, if the
proceeds are insufficient to pay in full all such Primary Obligations
constituting Other Obligations, its Pro Rata Share of the amount remaining to be
distributed;

         

        (iv)           fourth,
to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (iii), inclusive, an amount equal to the outstanding
Secondary Obligations shall be paid to the Secured Creditors as provided in
Section

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          
            EXHIBIT F

            page 13

          

        

         

         

        9(d)
hereof, with each Secured Creditor receiving an amount equal to its outstanding
Secondary Obligations or, if the proceeds are insufficient to pay in full all
such Secondary Obligations, its Pro Rata Share of the amount remaining to be
distributed; and

         

        (v)           fifth,
to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (iv), inclusive, and following the termination of this
Agreement pursuant to Section 20 hereof, to the relevant Pledgor or to whomever
may be lawfully entitled to receive such surplus.

         

        (b)           For
purposes of this Agreement, (x) “Pro Rata Share” shall
mean, when calculating a Secured Creditor's portion of any distribution or
amount, that amount (expressed as a percentage) equal to a fraction the
numerator of which is the then unpaid amount of such Secured Creditor's Primary
Obligations or Secondary Obligations, as the case may be, and the denominator of
which is the then outstanding amount of all Primary Obligations or Secondary
Obligations, as the case may be, (y) “Primary Obligations”
shall mean (i) in the case of the Credit Document Obligations, all principal of,
and interest on, all Loans and all fees, costs and expenses incurred under the
Credit Agreement with respect thereto and (ii) in the case of the Other
Obligations, all amounts due under such Interest Rate Protection Agreements and
Other Hedging Agreements (other than indemnities, fees (including, without
limitation, attorneys' fees) and similar obligations and liabilities) and (z)
“Secondary
Obligations” shall mean all Obligations other than Primary
Obligations.

         

        (c)           When
payments to Secured Creditors are based upon their respective Pro Rata Shares,
the amounts received by such Secured Creditors hereunder shall be applied (for
purposes of making determinations under this Section 9 only) (i) first, to their
Primary Obligations and (ii) second, to their Secondary
Obligations.  If any payment to any Secured Creditor of its Pro Rata
Share of any distribution would result in overpayment to such Secured Creditor,
such excess amount shall instead be distributed in respect of the unpaid Primary
Obligations or Secondary Obligations, as the case may be, of the other Secured
Creditors, with each Secured Creditor whose Primary Obligations or Secondary
Obligations, as the case may be, have not been paid in full to receive an amount
equal to such excess amount multiplied by a fraction the numerator of which is
the unpaid Primary Obligations or Secondary Obligations, as the case may be, of
such Secured Creditor and the denominator of which is the unpaid Primary
Obligations or Secondary Obligations, as the case may be, of all Secured
Creditors entitled to such distribution.

         

        (d)           All
payments required to be made hereunder shall be made (x) if to the Lender
Creditors, to the Administrative Agent under the Credit Agreement for the
account of the Lender Creditors, and (y) if to the Other Creditors, to the
trustee, paying agent or other similar

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 15

          

        

         

         

         

        representative
(each a “Representative”) for
the Other Creditors or, in the absence of such a Representative, directly to the
Other Creditors.

         

        (e)           For
purposes of applying payments received in accordance with this Section 9, the
Pledgee shall be entitled to rely upon (i) the Administrative Agent under the
Credit Agreement and (ii) the Representative for the Other Creditors or, in the
absence of such a Representative, upon the Other Creditors for a determination
(which the Administrative Agent, each Representative for any Other Creditors and
the Secured Creditors agree (or shall agree) to provide upon request of the
Pledgee) of the outstanding Primary Obligations and Secondary Obligations owed
to the Lender Creditors or the Other Creditors, as the case may
be.  Unless it has actual knowledge (including by way of written
notice from a Lender Credi­tor or an Other Creditor) to the contrary, the
Administrative Agent and each Representative, in furnishing information pursuant
to the preceding sentence, and the Pledgee, in acting hereunder, shall be
entitled to assume that no Secondary Obligations are outstanding. Unless it has
actual knowledge (including by way of written notice from an Other Creditor) to
the contrary, the Pledgee, in acting hereunder, shall be entitled to assume that
no Interest Rate Protection Agreements are in existence.

         

        (f)           It
is understood and agreed that each Pledgor shall remain jointly and severally
liable to the extent of any deficiency between the amount of the proceeds of the
Collateral pledged by it hereunder and the aggregate amount of the Obligations
of such Pledgor.

         

        10.  PURCHASERS
OF COLLATERAL.  Upon any sale of the Collateral by the Pledgee
hereunder (whether by virtue of the power of sale herein granted, pursuant to
judicial process or otherwise), the receipt of the Pledgee or the officer making
the sale shall be a sufficient discharge to the purchaser or purchasers of the
Collateral so sold, and such purchaser or purchasers shall not be obligated to
see to the application of any part of the purchase money paid over to the
Pledgee or such officer or be answerable in any way for the misapplication or
non­application thereof.

         

        11.  INDEMNITY.  Each
Pledgor jointly and severally agrees (i) to indemnify and hold harmless the
Pledgee and each other Secured Creditor and their respective successors,
assigns, employees, agents and affiliates (individually an “Indemnitee,” and
collectively the “Indemnitees”) from
and against any and all claims, demands, losses, judgments and liabilities
(including liabilities for penalties) of whatsoever kind or nature, and (ii) to
reimburse each Indemnitee for all reasonable costs and expenses, including
reasonable attorneys’ fees, in each case growing out of or resulting from this
Agreement or the exercise by any Indemnitee of any right or remedy granted to it
hereunder or under any other Secured Debt Agreement (but excluding any claims,
demands, losses, judgments and liabilities or expenses to the extent incurred by
reason of gross negligence or willful misconduct of such Indemnitee (as
determined by a court of competent jurisdiction in a final and non-appealable
decision)).  In no event shall the Pledgee be liable, in the absence
of gross negligence or willful misconduct on its part, for any matter or thing
in connection with this Agreement other than to account for monies actually
received by it in accordance with the terms hereof.  If and to the
extent that the obligations of any Pledgor under this Section 11 are
unenforceable  for any reason, such Pledgor hereby agrees to make the
maximum contribution to the payment and satisfaction of such obligations which
is permissible under applicable law.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 16

          

        

         

         

         

        12.  PLEDGEE
NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER.  (a)
  Nothing herein shall be construed to make the Pledgee or any other
Secured Creditor liable as a member of any limited liability company or as a
partner of any partnership and neither the Pledgee nor any other Secured
Creditor by virtue of this Agreement or otherwise (except as referred to in the
following sentence) shall have any of the duties, obligations or liabilities of
a member of any limited liability company or partnership.  The parties
hereto expressly agree that, unless the Pledgee shall become the absolute owner
of Collateral consisting of a Limited Liability Company Interest or Partnership
Interest pursuant hereto, this Agreement shall not be construed as creating a
partnership or joint venture among the Pledgee, any other Secured Creditor, any
Pledgor and/or any other Person.

         

        (b)           Except
as provided in the last sentence of paragraph (a) of this Section 12, the
Pledgee, by accepting this Agreement, did not intend to become a member of any
limited liability company or a partner of any partnership or otherwise be deemed
to be a co-venturer with respect to any Pledgor, any limited liability company,
partnership and/or any other Person either before or after an Event of Default
shall have occurred.  The Pledgee shall have only those powers set
forth herein and the Secured Creditors shall assume none of the duties,
obligations or liabilities of a member of any limited liability company or as a
partner of any partnership or any Pledgor except as provided in the last
sentence of paragraph (a) of this Section 12.

         

        (c)           The
Pledgee and the other Secured Creditors shall not be obligated to perform or
discharge any obligation of any Pledgor as a result of the pledge hereby
effected.

         

        (d)           The
acceptance by the Pledgee of this Agreement, with all the rights, powers,
privileges and authority so created, shall not at any time or in any event
obligate the Pledgee or any other Secured Creditor to appear in or defend any
action or proceeding relating to the Collateral to which it is not a party, or
to take any action hereunder or thereunder, or to expend any money or incur any
expenses or perform or discharge any obligation, duty or liability under the
Collateral.

         

        13.  FURTHER
ASSURANCES; POWER-OF-ATTORNEY.  (a)  Each Pledgor agrees
that it will join with the Pledgee in executing and, at such Pledgor’s own
expense, file and refile under the Uniform Commercial Code or other applicable
law such financing statements, continuation statements and other documents in
such offices as the Pledgee may deem reasonably necessary and wherever required
by law in order to perfect and preserve the Pledgee’s security interest in the
Collateral and hereby authorizes the Pledgee to file financing statements
(including, without limitation, ‘all assets’ financing statements) and
amendments thereto relative to all or any part of the Collateral without the
signature of such Pledgor where permitted by law, and agrees to do such further
acts and things and to execute and deliver to the Pledgee such additional
convey­ances, assignments, agreements and instruments as the Pledgee may
reasonably require or deem necessary to carry into effect the purposes of this
Agreement or to further assure and confirm unto the Pledgee its rights, powers
and remedies hereunder.

         

        (b)           Each
Pledgor hereby appoints the Pledgee such Pledgor’s attorney-in-fact, with full
authority in the place and stead of such Pledgor and in the name of such Pledgor
or otherwise, to act from time to time solely after the occurrence and during
the continuance of an Event of Default in the Pledgee’s reasonable discretion to
take any action and to execute any

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 17

          

        

         

         

         

        instrument
which the Pledgee may deem reasonably necessary or advisable to accomplish the
purposes of this Agreement.

         

        14.  THE
PLEDGEE AS AGENT.  The Pledgee will hold in accordance with this
Agreement all items of the Collateral at any time received under this Agreement.
It is expressly understood and agreed by each Secured Creditor that by accepting
the benefits of this Agreement each such Secured Creditor acknowledges and
agrees that the obligations of the Pledgee as holder of the Collateral and
interests therein and with respect to the disposition thereof, and otherwise
under this Agreement, are only those expressly set forth in this Agreement and
in Section 12 of the Credit Agreement.  The Pledgee shall act
hereunder on the terms and conditions set forth herein and in Section 12 of the
Credit Agreement.

         

        15.
 TRANSFER BY THE PLEDGORS.  No Pledgor will sell or otherwise
dispose of, grant any option with respect to, or mortgage, pledge or otherwise
encumber any of the Collateral or any interest therein (except as may be
permitted in accordance with the terms of the Secured Debt
Agreements).

         

        16.  REPRESENTATIONS,
WARRANTIES AND COVENANTS OF THE PLEDGORS.  Each Pledgor represents,
warrants and covenants that:

         

                      (i)it is the legal, beneficial and record
owner of, and has good and marketable title to, all Collateral pledged by such
Pledgor hereunder and that it has sufficient interest in all Collateral pledged
by such Pledgor hereunder in which a security interest is purported to be
created hereunder for such security interest to attach (subject, in each case,
to no pledge, lien, mortgage, hypothecation, security interest, charge, option,
Adverse Claim or other encumbrance whatsoever, except the liens and security
interests created by this Agreement and Permitted Liens);

         

                      (ii)it has the corporate, limited
partnership or limited liability company power and authority, as the case may
be, to pledge all the Collateral pledged by it pursuant to this
Agreement;

         

                      (iii)this Agreement has been duly
authorized, executed and delivered by such Pledgor and constitutes a legal,
valid and binding obligation of such Pledgor enforceable against such Pledgor in
accordance with its terms, except to the extent that the enforce­ability
hereof may be limited by applicable bankruptcy, insolvency, reorganization,
mora­torium or other similar laws generally affecting creditors’ rights and
by equitable principles (regardless of whether enforcement is sought in equity
or at law);

         

                      (iv)except to the extent already obtained
or made, or, in the case of any filings or recordings of the Security Documents
(other than the Vessel Mortgages) executed on or before the Initial Borrowing
Date, to be made within 10 days of the Initial Borrowing Date, no consent of any
other party (including, without limitation, any stockholder, partner, member or
creditor of such Pledgor or any of its Subsidiaries) and no consent, license,
permit, approval or authorization of, exemption by, notice or report to, or
registration, filing or declaration with, any governmental authority is required
to be obtained by such Pledgor in connection with (a) the execution, delivery or
performance by such Pledgor of this

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          
            EXHIBIT F

            page 18

          

        

         

         

        Agreement,
(b) the legality, validity, binding effect or enforceability of this Agreement,
(c) the perfection or enforceability of the Pledgee’s security interest in the
Collateral pledged by such Pledgor hereunder or (d) except for compliance with
or as may be required by applicable securities laws, the exercise by the Pledgee
of any of its rights or remedies provided herein;

         

                      (v)the execution, delivery and performance
of this Agreement will not violate any provision of any applicable law or
regulation or of any order, judgment, writ, award or decree of any court,
arbitrator or governmental authority, U.S. or non-U.S., applicable to such
Pledgor, or of the certificate or articles of incorporation, certificate of
formation, operating agreement, limited liability company agreement, partnership
agreement or by-laws of such Pledgor, as applicable, or of any securities issued
by such Pledgor or any of its Subsidiaries, or of any mortgage, deed of trust,
indenture, lease, loan agreement, credit agreement or other material contract,
agreement or instrument or undertaking to which such Pledgor or any of its
Subsidiaries is a party or which purports to be binding upon such Pledgor or any
of its Subsidiaries or upon any of their respective assets and will not result
in the creation or imposition of (or the obligation to create or impose) any
lien or encumbrance on any of the assets of such Pledgor or any of its
Subsidiaries which are Credit Parties, except as contemplated by this Agreement
or the Credit Agreement;

         

                      (vi)all of the Collateral has been duly and
validly issued and acquired, is fully paid and non-assessable and is subject to
no options to purchase or similar rights;

         

                      (vii)the pledge and collateral assignment
to, and possession by, the Pledgee of the Collateral pledged by such Pledgor
hereunder consisting of Certificated Securities pursuant to this Agreement
creates a valid and perfected first priority security interest in such
Certificated Securities, and the proceeds thereof, subject to no prior Lien or
to any agreement purporting to grant to any third party a Lien on the property
or assets of such Pledgor which would include the Certificated Securities,
except for Permitted Liens, and the Pledgee is entitled to all the rights,
priorities and benefits afforded by the UCC or other relevant law as enacted in
any relevant jurisdiction to perfect security interests in respect of such
Collateral; and;

         

                      (viii)“control” (as defined
in Section 8-106 of the UCC) has been obtained by the Pledgee over all
Collateral pledged by such Pledgor hereunder consisting of Stock with respect to
which such “control” may be
obtained pursuant to Section 8-106 of the UCC, and “control” (as defined
in Section 9-104 of the UCC) has been obtained by the Pledgee over all Operating
Accounts with respect to which such “control” may be
obtained pursuant to Section 9-104 of the UCC.

         

        (b)           Each
Pledgor covenants and agrees that it will defend the Pledgee’s right, title and
security interest in and to the Collateral and the proceeds thereof against the
claims and demands of all persons whomsoever; and each Pledgor covenants and
agrees that it will have like title to and right to pledge any other property at
any time hereafter pledged to the Pledgee as Collateral hereunder and will
likewise defend the right thereto and security interest therein of the Pledgee
and the Secured Creditors.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 19

          

        

         

         

         

        17.           JURISDICTION
OF ORGANIZATION; CHIEF EXECUTIVE OFFICE; RECORDS.  The jurisdiction of
organization of each Pledgor is specified in Annex A hereto.  The
chief executive office of each Pledgor is located at the address specified in
Annex F hereto.  Each Pledgor will not change the jurisdiction of its
organization or move its chief executive office except to such new jurisdiction
or location as such Pledgor may establish in accordance with the last sentence
of this Section 17.  The originals of all documents in the possession
of such Pledgor evidencing all Collateral, including but not limited to all
Limited Liability Company Interests and Partnership Interests, and the only
original books of account and records of such Pledgor relating thereto are, and
will continue to be, kept at such chief executive office as specified in Annex F
hereto, or at such new locations as such Pledgor may establish in accordance
with the last sentence of this Section 17.  All Limited Liability
Company Interests and Partnership Interests are, and will continue to be,
maintained at, and controlled and directed (including, without limitation, for
general accounting purposes) from, such chief executive office as specified in
Annex F hereto, or such new locations as such Pledgor may establish in
accordance with the last sentence of this Section 17.  No Pledgor
shall establish a new jurisdiction of organization or a new location for such
chief executive offices until (i) it shall have given to the Pledgee not less
than 15 days’ prior written notice of its intention so to do, providing clear
details of such new jurisdiction of organization or new location, as the case
may be, and providing such other information in connection therewith as the
Pledgee may reasonably request, and (ii) with respect to such new jurisdiction
of organization or new location, as the case may be, it shall have taken all
action, satisfactory to the Pledgee (and, to the extent applicable, in
accordance with Section 3.2 hereof), to maintain the security interest of the
Pledgee in the Collateral intended to be granted hereby at all times fully
perfected and in full force and effect.  Promptly after establishing a
new jurisdiction of organization or new location for such chief executive
offices in accordance with the immediately preceding sentence, the respective
Pledgor shall deliver to the Pledgee a supplement to Annex A hereto or Annex F
hereto, as the case may be, so as to cause such Annex A or F, as the case may
be, to be complete and accurate.

         

        18.           PLEDGORS’
OBLIGATIONS ABSOLUTE, ETC.  The obligations of each Pledgor under this
Agreement shall be absolute and unconditional and shall remain in full force and
effect without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including, without limitation:  (i) any renewal, extension, amendment
or modification of or addition or supplement to or deletion from any Secured
Debt Agreement or any other instrument or agreement referred to therein, or any
assignment or transfer of any thereof; (ii) any waiver, consent, extension,
indulgence or other action or inaction under or in respect of any such agreement
or instrument including, without limitation, this Agreement; (iii) any
furnishing of any additional security to the Pledgee or its assignee or any
acceptance thereof or any release of any security by the Pledgee or its
assignee; (iv) any limitation on any party’s liability or obligations under any
such instrument or agreement or any invalidity or unenforceability, in whole or
in part, of any such instrument or agreement or any term thereof; or (v) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to any Pledgor or any Subsidiary
of any Pledgor, or any action taken with respect to this Agreement by any
trustee or receiver, or by any court, in any such proceeding, whether or not
such Pledgor shall have notice or knowledge of any of the foregoing (it being
understood and agreed that the enforcement hereof may be limited by applicable
bankruptcy, insolvency, restructuring, moratorium or other similar laws
generally affecting creditors’ rights and by equitable principles).

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 20

          

        

         

         

         

        19.  REGISTRATION,
ETC.  If at any time when the Pledgee shall determine to exercise its
right to sell all or any part of the Collateral consisting of Stock, Limited
Liability Company Interests or Partnership Interests pursuant to Section 7
hereof, and the Collateral or the part thereof to be sold shall not, for any
reason whatsoever, be effectively registered under the Securities Act, as then
in effect, the Pledgee may, in its sole and absolute discretion, sell such
Collateral, as the case may be, or part thereof by private sale in such manner
and under such circumstances as the Pledgee may deem necessary or advisable in
order that such sale may legally be effected without such
registration.  Without limiting the generality of the foregoing, in
any such event the Pledgee, in its sole and absolute discretion (i) may proceed
to make such private sale notwithstanding that a registration statement for the
purpose of registering such Collateral or part thereof shall have been filed
under such Securities Act, (ii) may approach and negotiate with a single
possible purchaser to effect such sale, and (iii) may restrict such sale to a
purchaser who will represent and agree that such purchaser is purchasing for its
own account, for investment, and not with a view to the distribution or sale of
such Collateral or part thereof.  In the event of any such sale, the
Pledgee shall incur no responsibility or liability for selling all or any part
of the Collateral at a price which the Pledgee, in its sole and absolute
discretion, in good faith deems reasonable under the circum­stances,
notwithstanding the possibility that a substantially higher price might be
realized if the sale were deferred until after registration as
aforesaid.

         

        20.  TERMINATION;
RELEASE.  (a)  After the Termination Date, this Agreement
and the security interest created hereby shall terminate (provided that all
indemnities set forth herein including, without limitation, in Section 11 hereof
shall survive any such termination), and the Pledgee, at the request and expense
of any Pledgor, will as promptly as practicable (i) execute and deliver to such
Pledgor a proper instrument or instruments acknowledging the satisfaction and
termination of this Agreement, (ii) will duly assign, transfer and deliver to
such Pledgor (without recourse and without any representation or warranty) such
of the Collateral as has not theretofore been sold or otherwise applied or
released pursuant to this Agreement or any other Credit Document, together with
any monies at the time held by the Pledgee or any of its sub-agents hereunder
and (iii) notify the deposit banks under the Control Agreements that such
Control Agreements are terminated.  As used in this Agreement, “Termination Date”
shall mean the date upon which the Total Commitment under the Credit Agreement
has been terminated and all Interest Rate Protec­tion Agreements and Other
Hedging Agreements applicable to Loans (and/or the Commitments) entered into
with any Other Creditors have been terminated, no Note under the Credit
Agreement is outstanding and all Loans thereunder have been repaid in full and
all Obligations then due and payable have been paid in full.

         

        (b)           In
the event that any part of the Collateral is sold in connection with a sale
permitted by the Secured Debt Agreements (other than a sale to any Pledgor or
any Subsidiary thereof) or is otherwise released with the consent of the
Required Secured Creditors and the proceeds of such sale or sales or from such
release are applied in accordance with the provisions of the Credit Agreement,
to the extent required to be so applied, the Pledgee, at the request and expense
of the respective Pledgor, will duly assign, transfer and deliver to such
Pledgor (without recourse and without any representation or warranty) such of
the Collateral (and releases therefor) as is then being (or has been) so sold or
released and has not theretofore been released pursuant to this
Agreement.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 21

          

        

         

         

         

        (c)           At
any time that a Pledgor desires that the Pledgee assign, transfer and deliver
Collateral (and releases therefor) as provided in Section 20(a) or (b) hereof,
it shall deliver to the Pledgee a certificate signed by a principal executive
officer of such Pledgor stating that the release of the respective Collateral is
permitted pursuant to such Section 20(a) or (b).

         

        (d)           The
Pledgee shall have no liability whatsoever to any other Secured Creditor as a
result of any release of Collateral by it in accordance with this Section
20.

         

        21.  NOTICES,
ETC.  Except as otherwise expressly provided herein, all notices and
other communications provided for hereunder shall be in writing (including
telexed, telegraphic or telecopier communication) and mailed, telexed,
telecopied or delivered:  if to any Pledgor, at c/o Genco Ship
Management LLC, as agent, 299 Park Avenue, 20th Floor, New York, New York 10171,
if to any Lender Creditor, at its address specified opposite its name on
Schedule II to the Credit Agreement; and if to the Pledgee, at the Notice Office
specified in Appendix A to the Credit Agreement; and, as to each Other Creditor,
at such other address as shall be designated by such Secured Creditor in a
written notice to the Borrower and the Administrative Agent.  All such
notices and communications shall, (i) when mailed, be effective three Business
Days after being deposited in the mails, prepaid and properly addressed for
delivery, (ii) when sent by overnight courier, be effective one Business Day
after delivery to the overnight courier prepaid and properly addressed for
delivery on such next Business Day, or (iii) when sent by telex or telecopier,
be effective when sent by telex or telecopier, except that notices and
communications to the Pledgee or any Pledgor shall not be effective until
received by the Pledgee or such Pledgor, as the case may be.

         

        22.  WAIVER;
AMENDMENT.  None of the terms and conditions of this Agreement may be
changed, waived, modified or varied in any manner whatsoever except in writing
duly signed by each Pledgor directly affected thereby and the Pledgee (with the
written consent of the Required Secured Creditors); provided, that any
change, waiver, modification or variance affecting the rights and benefits of a
single Class (as defined below) of Secured Creditors (and not all Secured
Creditors in a like or similar manner) shall also require the written consent of
the Requisite Creditors (as defined below) of such affected
Class.  For the purpose of this Agreement, the term “Class” shall mean
each class of Secured Creditors, i.e., whether (i) the
Lender Creditors as holders of the Credit Document Obligations or (ii) the Other
Creditors as the holders of the Other Obligations. For the purpose of this
Agreement, the term “Requisite Creditors”
of any Class shall mean each of (i) with respect to the Credit Document
Obligations, the Required Lenders and (ii) with respect to the Other
Obligations, the holders of at least a majority of all obligations outstanding
from time to time under the Interest Rate Protection Agreements and Other
Hedging Agreements with respect to outstanding Loans (and/or the Commitments)
from time to time.

         

        23.  MISCELLANEOUS.  This
Agreement shall be binding upon the parties hereto and their respective
successors and assigns and shall inure to the benefit of and be enforceable by
each of the parties hereto and its successors and assigns, provided that no
Pledgor may assign any of its rights or obligations under this Agreement except
in accordance with the terms of the Secured Debt Agreements.  THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND
BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT
OF LAWS RULES (OTHER THAN TITLE 14 OF ARTICLE 5 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).  EACH PARTY TO THIS AGREEMENT

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT
F

            page 22

          

        

         

         

         

        IRREVOCABLY WAIVES ALL RIGHT TO A
TRIAL BY JURY IN ANY ACTION PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANS­ACTIONS CONTEM­­PLATED
HEREBY.  The headings in this Agreement are for purposes of
reference only and shall not limit or define the meaning hereof.  This
Agreement may be executed in any number of counterparts, each of which shall be
an orig­inal, but all of which shall constitute one
instrument.  In the event that any provision of this Agreement shall
prove to be invalid or unenforce­able, such provision shall be deemed to be
severable from the other provisions of this Agreement which shall remain binding
on all parties hereto.

         

        24.           RECOURSE.  This
Agreement is made with full recourse to the Pledgors and pursuant to and upon
all the representations, warranties, covenants and agreements on the part of the
Pledgors contained herein and in the other Credit Documents and otherwise in
writing in connection herewith or therewith.

         

        25.           ADDITIONAL
PLEDGORS. It is understood and agreed that any Subsidiary of the Borrower that
is required to become a party to this Agreement after the date hereof pursuant
to the requirements of the Credit Agreement shall automatically become a Pledgor
hereunder by (x) executing a counterpart hereof and/or a Subsidiary assumption
agreement, in each case in form and substance satisfactory to the Pledgee, (y)
delivering supplements to Annexes A through F hereto as are necessary to cause
such Annexes to be complete and accurate with respect to such additional Pledgor
on such date and (z) taking all actions as specified in Section 3 of this
Agreement as would have been taken by such Pledgor had it been an original party
to this Agreement, in each case with all documents required above to be
delivered to the Pledgee and with all actions required to be taken above to be
taken to the reasonable satisfaction of the Pledgee.

         

        26.           RELEASE
OF GUARANTORS.  In the event any Pledgor which is a Subsidiary of the
Borrower is released from its obligations pursuant to the Guaranty, such Pledgor
(so long as not the Borrower) shall be released from this Agreement and this
Agreement shall, as to such Pledgor only, have no further force or
effect.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          
            EXHIBIT F

            page 23

          

        

         

         

         

        IN
WITNESS WHEREOF, each Pledgor and the Pledgee have caused this Agreement to be
executed by their duly elected officers duly authorized as of the date first
above written.

         

        
                                                                  GENCO SHIPPING &
TRADING LIMITED,

                                                                      as a
Pledgor

        

         

        
                                                                  By:_____________________________

        

        
                                                                     Name:

        

        
                                                                     Title:

        

         

        
                                                                  [                               ]

        

        
                                                                  as
Pledgors

        

        

        
                                                                   By:_____________________________

        

        
                                                                     Name:

        

        
                                                                     Title:

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            EXHIBIT F

            page 24

          

        

         

         

         

         

        
          Accepted
and Agreed to:

        

         

         

        NORDEA
BANK FINLAND PLC,

        acting
through its New York branch

        as
Pledgee and Deposit Account Bank

         

        
          	
                  By:______________________________

                	 

        

           Name:

           Title:

         

        
          	
                  By:______________________________

                	 

        

        
          	
                   
      

                	
                  Name:

                

        

        
          	
                   
      

                	
                  Title:

                

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            ANNEX A

            to

            Pledge and Security
Agreement

             

          

         

        EXACT LEGAL NAME OF EACH
PLEDGOR AND JURISDICTION OF

         

        ORGANIZATION

         

        
          	
                  Name
      of Pledgor

                	
                  Jurisdiction
      of Organization

                	
                  Organizational
      ID Number

                
	 
      	
                   
      

                   

                	 
      

        

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
 

        
          ANNEX B

          to

          Pledge and Security
Agreement

        

         

         

        LIST OF
SUBSIDIARIES

        

        
          	
                  Pledgor

                	
                  Direct
      Subsidiaries

                
	 
      	 
      

        

        

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          ANNEX C

          to

          Pledge and Security
Agreement

        

         

         

         

        LIST OF
STOCK

         

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          ANNEX D

          to

          Pledge and Security
Agreement

        

        

         

         

        LIST OF LIMITED LIABILITY
COMPANY INTERESTS

         

        
          	
                  Name
      of Limited

                  Liability
      Company

                	
                  Type
      of Interest

                	
                  Percentage

                  Owned

                	
                  Sub-clause
      of Section 3.2(a) 

                  of
      Borrower/Subsidiary 

                  Pledge
      and Security Agreement

                
	 
      	 
      	 
      	 
      

        

        

         

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          ANNEX E

          to

          Pledge and Security
Agreement

        

         

         

         

        LIST OF PARTNERSHIP
INTERESTS

         

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          ANNEX F

          to

          Pledge and Security
Agreement

        

         

         

        
 

        

        LIST OF CHIEF EXECUTIVE
OFFICES

        

        
          	
                  Name
      of Pledgor

                	
                  Address

                
	 
      	 
      	 
      

        

        

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          ANNEX G

          to

          Pledge and Security
Agreement

        

        
 

         

        Form of Agreement Regarding
Uncertificated Securities, Limited Liability

        Company Interests and
Partnership Interests

         

        AGREEMENT
(as amended, modified or supplemented from time to time, this “Agreement”), dated as
of _______ __, ____, among the undersigned pledgor (the “Pledgor”), NORDEA
BANK FINLAND PLC, acting through its New York branch, not in its individual
capacity but solely as collateral agent (the “Pledgee”), and
__________, as the issuer of the Uncertificated Securities, Limited Liability
Company Interests and/or Partnership Interests (each as defined below) (the
“Issuer”).

         

         

        W I T N E S S E T H
:

         

        WHEREAS,
the Pledgor, certain of its affiliates and the Pledgee have entered into a
Pledge and Security Agreement, dated as of [DATE], 2008 (as amended, amended and
restated, modified or supplemented from time to time, the “Pledge Agreement”),
under which, among other things, in order to secure the payment of the
Obligations (as defined in the Pledge Agreement), the Pledgor will pledge to the
Pledgee for the benefit of the Secured Creditors (as defined in the Pledge
Agreement), and grant a first priority security interest in favor of the Pledgee
for the benefit of the Secured Creditors in, all of the right, title and
interest of the Pledgor in and to any and all (1) “uncertificated
securities” (as defined in Section 8-102(a)(18) of the Uniform Commercial
Code, as adopted in the State of New York) (“Uncertificated
Securities”), (2)  Partnership Interests (as defined in the
Pledge Agreement) and (3) Limited Liability Company Interests (as defined in the
Pledge Agreement), in each case issued from time to time by the Issuer, whether
now existing or hereafter from time to time acquired by the Pledgor (with all of
such Uncertificated Securities, Partnership Interests and Limited Liability
Company Interests being herein collectively called the “Issuer Pledged
Interests”); and

         

        WHEREAS,
the Pledgor desires the Issuer to enter into this Agreement in order to protect
the security interest of the Pledgee under the Pledge Agreement in the Issuer
Pledged Interests, to vest in the Pledgee control of the Issuer Pledge Interests
and to provide for the rights of the parties under this Agreement;

         

        NOW
THEREFORE, in consideration of the premises and the mutual promises and
agreements contained herein, and for other valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

         

        1.  The
Pledgor hereby irrevocably authorizes and directs the Issuer, and the Issuer
hereby agrees, to comply with any and all instructions and orders originated by
the Pledgee (and its successors and assigns) regarding any and all of the Issuer
Pledged Interests without the further consent by the registered owner (including
the Pledgor), and, after receiving a notice from the Pledgee stating that an
“Event of
Default” has occurred and is continuing, not to comply with any
instructions or orders regarding any or all of the Issuer Pledged
Interests

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        Annex G

        Page 2

         

         

        originated
by any person or entity other than the Pledgee (and its successors and assigns)
or a court of competent jurisdiction.

         

        2.  The
Issuer hereby certifies that (i) no notice of any security interest, lien or
other encumbrance or claim affecting the Issuer Pledged Interests (other than
the security interest of the Pledgee) has been received by it, and (ii) the
security interest of the Pledgee in the Issuer Pledged Interests has been
registered in the books and records of the Issuer.

         

        3.  The
Issuer hereby represents and warrants that (i) the pledge by the Pledgor of, and
the granting by the Pledgor of a security interest in, the Issuer Pledged
Interests to the Pledgee, for the benefit of the Secured Creditors, does not
violate the charter, by-laws, partner­ship agreement, membership agreement
or any other agreement governing the Issuer or the Issuer Pledged Interests, and
(ii) the Issuer Pledged Interests are fully paid and nonassessable.

         

        4.  All
notices, statements of accounts, reports, prospectuses, financial statements and
other communications to be sent to the Pledgor by the Issuer in respect of the
Issuer will also be sent to the Pledgee at the following address:

         

        Nordea
Bank Finland Plc

        437
Madison Avenue, 21st
Floor

        New York,
New York 10022

        Attn:  Colleen
M. Durkin

        Telephone:  212-318-9636

        Facsimile:   212-421-4420

         

        5.  Until
the Pledgee shall have delivered written notice to the Issuer that all of the
Obligations have been paid in full and this Agreement is terminated, the Issuer
will, upon receiving notice from the Pledgee stating that an “Event of Default” has
occurred and is continuing, send any and all redemptions, distributions,
interest or other payments in respect of the Issuer Pledged Interests from the
Issuer for the account of the Pledgor only by wire transfers to such account as
the Pledgee shall instruct.

         

        6.  Except
as expressly provided otherwise in Sections 4 and 5, all notices, shall be sent
or delivered by mail, telegraph, telex, telecopy, cable or overnight courier
service and all such notices and communications shall, when mailed, telegraphed,
telexed, telecopied, or cabled or sent by overnight courier, be effective when
deposited in the mails, delivered to the telegraph company, cable company or
courier, as the case may be, or sent by telex or telecopier, except that notices
and communications to the Pledgee, the Pledgor or the Issuer shall not be
effective until received by the Pledgee, the Pledgor or the Issuer, as the case
may be.  All notices and other communications shall be in writ­ing
and addressed as follows:

         

        (a)           if
to any Pledgor, at:

         

        c/o Genco
Ship Management LLC,

        299 Park
Avenue, 20th Floor

        New York,
NY 10171

        Attention:  John
Wobensmith

        Telephone
No.:  646-443-8555

        Telecopier
No.:  646-552-4052

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          Annex G

          Page 3

        

         

        
 

        with
copies to:

        Seward
& Kissel LLP

        One
Battery Park Plaza

        New York,
New York 10004

        Attention:
Lawrence Rutkowski

        Telephone
No.: 212-574-1200

        Telecopier
No.: 212-480-8421

         

        (b)           if
to the Pledgee, at:

         

        Nordea
Bank Finland Plc

        437
Madison Avenue, 21st
Floor

        New York,
New York 10022

        Attn:  Colleen
M. Durkin

        Telephone:  212-318-9636

        Facsimile:   212-421-4420

         

        (c)           if
to the Issuer, at:

         

        ________________________

         

        ________________________

         

        ________________________

         

        or at
such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder.

         

        7.  This
Agreement shall be binding upon the successors and assigns of the Pledgor and
the Issuer and shall inure to the benefit of and be enforceable by the Pledgee
and its successors and assigns.  This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which
shall constitute one instrument.  In the event that any provision of
this Agreement shall prove to be invalid or unenforceable, such provision shall
be deemed to be severable from the other provisions of this Agreement which
shall remain binding on all parties hereto.  None of the terms and
conditions of this Agreement may be changed, waived, modified or varied in the
manner whatsoever except in writing signed by the Pledgee, the Issuer and the
Pledgor.

         

        8.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to its principles of conflict of laws (other
than Title 14 of Articles 5 of the New York General Obligations
Law.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          Annex G

          Page 4

        

         

         

         

         

        IN
WITNESS WHEREOF, the Pledgor, the Pledgee and the Issuer have caused this
Agreement to be executed by their duly elected officers duly authorized as of
the date first above written.

         

        [                                           
],

        as
Pledgor

         

        By_____________________________

        Name:

        Title:

         

        
          	
                   
      

                	
                  NORDEA
      BANK FINLAND PLC,

                

        

        
          	
                   
      

                	
                  acting
      through its New York branch,

                

        

        
          	
                   
      

                	
                  not
      in its individual capacity but solely as
Pledgee

                

        

        By_____________________________

        Name:

        Title:

         

        By_____________________________

        Name:

        Title:

         

        

        [__________________],

        the
Issuer

         

        By_____________________________

        Name:

        Title:

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            ANNEX H

            to

            Pledge and Security
Agreement

          

        

         

        
 

         

        Form of Control Agreement
Regarding Deposit Accounts

        

        

        CONTROL
AGREEMENT REGARDING DEPOSIT ACCOUNTS (as amended, modified or supplemented from
time to time, this “Agreement”), dated as
of _______ __, ____, among the undersigned assignor (the “Assignor”) and NORDEA
BANK FINLAND, acting through its New York branch, not in its individual capacity
but as Collateral Agent (the “Collateral Agent”)
and itself, as the deposit account bank (the “Deposit Account
Bank”), as the bank (as defined in Section 9-102 of the UCC as in effect
on the date hereof in the State of _______________ (the “UCC”)) with which one
or more deposit accounts (as defined in Section 9-102 of the UCC) are maintained
by the Assignor (with all such deposit accounts now or at any time in the future
maintained by the Assignor with the Deposit Account Bank being herein called the
“Deposit
Accounts”).

         

         

        W I T N E S S E T H
:

         

        WHEREAS,
the Assignor, various other Assignors and the Collateral Agent have entered into
a Pledge and Security Agreement, dated as of [DATE], 2008 (as amended, amended
and restated, modified or supplemented from time to time, the “Pledge and Security
Agreement”), under which, among other things, in order to secure the
payment of the Obligations (as defined in the Pledge and Security Agreement),
the Assignor has granted a first priority security interest to the Collateral
Agent for the benefit of the Secured Creditors (as defined in the Pledge and
Security Agreement) in all of the right, title and interest of the Assignor in
and into any and all deposit accounts (as defined in Section 9-102 of the UCC)
and in all monies, securities, instruments and other investments deposited
therein from time to time (collectively, herein called the “Collateral”);
and

         

        WHEREAS,
the Assignor desires that the Deposit Account Bank enter into this Agreement in
order to establish “control” (as defined
in Section 9-104 of the UCC) in each Deposit Account at any time or from time to
time maintained with the Deposit Account Bank, and to provide for the rights of
the parties under this Agreement with respect to such Deposit
Accounts;

         

        NOW
THEREFORE, in consideration of the premises and the mutual promises and
agreements contained herein, and for other valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

         

        1.           Assignor’s Dealings with
Deposit Accounts; Notice of Exclusive Control. Until the Deposit Account
Bank shall have received from the Collateral Agent a Notice of Exclusive Control
(as defined below), the Assignor shall be entitled to present items drawn on and
otherwise to withdraw or direct the disposition of funds from the Deposit
Accounts and give instructions in respect of the Deposit Accounts; provided, however, that the
Assignor may not, and the Deposit Account Bank agrees that it shall not permit
the Assignor to, without the

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
             

            
              
                Annex H

                Page 2

              

            

             

          

        

         

         

        Collateral
Agent’s prior written consent, close any Deposit Account.  If upon the
occurrence and during the continuance of an Event of Default (as defined in the
Pledge and Security Agreement) the Collateral Agent shall give to the Deposit
Account Bank a notice of the Collateral Agent’s exclusive control of the Deposit
Accounts, which notice states that it is a “Notice of Exclusive Control” (a
“Notice of Exclusive
Control”), only the Collateral Agent shall be entitled to withdraw funds
from the Deposit Accounts, to give any instructions in respect of the Deposit
Accounts and any funds held therein or credited thereto or otherwise to deal
with the Deposit Accounts.

         

        2.           Collateral Agent’s Right to
Give Instructions as to Deposit
Accounts.  (a)  Notwithstanding the foregoing or any
separate agreement that the Assignor may have with the Deposit Account Bank, the
Collateral Agent shall be entitled, following the occurrence and during the
continuance of an Event of Default for purposes of this Agreement, at any time
to give the Deposit Account Bank instructions as to the withdrawal or
disposition of any funds from time to time credited to any Deposit Account, or
as to any other matters relating to any Deposit Account or any other Collateral,
without further consent from the Assignor.  The Assignor hereby
irrevocably authorizes and instructs the Deposit Account Bank, and the Deposit
Account Bank hereby agrees, to comply with any such instructions from the
Collateral Agent without any further consent from the Assignor.  Such
instructions may include the giving of stop payment orders for any items being
presented to any Deposit Account for payment.  The Deposit Account
Bank shall be fully entitled to rely on, and shall comply with,  such
instructions from the Collateral Agent even if such instructions are contrary to
any instructions or demands that the Assignor may give to the Deposit Account
Bank.  In case of any conflict between instructions received by the
Deposit Account Bank from the Collateral Agent and the Assignor, the
instructions from the Collateral Agent shall prevail.

         

        (b)           It
is understood and agreed that the Deposit Account Bank’s duty to comply with
instructions from the Collateral Agent regarding the Deposit Accounts is
absolute, and the Deposit Account Bank shall be under no duty or obligation, nor
shall it have the authority, to inquire or determine whether or not such
instructions are in accordance with the Pledge and Security Agreement or any
other Credit Document (as defined in the Pledge and Security Agreement), nor
seek confirmation thereof from the Assignor or any other Person.

         

        3.           Assignor’s Exculpation and
Indemnification of Depository Bank.  The Assignor hereby
irrevocably authorizes and instructs the Deposit Account Bank to follow
instructions from the Collateral Agent regarding the Deposit Accounts even if
the result of following such instructions from the Collateral Agent is that the
Deposit Account Bank dishonors items presented for payment from any Deposit
Account.  The Assignor further confirms that the Deposit Account Bank
shall have no liability to the Assignor for wrongful dishonor of such items in
following such instructions from the Collateral Agent.  The Deposit
Account Bank shall have no duty to inquire or determine whether the Assignor’s
obligations to the Collateral Agent are in default or whether the Collateral
Agent is entitled, under any separate agreement between the Assignor and the
Collateral Agent, to give any such instructions.  The Assignor further
agrees to be responsible for the Deposit Account Bank’s customary charges and to
indemnify the Deposit Account Bank from and to hold the Deposit Account Bank
harmless against any loss, cost or expense that the Deposit Account Bank may
sustain or incur in acting upon instructions which the Deposit Account Bank
believes in good faith to be instructions from

         

        
           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            
              Annex H

              Page 3

            

          

           

        

         

        the
Collateral Agent excluding any loss, cost or expense to the extent incurred as a
direct result of the gross negligence or willful misconduct of the Deposit
Account Bank.

         

        4.           Subordination of Security
Interests; Deposit Account Bank’s Recourse to Deposit
Accounts.  The Deposit Account Bank hereby subordinates any
claims and security interests it may have against, or with respect to, any
Deposit Account at any time established or maintained with it by the Assignor
(including any amounts, investments, instruments or other Collateral from time
to time on deposit therein) to the security interests of the Collateral Agent
(for the benefit of the Secured Creditors) therein, and agrees that no amounts
shall be charged by it to, or withheld or set-off or otherwise recouped by it
from, any Deposit Account of the Assignor or any amounts, investments,
instruments or other Collateral from time to
time on deposit therein; provided that the Deposit Account Bank may, however,
from time to time debit the Deposit Accounts for any of its customary charges in
maintaining the Deposit Accounts or for reimbursement for the reversal of any
provisional credits granted by the Deposit Account Bank to any Deposit Account,
to the extent, in each case, that the Assignor has not separately paid or
reimbursed the Deposit Account Bank therefor.

         

        5.           Representations, Warranties
and Covenants of Deposit Account Bank.  The Deposit Account
Bank represents and warrants to the Collateral Agent that:

         

        (a)           The
Deposit Account Bank constitutes a “bank” (as defined in
Section 9-102 of the UCC), that the jurisdiction (determined in accordance with
Section 9-304 of the UCC) of the Deposit Account Bank for purposes of each
Deposit Account maintained by the Assignor with the Deposit Account Bank shall
be one or more States within the United States.

         

        (b)           The
Deposit Account Bank shall not permit any Assignor to establish any demand,
time, savings, passbook or other account with it which does not constitute a
“deposit
account” (as defined in Section 9-102 of the UCC).

         

        (c)  The
account agreements between the Deposit Account Bank and the Assignor relating to
the establishment and general operation of the Deposit Accounts provide, whether
specifically or generally, that the laws of New York govern secured transactions
relating to the Deposit Accounts and that the Deposit Account Bank’s “jurisdiction” for
purposes of Section 9-304 of the UCC in respect of the Deposit Accounts is New
York.  The Deposit Account Bank will not, without the Collateral
Agent’s prior written consent, amend any such account agreement so that the
Deposit Account Bank’s jurisdiction for purposes of Section 9-304 of the
UCC is other than a jurisdiction permitted pursuant to preceding clause
(a).  All account agreements in respect of each Deposit Account in
existence on the date hereof are listed on Annex A hereto and copies of all such
account agreements have been furnished to the Collateral Agent.  The
Deposit Account Bank will promptly furnish to the Collateral Agent a copy of the
account agreement for each Deposit Account hereafter established by the Deposit
Account Bank for the Assignor.

         

        (d)           The
Deposit Account Bank has not entered and will not enter, into any agree­ment
with any other Person by which the Deposit Account Bank is obligated to comply
with instructions from such other Person as to the disposition of funds from any
Deposit Account or other dealings with any Deposit Account or other of the
Collateral.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            
              Annex H

              Page 4

            

          

           

        

         

         

        (e)           On
the date hereof the Deposit Account Bank maintains no Deposit Accounts for the
Assignor other than the Deposit Accounts specifically identified in Annex A
hereto.

         

        (f)           Any
items or funds received by the Deposit Account Bank for the Assignor’s account
will be credited to said Deposit Accounts specified in paragraph (e) above or to
any other Deposit Accounts hereafter established by the Deposit Account Bank for
the Assignor in accordance with this Agreement.

         

        (g)           The
Deposit Account Bank will promptly notify the Collateral Agent of each Deposit
Account hereafter established by the Deposit Account Bank for the Assignor
(which notice shall specify the account number of such Deposit Account and the
location at which the Deposit Account is maintained), and each such new Deposit
Account shall be subject to the terms of this Agreement in all
respects.

         

        6.           Deposit Account Statements
and Information.  The Deposit Account Bank agrees, and is
hereby authorized and instructed by the Assignor, to furnish to the Collateral
Agent, at its address indicated below, copies of all account statements and
other information relating to each Deposit Account that the Deposit Account Bank
sends to the Assignor and to disclose to the Collateral Agent all information
requested by the Collateral Agent regarding any Deposit Account.

         

        7.           Conflicting
Agreements.  This Agreement shall have control over any
conflicting agreement between the Deposit Account Bank and the
Assignor.

         

        8.           Merger or Consolidation of
Deposit Account Bank.  Without the execution or filing of any
paper or any further act on the part of any of the parties hereto, any bank into
which the Deposit Account Bank may be merged or with which it may be
consolidated, or any bank resulting from any merger to which the Deposit Account
Bank shall be a party, shall be the successor of the Deposit Account Bank
hereunder and shall be bound by all provisions hereof which are binding upon the
Deposit Account Bank and shall be deemed to affirm as to itself all
representations and warranties of the Deposit Account Bank contained
herein.

         

        9.           Notices.  (a)  All
notices and other communications provided for in this Agreement shall be in
writing (including facsimile) and sent to the intended recipient at its address
or telex or facsimile number set forth below:

         

        If to the Collateral Agent,
at:

         

        Nordea
Bank Finland Plc

        437
Madison Avenue, 21st
Floor

        New York,
New York 10022

        Attn:  Colleen
M. Durkin

        Telephone:  212-318-9636

        Facsimile:   212-421-4420

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            
              Annex H

              Page 5

            

          

           

        

         

        If to the Assignor,
at:

         

        ____________

        ____________

        ____________

        

         

        If to the Deposit Account
Bank, at:

         

        Nordea
Bank Finland, Plc,

        437
Madison Avenue, 21st
Floor

        New York,
New York 10022

        Attention:  Colleen
M. Durkin

        Telephone:  (212)
318-9636

        Facsimile:   (212)
421-4420

         

         

        or, as to
any party, to such other address or telex or facsimile number as such party may
designate from time to time by notice to the other parties.

         

        (b)           Except
as otherwise provided herein, all notices and other communications hereunder
shall be delivered by hand or by commercial overnight courier (delivery charges
prepaid), or mailed, postage prepaid, or telexed or faxed, addressed as
aforesaid, and shall be effective (i) three business days after being deposited
in the mail (if mailed), (ii) when delivered (if delivered by hand or courier)
and (iii) or when transmitted with receipt confirmed (if telexed or faxed);
provided that
notices to the Collateral Agent shall not be effective until actually received
by it.

         

        10.           Amendment.  This
Agreement may not be amended, modified or supplemented except in writing
executed and delivered by all the parties hereto.

         

        11.           Binding
Agreement.  This Agreement shall bind the parties hereto and
their successors and assign and shall inure to the benefit of the parties hereto
and their successors and assigns.  Without limiting the provisions of
the immediately preceding sentence, the Collateral Agent at any time or from
time to time may designate in writing to the Deposit Account Bank a successor
Collateral Agent (at such time, if any, as such entity becomes the Collateral
Agent under the Pledge and Security Agreement, or at any time thereafter) who
shall thereafter succeed to the rights of the existing Collateral Agent
hereunder and shall be entitled to all of the rights and benefits provided
hereunder.

         

        12.           Continuing
Obligations.  The rights and powers granted herein to the
Collateral Agent have been granted in order to protect and further perfect its
security interests in the Deposit Accounts and other Collateral and are powers
coupled with an interest and will be affected neither by any purported
revocation by the Assignor of this Agreement or the rights granted to the
Collateral Agent hereunder or by the bankruptcy, insolvency, conservatorship or
receivership of the Assignor or the Deposit Account Bank or by the lapse of
time.  The rights of

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
            
              Annex H

              Page 6

            

          

           

        

         

         

        the
Collateral Agent hereunder and in respect of the Deposit Accounts and the other
Collateral, and the obligations of the Assignor and Deposit Account Bank
hereunder, shall continue in effect until the security interests of Collateral
Agent in the Deposit Accounts and such other Collateral have been terminated and
the Collateral Agent has notified the Deposit Account Bank of such termination
in writing.

         

        13.           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

         

        14.           Counterparts.  This
Agreement may be executed in any number of counterparts, all of which shall
constitute one and the same instrument, and any party hereto may execute this
Agreement by signing and delivering one or more counterparts.

         

        15.           Termination.  This
Agreement and the security interest created hereby shall terminate on the date
on which the Collateral Agent shall have given the Deposit Account Bank written
notice that this Agreement shall have terminated.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          
            
              Annex H

              Page 7

            

          

           

        

         

         

        IN
WITNESS WHEREOF, the parties hereto have duly executed and delivered this
Agreement as of the date first written above.

         

        
          	
                   
      

                	
                  Assignor:

                

        

        

         

        
          	
                   
      

                	
                  [NAME
      OF ASSIGNOR]

                

        

        

        
          	
                   
      

                	
                  By:_________________________

                

        

        
          	
                   
      

                	
                       
      Name:

                

        

        
          	
                   
      

                	
                      
      Title:

                

        

         

         

        
          
            	
                     
      

                  	
                    Collateral Agent:

                     

                    NORDEA BANK FINLAND PLC,

                    acting through its New York
      branch,

                    as Collateral
Agent

                  

          

           

          
            	
                     
      

                  	
                    By:___________________________

                         
      Name: 

                         
      Title:

                  

          

           

        

        
        

         

        
          	
                   
      

                	
                  By:___________________________

                       
      Name:

                       
      Title:

                

        

         

        
           

          
            
              	
                       
      

                    	
                      
                        Deposit Account
      Bank:

                         

                        NORDEA BANK FINLAND PLC,

                        acting through its New York branch,

                        as Deposit Account
Bank

                      

                    

            

                   

          

        

         

        
          	
                   
      

                	
                  By:______________________

                       
      Name:

                       
      Title:

                

        

         

        
          
            	
                     
      

                  	
                    By:______________________

                         
      Name:

                         
      Title:

                  

          

           

          
          

           

        

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          	
                   
      

                	
                  Annex
      I

                

        

         

         

        Operating
Accounts

         

        
          	
                  Assignor

                	
                  Account
      Number

                
	 
      	 
      

        

        

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT G

       

      
        

         

        SOLVENCY/MINIMUM
CONSOLIDATED NET WORTH CERTIFICATE

         

        I, the
undersigned, the Chief Financial Officer of Genco Shipping & Trading Limited
(the “Company”), do hereby
certify in such capacity and on behalf of the Company that:

         

        1.  This
Certificate is furnished to the Administrative Agent and each of the Lenders
pursuant to Section 4.05 of the Credit Agreement, dated as of September 4, 2008,
among Genco Shipping & Trading Limited, the Lenders party hereto from time
to time, Nordea Bank Finland Plc, acting through its New York branch, as
Administrative Agent and as Collateral Agent under the Security Documents (such
Credit Agreement, as in effect on the date of this Certificate, being herein
called the “Credit
Agreement”).  Unless otherwise defined herein, capitalized
terms used in this Certificate shall have the meanings set forth in the Credit
Agreement.

         

        2.  For
purposes of this Certificate, the terms below shall have the following
definitions:

         

        
          	
                   
      

                	
                  (a)

                	
                  “Fair
      Value”

                

        

         

        The
amount at which the assets, in their entirety, of each of the Company on a
stand-alone basis, and the Company and its Subsidiaries taken as a whole, would
change hands between a willing buyer and a willing seller, within a commercially
reasonable period of time, each having reasonable knowledge of the relevant
facts, with neither being under any compulsion to act.

         

        
          	
                   
      

                	
                  (b)

                	
                  “Present Fair Salable
      Value”

                

        

         

        The
amount that could be obtained by an independent willing seller from an
independent willing buyer if the assets of each of the Company on a stand-alone
basis, and the Company and its Subsidiaries taken as a whole, are sold with
reasonable promptness under normal selling conditions in a current
market.

         

        
          	
                   
      

                	
                  (c)

                	
                  “New
      Financing”

                

        

         

        The
Indebtedness incurred or to be incurred by the Company and its Subsidiaries
under the Credit Documents.

         

        
          	
                   
      

                	
                  (d)

                	
                  “Stated
      Liabilities”

                

        

         

        The
recorded liabilities that would be recorded in accordance with generally
accepted accounting principles (“GAAP”) of the Company
on a stand-alone basis and of the Company and its Subsidiaries taken as a whole
as of the date hereof after giving effect to all of the Vessel Acquisitions,
determined in accordance with GAAP consistently applied, together with the
amount of all New Financing.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT G

        Page 2

         

         

         

        
          	
                   
      

                	
                  (e)

                	
                  “Identified Contingent
      Liabilities”

                

        

         

        The
maximum estimated amount of liabilities reasonably likely to result from pending
litigation, asserted claims and assessments, guaranties, uninsured risks and
other contingent liabilities of each of the Company on a stand-alone basis, and
the Company and its Subsidiaries taken as a whole, after giving effect to all
the Vessel Acquisitions, as identified and explained in terms of their nature
and estimated magnitude by responsible officers of the Company and its
Subsidiaries or that have been identified as such by an officer of the Company
or any of its Subsidiaries.

         

        
          	
                   
      

                	
                  (f)

                	
                  “Will be able to pay
      its Stated Liabilities and Identified Contingent Liabilities, as they
      mature”

                

        

         

        For the
period from the date hereof through the stated maturity of all the New
Financing, each of the Company on a stand-alone basis, and the Company and its
Subsidiaries taken as a whole, will have sufficient assets and cash flow to pay
its Stated Liabilities and Identified Contingent Liabilities as those
liabilities mature or otherwise become payable.

         

        
          	
                   
      

                	
                  (g)

                	
                  “Does not have
      Unreasonably Small Capital”

                

        

         

        For the
period from the date hereof through the stated maturity of all the New
Financing, each of the Company on a stand-alone basis, and the Company and its
Subsidiaries taken as a whole, after consummation of all of the Vessel
Acquisitions and all Indebtedness being incurred or assumed and Liens created by
the Company and its Subsidiaries in connection therewith, is a going concern and
has sufficient capital to ensure that it will continue to be a going concern for
such period and to remain a going concern.

         

        3.  For
purposes of this Certificate, I, or other officers of the Company and its
Subsidiaries under my direction and supervision, have performed the following
procedures as of and for the periods set forth below.

         

        
          	
                   
      

                	
                  (a)

                	
                  I
      have reviewed the balance sheets referred to in Section 7.05 of the Credit
      Agreement.

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  I
      have made inquiries of certain officials of the Company and its
      Subsidiaries who have responsibility for financial and accounting matters
      regarding the existence and amount of Identified Contingent Liabilities
      associated with the business of the Company and its
      Subsidiaries.

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  I
      have knowledge of and have reviewed to my satisfaction the Credit
      Documents and the respective Schedules and Exhibits
    thereto.

                

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          EXHIBIT G

          Page 3

        

         

         

         

         

        
          	
                   
      

                	
                  (d)

                	
                  With
      respect to Identified Contingent Liabilities,
I:

                

        

         

        (i)           inquired
of certain officials of the Company and its Subsidiaries who have responsibility
for legal, financial and accounting matters as to the existence and estimated
liability with respect to all contingent liabilities known to them;
and

         

        (ii)           confirmed
with officers of the Company and its Subsidiaries that, to the best of such
officers’ knowledge, all appropriate items were included in Identified
Contingent Liabilities and the amounts relating thereto were the maximum
estimated amount of liabilities reasonably likely to result therefrom as of the
date hereof.

         

        
          	
                   
      

                	
                  (e)

                	
                  I
      have made inquiries of certain officers of the Company and its
      Subsidiaries who have responsibility for financial reporting and
      accounting matters regarding whether they were aware of any events or
      conditions that, as of the date hereof, would cause either the Company on
      a stand-alone basis, or the Company and its Subsidiaries taken as a whole,
      in either case after giving effect to all of the Vessel Acquisitions and
      the related financing transactions (including the incurrence of the New
      Financing), to (i) have assets with a Fair Value or Present Fair Salable
      Value that are less than the sum of Stated Liabilities and Identified
      Contingent Liabilities; (ii) have Unreasonably Small Capital; or (iii) not
      be able to pay its Stated Liabilities and Identified Contingent
      Liabilities as they mature or otherwise become
  payable.

                

        

         

        4.  Based
on and subject to the foregoing, I, in my capacity as the chief financial
officer of the Company, hereby certify on behalf of the Company that, after
giving effect to all of the Vessel Acquisitions and the related financing
transactions (including the incurrence of the New Financing), it is my informed
opinion that (i) the Fair Value of the assets of each of the Company on a
stand-alone basis, and the Company and its Subsidiaries taken as a whole, is
greater than its Stated Liabilities and Identified Contingent Liabilities; (ii)
the Present Fair Salable Value of the assets of each of the Company on a
stand-alone basis, and the Company and its Subsidiaries taken as a whole, is
greater than its Stated Liabilities and Identified Contingent Liabilities; (iii)
each of the Company on a stand-alone basis, and the Company and its Subsidiaries
taken as a whole, will be able to pay its Stated Liabilities and Identified
Contingent Liabil­ities, as they mature or otherwise become payable; and
(iv) neither the Company on a stand-alone basis, nor the Company and its
Subsidiaries taken as a whole, has Unreasonably Small Capital.

        

        5.  Based
on and subject to the foregoing, I, in my capacity as the chief financial
officer of the Company, hereby certify on behalf of the Company that, after
giving effect to the incurrence of all the financings contemplated under the
Credit Documents, the Consolidated Net Worth of the Company as of the date
hereof is not less than US$263,300,000 plus 80% of the Net Proceeds (as defined
in the Credit Agreement) received as a result of any new equity issues by the
Company from and after June 30, 2007, as required pursuant to Section 9.11 and
Appendix A of the Credit Agreement.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          EXHIBIT G

          Page 4

        

         

         

         

         

        IN
WITNESS WHEREOF, I have hereto on behalf of the Company set my hand this __ day
of [DATE], 2008.

         

                    GENCO SHIPPING &
TRADING LIMITED

         

        

         

         

        
                                                         
By:_______________________

                                         Name:

                                                            
Title:

        

         

      

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT
H-1

       

       

       

       

      
        ASSIGNMENT OF
EARNINGS

        

        [VESSEL
NAME]

        Official
Number [OFFICIAL NUMBER]

        

        THIS
EARNINGS ASSIGNMENT, dated [DATE], is given by [SHIPOWNER], a corporation
organized and existing under the laws of the Republic of the Marshall Islands
[with its registered address at Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro, Marshall Islands MH96960]/[and registered under Part XI of the
Hong Kong Companies Ordinance having its principal place of business at 15th
Floor, Tower One, Lippo Centre, 89 Queensway, Hong Kong] (the “Assignor”), in favor
of NORDEA BANK FINLAND PLC, acting through its New York branch, with offices at
437 Madison Avenue, New York, New York 10022, as collateral agent (in such
capacity, the “Collateral Agent”) under the Credit Agreement referred to below
(the “Assignee”).  Except
as otherwise defined herein, capitalized terms used herein and defined in the
Credit Agreement (as defined below) shall be used herein as so
defined.

        

        RECITALS

        

        A.           The
Assignor is the sole owner of the [Hong Kong]/[Marshall Islands] flag vessel
[VESSEL NAME], Official Number [OFFICIAL NUMBER] (the “Vessel”).

        

        B.           Genco
Shipping & Trading Limited, a Marshall Islands corporation (the “Borrower”) has
entered into a Credit Agreement dated as of September 4, 2008 (as the same may
be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”)
among (i) various Lenders referred to therein, (ii) the Assignee, as
administrative agent (in such capacity, the “Administrative
Agent”), mandated lead arranger, bookrunner and Collateral Agent,
providing a senior secured credit facility to the Borrower in the principal
amount of up to Three Hundred Twenty Million United States Dollars (U.S.
$320,000,000) (the Lenders, the Administrative Agent and Collateral Agent,
collectively, the “Lender
Creditors”).

        

        C.           The
Assignor is a wholly-owned subsidiary of the Borrower.

        

        D.           The
Borrower may at any time and from time to time enter into, or guaranty the
obligations of one or more Subsidiary Guarantors or any of their respective
Subsidiaries under, one or more Interest Rate Protection Agreements or Other
Hedging Agreements with respect to the Loan (and/or the Commitments) with one or
more Lenders or any Affiliate thereof (each such Lender or Affiliate, even if
the respective Lender subsequently ceases to be a Lender under the Credit
Agreement for any reason, together with such Lender’s or Affiliate’s successors
and assigns, if any, collectively, the “Other Creditors” and, together with the
Lender Creditors, the “Secured
Creditors”).

        

        E.           The
Assignor has entered into the Guaranty in favor of the Secured Creditors
pursuant to which the Assignor has guaranteed (i) to the Lender Creditors, all
obligations of the Borrower under the Credit Agreement and each other Credit
Document to which the Borrower is a party, and (ii) to each of the Other
Creditors, all obligations of the Borrower under each Interest Rate Protection
Agreement and each Other Hedging Agreement entered into with respect to
the

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT H-1

         

         

         

        Loan
(and/or the Commitments), and the Assignor has granted the Assignee a [first
preferred Marshall Islands Mortgage]/[first priority Hong Kong Mortgage together
with a deed of covenants (the “Deed”) collateral thereto] ([together,] the
“Mortgage”) on
the Vessel to secure, among other things, its obligations under the
Guaranty.

        

        F.           It
is a condition to the obligation of the Lenders to advancing the Loan in respect
of the Vessel to the Borrower under the Credit Agreement that the Assignor
enters into this Assignment as security for its obligations under the
Guaranty.

        

        NOW,
THEREFORE, the parties hereto agree as follows:

        

        Section 1.    As security
for all amounts due and to become due to the Secured Creditors under the
Guaranty, the Assignor as beneficial owner hereby grants, sells, conveys,
assigns, transfers, mortgages and pledges to the Assignee, and unto the
Assignee’s successors and assigns, all its right, title, interest, claim and
demand in and to, and hereby also grants unto the Assignee a security interest
in and to (the following clauses (i) through (vi), collectively, the “Earnings Collateral”)
(i) the earnings of the Vessel, including, but not limited to, all freight, hire
and passage moneys, proceeds of off-hire insurance, any other moneys earned and
to be earned, due or to become due, or paid or payable to, or for the account
of, the Assignor, of whatsoever nature, arising out of or as a result of the
ownership, use, operation or management by the Assignor or its agents of the
Vessel, (ii) all moneys and claims for moneys due and to become due to the
Assignor under and all claims for damages arising out of the breach (or payments
for variation or termination) of any charter, or contract relating to or under
which is employed the Vessel, any and all other present and future charter
parties, contracts of affreightment, and operations of every kind whatsoever of
the Vessel, and in and to any and all claims and causes of action for money,
loss or damages that may now and hereafter accrue or belong to the Assignor, its
successors or assigns, arising out of or in any way connected with the present
or future ownership, use, operation or management of the Vessel or arising out
of or in any way connected with the Vessel, (iii) if the Vessel is employed on
terms whereby any money falling within clauses (i) or (ii) above are pooled or
shared with any other Person, that proportion of the net receipts of the pooling
or sharing arrangements which is attributable to the Vessel, (iv) all moneys and
claims for moneys due and to become due to the Assignor, and all claims for
damages, in respect of the actual or constructive total loss of or requisition
of use of or title to the Vessel, (v) all moneys and claims for moneys due in
respect of demurrage or detention, and (vi) any proceeds of any of the
foregoing.

        

        Section 2.    The Assignor
covenants that (i) it will have all the earnings and other moneys hereby
assigned paid over promptly to such Operating Account as the Collateral Agent
may specify in writing from time to time; (ii) it will promptly notify in
writing substantially in the form of Exhibit A hereto, and deliver a duplicate
copy of such notice to the Assignee, each of the Assignor’s agents and
representatives into whose hands or control may come any earnings and moneys
hereby assigned, informing each such Person of this Assignment and instructing
such addressee to remit promptly to such Operating Account all earnings and
moneys hereby assigned which may come into such Person’s hands or control and to
continue to make such remittances until such time as such Person may receive
written notice or instructions to the contrary directly from the Assignee; and
(iii) it will instruct each such Person to acknowledge directly to the Assignee
receipt of the Assignor’s written notification and the
instructions.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT H-1

        

         

        
 

        Section 3.    Anything
herein contained to the contrary notwithstanding, the Assignee, or its
respective successors and assigns, shall have no obligation or liability under
any agreement, including any charter or contract of affreightment by reason of
or arising out of this Assignment, or out of any Assignment of Charter (as
defined below) made pursuant to Section 6 hereof, and the Assignee, its
respective successors and assigns, shall not be required or obligated in any
manner to perform or fulfill any obligations of the Assignor under or pursuant
to any agreement, including any charter or contract of affreightment, or to make
any payment or to make any inquiry as to the nature or sufficiency of any
payment received by the Assignee or to present or file any claim, or to take any
other action to collect or enforce the payment of any amounts which may have
been assigned to it or to which it may be entitled hereunder at any time or
times.

        

        Section 4.    The Assignor
hereby constitutes the Assignee, its successors and assigns, its true and lawful
attorney-in-fact, irrevocably, with full power, in the name of the Assignor or
otherwise, upon the occurrence and continuance of a Default or an Event of
Default, to ask, require, demand, receive, compound and give acquittance for any
and all moneys and claims for moneys due and to become due, property and rights
hereby assigned, to endorse any checks or other instruments or orders in
connection therewith and to file any document or to take any action or institute
any proceedings which the Assignee and its successors and assigns may reasonably
deem necessary or advisable in the premises.

        

        Section 5.    The powers
and authorities granted to the Assignee and its successors or assigns herein
have been given for valuable consideration and are hereby declared to be
irrevocable.

        

        Section 6.    The Assignor
hereby agrees that at any time and from time to time, upon entering into any
charter or contract of affreightment or other agreement for employment of the
Vessel of whatsoever nature for a period of twenty-four (24) months or longer
including permitted extensions and renewals, it will promptly and duly execute
and deliver to and in favor of the Assignee at the cost and expense of the
Assignor an Assignment of Charters in respect of such charter to the Assignee
substantially in the form attached as Exhibit B hereto (the “Assignment of
Charters”) and it will promptly execute and deliver any and all such
further instruments and documents as the Assignee, and its successors or
assigns, may reasonably require in order to obtain the full benefits of this
Assignment, the Assignment of Charters and of the rights and powers herein and
therein granted.  The Assignor covenants to use its best efforts to
obtain the consent of the charterer under said charter to the Assignment of
Charters pursuant to the terms of the Assignment of Charters or in other form
and substance reasonably satisfactory to the Assignee.

        

        Section 7.    The Assignor
warrants and represents that it has not assigned or pledged the rights, title
and interest assigned hereunder to anyone other than the
Assignee.  The Assignor hereby covenants that, without the prior
written consent thereto of the Assignee, so long as this Assignment shall remain
in effect, it will not assign or pledge the whole or any part of the rights,
title and interest hereby assigned to anyone other than the Assignee, and it
will not take or omit to take any action, the taking or omission of which might
result in an alteration or impairment of this Assignment, or of any of the
rights created by this Assignment.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT H-1

        

        
 

         

        Section 8.    The Assignor
agrees that at any time and from time to time, upon the written request of the
Assignee, the Assignor will promptly and duly execute and deliver any and all
further instruments and documents as the Assignee may deem desirable in
obtaining the full benefits of this Assignment.

        

        Section 9.    THIS
ASSIGNMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES (OTHER THAN TITLE 14 OF ARTICLE 5
OF THE GENERAL OBLIGATIONS LAW).  This Assignment shall not be amended
and/or varied except by agreement in writing signed by the parties
hereto.

        

        Section 10.    Any notice,
demand or other communication to be given under or for the purposes of this
Assignment shall be made as provided in Section 13.03 of the Credit Agreement or
Section 4 of Article IV of the [Mortgage]/[Deed].

        

        Section 11.    This
Assignment may be executed in any number of counterparts each of which shall be
an original, but all such counterparts shall together constitute one and the
same instrument.

        

        IN
WITNESS WHEREOF, the Assignor has duly executed this instrument on the day and
year first above written.

        

                    [SHIPOWNER],

                    as
Assignor

        

        

        

                    By:  __________________

                    Name:
[                                      ]

                    Title:
[                           ]

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT H-1

           

           

        

         

        Exhibit A
to

        EARNINGS
ASSIGNMENT

        

        FORM OF NOTICE OF
ASSIGNMENT

        

        The
undersigned, [SHIPOWNER], the Owner of the [Marshall Islands]/[Hong Kong] flag
vessel “[VESSEL NAME]”, hereby gives you notice that by an Earnings Assignment
dated [DATE], 200__, entered into by us with NORDEA BANK FINLAND PLC, acting
through its New York branch in its capacity as Collateral Agent for certain
Lenders (hereinafter called the “Assignee”), a copy of
which is attached hereto, there has been assigned by us to the Assignee all
earnings effected and to be effected in respect of the said vessel, and all such
earnings are to be paid to the account of the Owner (Account No. [ ]) at 437
Madison Avenue, New York, New York 10022.

        

        

                    [SHIPOWNER]

                    as
Owner,

        

        

        

                    By:  __________________

                    Name:

                    Title:

        

                    Dated:  _____________

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT H-1

        

         

         

         

        Exhibit B
to

        EARNINGS
ASSIGNMENT

        [Form
of]

        

        ASSIGNMENT
OF CHARTERS

        

        No.  ___

        [VESSEL
NAME]

        Official
Number [OFFICIAL NUMBER]

        

        [SHIPOWNER],
a corporation organized and existing under the laws of the Republic of the
Marshall Islands [with its registered address at Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Marshall Islands MH96960]/[and registered under
Part XI of the Hong Kong Companies Ordinance having its principal place of
business at 15th Floor, Tower One, Lippo Centre, 89 Queensway, Hong Kong] (the
“Assignor”),
refers to an Earnings Assignment dated [DATE], 200__ (the “Earnings Assignment”)
given by the Assignor in favor of NORDEA BANK FINLAND PLC, acting through its
New York branch with offices at 437 Madison Avenue, New York, New York 10022, as
Collateral Agent (the “Assignee”), under the
Credit Agreement referred to below, wherein the Assignor agreed to enter into an
Assignment of Charters in the event the Assignor entered or intended to enter
into any charter or contract of affreightment or other agreement for employment
of the [VESSEL NAME] (the “Vessel”), Official
No. [_____], for a period of twelve (12) months or longer including permitted
extensions and renewals.

        

        The
Assignor represents that it has entered or intends to enter into a charter (the
“Charter”) with
a charterer acceptable to the Assignee (the “Charterer”), and
agrees that Section 1 of the Earnings Assignment is hereby amended to add to the
description of collateral contained in said Section all of the Assignor’s right,
title and interest in and to the Charter, all earnings and freights thereunder,
and all amounts due the Assignor thereunder, and the Assignor does hereby grant,
sell, convey, assign, transfer, mortgage and pledge to the Assignee, and unto
the Assignee’s successors and assigns, all its right, title, interest, claim and
demand in and to, and hereby does also grant unto the Assignee, a security
interest in and to, the Charter and all claims for damages arising out of the
breach of and rights to terminate the Charter, and any proceeds of any of the
foregoing.

        

        The
Assignor hereby warrants that upon execution of any Charter, the Assignor will
promptly give notice to the Charterer of the Earnings Assignment (in the form of
Exhibit A to the Earnings Assignment) as provided by Section 6 of the Earnings
Assignment and the Assignor will use its best efforts to obtain the consent of
the Charterer as evidenced by the execution by the Charterer of the Charterer’s
Consent and Agreement in the form attached hereto as Annex 1.

        

        The
Assignor reconfirms that the Earnings Assignment including all of the rights and
liabilities, covenants and obligations therein remains in full force and
effect.

        

        Terms
used herein and not otherwise defined herein are used as defined in, or by
reference in, the Earnings Assignment.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT H-1

      

      
        

         

         

        The
Assignor hereby agrees that so long as this Assignment of Charters is in effect
it will not terminate said Charter, or amend, modify, supplement, or waive any
material term of said Charter in a manner adverse to the Assignee, in each case
without first obtaining the written consent of the Assignee
therefor.  The Assignor hereby agrees to notify the Assignee in
writing of any arbitration.

        

        No
amendment or modification of the Charter, and no consent, waiver or approval
with respect thereto shall be valid unless joined in, in writing, by the
Assignee.  No notice, request or demand under the Charter, shall be
valid as against the Assignee unless and until a copy thereof is furnished to
the Assignee.

        

        THIS
ASSIGNMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES (OTHER THAN TITLE 14 OF ARTICLE 5
OF THE GENERAL OBLIGATIONS LAW).  This Assignment shall not be amended
and/or varied except by agreement in writing signed by the parties
hereto.

        

        IN
WITNESS WHEREOF, the Assignor has caused this Assignment of Charters No.___ to
be duly executed this ____ day of __________________.

        

                    [SHIPOWNER],

                    as
Assignor

        

        

        

                    By:  ___________________

                    Name:

                    Title:

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
           

          EXHIBIT H-1

        

         

         

        Annex I
to

        Exhibit B
to

        EARNINGS
ASSIGNMENT

        

        [Form
of]

        

        CHARTERER’S CONSENT AND
AGREEMENT

        

        No.
__

        

        [VESSEL
NAME]

        

        Official
Number [OFFICIAL NUMBER]

        

        The undersigned, charterer of the
[Marshall Islands]/[Hong Kong] flag vessel [VESSEL NAME] pursuant to a time
charter-party dated [DATE OF TIME CHARTER PARTY] (the “Charter”), does
hereby acknowledge notice of the assignment by the Assignor of all the
Assignor’s right, title and interest in and to the Charter to NORDEA BANK
FINLAND PLC, acting through its New York branch, as Collateral Agent (the “Assignee”), pursuant
to a Assignment of Charters dated [DATE], 200_ and an Earnings Assignment dated
[DATE], 200__ (as the same may be amended, supplemented or otherwise modified
from time to time, the “Assignment”),
consents to such assignment, and agrees that, it will make payment of all moneys
due and to become due under the Charter, direct to the account maintained with
the Assignee located at 437 Madison Avenue, New York, New York 10022 (Account
No. [       ]) or such account specified by
the Assignee at such address as the Assignee shall request the undersigned in
writing until receipt of written notice from the Assignee that all obligations
of the Assignor to it have been paid in full.

        

        The undersigned agrees that it shall
look solely to the Assignor for performance of the Charter and that the Assignee
shall have no obligation or liability under or pursuant to the Charter arising
out of the Assignment, nor shall the Assignee be required or obligated in any
manner to perform or fulfill any obligations of the Assignor under or pursuant
to the Charter.

        

        The undersigned agrees that it shall
not seek from the Assignee the recovery of any payment actually made by it to
the Assignee pursuant to this Charterer’s Consent and Agreement once such
payment has been made.  This provision shall not be construed to
relieve the Assignor of any liability to the Charterer.

        

        The
undersigned agrees to execute and deliver, or cause to be executed and
delivered, upon the written request of the Assignee any and all such further
instruments and documents as the Assignee may deem desirable for the purpose of
obtaining the full benefits of this Assignment and of the rights and power
herein granted.

        

        The
undersigned agrees that no amendment, modification or alteration of any material
terms or provisions of the Charter shall be made unless the same shall be
consented to in writing by the Assignee.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
 

        
          EXHIBIT H-1

        

         

         

         

        The
undersigned hereby confirms that the Charter is a legal, valid and binding
obligation, enforceable against it in accordance with its terms.

        

        

        

        

        Dated:  _______________

        

        

        [CHARTERER],

        as
Charterer

        

        

        

        By:  ___________________

        Name:

        Title:

         

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
         

        EXHIBIT H-2

      

       

       

       

      
        
           
[DATE]

        

        

        ASSIGNMENT OF
INSURANCES

        

        [VESSEL
NAME]

        Official
Number [OFFICIAL NUMBER]

        

        [SHIPOWNER],
a corporation organized and existing under the laws of the Republic of the
Marshall Islands [with its registered address at Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Marshall Islands MH96960]/[and registered under
Part XI of the Hong Kong Companies Ordinance having its principal place of
business at 15th Floor, Tower One, Lippo Centre, 89 Queensway, Hong Kong] (the
“Assignor”), in
consideration of the Secured Creditors referred to below entering into the
transactions described in the Credit Agreement (as defined below), and for One
Dollar ($1) lawful money of the United States of America, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, as sole owner of the [Hong Kong]/[Marshall Islands] flag vessel
[VESSEL NAME], Official Number [OFFICIAL NUMBER] (the “Vessel”), has sold,
assigned, transferred and set over, and by this instrument as beneficial owner
does sell, assign, transfer and set over, unto NORDEA BANK FINLAND PLC, acting
through its New York branch, with offices at 437 Madison Avenue, New York, New
York 10022, as collateral agent (hereinafter called the “Assignee”), and unto
the Assignee’s successors and assigns, as such to it and its successors’ and
assigns’ own proper use and benefit, and does hereby grant to the Assignee a
security interest in, all right, title and interest of the Assignor under, in
and to (i) all insurances in respect of the Vessel, whether now or hereafter to
be effected, and all renewals of or replacements for the same, (ii) all claims,
returns of premium and other moneys and claims for moneys due and to become due
under said insurance or in respect of said insurance, and (iii) all other rights
of the Assignor under or in respect of said insurance, including proceeds (the
above clauses (i), (ii) and (iii) collectively called the “Insurance
Collateral”).

        

        Terms
used herein and not otherwise defined herein are used as defined in the Credit
Agreement dated as of September 4, 2008 (as the same may be amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”)
among (i) various Lenders referred to therein (including, but not limited to,
Deutsche Schiffsbank Aktiengesellschaft) and (ii) the Assignee, as
administrative agent (in such capacity, the “Administrative
Agent”), mandated lead arranger, bookrunner and collateral agent, making
available a senior secured credit facility to the Borrower in the principal
amount of up to Three Hundred Twenty Million United States Dollars (U.S.
$320,000,000) (the Lenders, the Administrative Agent and Collateral Agent,
collectively, the “Lender
Creditors”).

        

        The
Assignor is a wholly-owned subsidiary of the Borrower.  The Borrower
may at any time and from time to time enter into, or guaranty the obligations of
one or more Subsidiary Guarantors or any of their respective Subsidiaries under,
one or more Interest Rate Protection Agreements or Other Hedging Agreements with
respect to the Loans (and/or the Commitments) with one or more Lenders or any
Affiliate thereof (each such Lender or Affiliate, even if the respective Lender
subsequently ceases to be a Lender under the Credit Agreement for any
reason,

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        EXHIBIT
H-2

         

         

        together
with such Lender’s or Affiliate’s successors and assigns, if any, collectively,
the “Other
Creditors” and, together with the Lender Creditors, the “Secured
Creditors”).

        

        The
Assignor has entered into the Guaranty in favor of the Secured Creditors
pursuant to which the Assignor has guaranteed (i) to the Lender Creditors, all
obligations of the Borrower under the Credit Agreement and each other Credit
Document to which the Borrower is a party, and (ii) to each of the Other
Creditors, all obligations of the Borrower under each Interest Rate Protection
Agreement and each Other Hedging Agreement entered into with respect to the
Loans (and/or the Commitments), and the Assignor has granted the Assignee a
[first preferred Marshall Islands Mortgage (the “Mortgage”)]/[first
priority Hong Kong Mortgage and a deed of covenants collateral thereto
(together, the “Mortgage”)] on the
Vessel to secure, among other things, its obligations under the
Guaranty.

        

        This
Assignment is given as security for all amounts due and to become due to the
Secured Creditors under the Guaranty.

        

        It is
expressly agreed that anything herein contained to the contrary notwithstanding,
the Assignor shall remain liable under said insurances to perform all of the
obligations assumed by it thereunder, and the Assignee shall have no obligation
or liability under said insurances by reason of or arising out of this
instrument of assignment nor shall the Assignee be required or obligated in any
manner to perform or fulfill any obligations of the Assignor under or pursuant
to said insurances or to make any payment or to make any inquiry as to the
nature or sufficiency of any payment received by it or to present or file any
claim, or to take any other action to collect or enforce the payment of any
amounts which may have been assigned to it or to which it may be entitled
hereunder at any time or times.

        

        The
Assignor does hereby constitute the Assignee, its successors and assigns, the
Assignor’s true and lawful attorney-in-fact, irrevocably, with full power (in
the name of the Assignor or otherwise), upon the occurrence and continuance of a
Default, an Event of Default or an Event of Loss to ask, require, demand,
receive, compound and give acquittance for any and all moneys and claims for
moneys due and to become due under or arising out of said insurances, to endorse
any checks or other instruments or orders in connection therewith and to file
any claims or to take any action or institute any proceedings which the Assignee
may deem to be necessary or advisable in the premises.

        

        The
Assignor hereby covenants and agrees to procure that notice of this Assignment
shall be duly given to all underwriters, substantially in the form hereto
attached as Exhibit A, and that where the consent of any underwriter is required
pursuant to any of the insurances assigned hereby that it shall be obtained and
evidence thereof shall be given to the Assignee, or, in the alternative, that in
the case of protection and indemnity coverage the Assignee shall obtain a letter
of undertaking by the underwriters, and that there shall be duly endorsed upon
all slips, cover notes, policies, certificates of entry or other instruments
issued or to be issued in connection with the insurances assigned hereby such
clauses as to loss payees as the Assignee may require or approve.  In
all cases, unless otherwise agreed in writing by the Assignee, such slips, cover
notes, notices,

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
           

          EXHIBIT
H-2

           

        

         

         

         certificates
of entry or other instruments shall provide that there will be no recourse
against the Assignee for payment of premiums, calls or assessments.

        

        The
Assignor agrees that at any time and from time to time, upon the written request
of the Assignee, the Assignor will promptly and duly execute and deliver any and
all such further instruments and documents as the Assignee may deem desirable in
obtaining the full benefits of this Assignment and of the rights and powers
herein granted.

        

        The
Assignor does hereby warrant and represent that it has not assigned or pledged,
and hereby covenants that, without the prior written consent thereto of the
Assignee, so long as this instrument of assignment shall remain in effect, it
will not assign or pledge the whole or any part of the right, title and interest
hereby assigned to anyone other than the Assignee, its successors and assigns,
and it will not take or omit to take any action, the taking or omission of which
might result in an alteration or impairment of said insurances, of this
Assignment or of any of the rights created by said insurances or this
Assignment.

        

        All
notices or other communications which are required to be made to the Assignee
hereunder shall be made by postage prepaid letter or telecopy confirmed by
postage prepaid letter to:

        

        Nordea
Bank Finland Plc

        437
Madison Avenue, 21st
Floor

        New York,
NY 10022

        Attention:  Colleen
M. Durkin

        Telephone:
212-318-9636

        Facsimile:  212-421-4420

        

        or at
such other address as may have been furnished in writing by the
Assignee.

        

        Any
payments made pursuant to the terms hereof shall be made to such account as may,
from time to time, be designated by the Assignee or as the Assignee may
otherwise instruct.

        

        THIS
ASSIGNMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES (OTHER THAN TITLE 14 OF ARTICLE 5
OF THE GENERAL OBLIGATIONS LAW).  This Assignment shall not be amended
and/or varied except by agreement in writing signed by the parties
hereto.

        

        IN
WITNESS WHEREOF, the Assignor has caused this Insurance Assignment to be duly
executed the day and year first above written.

        

        

                    [SHIPOWNER],

                    as
Assignor

        

        

        

                    By:  __________________

                    Name:
[                                      ]

                    Title:
[                           ]

         

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT H-2

         

         

        EXHIBIT
A

        to

        Insurance
Assignment

        

        NOTICE OF
ASSIGNMENT

        

        The
undersigned, [SHIPOWNER], the Owner of the [Marshall Islands]/[Hong Kong] flag
Vessel [VESSEL NAME], hereby gives you notice that by an Insurance Assignment
dated [DATE], 200__ entered into by us with NORDEA BANK FINLAND PLC, acting
through its New York branch, as Collateral Agent (hereinafter called the “Assignee”), there has
been assigned by us to the Assignee all insurances effected and to be effected
in respect thereof including the insurances constituted by the policy whereon
this Notice is endorsed.  This Notice of Assignment and the applicable
loss payable clauses in the form hereto attached as Annex I are to be endorsed
on all policies and certificates of entry evidencing such
insurance.

        

        Dated:  [DATE],
200__

        

                    [SHIPOWNER],

                    as Owner

        

        

        

                    By  ____________________

                    Name:

                    Title:

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT H-2

         

         

        ANNEX
I

        Notice of
Insurance Assignment

        

        FORM OF LOSS PAYABLE
CLAUSES

        

        Hull and War
Risks

        

        Loss, if
any, payable to NORDEA BANK FINLAND PLC, New York branch, as Collateral Agent
(the “Mortgagee”), for
distribution by the Mortgagee to itself as Collateral Agent and to [SHIPOWNER],
as owner (the “Owner”), as their
respective interests may appear, or order, except that, unless Underwriters have
been otherwise instructed by notice in writing from the Mortgagee, in the case
of any loss involving any damage to the Vessel or liability of the Vessel, the
Underwriters may pay directly for the repair, salvage, liability or other
charges involved or, if the Owner shall have first fully repaired the damage and
paid the cost thereof, or discharged the liability or paid all of the salvage or
other charges, then the Underwriters may pay the Owner as reimbursements
therefore;  provided, however, that if such damage involves a loss in
excess of U.S.$1,000,000 or its equivalent the Underwriters shall not make such
payment without first obtaining the written consent thereto of the
Mortgagee.

        

        In the
event of an actual or constructive total loss or a compromise or arranged total
loss or requisition of title, all insurance payments therefor shall be paid to
the Mortgagee, for distribution by it in accordance with the terms of the
Mortgage.

        

        Protection and
Indemnity

        

        Loss, if
any, payable to NORDEA BANK FINLAND PLC, acting through its New York branch, as
Collateral Agent (the “Mortgagee”), for distribution by the Mortgagee to itself
as Collateral Agent and [SHIPOWNER], Owner, as their respective interests may
appear, or order, except that, unless and until the Underwriters have been
otherwise instructed by notice in writing from the Mortgagee, any loss may be
paid directly to the person to whom the liability covered by this insurance has
been incurred, or to the Owner to reimburse it for any loss, damage or expenses
incurred by it and covered by this insurance, provided the Underwriters shall
have first received evidence that the liability insured against has been
discharged.

      

       

       

      
         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT I

         

         

         

        
          FORM OF COMPLIANCE
CERTIFICATE

           

          This
Compliance Certificate (this “Certificate”) is
delivered to you on behalf of the Company (as hereinafter defined) pursuant to
Section 8.01(e) of the Credit Agreement, dated as of September 4, 2008 (as
amended, supplemented, restated or modified from time to time, the “Credit Agreement”),
among Genco Shipping & Trading Limited, a corporation organized under the
laws of the Republic of Marshall Islands (the “Company”), the
Lenders from time to time party thereto, Nordea Bank Finland Plc, acting through
its New York branch, as Administrative Agent and Collateral
Agent.  Terms defined in the Credit Agreement and not otherwise
defined herein are used herein as therein defined.

           

          1.  I
am the duly elected, qualified and acting Chief Financial Officer of the
Company.

           

          2.
  I have reviewed and am familiar with the contents of this
Certificate.  I am providing this Certificate solely in my capacity as
an officer of the Company.  The matters set forth herein are true to
the best of my knowledge after diligent inquiry.

           

          3.  I
have reviewed the terms of the Credit Agreement and the other Credit Documents
and have made or caused to be made under my supervision, a review in reasonable
detail of the transactions and financial condition of the Company during the
accounting period covered by the financial statements attached hereto as ANNEX 1
(the “Financial
Statements”).  The Financial Statements have been prepared in
accordance with the requirements of the Credit Agreement.

           

          4.  Attached
hereto as ANNEX 2 are the computations showing (in reasonable detail) compliance
with the covenants specified therein.  All such computations are true
and correct.

           

          5.  On
the date hereof, the representations and warranties contained in the Credit
Agreement and in the other Credit Documents are true and correct in all material
respects with the same effect as though such representations and warranties had
been made on the date hereof, unless stated to relate to a specific earlier
date, in which case such representations and warranties were true and correct in
all material respects as of such earlier date.

           

          [6.  On
the date hereof, no Default or Event of Default has occurred and is
continuing.]1

           

           

           

           

           

           

           

          ---------------------------------------------

           

          
            
              	
                      1

                    	
                      If
      any Default or Event of Default exists, include a description thereof,
      specifying the nature and extent thereof (in reasonable
      detail).

                    

            

             

             

             

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

            EXHIBIT I

            Page 2

             

             

             

             

             

          

          IN
WITNESS WHEREOF, I have executed this Certificate on behalf of the Company this
____ day of [DATE], 200__.

           

                      GENCO SHIPPING &
TRADING LIMITED

           

           

                      By______________________

                          
Name:

                           Title:

           

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            ANNEX I to

            Compliance
Certificate

          

           

          
 

           

          CONSOLIDATED FINANCIAL
STATEMENTS

           

           

           

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            
              ANNEX 2
to

              Compliance
Certificate

            

          

           

           

           

          COMPLIANCE
WORKSHEET

           

          The
calculations described herein is as of __________ __, ____ (the “Computation Date”)
and pertains to the period from __________ __, ____ to __________ __, ____ (the
“Test
Period”).

           

           

          Part
A.  Consolidated Interest Coverage Ratio

           

          
            	
                    1.           Consolidated
      Net Income for the Test Period.

                  	
                    $_______________

                  
	 	 
	
                    2.           Provisions
      for taxes based on income for the Test Period.

                  	
                    $_______________

                  
	 	 
	
                    3.           Consolidated
      interest expense for the Test Period.

                  	
                    $_______________

                  
	 	 
	
                    4.           Amortization
      or write-off of deferred financing costs to the extent 

                         
      deducted in determining ConsolidatedNet Income for the Test
      Period.

                  	
                     

                    $_______________

                  
	 	 
	
                    5.           Depreciation
      expense of the Company and its Subsidiaries for the Test
      Period.

                  	
                    $_______________

                  
	 	 
	
                    6.           Amortization
      expense of the Company and its Subsidiaries for the Test
      Period.

                  	
                    $_______________

                  
	 	 
	
                    7.           Losses
      on sales of assets (excluding sales in theordinary course of business)
      

                         
      and other extraordinary losses for the Test Period.

                  	
                    $_______________

                  
	 	 
	
                    8.   Gains on
      sales of assets (excluding sales in the ordinary course of business)
      

                          and
      other extraordinary gains for the Test Period.

                  	
                     

                    $_______________

                  
	 	 
	
                    9.           Consolidated
      EBITDA (sum of Items 1 through 7 minus Item 8).

                  	
                    $_______________

                  
	 	 
	
                    10.    
      Consolidated Interest Expense for the four immediately preceding fiscal
      quarters.

                  	
                    $_______________

                  
	 	 
	
                    11.         Consolidated
      Interest Coverage Ratio (Item 9:Item10).

                  	
                    __________:1.00

                  
	 	 
	
                    12.    
      Minimum Consolidated Interest Coverage Ratio pursuant to Section 9.07 of
      the 

                         
      Credit Agreement on the Computation Date.

                  	
                    2.00:1.00

                  

          

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

          Annex 2

          Page 2

           

           

          Part B.  Maximum
Leverage Ratio

           

          
            	
                    1.           Average
      Consolidated Net Indebtedness on the Computation Date.

                  	
                    $_______________

                  
	 	 
	
                    2.           Consolidated
      EBITDA on the ComputationDate.

                  	
                    $_______________

                  
	 	 
	
                    3.           Leverage
      Ratio (Item 1:Item 2) on the ComputationDate.

                  	
                    __________:1.00

                  
	 	 
	
                    4.   Maximum
      permitted Leverage Ratio pursuant to Section 9.08 of the Credit
      Agreement:

                  	
                    5.50:1.00

                  

          

           

           

          Part
C.  Collateral Maintenance

           

          
            	
                    1.    Aggregate
      principal amount of outstanding Loans on the Computation
    Date.

                  	
                    $_______________

                  
	 	 
	
                    2.    Aggregate
      Appraised Value on the Computation Date.

                  	
                    $_______________

                  
	 	 
	
                    3.    Minimum
      permitted Aggregate Appraised Value pursuant to Section 9.09 of
      

                          
      the Credit Agreement (Item 1 multiplied by 1.30).

                  	
                    $_______________

                  

          

           

           

          Part D.  Minimum
Cash Balance

           

          
            	
                    1.    Consolidated
      cash and Cash Equivalents subject to a Lien of the Security 

                          
      Documents on the Computation Date.

                  	
                    $_______________

                  
	 	 
	
                    2.    Aggregate
      amount of all undrawn credit facilities with maturities in excess of
      

                          
      twelve months on the Computation Date.

                  	
                     

                    $_______________

                  
	 	 
	
                    3.    Item 1
      plus Item 2 above is greater than $500,000 multiplied by the number of
      

                          
      Mortgaged Vessels in existence on the Computation Date.

                  	 
      

          

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            Annex 2

            Page 3

          

           

           

           

          Part E.  Minimum
Consolidated Net Worth

           

          
            	
                    1.    Consolidated
      Net Worth on the Computation Date, which must be greater than

                          
      [_______] (US$263,300,000 plus 80% of the Net Proceeds (as defined in the
      Credit 

                          
      Agreement)) as required pursuant to Section 9.11 of the Credit
      Agreement.

                  	
                    $________________

                  

          

          

           

          Part
F.  Applicable Margin

           

          
            	
                    1.    Applicable
      Margin on the Computation Date, which shall be 1.25% per
      annum;
      

                      
          provided, however, that
      if at any time after December 31, 2009, the Borrower’s 

                          
      Leverage Ratio, as set forth in Item 3 of Part B hereof (currently,
      _.__:1:00), is 3.00:1.00 

                           or
      less, then during such period the Applicable Margin for the immediately
      succeeding 

                          
      quarter shall be 1.20% per annum.

                  	
                    ________________%

                  

          

          

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

          ANNEX 3 to

          Compliance Certificate

           

           

           

          1.           It
is hereby certified that no changes are required to be made to any of Schedule
VI of the Credit Agreement or Annexes A through F of the Pledge Agreement, in
each case so as to make the information set forth therein accurate and complete
as of date of this Certificate, except as specially set forth
below:

          

          [All actions required to be taken by
the Credit Agreement and the Security Documents as a result of the changes
described above have been taken, and the Collateral Agent has, for the benefit
of the Secured Creditors (as defined in the Pledge Agreement), a first
priority  perfected security interest in all Collateral pursuant to
the various Security Documents to the extent required by the terms
thereof.]2

           

           

           

           

           

           

           

          
 

          ---------------------------------------------

           

          
            
              	
                      2

                    	
                      The
      bracketed language must be inserted if there have been any changes to the
      information, as contemplated by Section 8.01(e)(i)(y) of the Credit
      Agreement.

                    

            

             

          

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

       

      EXHIBIT J

       

       

       

      FORM OF SUBORDINATION
PROVISIONS

       

       

      Section
1.01.    Subordination of
Liabilities.  [Name of Payor] (the “Payor”), for itself, its
successors and assigns, covenants and agrees, and each holder of the Note to
which this Annex __ is attached (the “Note”) by its acceptance thereof likewise
covenants and agrees, that the payment of the principal of, interest on, and all
other amounts owing in respect of, the Note (the “Subordinated Indebtedness”) is
hereby expressly subordinated, to the extent and in the manner set forth below,
to the prior payment in full in cash of all Senior Indebtedness (as defined in
Section 1.07 of this Annex __).  The provisions of this Annex __ shall
constitute a continuing offer to all persons or other entities who, in reliance
upon such provisions, become holders of, or continue to hold, Senior
Indebtedness, and such holders are made obligees hereunder the same as if their
names were written herein as such, and they and/or each of them may proceed to
enforce such provisions.

       

      Section
1.02.    Payor Not to Make Payments
with Respect to Subordinated Indebtedness in Certain
Circumstances.  (a) Upon the maturity of any Senior
Indebtedness (including interest thereon or fees or any other amounts owing in
respect thereof), whether at stated maturity, by acceleration or otherwise, all
Obligations (as defined in Section 1.07 of this Annex __) owing in respect of
the Senior Indebtedness shall first be paid in full in cash in accordance with
the terms thereof, before any payment of any kind or character, whether in cash,
property, securities or otherwise, is made on account of the Subordinated
Indebtedness.

       

      (b)           The
Payor may not, directly or indirectly (and no person or other entity on behalf
of the Payor may), make any payment of any Subordinated Indebtedness and may not
acquire any Subordinated Indebtedness for cash or property until all Senior
Indebtedness has been paid in full in cash if any Default (as defined in the
Credit Agreement identified in Section 1.07 of this Annex __) or Event of
Default (as defined in the Credit Agreement identified in Section 1.07 of this
Annex __) under the Credit Agreement (as defined in Section 1.07 of this Annex
__) has occurred and is continuing or would result therefrom.  Each
holder of the Note hereby agrees that, so long as any such Default or Event of
Default in respect of any issue of Senior Indebtedness has occurred and is
continuing, it will not sue for, or otherwise take any action to enforce the
Payor’s obligations to pay, amounts owing in respect of the
Note.  Each holder of the Note understands and agrees that to the
extent that clause (a) of this Section 1.02 or this clause (b) prohibits the
payment of any Subordinated Indebtedness, such unpaid amount shall not
constitute a payment default under the Note and the holder of the Note may not
sue for, or otherwise take action to enforce the Payor’s obligation to pay such
amount, provided that such
unpaid amount shall remain an obligation of the Payor to the holder of the Note
pursuant to the terms of the Note.  Notwithstanding the foregoing, so
long as a Default or Event of Default has not occurred, Payor will be entitled
to make (and any person or other entity on behalf of the Payor shall be entitled
to make) and a holder of any Note will be entitled to receive scheduled payments
of principal and interest under the Subordinated Indebtedness.

       

      (c)           In
the event that, notwithstanding the provisions of the preceding subsections (a)
and (b) of this Section 1.02, the Payor (or any Person on behalf of the
Payor)

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT J

      Page 2

       

       

       

      shall
make (or the holder of the Note shall receive) any payment on account of the
Subordinated Indebtedness at a time when payment is not permitted by said
subsection (a) or (b), such payment shall be held by the holder of the Note, in
trust for the benefit of, and shall be paid forthwith over and delivered to, the
holders of Senior Indebtedness or their representative or the trustee under the
indenture or other agreement pursuant to which any instruments evidencing any
Senior Indebtedness may have been issued, as their respective interests may
appear (including by giving effect to any intercreditor or subordination
arrangements among such holders), for application pro rata to the payment of all
Senior Indebtedness remaining unpaid to the extent necessary to pay all Senior
Indebtedness in full in cash in accordance with the terms of such Senior
Indebtedness, after giving effect to any concurrent payment or distribution to
or for the holders of Senior Indebtedness.

       

      Section
1.03.    Subordination to Prior
Payment of All Senior Indebtedness on Dissolution, Liquidation or Reorganization
of Payor.  Upon any distribution of assets of the Payor upon
dissolution, winding up, liquidation or reorganization of the Payor (whether in
bankruptcy, insolvency or receivership proceedings or upon an assignment for the
benefit of creditors or otherwise):

       

      (a)           the
holders of all Senior Indebtedness shall first be entitled to receive payment in
full in cash of all Senior Indebtedness in accordance with the terms thereof
(including, without limitation, post-petition interest at the rate provided in
the documentation with respect to the Senior Indebtedness, whether or not such
post-petition interest is an allowed claim against the debtor in any bankruptcy
or similar proceeding) before the holder of the Note is entitled to receive any
payment of any kind or character on account of the Subordinated
Indebtedness;

       

      (b)           any
payment or distributions of assets of the Payor of any kind or character,
whether in cash, property or securities to which the holder of the Note would be
entitled except for the provisions of this Annex __, shall be paid by the
liquidating trustee or agent or other person making such payment or
distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee
or other trustee or agent, directly to the holders of Senior Indebtedness or
their representative or representatives, or to the trustee or trustees under any
indenture under which any instruments evidencing any such Senior Indebtedness
may have been issued as their respective interests may appear (including by
giving effect to any intercreditor or subordination arrangements among such
holders), to the extent necessary to make payment in full in cash of all Senior
Indebtedness remaining unpaid, after giving effect to any concurrent payment or
distribution to the holders of such Senior Indebtedness; and

       

      (c)           in
the event that, notwithstanding the foregoing provisions of this Section 1.03,
any payment or distribution of assets of the Payor of any kind or character,
whether in cash, property or securities, shall be received by the holder of the
Note on account of Subordinated Indebtedness before all Senior Indebtedness is
paid in full in cash in accordance with the terms thereof, such payment or
distribution shall be received and held in trust for and shall be paid over to
the holders of the Senior Indebtedness remaining unpaid or their representative
or representatives, or to the trustee or trustees under any indenture under
which any instruments evidencing any of such Senior Indebtedness may have been
issued, as their respective interests may appear (including by giving effect to
any intercreditor or subordination arrangements among such holders) for
application to the payment of such Senior

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
         

         

        EXHIBIT J

        Page 3

         

      

       

       

       

      Indebtedness
until all such Senior Indebtedness shall have been paid in full in cash in
accordance with the terms thereof, after giving effect to any concurrent payment
or distribution to the holders of such Senior Indebtedness.

       

      Section
1.04.    Subrogation.  Subject
to the prior payment in full in cash of all Senior Indebtedness in accordance
with the terms thereof, the holder of the Note shall be subrogated to the rights
of the holders of Senior Indebtedness to receive payments or distributions of
assets of the Payor applicable to the Senior Indebtedness until all amounts
owing on the Note shall be paid in full, and for the purpose of such subrogation
no payments or distributions to the holders of the Senior Indebtedness by or on
behalf of the Payor or by or on behalf of the holder of the Note by virtue of
this Annex __ which otherwise would have been made to the holder of the Note
shall, as between the Payor, its creditors other than the holders of Senior
Indebtedness, and the holder of the Note, be deemed to be payment by the Payor
to or on account of the Senior Indebtedness, it being understood that the
provisions of this Annex __ are and are intended solely for the purpose of
defining the relative rights of the holder of the Note, on the one hand, and the
holders of the Senior Indebtedness, on the other hand.

       

      Section
1.05.    Obligation of the Payor
Unconditional.  Nothing contained in this Annex __ or in the
Note is intended to or shall impair, as between the Payor and the holder of the
Note, the obligation of the Payor, which is absolute and unconditional, to pay
to the holder of the Note the principal of and interest on the Note as and when
the same shall become due and payable in accordance with their terms, or is
intended to or shall affect the relative rights of the holder of the Note and
creditors of the Payor other than the holders of the Senior Indebtedness, nor
shall anything herein or therein prevent the holder of the Note from exercising
all remedies otherwise permitted by applicable law upon an event of default
under the Note, subject to the provisions of this Annex __ and the rights, if
any, under this Annex __ of the holders of Senior Indebtedness in respect of
cash, property, or securities of the Payor received upon the exercise of any
such remedy.  Upon any distribution of assets of the Payor referred to
in this Annex __, the holder of the Note shall be entitled to rely upon any
order or decree made by any court of competent jurisdiction in which such
dissolution, winding up, liquidation or reorganization proceedings are pending,
or a certificate of the liquidating trustee or agent or other person making any
distribution to the holder of the Note, for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior
Indebtedness and other indebtedness of the Payor, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Annex __.

       

      Section
1.06.    Subordination Rights Not
Impaired by Acts or Omissions of Payor or Holders of Senior
Indebtedness.  No right of any present or future holders of any
Senior Indebtedness to enforce subordination as herein provided shall at any
time in any way be prejudiced or impaired by any act or failure to act on the
part of the Payor or by any act or failure to act in good faith by any such
holder, or by any noncompliance by the Payor with the terms and provisions of
the Note, regardless of any knowledge thereof which any such holder may have or
be otherwise charged with.  The holders of the Senior Indebtedness
may, without in any way affecting the obligations of the holder of the Note with
respect hereto, at any time or from time to

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
         

        EXHIBIT J

        Page 4

         

      

       

       

       

      time and
in their absolute discretion, change the manner, place or terms of payment of,
change or extend the time of payment of, or renew, increase or otherwise alter,
any Senior Indebtedness or amend, modify or supplement any agreement or
instrument governing or evidencing such Senior Indebtedness or any other
document referred to therein, or exercise or refrain from exercising any other
of their rights under the Senior Indebtedness including, without limitation, the
waiver of default thereunder and the release of any collateral securing such
Senior Indebtedness, all without notice to or assent from the holder of the
Note.

       

      Section
1.07.    Senior
Indebtedness.  The term “Senior Indebtedness”
shall mean all Obligations (as defined below) (i) of the Payor under, or in
respect of, (x) the Credit Agreement (as amended, modified, supplemented,
extended, restated, refinanced, replaced or refunded from time to time, the
“Credit
Agreement”), dated as of September 4, 2008, by and among Genco Shipping
& Trading Limited, the lenders from time to time party thereto, Nordea Bank
Finland Plc, acting through its New York branch, as Administrative Agent, and
any renewal, extension, restatement, refinancing or refunding thereof, and (y)
each other Credit Document (as defined in the Credit Agreement) to which the
Payor is a party, (ii) of the Payor under, or in respect of (including by reason
of any Subsidiaries Guaranty (as defined in the Credit Agreement) to which the
Payor is a party), any Interest Rate Protection Agreements or Other Hedging
Agreements (each as defined in the Credit Agreement), and (iii) of the Payor
under, or in respect of (including by reason of any guaranty of) the Notes (as
defined in the Credit Agreement).  As used herein, the term “Obligation” shall
mean any principal, interest, premium, penalties, fees, expenses, indemnities
and other liabilities and obligations (including guaranties of the foregoing
liabilities and obligations) payable under the documentation governing any
Senior Indebtedness (including post-petition interest at the rate provided in
the documentation with respect to such Senior Indebtedness, whether or not such
interest is an allowed claim against the debtor in any bankruptcy or similar
proceeding).

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT K

       

       

       

      
        FORM OF ASSIGNMENT AND
ASSUMPTION AGREEMENT

         

        DATE:  ________
__, ____

         

        Reference
is made to the Credit Agreement described in Item 2 of Annex I annexed hereto
(as such Credit Agreement may hereafter be amended, modified or supplemented
from time to time, the “Credit
Agreement”).  Unless defined in Annex I annexed hereto,
capitalized terms defined in the Credit Agreement are used herein as therein
defined. _____________ (the “Assignor”) and
______________ (the “Assignee”) hereby
agree as follows:

         

        1.  The
Assignor hereby sells and assigns to the Assignee without recourse and without
representation or warranty (other than as expressly provided herein), and the
Assignee hereby purchases and assumes from the Assignor, that interest in and to
all of the Assignor’s rights and obligations under the Credit Agreement as of
the date hereof which represents the percentage interest specified in Item 4 of
Annex I attached hereto (the “Assigned Share”) of
all of the outstanding rights and obligations under the Credit Agreement
relating to each of the Facilities listed in Item 4 of Annex I attached hereto,
including, without limitation (i) in the case of any assignment of all or any
portion of the Assignor’s outstanding Loans, all rights and obligations with
respect to the Assigned Share of such outstanding Loans, and (ii) in the case of
any assignment of all or any portion of the Commitment, all rights and
obligations with respect to the Assigned Share of such Commitment.

         

        2.  The
Assignor (i) represents and warrants that it is the legal and beneficial owner
of the interest being assigned by it hereunder and that such interest is free
and clear of any adverse claims; (ii) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or the other
Credit Documents or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or the other Credit
Documents or any other instrument or document furnished pursuant thereto; and
(iii) makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or any of its Subsidiaries or
the performance or observance by the Borrower or any of its Subsidiaries of any
of their respective obligations under the Credit Agreement or the other Credit
Documents or any other instrument or document furnished pursuant
thereto.

         

        3.  The
Assignee (i) confirms that it is an Eligible Transferee, (ii) confirms that it
has received a copy of the Credit Agreement and the other Credit Documents,
together with copies of the financial statements referred to therein and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption
Agreement, (iii) agrees that it will, independently and without reliance upon
the Administrative Agent, the Collateral Agent, the Mandated Lead Arranger, the
Bookrunner, the Assignor or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement, (iv)
appoints and authorizes the Mandated Lead Arranger, the Administrative Agent and
the Collateral Agent to take such action as agent on its behalf and to exercise
such powers under the Credit Agreement and the other Credit Documents as are
delegated to the Mandated Lead Arranger, the Administrative Agent and the
Collateral

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
K

        Page 2

         

         

         

         

        Agent, as
the case may be, by the terms thereof, together with such powers as are
reasonably incidental thereto, and (v) agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Credit
Agreement are required to be performed by it as a Lender.

         

        4.  Following
the execution of this Assignment and Assumption Agreement by the Assignor and
the Assignee, an executed original hereof (together with all attachments) will
be delivered to the Administrative Agent.  The effective date of this
Assignment and Assumption Agreement shall be the date of execution hereof by the
Assignor and the Assignee, the receipt of the consent of the Administrative
Agent and the Borrower (in each case) to the extent required by the Credit
Agreement, receipt by the Administrative Agent of the assignment fee referred to
in Section 13.04(b) of the Credit Agreement, and the recordation by the
Administrative Agent of the assignment effected hereby in the Register, unless
otherwise specified in Item 5 of Annex I attached hereto (the “Settlement
Date”).

         

        5.  Upon
the delivery of a fully executed original hereof to the Administrative Agent, as
of the Settlement Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Assumption
Agreement, have the rights and obligations of a Lender thereunder and under the
other Credit Documents and (ii) the Assignor shall, to the extent provided in
this Assignment and Assumption Agreement, relinquish its rights and be released
from its obligations under the Credit Agreement and the other Credit
Documents.

         

        6.  It
is agreed that upon the effectiveness hereof, the Assignee shall be entitled to
(i) all interest on the Assigned Share of the Loans at the rates specified
in Item 6 of Annex I attached hereto and (ii) all Commitment Commission (if
applicable) on the Assigned Share of the Total Commitment at the rate specified
in Item 7 of Annex I attached hereto, which accrues on and after the
Settlement Date, such interest and, if applicable, Commitment Commission, to be
paid by the Administrative Agent directly to the Assignee.  It is
further agreed that all payments of principal made on the Assigned Share of the
Loans which occur on and after the Settlement Date will be paid directly by the
Administrative Agent to the Assignee.  Upon the Settlement Date, the
Assignee shall pay to the Assignor an amount specified by the Assignor in
writing which represents the Assigned Share of the principal amount of the
respective Loans made by the Assignor pursuant to the Credit Agreement which are
outstanding on the Settlement Date, net of any closing costs, and which are
being assigned hereunder.  The Assignor and the Assignee shall make
all appropriate adjustments in payments under the Credit Agreement for periods
prior to the Settlement Date directly between themselves.

         

        7.  THIS
ASSIGNMENT AND ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          EXHIBIT
K

          Page 3

        

         

         

         

         

        IN
WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption
Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written, such execution also being made on
Annex I attached hereto.

         

                    [NAME OF
ASSIGNOR],

                    as
Assignor

         

                    By____________________________

                        Name:

                        Title:

         

                    [NAME OF
ASSIGNEE],

                    as
Assignee

         

                    By____________________________

                        Name:

                        Title:

         

        

         

        Acknowledged
and Agreed:

         

        [NORDEA
BANK FINLAND PLC,

        acting
through its New York branch,

        as
Administrative Agent

        By____________________________

        Name:

        Title:

         

        By____________________________

        Name:

        Title:]2

         

         

         

         

         

         

         

        
 

        ----------------------------------------

         

        
          
            	
                    2

                  	
                    Insert
      only if assignment is being made pursuant to Section 13.04(b) of the
      Credit Agreement.

                  

          

           

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          
             

            EXHIBIT
K

            Page 4

          

        

         

         

         

         

        [GENCO
SHIPPING & TRADING LIMITED]

         

         

        By____________________________

        Name:

        Title:]3

         

        
 

         

         

         

         

         

         

         

         

         

        ----------------------------------------------

         

        
          
            	
                    3

                  	
                    Insert only if assignment is
      being made pursuant to Section 13.04(b) of the Credit
      Agreement.

                  

          

           

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        ANNEX I

         

         

         

        ANNEX FOR
ASSIGNMENT AND ASSUMPTION AGREEMENT

        ANNEX
I

         

         1.           
The Borrower:  Genco Shipping & Trading Limited (the “Borrower”).

         

         2.           
Name and Date of Credit Agreement:

         

        Credit
Agreement, dated as of [DATE], 2008, among the Borrower, the lenders from time
to time party thereto, Nordea Bank Finland Plc, acting through its New York
branch, as Administrative Agent and as Collateral Agent (as amended, restated,
modified and/or supplemented from time to time, the “Credit
Agreement”).

         

         3.           
Date of Assignment Agreement:

         

         4.          
Amounts (as of date of item #3 above):

         

        
          	 
      	
                  Outstanding
      Principal of

                  Loans

                	
                  Commitments

                
	 	 	 
	
                  a.          
      Aggregate Amount for all Lenders

                	
                  $__________

                	
                  $_________

                
	 	 	 
	
                  b.          
      Assigned Share

                	
                  _________%

                   

                	
                   ________%

                
	 	 	 
	
                  c.          
      Amount of Assigned Share

                	
                  $_________

                	
                  $________

                

        

        

        5.          
Settlement Date:

         

        
          6.    Rate of
Interest

                 to the
Assignee: As set
forth in Section 1.07 of the Credit Agreement

        

         

        
          	
                  7.

                	
                  Commitment
      Commission:

                	
                  As
      set forth in Section 2.01(a) of the Credit
  Agreement

                

        

        

        
          8.    Notice:                                       
ASSIGNEE:

        

         

        ____________________

        ____________________

        ____________________

        ____________________

        Attention:

        Reference:

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        ANNEX I

        Page 2

         

         

         

        
          Payment
Instructions:            
ASSIGNEE:

                                 
____________________

        

        ____________________

        ____________________

        ____________________

        Attention:

        Reference:

         

        Accepted and Agreed:

         

        [NAME OF
ASSIGNEE]                                                      
[NAME OF ASSIGNOR]

         

        By____________________                                             
By_______________________

            
Name:                                                                                      
Name:

            
Title:                                                                                        
Title:

         

         

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
           Exhibit
L-1

           

          HONG KONG SHIP MORTGAGE

           

          Entered
into pursuant to section 44 of the Merchant Shipping (Registration)
Ordinance

           

          _______________________

           

          BY THIS
MORTGAGE the Mortgagor referred to in Part ONE Mortgages the Ship referred to in
Part TWO to the Mortgagee referred to in Part THREE as security for the due and
punctual performance of all the Mortgagor's obligations to the Mortgagee
pursuant to the document referred to in Part FOUR as such document may from time
to time hereafter be amended modified and supplemented.

           

          By its
execution of this mortgage the Mortgagor warrants to the Mortgagee that (a) it
has power to enter into this mortgage (b) the said ship is free of incumbrances
save for any shown in the Hong Kong Register of Ships at the time this mortgage
is presented for recording and (c) this mortgage is binding on and enures for
the benefit of the successors and assigns of the Mortgagor and Mortgagee.

          

          
            	
                    P
      A R T   O N E

                  	
                    M O R T G A G O
      R  (Ship's owner)

                  	 
      
	
                     

                  	
                     

                  	 
      
	
                     

                  	
                     

                  
	
                     

                     

                     

                    [SHIPOWNER]

                     

                  	
                    Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

                    Incorporated
      in the Republic of Marshall islands

                    Registered
      in Hong Kong as an oversea company under Part XI of the Companies
      Ordinance (Cap.32 of the Laws of Hong Kong) having an address at 15th
      Floor, Tower One, Lippo Centre, 89 Queensway, Hong Kong

                     

                  

          

          

          
            	
                    P
      A R T   T W O

                  	
                    SHORT  DESCRIPTION  OF  MORTGAGED  SHIP

                  	 
      
	
                     

                  	
                     

                  	 
      
	
                    Offical Number (see
      note 2)

                  	
                    Ship's Name

                  
	
                    HK-[    ]

                  	
                    [VESSEL]

                  
	
                         and
      as more, particularly described in the
registrar

                  

          

          

          
            	
                    P
      A R T   T H R E E

                  	
                    M O R T G A G E
      E  (see
      Note 3)

                  	 
      
	
                     

                  	
                     

                  	 
      
	
                    Name[s]

                  	
                    Address [and Place of incorporation] fax/telex

                  
	
                     

                     

                     

                         NORDEA
      BANK FINLAND PLC, acting through its New York branch

                     

                     

                  	
                     

                    437 Madison Avenue, 21st
      Floor

                    New York

                    New York 10022

                    (incorporated under the laws
      of [])

                     

                  
	 
      	
                             
      Telex:

                  	
                    212-[318 9634]

                  	
                              
      Fax:

                  	
                     212-[421
  4420]

                  

          

          

          
            	
                    P
      A R T   F O U R

                  	
                    Particulars of Document[s] or
      transaction[s], the obligations whereunder are secured by this mortgagee
      (see note
      4)

                  	 
      
	
                  	
                     

                  	 
      
	
                    Date
      and Nature of Transaction and Description of Document (if
any)

                     

                  	
                    Parties

                  
	
                    1.           Credit
      Agreement dated September 4, 2008

                    2.           Deed
      of Covenants dated
      [                    ]
      200__

                    3.           Guaranty
      dated
      [                     ]
      2008

                    4.           The
      other Security Documents as defined and described in Appendix A
      of

                    the above Credit Agreement to
      which the Mortgagor is a party

                  	
                    1. (a)
      Genco Shipping & Trading Limited as borrower (b) the banks and
      financial institutions named therein as lenders (including, but not
      limited to, Deutsche Schiffsbank Aktiengesellschaft) (c) the Mortgagee, as
      administrative agent, mandated lead arranger, bookrunner and collateral
      agent

                    2.  (a)
      the Mortgagor, as shipowner and (b) the Mortgagee, as security
      trustee

                    3.   (a)
      the Mortgagor and others, as guarantor and (b) the Mortgagee, as
      administrative agent

                     

                  

          

          

          IN
WITNESS whereof the Mortgagor has caused this mortgage to be executed on                  2007

          

          
            	
                     

                    SIGNED,
      SEALED and DELIVERED
      by                      )

                    [                                        ]                                               
      )

                    for
      and on behalf
      of                                                        )

                    [SHIPOWNER]                                                              
       )

                    as
      its duly authorised
      attorney                                     )

                    pursuant
      to a power of
      attorney                                   )

                    dated                                                  200__                     )

                    in
      the presence
      of:                                                           )

                     

                  

          

          

          N
O T E S

          1.    [
 ] complete/delete as appropriate.

          2.    If
this mortgage is executed before the Ship is registered on the Hong Kong
Register of Ships, the mortgage will not take effect as a statutory mortgage
upon such registration.

          3.    If
more than one mortgagee, insert all names, in which case all those named will be
treated in the Hong Kong Register of Ships as joint mortgages.

          4.    "Transaction"
contemplates transactions (e.g. overdraft facilities) not necessarily the
subject of any specifically identifable document.

          
            	
                    5.

                  	
                    Prompt registration
      at the Hong Kong Registry of Ships is essential to the security of a
      mortgagee, as a mortgage takes its priority from the date of production
      for registry, not from the date of the
  instrument.

                  

          

          6.    Registered
owners or mortgagees are reminded of the importance of keeping the Registrar of
Hong Kong Ships informed of any change of address on their part.

          
            	
                    7.

                  	
                    Registered owners
      and mortgagees are also reminded that a mortgage on a ship belonging to a
      company incorporated in Hong Kong or a company registered under Part XI of
      the Companies Ordinance is void against the liquidator or any creditor of
      the company unless a notification of the mortgage is delivered to or
      received by the Registrar of Companies for registration within 5 weeks
      after the date of its
creation.

                  

          

           

           

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        EXHIBIT L-1

      

       

       

       

      
        
 

        

        

        

        

        

        

        FORM
OF

        DEED OF
COVENANTS

        TO
ACCOMPANY A FIRST PRIORITY STATUTORY MORTGAGE

        

        

        

        ON HONG
KONG FLAG VESSEL

        

        

        [VESSEL
NAME]

        OFFICIAL
NO. [OFFICIAL NUMBER]

        

        

        executed
by

        

        

        [SHIPOWNER],

        as
Shipowner

        

        in favor
of

        

        

        NORDEA
BANK FINLAND PLC,

        acting
through its New York branch,

        as
Security Trustee and as Mortgagee

        

        

        

        [CLOSING
DATE]

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        TABLE OF
CONTENTS

        
                                                                                                                                                                                                                                                                                                                                                         

          
            
              	
                       
      

                    	
                       

                    	
                       

                    	
                      Page

                    

            

          

        

                                                                                                                                                                                                                                                                                                                                                       

        
          
            	
                     
      

                  	
                     

                  	
                    ARTICLE
      I    REPRESENTATIONS
      AND WARRANTIES OF THE SHIPOWNER 

                  	
                    3

                  

          

           

        

        
          	
                   
      

                	
                  Section
      1.

                	
                  Existence;
      Authorization 

                	
                  3

                

        

         

        
          	
                   
      

                	
                  Section
      2.

                	
                  Title
      to Vessel 

                	
                  3

                

        

         

        
          	
                   
      

                	
                  Section
      3.

                	
                  ISM,
      ISPS and MARPOL Compliance 

                	
                  3

                

        

         

        
          
            	
                     
      

                  	
                     

                  	
                    ARTICLE
      II    COVENANTS OF
      THE SHIPOWNER 

                  	
                    3

                  

          

           

        

        
          	
                   
      

                	
                  Section
      1.

                	
                  Payment
      of Indebtedness 

                	
                  3

                

        

         

        
          	
                   
      

                	
                  Section
      2.

                	
                  Mortgage
      Recording 

                	
                  3

                

        

         

        
          	
                   
      

                	
                  Section
      3.

                	
                  Lawful
      Operation 

                	
                  4

                

        

         

        
          	
                   
      

                	
                  Section
      4.

                	
                  Payment
      of Taxes 

                	
                  4

                

        

         

        
          	
                   
      

                	
                  Section
      5.

                	
                  Prohibition
      of Liens 

                	
                  4

                

        

         

        
          	
                   
      

                	
                  Section
      6.

                	
                  Notice
      of Mortgage 

                	
                  4

                

        

         

        
          	
                   
      

                	
                  Section
      7.

                	
                  Removal
      of Liens 

                	
                  4

                

        

         

        
          	
                   
      

                	
                  Section
      8.

                	
                  Release
      from Arrest 

                	
                  4

                

        

         

        
          	
                   
      

                	
                  Section
      9.

                	
                  Maintenance 

                	
                  5

                

        

         

        
          
            	
                     
      

                  	
                    Section
      10.

                  	
                    Inspection;
      Reports 

                  	
                    7

                  

          

           

          
            
              	
                       
      

                    	
                      Section
      11.

                    	
                      Flag;
      Home Port 

                    	
                      8

                    

            

             

            
              
                	
                         
      

                      	
                        Section
      12.

                      	
                        No
      Sales. Transfers or Charters 

                      	
                        8

                      

              

               

              
                
                  	
                           
      

                        	
                          Section
      13.

                        	
                          Insurance 

                        	
                          8

                        

                

                 

                
                  
                    	
                             
      

                          	
                            Section
      14.

                          	
                            Reimbursement
      for Expenses 

                          	
                            11

                          

                  

                   

                  
                    
                      	
                               
      

                            	
                              Section
      15.

                            	
                              Performance
      of Charters 

                            	
                              12

                            

                    

                     

                    
                      
                        	
                                 
      

                              	
                                Section
      16.

                              	
                                Change
      in Ownership 

                              	
                                12

                              

                      

                       

                      
                        
                          	
                                   
      

                                	
                                  Section
      17.

                                	
                                  Prepayment
      if Event of Loss 

                                	
                                  12

                                

                        

                      

                    

                  

                

              

            

          

        

         

        
          
            
              	
                       
      

                    	
                       

                    	
                      EVENTS
      OF DEFAULT AND REMEDIES 

                    	
                      12

                    

            

          

        

         

        
          	
                   
      

                	
                  Section
      1.

                	
                  Events
      of Default: Remedies 

                	
                  12

                

        

         

        
          	
                   
      

                	
                  Section
      2.

                	
                  Power
      of Sale 

                	
                  14

                

        

         

        
          	
                   
      

                	
                  Section
      3.

                	
                  Power
      of Attorney-Sale 

                	
                  14

                

        

         

        
          	
                   
      

                	
                  Section
      4.

                	
                  Power
      of Attorney-Collection 

                	
                  14

                

        

         

        
          	
                   
      

                	
                  Section
      5.

                	
                  Delivery
      of Vessel 

                	
                  15

                

        

         

        
          	
                   
      

                	
                  Section
      6.

                	
                  Mortgagee
      to Discharge Liens 

                	
                  15

                

        

         

        
          	
                   
      

                	
                  Section
      7.

                	
                  Payment
      of Expenses 

                	
                  15

                

        

         

        
          	
                   
      

                	
                  Section
      8.

                	
                  Remedies
      Cumulative 

                	
                  15

                

        

         

        
          	
                   
      

                	
                  Section
      9.

                	
                  Cure
      of Defaults 

                	
                  16

                

        

         

        
          
            	
                     
      

                  	
                    Section
      10.

                  	
                    Discontinuance
      of Proceedings 

                  	
                    16

                  

          

           

        

        
          
            
              	
                       
      

                    	
                      Section
      11.

                    	
                      Application
      of Proceeds 

                    	
                      16

                    

            

            
              
                 

                
                  	
                           
      

                        	
                          Section
      12.

                        	
                          Possession
      Until Default 

                        	
                          16

                        

                

                
                  
                     

                    
                      	
                               
      

                            	
                              Section
      13.

                            	
                              Severability
      of Provisions. etc 

                            	
                              17

                            

                    

                    
                       

                      
                        
                          	
                                   
      

                                	
                                   

                                	
                                  
                                    ARTICLE
      IV    SUNDRY
      PROVISIONS

                                  

                                	
                                  17

                                

                        

                        
                           

                        

                      

                    

                  

                

              

            

          

        

        
          	
                   
      

                	
                  Section
      1.

                	
                  Successors
      and Assigns 

                	
                  17

                

        

         

        
          	
                   
      

                	
                  Section
      2.

                	
                  Power
      of Substitution 

                	
                  17

                

        

         

        
          	
                   
      

                	
                  Section
      3.

                	
                  Counterparts 

                	
                  18

                

        

         

        
          	
                   
      

                	
                  Section
      4.

                	
                  Notices 

                	
                  18

                

        

         

        
          	
                   
      

                	
                  Section
      5.

                	
                  Statutory
      Mortgage 

                	
                  18

                

        

         

        
          	
                   
      

                	
                  Section
      6.

                	
                  Further
      Assurances 

                	
                  18

                

        

         

        
          	
                   
      

                	
                  Section
      7.

                	
                  Governing
      Law 

                	
                  19

                

        

         

        
          	
                   
      

                	
                  Section
      8.

                	
                  Additional
      Rights of the Mortgagee 

                	
                  19

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
L-1

         

        
 

        DEED OF
COVENANTS

         

        [VESSEL
NAME]

         

        This Deed
of Covenants made [CLOSING DATE] (this “Deed”), between
[SHIPOWNER], a corporation organized and existing pursuant to the laws of the
Republic of the Marshall Islands and registered under Part XI of the Hong Kong
Companies Ordinance having its principal place of business at 15th Floor, Tower
One, Lippo Centre, 89 Queensway, Hong Kong (the “Shipowner”), and
NORDEA BANK FINLAND PLC, acting through its New York branch, a bank incorporated
under the laws of [the Kingdom of Norway], with offices at 437 Madison Avenue,
New York, New York 10022 not in its individual capacity, but solely as security
trustee (in such capacity, the “Security Trustee”,
together with its successors in trust and assigns, the “Mortgagee”), pursuant
to the Credit Agreement referred to below.

         

        W I T N E
S S E T H

         

        WHEREAS:

         

        A.    The
Shipowner is the sole, absolute and unencumbered owner of the whole of the Hong
Kong flag vessel [VESSEL NAME], Official Number [OFFICIAL NUMBER] of [GROSS
TONS] gross tons and [NET TONS] net tons, together with all interest therein and
all of the boilers, engines, machinery, masts, spars, boats, anchors, cables,
chains, rigging, tackle, capstans, outfit tools, pumps and pumping equipment,
apparel, furniture, drilling equipment, fittings, equipment, spare parts, and
all other appurtenances thereunto appertaining or belonging, whether now owned
or hereafter acquired, and also any and all additions, improvements, renewals
and replacements hereafter made in or to such vessel or any part thereof,
including all items and appurtenances aforesaid (such vessel, together with all
of the foregoing, being herein called the “Vessel”).

         

        B.    Genco
Shipping & Trading Limited, a Marshall Islands corporation (the “Borrower”), the
Lenders party thereto from time to time, the Mortgagee, as administrative agent,
mandated lead arranger, bookrunner, and collateral agent, have entered into a
Credit Agreement dated as of September 4, 2008 (as the same may be amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
providing a senior secured credit facility (the “Facility”) to the
Borrower in the principal amount of up to Three Hundred Twenty Million United
States Dollars (U.S.$320,000,000) (the Lenders, the Administrative Agent and
Collateral Agent, collectively, the “Lender
Creditors”).  Except as otherwise defined herein, capitalized
terms used herein and defined in the Credit Agreement shall be used herein as so
defined.

         

        C.    The
Borrower may at any time and from time to time enter into, or guaranty the
obligations of one or more Subsidiary Guarantors or any of their respective
Subsidiaries under, one or more Interest Rate Protection Agreements or Other
Hedging Agreements with respect to the Loan (and/or the Commitments) with one or
more Lenders or any Affiliate thereof (each such Lender or Affiliate, even if
the respective Lender subsequently ceases to be a Lender under the Credit
Agreement for any reason, together with such Lender’s or Affiliate’s successors
and assigns, if any, collectively, the “Other Creditors” and,
together with the Lender Creditors, the “Secured
Creditors”).  The estimated aggregate notional amount of the
liabilities of the Borrower under the Interest Rate Protection Agreements or
Other Hedging Agreements entered into with respect to the Loan (and/or the
Commitments) is
[               ]
United States Dollars
(U.S.$[               ]).

         

        D.    The
Shipowner is a wholly owned subsidiary of the Borrower.

         

        E.    The
Shipowner entered into the Guaranty in favor of the Secured Creditors pursuant
to which the Shipowner has guaranteed (i) to the Lender Creditors, all
obligations of the Borrower under the

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
L-1

         

         

         

        Credit
Agreement and each other Credit Document to which the Borrower is a party, and
(ii) to each of the Other Creditors, all obligations of the Borrower under each
Interest Rate Protection Agreement and each Other Hedging Agreement entered into
with respect to the Loan (and/or the Commitments).  The Lenders have
advanced the Loan pursuant to the Credit Agreement; the Shipowner acknowledges
that it is justly indebted to the Secured Creditors under the
Guaranty.

         

        F.    Contemporaneously
with the execution of this Deed there has been executed and registered by the
Shipowner in favor of the Mortgagee a first priority statutory Hong Kong ship
mortgage (the “Mortgage”) to secure
its obligation under the Guaranty according to the terms thereof, and the
payment of all other such sums due or which may become due to the Mortgagee
pursuant to the Guaranty, constituting a First Priority Mortgage over the said
Vessel and the Shipowner has agreed to execute this Deed collateral to the
Mortgage and to the security thereby created.

         

        G.    This Deed
shall be read together with the Guaranty, but in the case of any inconsistency
between this Deed and the Guaranty, the provisions of this Deed shall prevail,
but only to the extent permitted by Hong Kong law.

         

        H.    Pursuant
to the Credit Agreement, the Mortgagee has agreed to act as Security Trustee for
the Secured Creditors.

         

        NOW, THIS
DEED WITNESSETH AS FOLLOWS:

         

        1.    In
consideration of the premises and other good and valuable consideration, the
Shipowner hereby covenants with the Mortgagee to pay each and every sum of money
that may be or become owing under the terms of the Guaranty and the Mortgage or
either of them at the time and in the manner specified therein, (all such
obligations and other sums hereinafter called the “Indebtedness hereby
secured”).

         

        2.    By way of
security for payment of the Indebtedness hereby secured, the Shipowner as
beneficial owner hereby MORTGAGES AND CHARGES to and in favor of the Mortgagee
all its interest, present and future, in the Vessel and proceeds thereof (which
the Shipowner hereby warrants to be free at the date hereof from any other
charges or encumbrances whatsoever).

         

        3.    The
Shipowner and the Mortgagee hereby covenant with each other that the security
created by this Deed, the Guaranty and any of the other Credit Documents to
which the Shipowner is a party shall be held by the Mortgagee as continuing
security, and that the security so created shall not be satisfied by any
intermediate payment of any part of the Indebtedness secured
hereby.

         

        4.    Upon the
Mortgagee being satisfied that the Indebtedness secured hereby has been
unconditionally and irrevocably paid and discharged in full, and following a
written request therefor from the Shipowner, the Mortgagee will, subject to
being indemnified in scope and substance to its satisfaction for the costs and
expenses incurred by it in connection therewith, release the security created by
the Mortgage and this Deed.

         

        5.    The
Shipowner shall remain liable to fulfill all obligations assumed by it in
relation to the Vessel and the Mortgagee shall be under no obligation of any
kind whatsoever in respect thereof or be under any liability whatsoever in event
of any failure by the Shipowner to perform its obligations in respect
thereof.

         

        It is
hereby covenanted, declared and agreed that the property above described is to
be held subject to the further covenants, conditions, terms and uses hereinafter
set forth.

         

        The
Shipowner covenants and agrees with the Mortgagee as follows:

         

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
L-1

        

         

         

         

        ARTICLE
I

         

        Representations and
Warranties of the Shipowner

         

        Section
1.    Existence;
Authorization.  The Shipowner is a corporation duly organized,
validly existing and in good standing under the laws of the Republic of the
Marshall Islands having its principal place of business in Hong Kong, and shall
so remain during the life of this Deed.  The Shipowner has full power
and authority to own and mortgage the Vessel; has full right and entitlement to
register the Vessel in its name under the flag of Hong Kong and all action
necessary and required by law for the execution and delivery of this Deed and
the Mortgage has been duly and effectively taken; and each of the Indebtedness
hereby secured and this Deed and the Mortgage is and will be the legal, valid
and binding obligation of the Shipowner enforceable in accordance with its
terms.

         

        Section
2.    Title to
Vessel.  The Shipowner lawfully owns and is lawfully possessed
of the Vessel free from any lien or encumbrance whatsoever other than the
Mortgage, liens for current crew’s wages and liens not yet required to be
removed under Section 7 of Article II hereof and will warrant and defend the
title and possession thereto and to every part thereof for the benefit of the
Mortgagee against the claims and demands of all persons whomsoever.

         

        Section
3.    ISM, ISPS and MARPOL
Compliance.  The Shipowner has obtained all necessary ISM
Documentation in connection with the Vessel and is in full compliance with the
ISM Code, the ISPS Code and Annex VI (Regulations for the Prevention of Air
Pollution from Ships) to MARPOL (as such terms are defined in Section 9 of
Article II).

         

         

        ARTICLE
II

         

        Covenants of the
Shipowner

         

        Section
1.    Payment of
Indebtedness.  The Shipowner will pay or cause to be paid the
Indebtedness hereby secured and will observe, perform and comply with the
covenants, terms and conditions herein and in the Guaranty, express or implied,
on its part to be observed, performed or complied with.  The
obligation of the Indebtedness hereby secured is an obligation in United States
Dollars and the term “$” when used herein shall mean such United States
Dollars.  Notwithstanding fluctuations in the value or rate of United
States Dollars in terms of gold or any other currency, all payments hereunder or
otherwise in respect of the Indebtedness hereby secured shall be payable in
terms of United States Dollars when due, in United States Dollars when paid,
whether such payment is made before or after the due date.

         

        Section
2.    Mortgage
Recording.  The Shipowner will cause the Mortgage to be duly
recorded or filed in the Shipping Registry of Hong Kong, in accordance with the
applicable provisions of the laws of Hong Kong and will otherwise comply with
and satisfy all of the provisions of applicable laws of Hong Kong in order to
establish and maintain (a) the Mortgage as a first priority statutory mortgage
thereunder upon the Vessel and upon all renewals, replacements and improvements
made in or to the same and (b) this Deed as a first priority assignment of,
charge over, and security interest in the Vessel or other property assigned
hereunder.

         

        Section
3.    Lawful
Operation.  The Shipowner will not cause or permit the Vessel
to be operated in any manner contrary to law, and the Shipowner will not engage
in any unlawful trade or violate any law or carry any cargo that will expose the
Vessel to penalty, forfeiture or capture, and will not do, or suffer or permit
to be done, anything which can or may injuriously affect the registration of the
Vessel 

         

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

         

        
          EXHIBIT
L-1

        

         

         

        under the
laws and regulations of Hong Kong and will at all times keep the Vessel duly
documented thereunder.

         

        Section
4.    Payment of
Taxes.  The Shipowner will pay and discharge when due and
payable, from time to time, all taxes, assessments, governmental charges, fines
and penalties lawfully imposed on the Vessel or any income
therefrom.

         

        Section
5.    Prohibition of
Liens.  Neither the Shipowner, any charterer, the Master of the
Vessel nor any other person has or shall have any right, power or authority to
create, incur or permit to be placed or imposed or continued upon the Vessel,
its freights, profits or hire any lien whatsoever other than the Mortgage, this
Deed, other liens in favor of the Mortgagee and for crew’s wages and
salvage.

         

        Section
6.    Notice of
Mortgage.  The Shipowner will place, and at all times and
places will retain a properly certified copy of the Mortgage and a true copy of
this Deed on board the Vessel with her papers and will cause such certified copy
and the Vessel’s marine document to be exhibited to any and all persons having
business therewith which might give rise to any lien thereon other than liens
for crew’s wages and salvage, and to any representative of the
Mortgagee.

         

        The
Shipowner will place and keep prominently displayed in the chart room and in the
Master’s cabin on the Vessel a framed printed notice in plain type reading as
follows:

         

        NOTICE OF
MORTGAGE

         

        THIS
VESSEL IS OWNED BY [SHIPOWNER], AND IS SUBJECT TO A FIRST PRIORITY STATUTORY
MORTGAGE AND DEED OF COVENANTS COLLATERAL THERETO IN FAVOR OF NORDEA BANK
FINLAND PLC, ACTING THROUGH ITS NEW YORK BRANCH, AS
TRUSTEE/MORTGAGEE.  UNDER THE TERMS OF SAID DEED, NEITHER THE
SHIPOWNER, ANY CHARTERER, THE MASTER OF THE VESSEL, NOR ANY OTHER PERSON HAS ANY
RIGHT, POWER OR AUTHORITY TO CREATE, INCUR OR PERMIT TO BE PLACED OR IMPOSED
UPON THE VESSEL, ANY ENCUMBRANCES WHATSOEVER OR ANY OTHER LIEN WHATSOEVER OTHER
THAN FOR CREW’S WAGES AND SALVAGE.

         

        Section
7.    Removal of
Liens.  Except for the lien of this Deed and the Mortgage, the
Shipowner will not suffer to be continued any lien, encumbrance or charge on the
Vessel, and in due course and in any event within thirty (30) days after the
same becomes due and payable or within fourteen (14) days after being requested
to do so by the Mortgagee, the Shipowner will pay or cause to be discharged or
make adequate provision for the satisfaction or discharge of all claims or
demands, and will cause the Vessel to be released or discharged from any lien,
encumbrance or charge therefor.

         

        Section
8.    Release from
Arrest.  If a libel, complaint or similar process be filed
against the Vessel or the Vessel be otherwise attached, levied upon or taken
into custody by virtue of any legal proceeding in any court, the Shipowner will
promptly notify the Mortgagee thereof by telex, or telefax confirmed by letter,
at the address, as specified in this Deed, and within fourteen (14) days will
cause the Vessel to be released and all liens thereon other than the Mortgage
and this Deed to be discharged, will cause a certificate of discharge to be
recorded in the case of any recording of a notice of claim of lien, and will
promptly notify the Mortgagee thereof in the manner aforesaid.  The
Shipowner will notify the Mortgagee within forty-eight (48) hours of any average
or salvage incurred by the Vessel.

         

         

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
L-1

        

         

         

         

        Section
9.    Maintenance.  (a)  The
Shipowner will at all times and without cost or expense to the Mortgagee
maintain and preserve, or cause to be maintained and preserved, the Vessel and
all its equipment, outfit and appurtenances, tight, staunch, strong, in good
condition, working order and repair and in all respects seaworthy and fit for
its intended service, and will keep the Vessel, or cause her to be kept, in such
condition as will entitle her to the highest classification and rating for
vessels of the same age and type in the American Bureau of Shipping or other
classification society listed on Schedule VIII to the Credit
Agreement.  The Shipowner covenants to deliver annually to the
Mortgagee a certificate from such class society showing such classification to
be maintained.  The Shipowner will without cost or expense to the
Mortgagee promptly, irrevocably and unconditionally instruct and authorize the
classification society of the Vessel, and shall request the classification
society to give an undertaking to the Mortgagee as follows:

         

        1.    to send
to the Mortgagee, following receipt of a written request from the Mortgagee,
certified true copies of all original class records held by the classification
society relating to the Vessel;

         

        2.    to allow
the Mortgagee (or its agents), at any time and from time to time, to inspect the
original class and related records of the Shipowner and the Vessel at the
offices of the classification society and to take copies of them;

         

        3.    following
receipt of a written request from the Mortgagee:

         

        (a)    to advise
of any facts or matters which may result in or have resulted in a change,
suspension, discontinuance, withdrawal or expiry of the Vessel’s class under the
rules or terms and conditions of the Shipowner’s or the Vessel’s membership of
the classification society; and

         

        (b)    to
confirm that the Shipowner is not in default of any of its contractual
obligations or liabilities to the classification society and, without limiting
the foregoing, that it has paid in full all fees or other charges due and
payable to the classification society; and

         

        (c)    if the
Shipowner is in default of any of its contractual obligations or liabilities to
the classification society, to specify to the Mortgagee in reasonable detail the
facts and circumstances of such default, the consequences thereof, and any
remedy period agreed or allowed by the classification society; and

         

        (d)    to notify
the Mortgagee immediately in writing if the classification society receives
notification from the Shipowner or any other person that the Vessel’s
classification society is to be changed.

         

        Notwithstanding
the above instructions and undertaking given for the benefit of the Mortgagee,
the Shipowner shall continue to be responsible to the classification society for
the performance and discharge of all its obligations and liabilities relating to
or arising out of or in connection with the contract it has with the
classification society, and nothing herein or therein shall be construed as
imposing any obligation or liability of the Mortgagee to the classification
society in respect thereof.

         

        (b)    The
Shipowner shall further notify the classification society that all the foregoing
instructions and authorizations shall remain in full force and effect until
revoked or modified by written notice to the classification society received
from the Mortgagee, and that the Shipowner shall reimburse the classification
society for all its costs and expenses incurred in complying with the foregoing
instructions.

         

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
L-1

        

         

         

         

        (c)    The
Vessel shall, and the Shipowner covenants that it will, at all times comply with
all applicable laws, treaties and conventions to which Hong Kong is a party, and
rules and regulations issued thereunder, and shall have on board as and when
required thereby valid certificates showing compliance therewith.  The
Shipowner will not make, or permit to be made, any substantial change in the
structure, type or speed of the Vessel or change in her rig, without first
receiving the written approval thereof by the Mortgagee.

         

        (d)    The
Shipowner agrees to give the Mortgagee at least ten (10) days notice of the
actual date and place of any survey or dry docking, in order that the Mortgagee
may have representatives present if desired.  The Shipowner agrees
that at the Mortgagee’s request it will satisfy the Mortgagee that the expense
of such survey or drydocking or work to be done thereat is within Shipowner’s
financial capability and will not result in a claim or lien against the Vessel
in violation of the provisions of this Deed, the Credit Agreement, the Guaranty
or any other Credit Document.

         

        (e)    The
Shipowner shall promptly notify the Mortgagee of and furnish the Mortgagee with
full information, including copies of reports and surveys, regarding any
material accident or accident involving repairs where the aggregate cost is
likely to exceed Two Million Five Hundred Thousand Dollars (U.S. $2,500,000) (or
its equivalent in another currency), any major damage to the Vessel, any event
affecting the Vessel’s class, any occurrence in consequence whereof the Vessel
has become or is likely to suffer an Event of Loss.

         

        (f)    The
Mortgagee shall have the right at any time, on reasonable notice, to have its
surveyor conduct inspections and surveys of the Vessel to ascertain the
condition of the Vessel and to satisfy itself that the Vessel is being properly
repaired and maintained.  Such inspections and surveys shall be
conducted at such times and in such manner as will not interfere with the
Shipowner’s normal business operations and schedule.

         

        (g)    The
Shipowner will furnish to the Mortgagee on demand true and complete copies of
the DOC (the SMC referred to in the definition of ISM Code Documentation below)
and such other ISM Code documentation as the Mortgagee may reasonably request in
writing.

         

        (h)    The
Shipowner will comply or procure compliance with the ISM Code, the ISPS Code and
Annex VI (Regulations for the Prevention of Air Pollution from Ships) to MARPOL
(as such terms are defined below) and notify the Mortgagee forthwith
upon:

         

        (i)    any claim
for breach of the ISM Code or the ISPS Code being made against the Shipowner, an
ISM Responsible Person (as such term is defined below) or the manager of the
Vessel in connection with the Vessel; or

         

        (ii)    any other
matter, event or incident, actual or which will or could lead to the ISM Code or
the ISPS Code or Annex VI (Regulations for the Prevention of Air Pollution from
Ships) to MARPOL not being complied with;

         

        and keep
the Mortgagee advised in writing on a regular basis and in such detail as the
Mortgagee shall require, of the Shipowner’s and Vessel manager’s response to the
items referred to in subclauses (i) and (ii) above.

         

        For the
purposes of this Mortgage:

         

        “ISM Code” means in
relation to its application the Shipowner, the Vessel and its
operation:

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
L-1

           

        

         

        (a)    ‘The
International Management Code for the Safe Operation of Ships and for Pollution
Prevention’, currently known or referred to as the ‘ISM Code’, adopted by the
Assembly of the International Maritime Organization by Resolution A.741(18) on 4
November 1993 and incorporated on 19 May 1994 into Chapter IX of the
International Convention for the Safety of Life at Sea 1974 (SOLAS 1974);
and

         

        (b)    all
further resolutions, circulars, codes, guidelines, regulations and
recommendations which are now or in the future issued by or on behalf of the
International Maritime Organization or any other entity with responsibility for
implementing the ISM Code, including without limitation, the ‘Guidelines on
implementation or administering of the International Safety Management (ISM)
Code by Administrations’ produced by the International Maritime Organization
pursuant to Resolution A.788(19) adopted on 25 November 1995,

         

        as the
same may be amended, supplemented or replaced from time to time;

         

        “ISM Code
Documentation” includes:

         

        (a)    the
document of compliance (“DOC’) and safety
management certificate (“SMC”) issued pursuant
to the ISM Code in relation to the Vessel within the periods specified by the
ISM Code;

         

        (b)    the
interim safety management certificate (“Interim SMC”) issued
pursuant to the ISM Code in relation to the Vessel prior to or on the delivery
date thereof;

         

        (c)    all other
documents and data which are relevant to the ISM SMS and its implementation and
verification which the mortgage may require by request; and

         

        (d)    any other
documents which are prepared or which are otherwise relevant to establish and
maintain the Vessel’s or the Shipowner’s compliance with the ISM Code which the
Mortgagee may require by request.

         

        “ISM SMS” means the
safety management system which is required to be developed, implemented and
maintained under the ISM Code.

         

        “ISPS Code” means the
International Ship and Port Facility Security Code constituted pursuant to
resolution A.924(22) of the International Maritime Organisation (“IMO”) adopted by a
Diplomatic conference of the IMO on Maritime Security on 13 December 2002 and
now set out in Chapter XI-2 of the Safety of Life at Sea Convention (SOLAS) 1974
(as amended) adopted on July 1, 2004.

         

        “MARPOL” means the
International Convention for the Prevention of Pollution from Ships 1973 (as
modified in 1978 and 1997) and includes any amendments or extensions of it and
any regulation issued pursuant to it.

         

        Section
10.    Inspection;
Reports.  (a)  The Shipowner will at all reasonable
times afford the Mortgagee or its authorized representatives full and complete
access to the Vessel for the purpose of inspecting the Vessel and her cargo and
papers, including without limitation all records pertaining to the Vessel’s
maintenance and repair, and, at the request of the Mortgagee, the Shipowner will
deliver for inspection copies of any and all contracts and documents relating to
the Vessel, whether on board or not.

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
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        (b)    The
Shipowner hereby agrees to furnish promptly to the Mortgagee, on demand, any
reports or information which the Shipowner may submit to shareholders or
regulatory agencies and any additional information which the Mortgagee may
request in respect of the financial condition of the Shipowner.

         

        Section
11.    Flag; Home
Port.  (a)  The Shipowner will not change the flag or
home port of the Vessel without the written consent of the Mortgagee and any
such written consent to any one change of flag or home port shall not be
construed to be a waiver of this provision with respect to any subsequent
proposed change of flag or home port.

         

        (b)    Notwithstanding
the foregoing provisions of this Section 11, upon not less than 30 days prior
written notice to the Mortgagee, provided no Default or Event of Default under
the Credit Agreement shall have occurred and be continuing, the Shipowner may
change the flag or home port of the Vessel to another flag or home port
reasonably satisfactory to the Mortgagee, provided that the Shipowner shall
promptly take all actions necessary or desirable to establish, preserve, protect
and maintain the security interest of the Mortgagee in the Vessel to the
satisfaction of the Mortgagee, and the Shipowner shall have provided to the
Mortgagee and the Lenders such opinions of counsel as may be reasonably
requested by the Mortgagee to assure itself that the conditions of this proviso
have been satisfied.

         

        Section
12.    No Sales. Transfers or
Charters.  The Shipowner will not sell, mortgage, transfer, or
change the management of, demise charter or otherwise charter the Vessel for any
period longer than twelve (12) months (including any permitted extensions or
renewals) in each case, without the written consent (not to be unreasonably
withheld) of the Mortgagee first had and obtained, and any such written consent
to any one sale, mortgage, demise charter, transfer, or change of management
shall not be construed to be a waiver of this provision with respect to any
subsequent proposed sale, mortgage, demise charter, transfer, or change of
management.  Any such sale, mortgage, demise charter, transfer, or
change of management of the Vessel shall be subject to the provisions of this
Deed, the Mortgage and the lien thereof.

         

        Section
13.    Insurance.  (a)  The
Shipowner, at its own expense, or with respect to part (a)(iii) of this Section
13 the Mortgagee at the expense of the Shipowner, will keep the Vessel insured
with insurers and protection and indemnity clubs or associations of
internationally recognized responsibility, and placed in such markets, on such
terms and conditions, and through brokers, in each case reasonably satisfactory
to the Mortgagee and under forms of policies approved by the Mortgagee against
the risks indicated below and such other risks as the Mortgagee may specify from
time to time:

         

        (i)    Marine
and war risk, including London Blocking and Trapping Addendum and Lost Vessel
Clause, hull and machinery insurance in an amount in U.S. dollars equal to,
except as otherwise approved or required in writing by the Mortgagee, the
greater of (x) the then full commercial value of the Vessel or (y) an amount
which, when aggregated with such insured value of the other Vessels (if the
other Vessels are then subject to a mortgage in favor of the Mortgagee under the
Credit Agreement, and have not suffered an Event of Loss), is equal to 120% of
the then outstanding aggregate principal amount of the Loan.

         

        (ii)    Marine
and war risk protection and indemnity insurance or equivalent insurance
(including coverage against liability for passengers, fines and penalties
arising out of the operation of the Vessel, insurance against liability arising
out of pollution, spillage or leakage, and workmen’s compensation or
longshoremen’s and harbor workers’ insurance as shall be required by applicable
law) in such amounts approved by the Mortgagee;  provided, however
that insurance against liability under law or international convention arising
out of pollution, spillage or leakage shall be in an amount not less than the
greater of:

         

        (y)    the
maximum amount available, as that amount may from time to time change, from the
International Group of Protection and Indemnity Associations or alternatively
such

         

         

         

        
          
            
            

          

          
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        sources
of pollution, spillage or leakage coverage as are commercially available in any
absence of such coverage by the International Group as shall be carried by
prudent shipowners for similar vessels engaged in similar trades plus amounts
available from customary excess insurers of such risks as excess amounts shall
be carried by prudent shipowners for similar vessels engaged in similar trades;
and

         

        (z)    the
amounts required by the laws or regulations of the United States of America or
any applicable jurisdiction in which the Vessel may be trading from time to
time.

         

        (iii)    Mortgagee’s
interest insurance (including extended mortgagee interest-additional
perils-pollution) coverage satisfactory to the Mortgagee in an amount which,
when aggregated with such insured value of the other Vessels (if the other
Vessels are then subject to a mortgage in favor of the Mortgagee under the
Credit Agreement, and have not suffered an Event of Loss), is equal to 110% of
the then outstanding aggregate principal amount of the Loan.  All such
mortgagee’s interest insurance cover shall in the Mortgagee’s discretion be
obtained directly by the Mortgagee and the Shipowner shall on demand pay all
costs of such cover.

         

        (iv)    While the
Vessel is idle or laid up, at the option of the Shipowner and in lieu of the
above-mentioned marine and war risk hull insurance, port risk insurance insuring
the Vessel against the usual risks encountered by like vessels under similar
circumstances.

         

        (b)    The
marine and commercial war-risk insurance required by this Section 13 shall have
deductibles and franchises not exceeding those that a reasonable prudent owner
would agree for a vessel of the type, age and condition of the
Vessel.

         

        All
insurance maintained hereunder shall be primary insurance without right of
contribution against any other insurance maintained by the
Mortgagee.  Each policy of marine and war risk hull and machinery
insurance with respect to the Vessel shall provide that the Mortgagee shall be
named as Mortgagee, a named insured (without liability for insurance premiums)
and a loss payee.  Each entry in a marine and war risk protection
indemnity club with respect to the Vessel shall note the interest of the
Mortgagee.  The Mortgagee and its successors and assigns shall not be
responsible for any premiums, club calls, assessments or any other obligations
or for the representations and warranties made therein by the Shipowner or any
other person.

         

        (c)    The
Shipowner will furnish the Mortgagee from time to time on request, and in any
event at least annually, a detailed report signed by a firm of marine insurance
brokers acceptable to the Mortgagee with respect to P & I entry, the hull
and machinery and war risk insurance carried and maintained on the Vessel,
together with their opinion as to the adequacy thereof and its compliance with
the provisions of this Deed.  At the Shipowner’s expense the Shipowner
will cause such insurance broker and the P & I club or association providing
P & I insurance referred to in part (a)(ii) of this Section 13, to agree to
advise the Mortgagee by telex or telecopier confirmed by letter of any
expiration, termination, alteration or cancellation of any policy, any default
in the payment of any premium and of any other act or omission on the part of
the Shipowner of which it has knowledge and which might invalidate or render
unenforceable, in whole or in part, any insurance on the Vessel, and to provide
an opportunity of paying any such unpaid premium or call, such right being
exercisable by the Mortgagee on a vessel by vessel and not on a fleet
basis.  In addition, the Shipowner shall promptly provide the
Mortgagee with any information which the Mortgagee reasonably requests for the
purpose of obtaining or preparing any report from an independent marine
insurance consultant as to the adequacy of the insurances effected or proposed
to be effected in accordance with this Deed as of the date hereof or in
connection with any renewal thereof, and the Shipowner shall upon demand
indemnify the Mortgagee in respect of all reasonable fees and other expenses
incurred by or for the account of the Mortgagee in connection with any such
report;  provided the Mortgagee shall be entitled to such indemnity
only for one such report during any period of twelve months.

         

         

        
          
            
            

          

          
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        The
underwriters or brokers shall furnish the Mortgagee with a letter or letters of
undertaking to the effect that:

         

        (i)    they will
hold the instruments of insurance, and the benefit of the insurances thereunder,
to the order of the Mortgagee in accordance with the terms of the loss payable
clause referred to in the relevant Assignment of Insurances for the
Vessel;  and

         

        (ii)    they will
have endorsed on each and every policy as and when the same is issued the loss
payable clause and the notice of assignment referred to in the relevant
Assignment of Insurances for the Vessel;  and

         

        (iii)    they will
not set off against any sum recoverable in respect of a claim against the Vessel
under the said underwriters or brokers or any other person in respect of any
other vessel nor cancel the said insurances by reason of non-payment of such
premiums or other amounts.

         

        All
policies of insurance required hereby shall provide for not less than 14 days
prior written notice to be received by the Mortgagee of the termination or
cancellation of the insurance evidenced thereby.  All policies of
insurance maintained pursuant to this Section 13 for risks covered by insurance
other than that provided by a P & I Club shall contain provisions waiving
underwriters’ rights of subrogation thereunder against any assured named in such
policy and any assignee of said assured.  The Shipowner has assigned
to the Mortgagee its rights under any policies of insurance in respect of the
Vessel.  The Shipowner agrees that, unless the insurances by their
terms provide that they cannot cease (by reason of nonrenewal or otherwise)
without the Mortgagee being informed and having the right to continue the
insurance by paying any premiums not paid by the Shipowner, receipts showing
payment of premiums for required insurance and also of demands from the Vessel’s
P & I underwriters shall be in the hands of the Mortgagee at least two (2)
days before the risk in question commences.

         

        (d)    Unless
the Mortgagee shall otherwise agree, all amounts of whatsoever nature payable
under any insurance must be payable to the Mortgagee for distribution first to
itself and thereafter to the Shipowner or others as their interests may
appear.  Nevertheless, until otherwise required by the Mortgagee by
notice to the underwriters upon the occurrence and continuance of a Default or
an event of default hereunder, (i) amounts payable under any insurance on the
Vessel with respect to protection and indemnity risks may be paid directly to
the Shipowner to reimburse it for any loss, damage or expense incurred by it and
covered by such insurance or to the person to whom any liability covered by such
insurance has been incurred provided that the underwriter shall have first
received evidence that the liability insured against has been discharged, and
(ii) amounts payable under any insurance with respect to the Vessel involving
any damage to the Vessel not constituting an Event of Loss, may be paid by
underwriters directly for the repair, salvage or other charges involved or, if
the Shipowner shall have first fully repaired the damage or paid all of the
salvage or other charges, may be paid to the Shipowner as reimbursement
therefor;  provided, however, that if such amounts (including any
franchise or deductible) are in excess of U.S. $1,000,000, the underwriters
shall not make such payment without first obtaining the written consent thereto
of the Mortgagee, which shall not be unreasonably withheld.

         

        (e)    All
amounts paid to the Mortgagee in respect of any insurance on the Vessel shall be
disposed of as follows (after deduction of the expenses of the Mortgagee in
collecting such amounts):

         

        (i)    any
amount which might have been paid at the time, in accordance with the provisions
of paragraph (d) above, directly to the Shipowner or others shall be paid by the
Mortgagee to, or as directed by, the Shipowner;

         

         

        
          
            
            

          

          
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        (ii)    all
amounts paid to the Mortgagee in respect of an Event of Loss (as defined in the
Credit Agreement) of the Vessel shall be applied by the Mortgagee to the payment
of the Indebtedness hereby secured pursuant to Section 3.03(b) of the Credit
Agreement;

         

        (iii)    all other
amounts paid to the Mortgagee in respect of any insurance on the Vessel may, in
the Mortgagee’s sole discretion, be held and applied to the prepayment of the
Indebtedness hereby secured or to making of needed repairs or other work on the
Vessel, or to the payment of other claims incurred by the Shipowner relating to
the Vessel, or may be paid to the Shipowner or whosoever may be entitled
thereto.

         

        (f)    In the
event that any claim or lien is asserted against the Vessel for loss, damage or
expense which is covered by insurance required hereunder and it is necessary for
the Shipowner to obtain a bond or supply other security to prevent arrest of the
Vessel or to release the Vessel from arrest on account of such claim or lien,
the Mortgagee, on request of the Shipowner, may, in the sole discretion of the
Mortgagee, assign to any person, firm or corporation executing a surety or
guarantee bond or other agreement to save or release the Vessel from such
arrest, all right, title and interest of the Mortgagee in and to said insurance
covering said loss, damage or expense, as collateral security to indemnify
against liability under said bond or other agreement.

         

        (g)    The
Shipowner shall deliver to the Mortgagee certified copies and, whenever so
requested by the Mortgagee, the originals of all certificates of entry, cover
notes, binders, evidences of insurance and policies and all endorsements and
riders amendatory thereof in respect of insurance maintained under this Deed for
the purpose of inspection or safekeeping, or, alternatively, satisfactory
letters of undertaking from the broker holding the same.  The
Mortgagee shall be under no duty or obligation to verify the adequacy or
existence of any such insurance or any such policies, endorsement or
riders.

         

        (h)    The
Shipowner agrees that it will not execute or permit or willingly allow to be
done any act by which any insurance may be suspended, impaired or cancelled, and
that it will not permit or allow the Vessel to undertake any voyage or run any
risk or transport any cargo which may not be permitted by the policies in force,
without having previously notified the Mortgagee in writing and insured the
Vessel by additional coverage to extend to such voyages, risks, passengers or
cargoes.

         

        (i)    In case
any underwriter proposes to pay less on any claim than the amount thereof, the
Shipowner shall forthwith inform the Mortgagee, and if a Default, an Event of
Default or an Event of Loss has occurred and is continuing, the Mortgagee shall
have the exclusive right to negotiate and agree to any compromise.

         

        (j)    The
Shipowner will comply with and satisfy all of the provisions of any applicable
law, convention, regulation, proclamation or order concerning financial
responsibility for liabilities imposed on the Shipowner or the Vessel with
respect to pollution by any state or nation or political subdivision thereof and
will maintain all certificates or other evidence of financial responsibility as
may be required by any such law, convention, regulation, proclamation or order
with respect to the trade in which the Vessel is from time to time engaged and
the cargo carried by it.

         

        Section
14.    Reimbursement for
Expenses.  The Shipowner will reimburse the Mortgagee promptly
for any and all reasonable expenditures which the Mortgagee may from time to
time make, layout or expend in providing such protection in respect of
insurance, discharge or purchase of liens, taxes, dues, tolls, assessments,
governmental charges, fines and penalties lawfully imposed, repairs, attorney’s
fees, and other matters as the Shipowner is obligated herein to provide, but
fails to provide or which, in the sole judgment of the Mortgagee are necessary
or appropriate for the protection of the Vessel or the security granted by this
Deed.  Such obligation of the Shipowner to reimburse the Mortgagee
shall be an additional indebtedness due from the Shipowner, shall bear interest
at the interest rate as set forth in Section 1.07(b) of

         

         

        
          
            
            

          

          
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        the
Credit Agreement from the date of payment by the Mortgagee to and including the
date of reimbursement by the Shipowner, shall be secured by this Deed and the
Mortgage, and shall be payable by the Shipowner on demand.  The
Mortgagee, though privileged to do so, shall be under no obligation to the
Shipowner to make any such expenditure, nor shall the making thereof relieve the
Shipowner of any default in that respect.

         

        Section
15.    Performance of
Charters.  The Shipowner will fully perform any and all charter
parties which may be entered into with respect to the Vessel and will promptly
notify the Mortgagee of any material claim by any charterer of non-performance
thereunder by the Shipowner.

         

        Section
16.    Change in
Ownership.  The Shipowner further covenants and agrees with the
Mortgagee that, so long as any part of the Indebtedness hereby secured remains
unpaid, there shall be no change in the ownership of the Vessel or any of the
shares of the Shipowner without the prior written consent of the Mortgagee,
which shall not be unreasonably withheld.

         

        Section
17.    Prepayment if Event of
Loss.  In the event that the Vessel suffers an Event of Loss,
then and in each such case the Shipowner shall forthwith repay the Indebtedness
hereby secured at the time and in the amount set forth in Section 3.03(b) of the
Credit Agreement except to the extent such amounts have otherwise been paid as
therein provided.

         

        ARTICLE
III

         

        Events of Default and
Remedies

         

        Section
1.    Events of Default:
Remedies.  In case anyone or more of the following events,
herein termed “events of default”, shall happen:

         

        (a)    the
Shipowner fails to pay within three (3) Business Days of the date due any
payment in respect of the Indebtedness hereby secured as provided herein;
or

         

        (b)    the
statements in Article I shall prove to have been untrue in a material way when
made; or

         

        (c)    a default
in the due and punctual observance and performance of any of the provisions of
Sections 2, 3, 7, 8, 9(b), 11, 12, 13(a), (b), (d), (h) and (j), 16 or 17 of
Article II hereof shall have occurred and be continuing; or

         

        (d)    a breach
or omission in the due and punctual observance of any of the other covenants and
conditions herein required to be kept and performed by the Shipowner and such
breach or omission shall continue for 30 days after the day the Shipowner first
knew or should have known of such breach or omission; or

         

        (e)    an Event
of Default shall have occurred and be continuing under the Credit Agreement;
or

         

        (f)    a payment
default by the Borrower under any Interest Rate Protection Agreement or Other
Hedging Agreement shall have occurred and be continuing; or

         

        (g)    any
notice shall have been issued by the government or any bureau, department,
officer, board or agency thereof of the country of registry of the Vessel to the
effect that the Vessel is subject to cancellation from such registry or the
certificate of registry of the Vessel is subject to revocation or cancellation
for any reason whatsoever, and such notice shall not have been cancelled or
annulled on or before seven (7) Business Days prior to the date set forth in
such notice for such cancellation or revocation; or

         

         

        
          
            
            

          

          
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        (h)    the
Vessel shall be cancelled from the country of registry of the Vessel or the
certificate of registry of the Vessel is revoked or cancelled for any reason
whatsoever;

         

        then:

         

        the
security constituted by this Deed and the Mortgage shall become immediately
enforceable and that without limitation, the enforcement remedies specified can
be exercised irrespective of whether or not the Mortgagee has exercised the
right of acceleration under the Credit Agreement or any of the other Credit
Documents and the Mortgagee shall have the right to:

         

        (i)    Declare
all the then unpaid Indebtedness hereby secured to be due and payable
immediately, and upon such declaration, the same shall become and be immediately
due and payable provided, however, that no declaration shall be required if an
event of default shall have occurred by reason of a default under Section 10.05
of the Credit Agreement, then and in such case, the Indebtedness hereby secured
shall become immediately due and payable on the occurrence of such event of
default without any notice or demand;

         

        (ii)    Exercise
all of the rights and remedies in foreclosure and otherwise given to a mortgagee
by the provisions of the laws of the country of registry of the Vessel or of any
other jurisdiction where the Vessel may be found;

         

        (iii)    Bring
suit at law, in equity or in admiralty, as it may be advised, to recover
judgment for the Indebtedness hereby secured, and collect the same out of any
and all property of the Shipowner whether covered by this Mortgage or
otherwise;

         

        (iv)    Take and
enter into possession of the Vessel, at any time, wherever the same may be,
without legal process and without being responsible for loss or damage and the
Shipowner or other person in possession forthwith upon demand of the Mortgagee
shall surrender to the Mortgagee possession of the Vessel;

         

        (v)    Without
being responsible for loss or damage, the Mortgagee may hold, lay up, lease,
charter, operate or otherwise use such Vessel for such time and upon such terms
as it may deem to be for its best advantage, and demand, collect and retain all
hire, freights, earnings, issues, revenues, income, profits, return premiums,
salvage awards or recoveries, recoveries in general average, and all other sums
due or to become due in respect of such Vessel or in respect of any insurance
thereon from any person whomsoever, accounting only for the net profits, if any,
arising from such use of the Vessel and charging upon all receipts from the use
of the Vessel or from the sale thereof by court proceedings or pursuant to
subsection (vi) next following, all costs, expenses, charges, damages or losses
by reason of such use; and if at any time the Mortgagee shall avail itself of
the right herein given them to take the Vessel, the Mortgagee shall have the
right to dock the Vessel, for a reasonable time at any dock, pier or other
premises of the Shipowner without charge, or to dock her at any other place at
the cost and expense of the Shipowner;

         

        (vi)    Without
being responsible for loss or damage, the Mortgagee may sell the Vessel upon
such terms and conditions as to the Mortgagee shall seem best, free from any
claim of or by the Shipowner, at public or private sale, by sealed bids or
otherwise, by mailing, by air or otherwise, notice of such sale, whether public
or private, addressed to the Shipowner at its last known address and to any
other registered mortgagee, twenty (20) calendar days prior to the date fixed
for entering into the contract of sale and by first publishing notice of any
such public sale for

         

         

         

        
          
            
            

          

          
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        ten (10)
consecutive days, in daily newspapers of general circulation published in the
City of New York, State of New York; in the event that the Vessel shall be
offered for sale by private sale, no newspaper publication of notice shall be
required, nor notice of adjournment of sale; sale may be held at such place and
at such time as the Mortgagee by notice may have specified, or may be adjourned
by the Mortgagee from time to time by announcement at the time and place
appointed for such sale or for such adjourned sale, and without further notice
or publication the Mortgagee may make any such sale at the time and place to
which the same shall be so adjourned; and any sale may be conducted without
bringing the Vessel to the place designated for such sale and in such manner as
the Mortgagee may deem to be for its best advantage, and the Mortgagee may
become the purchaser at any sale.  The Shipowner agrees that any sale
made in accordance with the terms of this paragraph shall be deemed made in a
commercially reasonable manner insofar as it is concerned;

         

        (vii) Require
that all policies, contracts, certificates of entry and other records relating
to the insurance with respect to the Vessel, including, but not limited to,
those described in Article II, Section 13 hereof (the “Insurances”)
(including details of and correspondence concerning outstanding claims) be
forthwith delivered to or to the order of the Mortgagee; and/or

         

        (viii) Collect,
recover, compromise and give a good discharge for any and all monies and claims
for monies then outstanding or thereafter arising under the Insurances or in
respect of the earnings or any requisition compensation and to permit any
brokers through whom collection or recovery is effected to charge the usual
brokerage therefor.

         

        Section
2.    Power of
Sale.  Any sale of the Vessel made in pursuance of this Deed,
whether under the power of sale hereby granted or any judicial proceedings,
shall operate to divest all right, title and interest of any nature whatsoever
of the Shipowner therein and thereto, and shall bar the Shipowner, its
successors and assigns, and all persons claiming by, through or under
them.  No purchaser shall be bound to inquire whether notice has been
given, or whether any default has occurred, or as to the propriety of the sale,
or as to the application of the proceeds thereof.  In case of any such
sale, the Mortgagee, if it is the purchaser, shall be entitled, for the purpose
of making settlement or payment for the property purchased, to use and apply the
Indebtedness hereby secured in order that there may be credited against the
amount remaining due and unpaid thereon the sums payable out of the net proceeds
of such sale to the Mortgagee after allowing for the costs and expense of sale
and other charges; and thereupon such purchaser shall be credited, on account of
such purchase price, with the net proceeds that shall have been so credited upon
the Indebtedness hereby secured.  At any such sale, the Mortgagee may
bid for and purchase such property and upon compliance with the terms of sale
may hold, retain and dispose of such property without further accountability
therefor.

         

        Section
3.    Power of
Attorney-Sale.  The Mortgagee is hereby irrevocably appointed
attorney-in-fact of the Shipowner to execute and deliver to any purchaser
aforesaid, and is hereby vested with full power and authority to make, in the
name and on behalf of the Shipowner, a good conveyance of the title to the
Vessel so sold.  Any person dealing with the Mortgagee or
attorney-in-fact shall not be put on enquiry as to whether the power of attorney
contained herein has become exercisable.  In the event of any sale of
the Vessel, under any power herein contained, the Shipowner will, if and when
required by the Mortgagee, execute such form of conveyance of the Vessel as the
Mortgagee may direct or approve.

         

        Section
4.    Power of
Attorney-Collection.  The Mortgagee is hereby irrevocably
appointed attorney-in-fact of the Shipowner upon the happening of any event of
default, in the name of the Shipowner to demand, collect, receive, compromise
and sue for, so far as may be permitted by law, all freight, hire, earnings,
issues, revenues, income and profits of the Vessel and all amounts due from
underwriters under any insurance thereon as payment of losses or as return
premiums or otherwise, salvage awards and recoveries, recoveries in general
average or otherwise, and all other sums due or to become due at the
time

         

         

        
          
            
            

          

          
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        of the
happening of any event of default as defined in Section 1 of Article III hereof
in respect of the Vessel, or in respect of any insurance thereon, from any
person whomsoever, and to make, give and execute in the name of the Shipowner
acquittances, receipts, releases or other discharges for the same, whether under
seal or otherwise, and to endorse and accept in the name of the Shipowner all
checks, notes, drafts, warrants, agreements and other instruments in writing
with respect to the foregoing.  Any person dealing with the Mortgagee
or attorney-in-fact shall not be put on enquiry as to whether the Power of
Attorney contained herein has become exercisable.

         

        Section
5.    Delivery of
Vessel.  Upon the security constituted by this Deed and the
Mortgage becoming immediately enforceable pursuant to Section 1 of Article III,
the Mortgagee shall (in addition to the powers described in Section 1 of Article
III) become forthwith entitled (but not bound) to appoint, by an instrument in
writing under its seal or under the hand of any director or officer or
authorized signatory, a receiver and/or manager of the Vessel upon such terms as
to remuneration and otherwise as the Mortgagee shall deem fit with power from
time to time to remove any receiver and appoint another in his stead and any
receiver shall be the agent of the Shipowner (who shall be solely responsible
for his acts and defaults and remuneration) and shall have all the powers
conferred by law by way of addition to, but without limiting, those powers any
receiver shall have all the powers and entitlements conferred on the Mortgagee
by this Deed and generally shall be entitled to the same protection and to
exercise the same powers and discretions as are granted to the Mortgagee under
this Deed.

         

        Section
6.    Mortgagee to Discharge
Liens.  The Shipowner authorizes and empowers the Mortgagee or
its appointees or any of them to appear in the name of the Shipowner, its
successors and assigns, in any court of any country or nation of the world where
a suit is pending against the Vessel because of or on account of any alleged
lien against the Vessel from which the Vessel has not been released and to take
such proceedings as to them or any of them may seem proper towards the defense
of such suit and the purchase or discharge of such lien, and all expenditures
made or incurred by them or any of them for the purpose of such defense or
purchase or discharge shall be a debt due from the Shipowner, its successors and
assigns, to the Mortgagee, and shall be secured by the lien of this Deed and the
Mortgage in like manner and extent as if the amount and description thereof were
written herein.

         

        Section
7.    Payment of
Expenses.  The Shipowner covenants that upon the happening of
any one or more of the events of default, then, upon written demand of the
Mortgagee, the Shipowner will pay to the Mortgagee the whole amount due and
payable in respect of the Indebtedness hereby secured;  and in case
the Shipowner shall fail to pay the same forthwith upon such demand, the
Mortgagee shall be entitled to recover judgment for the whole amount so due and
unpaid, together with such further amounts as shall be sufficient to cover the
reasonable compensation of the Mortgagee or its agents, attorneys and counsel
and any necessary advances, expenses and liabilities made or incurred by it or
them or the Mortgagee hereunder.  All moneys collected by the
Mortgagee under this Section 7 shall be applied by the Mortgagee in accordance
with the provisions of Section 11 of this Article III.

         

        Section
8.    Remedies
Cumulative.  Each and every power and remedy herein given to
the Mortgagee shall be cumulative and shall be in addition to every other power
and remedy herein given or now or hereafter existing at law (including but not
excluding all powers conferred by the Conveyancing and Property Ordinance
(Chapter 219 of the Laws of Hong Kong)), in equity, in admiralty or by statute,
and each and every power and remedy whether herein given or otherwise existing
may be exercised from time to time and as often and in such order as may be
deemed expedient by the Mortgagee, and the exercise or the beginning of the
exercise of any power or remedy shall not be construed to be a waiver of the
right to exercise at the same time or thereafter any other power or
remedy.  The Mortgagee shall not be required or bound to enforce any
of its rights under any of the other Credit Documents, prior to enforcing its
rights under this Deed and the Mortgage.  No delay or omission by the
Mortgagee in the exercise of any right or power or in the pursuance of any
remedy accruing upon any default as above defined shall impair any such right,
power or remedy or be construed to be a waiver of any such event of default or
to be an acquiescence

         

         

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

         

         

        
          EXHIBIT
L-1

        

         

         

        therein;  nor
shall the acceptance by the Mortgagee of any security or of any payment of or on
account of the Indebtedness hereby secured maturing after any event of default
or of any payment on account of any past default be construed to be a waiver of
any right to exercise its remedies due to any future event of default or of any
past event of default not completely cured thereby.  No consent,
waiver or approval of the Mortgagee shall be deemed to be effective unless in
writing and duly signed by authorized signatories of the
Mortgagee;  any waiver by the Mortgagee of any of the terms of this
Deed or any consent given under this Deed shall only be effective for the
purpose and on the terms which it is given and shall be without prejudice to the
right to give or withhold consent in relation to future matters (which are
either the same or different).

         

        Section
9.    Cure of
Defaults.  If at any time after an event of default and prior
to the actual sale of the Vessel by the Mortgagee or prior to any enforcement or
foreclosure proceedings the Shipowner offers completely to cure all events of
default and to pay all expenses, advances and damages to the Mortgagee
consequent on such events of default, with interest at the interest rate set
forth in Section 1.07(b) of the Credit Agreement, then the Mortgagee may, but
shall not be obligated to, accept such offer and payment and restore the
Shipowner to its former position, but such action, if taken, shall not affect
any subsequent event of default or impair any rights consequent
thereon.

         

        Section
10.    Discontinuance of
Proceedings.  In case the Mortgagee shall have proceeded to
enforce any right, power or remedy under this Deed and the Mortgage by
foreclosure, entry or otherwise, and such proceedings shall have been
discontinued or abandoned for any reason or shall have been determined adversely
to the Mortgagee, then and in every such case the Shipowner and the Mortgagee
shall be restored to its former position and right hereunder with respect to the
property subject or intended to be subject to this Deed and the Mortgage, and
all rights, remedies and powers of the Mortgagee shall continue as if no such
proceedings had been taken.

         

        Section
11.    Application of
Proceeds.  After an event of default hereunder shall have
occurred and be continuing, the proceeds of any sale of the Vessel and any and
all other moneys received by the Mortgagee pursuant to or under the terms of
this Deed or in any proceedings hereunder, the application of which has not
elsewhere herein been specifically provided for, shall be applied as
follows:

         

        First:              To the
payment of all costs and expenses (together with interest thereon as set forth
in Section 14 of Article II) of the Mortgagee, including the reasonable
compensation of its agents and attorneys, by reason of any sale, retaking,
management or operation of the Vessel and all other sums payable to the
Mortgagee hereunder by reason of any expenses or liabilities incurred or
advances made by it for the protection, maintenance and enforcement of the
security or of any of its rights hereunder, under the Credit Agreement, the
Guaranty and under the other Credit Documents or in the pursuit of any remedy
hereby or thereby conferred;  and at the option of the Mortgagee to
the payment of any taxes, assessments or liens claiming priority over the lien
of the Mortgage; and

         

        Second:          To the
Pledgee (as defined in the Pledge Agreement) for its distribution in accordance
with the provisions of Section 9 of the Pledge Agreement; and

         

        Third:              To the
Shipowner or as may be directed by a court of competent
jurisdiction.

         

        Section
12.    Possession Until
Default.  Until one or more of the events of default
hereinafter described shall happen, the Shipowner (a) shall be suffered and
permitted to retain actual possession and use of the Vessel and (b) shall have
the right, from time to time, in its discretion, and without application or
notice to the Mortgagee, and without obtaining a release thereof by the
Mortgagee, to dispose of, free from the lien hereof, any boilers, engines,
machinery, masts, spars, sails, rigging, boats, anchors, chains, tackle,
apparel, furniture, fittings or equipment or any other appurtenances of the
Vessel that are no longer useful, necessary, profitable or advantageous in the
operation of the Vessel, first or simultaneously replacing the

         

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
L-1

        

         

         

        same by
new boilers, engines, machinery, masts, spars, sails, rigging, boats, anchors,
chains, tackle, apparel, furniture, fittings, equipment, or other appurtenances
of substantially equal value to the Shipowner, which shall forthwith become
subject to the lien of this Deed and the Mortgage.

         

        Section
13.    Severability of
Provisions. etc.  (a)  If any provision of this Deed
should be deemed invalid or shall be deemed to affect adversely the preferred
status of this Deed or the Mortgage under any applicable law, such provision
shall be void and of no effect and shall cease to be a part of this Deed without
affecting the remaining provisions, which shall remain in full force and
effect.

         

        (b)    In the
event that the Guaranty, this Deed, the Mortgage, any of the other Credit
Documents or any of the documents or instruments which may from time to time be
delivered thereunder or hereunder or any provision thereof or hereof shall be
deemed invalidated by present or future law of any nation or by decision of any
court, this shall not affect the validity and/or enforceability of all or any
other parts of the Guaranty, this Deed, the Mortgage, any of the other Credit
Documents or such documents or instruments and, in any such case, the Shipowner
covenants and agrees that, on demand, it will execute and deliver such other and
further agreements and/or documents and/or instruments and do such things as the
Mortgagee in its sole discretion may reasonably deem to be necessary to carry
out the true intent of this Deed, the Mortgage, the Guaranty and the other
Credit Documents.

         

        (c)    In the
event that the title, or ownership of the Vessel shall be requisitioned,
purchased or taken by any government of any country or any department, agency or
representative thereof, pursuant to any present or future law, proclamation,
decree order or otherwise, the lien of this Deed and the Mortgage shall be
deemed to attach to the claim for compensation therefor, and the compensation,
purchase or other taking of such title or ownership is hereby agreed to be
payable to the Mortgagee who shall be entitled to receive the same and shall pay
it to the Mortgagee who shall apply it as provided in Section 11 of this Article
III.  In the event of any such requisition, purchase or taking, and
the failure of the Mortgagee to receive proceeds as herein provided, the
Shipowner shall promptly execute and deliver to the Mortgagee such documents, if
any, as in the opinion of the Mortgagee may be necessary or useful to facilitate
or expedite the collection by the Mortgagee of such part of the compensation,
purchase price, reimbursement or award as is payable to it
hereunder.

         

        (d)    Anything
herein to the contrary notwithstanding, it is intended that nothing herein shall
waive the priority status of this Deed and the Mortgage, and if any provision of
this Deed or portion thereof shall be construed to waive the priority status of
this Deed or the Mortgage, then such provision to such extent shall be void and
of no effect.

         

        ARTICLE
IV

         

        Sundry
Provisions

         

        Section
1.    Successors and
Assigns.  All of the covenants, promises, stipulations and
agreements of the Shipowner in this Deed contained shall bind the Shipowner and
its successors and shall inure to the benefit of the Mortgagee and its
successors and assigns.  In the event of any assignment or transfer of
this Deed, the term “Mortgagee”, as used in this Deed, shall be deemed to mean
any such assignee or transferee.

         

        Section
2.    Power of
Substitution.  Wherever and whenever herein any right, power or
authority is granted or given to the Mortgagee, such right, power or authority
may be exercised in all cases by the Mortgagee or such agent or agents as it may
appoint, and the act or acts of such agent or agents when taken shall constitute
the act of the Mortgagee hereunder.

         

         

        
          
            
            

          

          
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          EXHIBIT
L-1

        

         

         

         

        Section
3.    Counterparts.  This
Deed may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one and the same
instrument.

         

        Section
4.    Notices.  Except
as otherwise expressly provided herein, all notices and other communications
provided for hereunder shall be in writing (including telexed, telegraphic,
telex, telecopier or cable communication) and mailed, telexed, telecopied,
cabled or delivered, if to the Shipowner or to the Mortgagee, at its address as
specified below, or at such other address as shall be designated by such party
in a written notice to the other party:

         

        If to the
Shipowner, addressed to it in care of:

         

        Genco
Ship Management LLC

        299 Park
Avenue, 20th Floor

        New York,
NY 10171

        USA

        Telephone:     646-443-8525

        Facsimile:        646-443-8551

        Email:               finance@gencoshipping.com

         

        If to the
Mortgagee, addressed to it:

         

        Nordea
Bank Finland Plc, New York branch

        437
Madison Avenue, 21st Floor

        New York,
NY 10022

        Attention:    Colleen
M. Durkin

        Telephone:  212-318-9636

        Facsimile:     212-421-4420

         

        All such
notices and communications shall, (i) when mailed, be effective three Business
Days after being deposited in the mails, prepaid and properly addressed for
delivery, (ii) when sent by overnight courier, be effective one Business Day
after delivery to the overnight courier prepaid and properly addressed for
delivery on such next Business Day, or (iii) when sent by telex or telecopier,
be effective when sent by telex or telecopier, except that notices and
communications to the Mortgagee shall not be effective until received by the
Mortgagee.

         

        Section
5.    Statutory
Mortgage.  This Deed accompanies and is to be read with and
forms part of the Mortgage dated the date hereof and shall be effective from the
date hereof.

         

        Section
6.    Further
Assurances.  The Shipowner shall execute and do all such
assurances, acts and things as the Mortgagee, or any receiver in its absolute
discretion may require for:

         

        (a)    perfecting
or protecting the security created (or intended to be created) by this Deed and
the Mortgage; or

         

        (b)    preserving
or protecting any of the rights of the Mortgagee under this Deed and the
Mortgage (or any of them); or

         

        (c)    ensuring
that the security constituted by this Deed and the Mortgage and the covenants
and obligations of the Shipowner under this Deed shall endure to the benefit of
assignees of the Mortgagee (or any of them); or

         

         

         

        
          
            
            

          

          
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          EXHIBIT
L-1

        

         

         

        (d)    facilitating
the appropriation or realization of the Vessel or any part thereof and enforcing
the security constituted by this Deed and the Mortgage on or at any time after
the same shall have become enforceable; or

         

        (e)    the
exercise of any power, authority or discretion vested in the Mortgagee under
this Deed and the Mortgage (or any of them),

         

        in any
such case, forthwith upon demand by the Mortgagee and at the expense of the
Shipowner.

         

        Section
7.    Governing
Law.  The provisions of this Deed shall, with respect to its
validity, effect, recordation and enforcement, be governed by and construed in
accordance with the applicable laws of Hong Kong.

         

        Section
8.    Additional Rights of the
Mortgagee.  In the event the Mortgagee shall be entitled to
exercise any of its remedies under Article III hereof, the Mortgagee shall have
the right to arrest and take action against the Vessel at whatever place the
Vessel shall be found lying and for the purpose of any action which the
Mortgagee may bring before the Courts of such jurisdiction or other judicial
authority and for the purpose of any action which the Mortgagee may bring
against the Vessel, any writ, notice, judgment or other legal process or
documents may (without prejudice to any other method of service under applicable
law) be served upon the Master of the Vessel (or upon anyone acting as the
Master) and such service shall be deemed good service on the Shipowner for all
purposes.

         

        

         

        [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

         

         

         

        
          
            
            

          

          
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          EXHIBIT
L-1

           

           

        

         

        IN
WITNESS WHEREOF, the Shipowner has caused this Deed of Covenants to be duly
executed by its authorized representative the day and year first above
written.

         

        

        SIGNED,
SEALED and DELIVERED by

        [                                                ]

        for and
on behalf of

        [NAME OF
SHIPOWNER]

        

        

        

        

        

        

        NORDEA
BANK FINLAND PLC,

        acting
through its New York branch,

        as
Security Trustee,

        

        

        

        By:  ____________________

        Name:

        Title:

        

        
 

      

      20

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT L-2

      
        

        

        

        

        

        

        FORM
OF

        FIRST
PREFERRED SHIP MORTGAGE

        

        

        ON
MARSHALL ISLANDS FLAG VESSEL

        

        

        [VESSEL
NAME]

        OFFICIAL
NO. [OFFICIAL NUMBER]

        

        

        executed
by

        

        

        [SHIPOWNER],

        as
Shipowner

        

        

        in favor
of

        

        

        NORDEA
BANK FINLAND PLC,

        acting
through its New York branch,

        as
Security Trustee and as Mortgagee

        

        

        

        

        

        [DATE]

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT L-2

        

         

         

         

        TABLE OF
CONTENTS

         

        
          	 	 	Page
	 	 	 
	
                  ARTICLE I

                	
                  Representations
      and Warranties of the Shipowner 

                	
                  4

                

        

         

        
          	
                   
      

                	
                  Section
      1.

                	
                  Existence:
      Authorization 

                	
                  4

                

        

        
          	
                   
      

                	
                  Section
      2.

                	
                  Title
      to Vessel

                	
                  4

                

        

        
          	
                   
      

                	
                  Section
      3.

                	
                  ISM,
      ISPS and MARPOL Compliance

                	
                  4

                

        

         

        
          	
                  ARTICLE
      II

                	
                  Covenants
      of the Shipowner 

                	
                  4

                

        

         

        
          	
                   
      

                	
                  Section
      1.

                	
                  Payment
      of Indebtedness 

                	
                  4

                

        

        
          	
                   
      

                	
                  Section
      2.

                	
                  Mortgage
      Recording 

                	
                  5

                

        

        
          	
                   
      

                	
                  Section
      3.

                	
                  Lawful
      Operation 

                	
                  5

                

        

        
          	
                   
      

                	
                  Section
      4.

                	
                  Payment
      of Taxes 

                	
                  5

                

        

        
          	
                   
      

                	
                  Section
      5.

                	
                  Prohibition
      of Liens 

                	
                  5

                

        

        
          	
                   
      

                	
                  Section
      6.

                	
                  Notice
      of Mortgage 

                	
                  5

                

        

        
          	
                   
      

                	
                  Section
      7.

                	
                  Removal
      of Liens 

                	
                  6

                

        

        
          	
                   
      

                	
                  Section
      8.

                	
                  Release
      from Arrest 

                	
                  6

                

        

        
          	
                   
      

                	
                  Section
      9.

                	
                  Maintenance 

                	
                  6

                
	 	
                  Section
      10.

                	Inspection;
      Reports 	9
	 	
                  Section
      11.

                	Flag;
      Home Port 	10 
	 	
                  Section
      12.

                	No
      Sales, Transfers or Charters 	10 
	 	
                  Section
      13.

                	Insurance 	10 
	 	
                  Section
      14.

                	Reimbursement
      for Expenses 	14 
	 	
                  Section
      15.

                	Performance
      of Charters 	14 
	 	
                  Section
      16.

                	Change
      in Ownership 	14 
	 	
                  Section
      17.

                	Prepayment
      if Event of Loss 	14 

        

        
        

        
        

        
        

        
        

        
        

        
        

        
        

        
        

         

        
          	
                  ARTICLE
      III    Events of
      Default and Remedies

                	 	
                  15

                

        

         

        
          	
                   
      

                	
                  Section
      1.

                	
                  Events
      of Default; Remedies 

                	
                  15

                

        

        
          	
                   
      

                	
                  Section
      2.

                	
                  Power
      of Sale 

                	
                  17

                

        

        
          	
                   
      

                	
                  Section
      3.

                	
                  Power
      of Attorney-Sale 

                	
                  17

                

        

        
          	
                   
      

                	
                  Section
      4.

                	
                  Power
      of Attorney-Collection 

                	
                  17

                

        

        
          	
                   
      

                	
                  Section
      5.

                	
                  Delivery
      of Vessel 

                	
                  18

                

        

        
          	
                   
      

                	
                  Section
      6.

                	
                  Mortgagee
      to Discharge Liens 

                	
                  18

                

        

        
          	
                   
      

                	
                  Section
      7.

                	
                  Payment
      of Expenses 

                	
                  18

                

        

        
          	
                   
      

                	
                  Section
      8.

                	
                  Remedies
      Cumulative 

                	
                  19

                

        

        
          	
                   
      

                	
                  Section
      9.

                	
                  Cure
      of Defaults 

                	
                  19

                
	 	
                  Section
      10.

                	Discontinuance
      of Proceedings	19 
	 	Section
      11.	Application
      of Proceeds	19
	 	Section
      12.	Possession
      Until Default	20
	 	Section
      13.	Severability
      of Provisions, etc	20
	 	 	 	 

        

        
        

        
        

        
        

        
        

         

        
          	
                  ARTICLE
      IV    Sundry
      Provisions

                	 	
                  21

                

        

         

        
          	
                   
      

                	
                  Section
      1.

                	
                  Successors
      and Assigns 

                	
                  21

                

        

        
          	
                   
      

                	
                  Section
      2.

                	
                  Power
      of Substitution 

                	
                  21

                

        

        
          	
                   
      

                	
                  Section
      3.

                	
                  Counterparts 

                	
                  21

                

        

        
          	
                   
      

                	
                  Section
      4.

                	
                  Notices 

                	
                  21

                

        

        
          	
                   
      

                	
                  Section
      5.

                	
                  Recording:
      Clause 

                	
                  22

                

        

        
          	
                   
      

                	
                  Section
      6.

                	
                  Further
      Assurances 

                	
                  22

                

        

        
          	
                   
      

                	
                  Section
      7.

                	
                  Governing
      Law 

                	
                  23

                

        

        
          	
                   
      

                	
                  Section
      8.

                	
                  Additional
      Rights of the Mortgagee 

                	
                  23

                

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT L-2

        

         

         

         

        FIRST
PREFERRED MORTGAGE

         

        [VESSEL
NAME]

         

        This
First Preferred Ship Mortgage made [DATE] (this “Mortgage”), by
[SHIPOWNER], a corporation organized and existing pursuant to the law of the
Republic of the Marshall Islands (the “Shipowner”), in favor
of NORDEA BANK FINLAND PLC, acting through its New York branch, with offices at
437 Madison Avenue, New York, New York 10022 as security trustee (in such
capacity, the “Security Trustee”,
together with its successors in trust and assigns, the “Mortgagee”), pursuant
to the Credit Agreement referred to below.

         

        W I T N E
S S E T H

         

        WHEREAS:

         

        A.    The
Shipowner is the sole owner of the whole of the Marshall Islands flag vessel
[VESSEL NAME], Official Number [OFFICIAL NUMBER] of [GROSS TONS] gross tons and
[NET TONS] net tons built in [YEAR BUILT] at [YARD AND LOCATION BUILT], with her
home port at Majuro, Marshall Islands.

         

        B.    Genco
Shipping & Trading Limited, a Marshall Islands corporation (the “Borrower”), the
Lenders party thereto from time to time (including, but not limited to, Deutsche
Schiffsbank Aktiengesellschaft), the Mortgagee, as mandated lead arranger,
bookrunner, administrative agent (in such capacity, the “Administrative
Agent”) and collateral agent (in such capacity, the “Collateral Agent”),
have entered into a Credit Agreement dated as of September 4, 2008 (as the same
may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”),
providing a senior secured credit facility to the Borrower in the principal
amount of up to Three Hundred Twenty Million United States Dollars
(U.S.$320,000,000) (the “Facility”) (the
Lenders, the Administrative Agent and Collateral Agent, collectively, the “Lender
Creditors”).  A copy of the form of the Credit Agreement
(without attachments) is attached hereto as Exhibit A and made a part
hereof.  A copy of the Note is attached hereto as Exhibit B and made a
part hereof.  Except as otherwise defined herein, capitalized terms
used herein and defined in the Credit Agreement shall be used herein as so
defined.

         

        C.    The
Borrower may at any time and from time to time enter into, or guaranty the
obligations of one or more Subsidiary Guarantors or any of their respective
Subsidiaries under, one or more Interest Rate Protection Agreements or Other
Hedging Agreements with respect to the Facility (and/or the Commitments) with
one or more Lenders or any Affiliate thereof (each such Lender or Affiliate,
even if the respective Lender subsequently ceases to be a Lender under the
Credit Agreement for any reason, together with such Lender’s or Affiliate’s
successors and assigns, if any, collectively, the “Other Creditors” and,
together with the Lender Creditors, the “Secured
Creditors”).  The estimated aggregate notional amount of the
liabilities of the Borrower under the Interest Rate Protection Agreements or
Other Hedging Agreements entered into with respect to the Facility (and/or the
Commitments) is [         ] United
States Dollars (U.S.$[       ]) (the “Hedging
Liabilities”).

         

        D.    The
Shipowner is a wholly-owned subsidiary of the Borrower.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT L-2

        

         

         

        E.    The
Shipowner entered into the Guaranty in favor of the Secured Creditors pursuant
to which the Shipowner has guaranteed (i) to the Lender Creditors all
obligations of the Borrower under the Credit Agreement and each other Credit
Document to which the Borrower is a party, and (ii) to each of the Other
Creditors, all obligations of the Borrower under each Interest Rate Protection
Agreement and each Other Hedging Agreement entered into with respect to the
Facility (and/or the Commitments).  A copy of the form of the Guaranty
is attached hereto as Exhibit C and made a part hereof.  The Lenders
have made the Facility available to the Borrower pursuant to the Credit
Agreement;  the Shipowner acknowledges that it is justly indebted to
the Secured Creditors under the Guaranty.

         

        F.    In order
to secure its obligations under the Guaranty according to the terms thereof, and
the payment of all other such sums that may hereinafter be secured by this
Mortgage in accordance with the terms hereof, and to secure the performance and
observance of and compliance with all the agreements, covenants and conditions
contained herein and in the Guaranty, the Shipowner has duly authorized the
execution and delivery of this First Preferred Mortgage under Chapter 3 of the
Marshall Islands Maritime Act 1990 as amended.

         

        G.    Pursuant
to the Credit Agreement, the Mortgagee has agreed to act as Security Trustee for
the Secured Creditors.

         

        NOW,
THEREFORE, in consideration of the premises and other good and valuable
consideration, and in order to secure the Shipowner’s obligations under the
Guaranty according to the terms thereof, and the payment of all other sums that
may hereafter be secured by this Mortgage in accordance with the terms hereof
(all such obligations and other sums hereinafter called the “Indebtedness hereby
secured”) and to secure the performance and observance of and compliance
with all of the agreements, covenants and conditions contained in this Mortgage
and the Guaranty, the Shipowner has granted, conveyed, mortgaged, pledged,
confirmed, assigned, transferred and set over and by these presents does grant,
convey, mortgage, pledge, confirm, assign, transfer and set over, unto the
Mortgagee, and its successors and assigns, the whole of the said vessel [VESSEL
NAME], including, without being limited to, all of the boilers, engines,
machinery, masts, spars, boats, anchors, cables, chains, fuel (to the extent
owned by the Shipowner), rigging, tackle, capstans, outfit, tools, pumps and
pumping equipment, apparel, furniture, drilling equipment, fittings, equipment,
spare parts, and all other appurtenances thereunto appertaining or belonging,
whether now owned or hereafter acquired, and also any and all additions,
improvements, renewals and replacements hereafter made in or to such vessel or
any part thereof, including all items and appurtenances aforesaid (such vessel,
together with all of the foregoing, being herein called the “Vessel”).

         

        TO HAVE
AND TO HOLD all and singular the above mortgaged and described property unto the
Mortgagee and its successors and assigns, to its and to its successors’ and
assigns’ own use, benefit and behoof forever.

         

        PROVIDED,
and these presents are upon the condition, that, if the Shipowner or its
successors or assigns shall pay or cause to be paid the Indebtedness hereby
secured as and when the same shall become due and payable in accordance with the
terms of the Guaranty and this Mortgage, and all other such sums as may
hereafter become secured by this Mortgage in accordance with the terms hereof,
and the Shipowner shall duly perform, observe and comply with

         

         

        
          
            
            

          

          
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        EXHIBIT L-2

         

         

         

        or cause
to be performed, observed, or complied with all the covenants, terms and
conditions of this Mortgage and the Guaranty expressed or implied, to be
performed, then this Mortgage and the estate and rights hereunder shall cease,
determine and be void, otherwise to remain in full force and
effect.

         

        The
Shipowner, for itself, its successors and assigns, hereby covenants, declares
and agrees with the Mortgagee and its successors and assigns that the Vessel is
to be held subject to the further covenants, conditions, terms and uses
hereinafter set forth.

         

        The
Shipowner covenants and agrees with the Mortgagee as follows:

         

        ARTICLE
I

         

        Representations
and Warranties of the Shipowner

         

        Section
1.    Existence:
Authorization.  The Shipowner is a corporation duly organized,
validly existing and in good standing under the laws of the Republic of the
Marshall Islands and shall so remain during the life of this
Mortgage.  The Shipowner has full power and authority to own and
mortgage the Vessel; has full right and entitlement to register the Vessel in
its name under the flag of the Republic of the Marshall Islands and all action
necessary and required by law for the execution and delivery of this Mortgage
has been duly and effectively taken; and each of the Indebtedness hereby secured
and this Mortgage is and will be the legal, valid and binding obligation of the
Shipowner enforceable in accordance with its terms.

         

        Section
2.    Title to
Vessel.  The Shipowner lawfully owns and is lawfully possessed
of the Vessel free from any lien or encumbrance whatsoever other than this
Mortgage, liens for current crew’s wages and liens not yet required to be
removed under Section 7 of Article II hereof and will warrant and defend the
title and possession thereto and to every part thereof for the benefit of the
Mortgagee against the claims and demands of all persons whomsoever.

         

        Section
3.    ISM, ISPS and MARPOL
Compliance.  The Shipowner has obtained all necessary ISM
Documentation in connection with the Vessel and is in full compliance with the
ISM Code, the ISPS Code and Annex VI (Regulations for the Prevention of Air
Pollution from Ships) to MARPOL (as such terms are defined in Section 9 of
Article II).

         

        ARTICLE
II

         

        Covenants
of the Shipowner

         

        Section
1.    Payment of
Indebtedness.  The Shipowner will pay or cause to be paid the
Indebtedness hereby secured and will observe, perform and comply with the
covenants, terms and conditions herein and in the Guaranty, express or implied,
on its part to be observed, performed or complied with. In the event of
inconsistency between this Mortgage and the Guaranty, the provisions of this
Mortgage shall prevail but only to the extent required by Marshall Islands
law.

         

        The
obligation of the Indebtedness hereby secured is an obligation in United States
Dollars and the term “US$” when used herein
shall mean such United States Dollars.  Notwithstanding

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

         

        fluctuations
in the value or rate of United States Dollars in terms of gold or any other
currency, all payments hereunder or otherwise in respect of the Indebtedness
hereby secured shall be payable in terms of United States Dollars when due, in
United States Dollars when paid, whether such payment is made before or after
the due date.

         

        Section
2.    Mortgage
Recording.  The Shipowner will cause this Mortgage to be duly
recorded or filed in the Office of the Deputy Commissioner of Maritime Affairs
of the Republic of the Marshall Islands, in accordance with the provisions of
Chapter 3 of the Republic of the Marshall Islands Maritime Act of 1990, as
amended, and will otherwise comply with and satisfy all of the provisions of
applicable laws of the Republic of the Marshall Islands in order to establish
and maintain this Mortgage as a first preferred mortgage thereunder upon the
Vessel and upon all renewals, replacements and improvements made in or to the
same for the amount of the Indebtedness hereby secured.

         

        Section
3.    Lawful
Operation.  The Shipowner will not cause or permit the Vessel
to be operated in any manner contrary to law, and the Shipowner will not engage
in any unlawful trade or violate any law or carry any cargo that will expose the
Vessel to penalty, forfeiture or capture, and will not do, or suffer or permit
to be done, anything which can or may injuriously affect the registration of the
Vessel under the laws and regulations of the Republic of the Marshall Islands
and will at all times keep the Vessel duly documented thereunder.

         

        Section
4.    Payment of
Taxes.  The Shipowner will pay and discharge when due and
payable, from time to time, all taxes, assessments, governmental charges, fines
and penalties lawfully imposed on the Vessel or any income
therefrom.

         

        Section
5.    Prohibition of
Liens.  Neither the Shipowner, any charterer, the Master of the
Vessel nor any other person has or shall have any right, power or authority to
create, incur or permit to be placed or imposed or continued upon the Vessel,
its freights, profits or hire any lien whatsoever other than this Mortgage,
other liens in favor of the Mortgagee and for crew’s wages and
salvage.

         

        Section
6.    Notice of
Mortgage.  The Shipowner will place, and at all times and
places will retain a properly certified copy of this Mortgage on board the
Vessel with her papers and will cause such certified copy and the Vessel’s
marine document to be exhibited to any and all persons having business therewith
which might give rise to any lien thereon other than liens for crew’s wages and
salvage, and to any representative of the Mortgagee.

         

        The
Shipowner will place and keep prominently displayed in the chart room and in the
Master’s cabin on the Vessel a framed printed notice in plain type reading as
follows:

         

        NOTICE OF
MORTGAGE

         

        THIS
VESSEL IS OWNED BY [SHIPOWNER], AND IS SUBJECT TO A FIRST PREFERRED MORTGAGE IN
FAVOR OF NORDEA BANK FINLAND PLC, ACTING THROUGH ITS NEW YORK BRANCH, AS
SECURITY TRUSTEE/MORTGAGEE UNDER AUTHORITY OF CHAPTER 3 OF THE MARSHALL ISLANDS
MARITIME ACT 1990, AS

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        AMENDED.  UNDER
THE TERMS OF SAID MORTGAGE, NEITHER THE SHIPOWNER, ANY CHARTERER, THE MASTER OF
THE VESSEL, NOR ANY OTHER PERSON HAS ANY RIGHT, POWER OR AUTHORITY TO CREATE,
INCUR OR PERMIT TO BE PLACED OR IMPOSED UPON THE VESSEL, ANY ENCUMBRANCES
WHATSOEVER OR ANY OTHER LIEN WHATSOEVER OTHER THAN FOR CREW’S WAGES AND
SALVAGE.

         

        Section
7.    Removal of
Liens.  Except for the lien of this Mortgage, the Shipowner
will not suffer to be continued any lien, encumbrance or charge on the Vessel,
and in due course and in any event within thirty (30) days after the same
becomes due and payable or within fourteen (14) days after being requested to do
so by the Mortgagee, the Shipowner will pay or cause to be discharged or make
adequate provision for the satisfaction or discharge of all claims or demands,
and will cause the Vessel to be released or discharged from any lien,
encumbrance or charge therefor.

         

        Section
8.    Release from
Arrest.  If a libel, complaint or similar process be filed
against the Vessel or the Vessel be otherwise attached, levied upon or taken
into custody by virtue of any legal proceeding in any court, the Shipowner will
promptly notify the Mortgagee thereof by telex, or telefax confirmed by letter,
at the address, as specified in this Mortgage, and within fourteen (14) days
will cause the Vessel to be released and all liens thereon other than this
Mortgage to be discharged, will cause a certificate of discharge to be recorded
in the case of any recording of a notice of claim of lien, and will promptly
notify the Mortgagee thereof in the manner aforesaid.  The Shipowner
will notify the Mortgagee within forty-eight (48) hours of any average or
salvage incurred by the Vessel.

         

        Section
9.    Maintenance.  (a)
The Shipowner will at all times and without cost or expense to the Mortgagee
maintain and preserve, or cause to be maintained and preserved, the Vessel and
all its equipment, outfit and appurtenances, tight, staunch, strong, in good
condition, working order and repair and in all respects seaworthy and fit for
its intended service, and will keep the Vessel, or cause her to be kept, in such
condition as will entitle her to the highest classification and rating for
vessels of the same age and type in the American Bureau of Shipping or other
classification society listed on Schedule VIII to the Credit
Agreement.  The Shipowner covenants to deliver annually to the
Mortgagee a certificate from such class society showing such classification to
be maintained.  The Shipowner will without cost or expense to the
Mortgagee promptly, irrevocably and unconditionally instruct and authorize the
classification society of the Vessel, and shall request the classification
society to give an undertaking to the Mortgagee as follows:

         

        1.    to send
to the Mortgagee, following receipt of a written request from the Mortgagee,
certified true copies of all original class records held by the classification
society relating to the Vessel;

         

        2.    to allow
the Mortgagee (or its agents), at any time and from time to time, to inspect the
original class and related records of the Shipowner and the Vessel at the
offices of the classification society and to take copies of them;

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        3.    following
receipt of a written request from the Mortgagee:

         

        (a)    to advise
of any facts or matters which may result in or have resulted in a change,
suspension, discontinuance, withdrawal or expiry of the Vessel’s class under the
rules or terms and conditions of the Shipowner’s or the Vessel’s membership of
the classification society; and

         

        (b)    to
confirm that the Shipowner is not in default of any of its contractual
obligations or liabilities to the classification society and, without limiting
the foregoing, that it has paid in full all fees or other charges due and
payable to the classification society; and

         

        (c)    if the
Shipowner is in default of any of its contractual obligations or liabilities to
the classification society, to specify to the Mortgagee in reasonable detail the
facts and circumstances of such default, the consequences thereof, and any
remedy period agreed or allowed by the classification society; and

         

        (d)    to notify
the Mortgagee immediately in writing if the classification society receives
notification from the Shipowner or any other person that the Vessel’s
classification society is to be changed.

         

        Notwithstanding
the above instructions and undertaking given for the benefit of the Mortgagee,
the Shipowner shall continue to be responsible to the classification society for
the performance and discharge of all its obligations and liabilities relating to
or arising out of or in connection with the contract it has with the
classification society, and nothing herein or therein shall be construed as
imposing any obligation or liability of the Mortgagee to the classification
society in respect thereof.

         

        The
Shipowner shall further notify the classification society that all the foregoing
instructions and authorizations shall remain in full force and effect until
revoked or modified by written notice to the classification society received
from the Mortgagee, and that the Shipowner shall reimburse the classification
society for all its costs and expenses incurred in complying with the foregoing
instructions.

         

        (a)    The
Vessel shall, and the Shipowner covenants that she will, at all times comply
with all applicable laws, treaties and conventions to which the Republic of the
Marshall Islands is a party, and rules and regulations issued thereunder, and
shall have on board as and when required thereby valid certificates showing
compliance therewith.  The Shipowner will not make, or permit to be
made, any substantial change in the structure, type or speed of the Vessel or
change in her rig, without first receiving the written approval thereof by the
Mortgagee.

         

        (b)    The
Shipowner agrees to give the Mortgagee at least ten (10) days notice of the
actual date and place of any survey or drydocking, in order that the Mortgagee
may have representatives present if desired.  The Shipowner agrees
that at the Mortgagee’s request it will satisfy the Mortgagee that the expense
of such survey or drydocking or work to be done thereat is within Shipowner’s
financial capability and will not result in a claim or lien against the Vessel
in violation of the provisions of this Mortgage, the Credit Agreement, the
Guaranty or any other Credit Document.

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

         

        (c)    The
Shipowner shall promptly notify the Mortgagee of and furnish the Mortgagee with
full information, including copies of reports and surveys, regarding any
material accident or accident involving repairs where the aggregate cost is
likely to exceed Two Million Five Hundred Thousand Dollars (U.S. $2,500,000) (or
its equivalent in another currency), any major damage to the Vessel, any event
affecting the Vessel’s class, any occurrence in consequence whereof the Vessel
has become or is likely to suffer an Event of Loss.

         

        (d)    The
Mortgagee shall have the right at any time, on reasonable notice, to have its
surveyor conduct inspections and surveys of the Vessel to ascertain the
condition of the Vessel and to satisfy itself that the Vessel is being properly
repaired and maintained.  Such inspections and surveys shall be
conducted at such times and in such manner as will not interfere with the
Shipowner’s normal business operations and schedule.

         

        (e)    The
Shipowner will furnish to the Mortgagee on demand true and complete copies of
the DOC (the SMC referred to in the definition of ISM Code Documentation below)
and such other ISM Code documentation as the Mortgagee may reasonably request in
writing.

         

        (f)    The
Shipowner will comply or procure compliance with the ISM Code, the ISPS Code and
Annex VI (Regulations for the Prevention of Air Pollution from Ships) to MARPOL
(as such terms are defined below) and notify the Mortgagee forthwith
upon:

         

        (i)    any claim
for breach of the ISM Code or the ISPS Code being made against the Shipowner, an
ISM Responsible Person (as such term is defined below) or the manager of the
Vessel in connection with the Vessel; or

         

        (ii)    any other
matter, event or incident, actual or which will or could lead to the ISM Code or
the ISPS Code or Annex VI (Regulations for the Prevention of Air Pollution from
Ships) to MARPOL not being complied with;

         

        and keep
the Mortgagee advised in writing on a regular basis and in such detail as the
Mortgagee shall require, of the Shipowner’s and Vessel manager’s response to the
items referred to in subclauses (i) and (ii) above.

         

        For the
purposes of this Mortgage:

         

        “ISM Code” means in
relation to its application the Shipowner, the Vessel and its
operation:

         

        (g)    ‘The
International Management Code for the Safe Operation of Ships and for Pollution
Prevention’, currently known or referred to as the ‘ISM Code’, adopted by the
Assembly of the International Maritime Organization by Resolution A.741(18) on 4
November 1993 and incorporated on 19 May 1994 into Chapter IX of the
International Convention for the Safety of Life at Sea 1974 (SOLAS 1974);
and

         

        (h)    all
further resolutions, circulars, codes, guidelines, regulations and
recommendations which are now or in the future issued by or on behalf of the
International Maritime Organization or any other entity with responsibility
for

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        implementing
the ISM Code, including without limitation, the ‘Guidelines on implementation or
administering of the International Safety Management (ISM) Code by
Administrations’ produced by the International Maritime Organization pursuant to
Resolution A.788(19) adopted on 25 November 1995,

         

        as the
same may be amended, supplemented or replaced from time to time;

         

        “ISM Code
Documentation” includes:

         

        (a)    the
document of compliance (“DOC”) and safety
management certificate (“SMC”) issued pursuant
to the ISM Code in relation to the Vessel within the periods specified by the
ISM Code;

         

        (b)    the
interim safety management certificate (“Interim SMC”) issued
pursuant to the ISM Code in relation to the Vessel prior to or on the delivery
date thereof;

         

        (c)    all other
documents and data which are relevant to the ISM SMS and its implementation and
verification which the mortgage may require by request; and

         

        (d)    any other
documents which are prepared or which are otherwise relevant to establish and
maintain the Vessel’s or the Shipowner’s compliance with the ISM Code which the
Mortgagee may require by request.

         

        “ISM SMS” means the
safety management system which is required to be developed, implemented and
maintained under the ISM Code.

         

        “ISPS Code” means the
International Ship and Port Facility Security Code constituted pursuant to
resolution A.924(22) of the International Maritime Organisation (“IMO”) adopted by a
Diplomatic conference of the IMO on Maritime Security on 13 December 2002 and
now set out in Chapter XI-2 of the Safety of Life at Sea Convention (SOLAS) 1974
(as amended) adopted on July 1, 2004.

         

        “MARPOL” means the
International Convention for the Prevention of Pollution from Ships 1973 (as
modified in 1978 and 1997) and includes any amendments or extensions of it and
any regulation issued pursuant to it.

         

        Section
10.    Inspection;
Reports.  (a) The Shipowner will at all reasonable times afford
the Mortgagee or its authorized representatives full and complete access to the
Vessel for the purpose of inspecting the Vessel and her cargo and papers,
including without limitation all records pertaining to the Vessel’s maintenance
and repair, and, at the request of the Mortgagee, the Shipowner will deliver for
inspection copies of any and all contracts and documents relating to the Vessel,
whether on board or not.

         

        (b)    The
Shipowner hereby agrees to furnish promptly to the Mortgagee, on demand, any
reports or information which the Shipowner may submit to shareholders or
regulatory

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        agencies
and any additional information which the Mortgagee may request in respect of the
financial condition of the Shipowner.

         

        Section
11.    Flag; Home
Port.  (a) The Shipowner will not change the flag or home port
of the Vessel without the written consent of the Mortgagee and any such written
consent to anyone change of flag or home port shall not be construed to be a
waiver of this provision with respect to any subsequent proposed change of flag
or home port.

         

        (b)    Notwithstanding
the foregoing provisions of this Section 11, upon not less than 30 days prior
written notice to the Mortgagee, provided no Default or Event of Default under
the Credit Agreement shall have occurred and be continuing, the Shipowner may
change the flag or home port of the Vessel to another flag or home port
reasonably satisfactory to the Mortgagee, provided that the Shipowner shall
promptly take all actions necessary or desirable to establish, preserve, protect
and maintain the security interest of the Mortgagee in the Vessel to the
satisfaction of the Mortgagee, and the Shipowner shall have provided to the
Mortgagee and the Lenders such opinions of counsel as may be reasonably
requested by the Mortgagee to assure itself that the conditions of this proviso
have been satisfied.

         

        Section
12.    No Sales, Transfers or
Charters.  The Shipowner will not sell, mortgage, transfer, or
change the management of, or demise charter the Vessel for any period longer
than twelve (12) months (including any permitted extensions or renewals) in each
case, without the written consent of the Mortgagee (not to be unreasonably
withheld) first had and obtained, and any such written consent to any one sale,
mortgage, demise charter, transfer, or change of management shall not be
construed to be a waiver of this provision with respect to any subsequent
proposed sale, mortgage, demise charter, transfer, or change of
management.  Any such sale, mortgage, demise charter, transfer, or
change of management of the Vessel shall be subject to the provisions of this
Mortgage and the lien hereof.

         

        Section
13.    Insurance.  (a)
The Shipowner, at its own expense, or with respect to part (a)(iii) of this
Section 13 the Mortgagee at the expense of the Shipowner, will keep the Vessel
insured with insurers and protection and indemnity clubs or associations of
internationally recognized responsibility, and placed in such markets, on such
terms and conditions, and through brokers, in each case reasonably satisfactory
to the Mortgagee and under forms of policies approved by the Mortgagee against
the risks indicated below and such other risks as the Mortgagee may specify from
time to time:

         

        (i)    Marine
and war risk, including London Blocking and Trapping Addendum and Lost Vessel
Clause, hull and machinery insurance in an amount in U.S. dollars equal to,
except as otherwise approved or required in writing by the Mortgagee, the
greater of (x) the then full commercial value of the Vessel or (y) an amount
which, when aggregated with such insured value of the other Vessels (if the
other Vessels are then subject to a mortgage in favor of the Mortgagee under the
Credit Agreement, and have not suffered an Event of Loss), is equal to 120% of
the then outstanding aggregate principal amount of the Facility whether used or
unused.

         

        (ii)    Marine
and war risk protection and indemnity insurance or equivalent insurance
(including coverage against liability for passengers, fines and penalties
arising

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

         

        out of
the operation of the Vessel, insurance against liability arising out of
pollution, spillage or leakage, and workmen’s compensation or longshoremen’s and
harbor workers’ insurance as shall be required by applicable law) in such
amounts approved by the Mortgagee;  provided, however that insurance
against liability under law or international convention arising out of
pollution, spillage or leakage shall be in an amount not less than the greater
of:

         

        (y)           the
maximum amount available, as that amount may from time to time change, from the
International Group of Protection and Indemnity Associations or alternatively
such sources of pollution, spillage or leakage coverage as are commercially
available in any absence of such coverage by the International Group as shall be
carried by prudent shipowners for similar vessels engaged in similar trades plus
amounts available from customary excess insurers of such risks as excess amounts
shall be carried by prudent shipowners for similar vessels engaged in similar
trades; and

         

        (z)           the
amounts required by the laws or regulations of the United States of America or
any applicable jurisdiction in which the Vessel may be trading from time to
time.

         

        (iii) Mortgagee’s
interest insurance (including extended mortgagee interest-additional
perils-pollution) coverage satisfactory to the Mortgagee in an amount which,
when aggregated with such insured value of the other Vessels (if the other
Vessels are then subject to a mortgage in favor of the Mortgagee under the
Credit Agreement, and have not suffered an Event of Loss), is equal to 110% of
the then outstanding aggregate principal amount of the Loan.  All such
mortgagee’s interest insurance cover shall in the Mortgagee’s discretion be
obtained directly by the Mortgagee and the Shipowner shall on demand pay all
costs of such cover.

         

        (iv)    While the
Vessel is idle or laid up, at the option of the Shipowner and in lieu of the
above-mentioned marine and war risk hull insurance, port risk insurance insuring
the Vessel against the usual risks encountered by like vessels under similar
circumstances.

         

        (b)    The
marine and commercial war-risk insurance required by this Section 13 shall have
deductibles and franchises not exceeding those that a reasonable prudent owner
would agree for a vessel of the type, age and condition of the
Vessel.

         

        All
insurance maintained hereunder shall be primary insurance without right of
contribution against any other insurance maintained by the
Mortgagee.  Each policy of marine and war risk hull and machinery
insurance with respect to the Vessel shall provide that the Mortgagee shall be
named as Mortgagee, a named insured (without liability for insurance premiums)
and a loss payee.  Each entry in a marine and war risk protection
indemnity club with respect to the Vessel shall note the interest of the
Mortgagee.  The Mortgagee and its successors and assigns shall not be
responsible for any premiums, club calls, assessments or any other obligations
or for the representations and warranties made therein by the Shipowner or any
other person.

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        (c)    The
Shipowner will furnish the Mortgagee from time to time on request, and in any
event at least annually, a detailed report signed by a firm of marine insurance
brokers acceptable to the Mortgagee with respect to P & I entry, the hull
and machinery and war risk insurance carried and maintained on the Vessel,
together with their opinion as to the adequacy thereof and its compliance with
the provisions of this Mortgage.  At the Shipowner’s expense the
Shipowner will cause such insurance broker and the P & I club or association
providing P & I insurance referred to in part (a)(ii) of this Section 13, to
agree to advise the Mortgagee by telex or telecopier confirmed by letter of any
expiration, termination, alteration or cancellation of any policy, any default
in the payment of any premium and of any other act or omission on the part of
the Shipowner of which it has knowledge and which might invalidate or render
unenforceable, in whole or in part, any insurance on the Vessel, and to provide
an opportunity of paying any such unpaid premium or call, such right being
exercisable by the Mortgagee on a vessel by vessel and not on a fleet
basis.  In addition, the Shipowner shall promptly provide the
Mortgagee with any information which the Mortgagee reasonably requests for the
purpose of obtaining or preparing any report from an independent marine
insurance consultant as to the adequacy of the insurances effected or proposed
to be effected in accordance with this Mortgage as of the date hereof or in
connection with any renewal thereof, and the Shipowner shall upon demand
indemnify the Mortgagee in respect of all reasonable fees and other expenses
incurred by or for the account of the Mortgagee in connection with any such
report;  provided the Mortgagee shall be entitled to such indemnity
only for one such report during any period of twelve months.

         

        The
underwriters or brokers shall furnish the Mortgagee with a letter or letters of
undertaking to the effect that:

         

        (i)    they will
hold the instruments of insurance, and the benefit of the insurances thereunder,
to the order of the Mortgagee in accordance with the terms of the loss payable
clause referred to in the relevant Assignment of Insurances for the Vessel;
and

         

        (ii)    they will
have endorsed on each and every policy as and when the same is issued the loss
payable clause and the notice of assignment referred to in the relevant
Assignment of Insurances for the Vessel; and

         

        (iii)    they will
not set off against any sum recoverable in respect of a claim against the Vessel
under the said underwriters or brokers or any other person in respect of any
other vessel nor cancel the said insurances by reason of non-payment of such
premiums or other amounts.

         

        All
policies of insurance required hereby shall provide for not less than 14 days
prior written notice to be received by the Mortgagee of the termination or
cancellation of the insurance evidenced thereby.  All policies of
insurance maintained pursuant to this Section 13 for risks covered by insurance
other than that provided by a P & I Club shall contain provisions waiving
underwriters’ rights of subrogation thereunder against any assured named in such
policy and any assignee of said assured.  The Shipowner has assigned
to the Mortgagee its rights under any policies of insurance in respect of the
Vessel.  The Shipowner agrees that, unless the insurances by their
terms provide that they cannot cease (by reason of nonrenewal or otherwise)
without the Mortgagee being informed and having the right to continue the
insurance by paying any premiums not paid by the Shipowner, receipts showing
payment of premiums for required insurance and also

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        of
demands from the Vessel’s P & I underwriters shall be in the hands of the
Mortgagee at least two (2) days before the risk in question
commences.

         

        (d)    Unless
the Mortgagee shall otherwise agree, all amounts of whatsoever nature payable
under any insurance must be payable to the Mortgagee for distribution first to
itself and thereafter to the Shipowner or others as their interests may
appear.  Nevertheless, until otherwise required by the Mortgagee by
notice to the underwriters upon the occurrence and continuance of a Default or
an event of default hereunder, (i) amounts payable under any insurance on the
Vessel with respect to protection and indemnity risks may be paid directly to
the Shipowner to reimburse it for any loss, damage or expense incurred by it and
covered by such insurance or to the person to whom any liability covered by such
insurance has been incurred provided that the underwriter shall have first
received evidence that the liability insured against has been discharged, and
(ii) amounts payable under any insurance with respect to the Vessel involving
any damage to the Vessel not constituting an Event of Loss, may be paid by
underwriters directly for the repair, salvage or other charges involved or, if
the Shipowner shall have first fully repaired the damage or paid all of the
salvage or other charges, may be paid to the Shipowner as reimbursement
therefor;  provided, however, that if such amounts (including any
franchise or deductible) are in excess of U.S. $1,000,000, the underwriters
shall not make such payment without first obtaining the written consent thereto
of the Mortgagee, which shall not be unreasonably withheld.

         

        (e)    All
amounts paid to the Mortgagee in respect of any insurance on the Vessel shall be
disposed of as follows (after deduction of the expenses of the Mortgagee in
collecting such amounts):

         

        (i)    any
amount which might have been paid at the time, in accordance with the provisions
of paragraph (d) above, directly to the Shipowner or others shall be paid by the
Mortgagee to, or as directed by, the Shipowner;

         

        (ii)    all
amounts paid to the Mortgagee in respect of an Event of Loss of the Vessel shall
be applied by the Mortgagee to the payment of the Indebtedness hereby secured
pursuant to Section 3.03(b) of the Credit Agreement;

         

        (iii)    all other
amounts paid to the Mortgagee in respect of any insurance on the Vessel may, in
the Mortgagee’s sole discretion, be held and applied to the prepayment of the
Indebtedness hereby secured or to making of needed repairs or other work on the
Vessel, or to the payment of other claims incurred by the Shipowner relating to
the Vessel, or may be paid to the Shipowner or whosoever may be entitled
thereto.

         

        (f)    In the
event that any claim or lien is asserted against the Vessel for loss, damage or
expense which is covered by insurance required hereunder and it is necessary for
the Shipowner to obtain a bond or supply other security to prevent arrest of the
Vessel or to release the Vessel from arrest on account of such claim or lien,
the Mortgagee, on request of the Shipowner, may, in the sole discretion of the
Mortgagee, assign to any person, firm or corporation executing a surety or
guarantee bond or other agreement to save or release the Vessel from such
arrest, all right, title and interest of the Mortgagee in and to said insurance
covering said loss, damage or expense, as collateral security to indemnify
against liability under said bond or other agreement.

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        (g)    The
Shipowner shall deliver to the Mortgagee certified copies and, whenever so
requested by the Mortgagee, the originals of all certificates of entry, cover
notes, binders, evidences of insurance and policies and all endorsements and
riders amendatory thereof in respect of insurance maintained under this Mortgage
for the purpose of inspection or safekeeping, or, alternatively, satisfactory
letters of undertaking from the broker holding the same.  The
Mortgagee shall be under no duty or obligation to verify the adequacy or
existence of any such insurance or any such policies, endorsement or
riders.

         

        (h)    The
Shipowner agrees that it will not execute or permit or willingly allow to be
done any act by which any insurance may be suspended, impaired or cancelled, and
that it will not permit or allow the Vessel to undertake any voyage or run any
risk or transport any cargo which may not be permitted by the policies in force,
without having previously notified the Mortgagee in writing and insured the
Vessel by additional coverage to extend to such voyages, risks, passengers or
cargoes.

         

        (i)    In case
any underwriter proposes to pay less on any claim than the amount thereof, the
Shipowner shall forthwith inform the Mortgagee, and if a Default, an Event of
Default or an Event of Loss has occurred and is continuing, the Mortgagee shall
have the exclusive right to negotiate and agree to any compromise.

         

        (j)    The
Shipowner will comply with and satisfy all of the provisions of any applicable
law, convention, regulation, proclamation or order concerning financial
responsibility for liabilities imposed on the Shipowner or the Vessel with
respect to pollution by any state or nation or political subdivision thereof and
will maintain all certificates or other evidence of financial responsibility as
may be required by any such law, convention, regulation, proclamation or order
with respect to the trade in which the Vessel is from time to time engaged and
the cargo carried by it.

         

        Section
14.    Reimbursement for
Expenses.  The Shipowner will reimburse the Mortgagee promptly
for any and all reasonable expenditures which the Mortgagee may from time to
time make, layout or expend in providing such protection in respect of
insurance, discharge or purchase of liens, taxes, dues, tolls, assessments,
governmental charges, fines and penalties lawfully imposed, repairs, attorney’s
fees, and other matters as the Shipowner is obligated herein to provide, but
fails to provide or which, in the sole judgment of the Mortgagee are necessary
or appropriate for the protection of the Vessel or the security granted by this
Mortgage.  Such obligation of the Shipowner to reimburse the Mortgagee
shall be an additional indebtedness due from the Shipowner, shall bear interest
at the interest rate as set forth in Section 1.07 of the Credit Agreement from
the date of payment by the Mortgagee to and including the date of reimbursement
by the Shipowner, shall be secured by this Mortgage, and shall be payable by the
Shipowner on demand.  The Mortgagee, though privileged to do so, shall
be under no obligation to the Shipowner to make any such expenditure, nor shall
the making thereof relieve the Shipowner of any default in that
respect.

         

        Section
15.    Performance of
Charters.  The Shipowner will fully perform any and all charter
parties which may be entered into with respect to the Vessel and will promptly
notify the Mortgagee of any material claim by any charterer of non-performance
thereunder by the Shipowner.

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

         

        Section
16.    Change in
Ownership.  The Shipowner further covenants and agrees with the
Mortgagee that, so long as any part of the Indebtedness hereby secured remains
unpaid, there shall be no change in the ownership of the Vessel or any of the
shares of the Shipowner without the prior written consent of the Mortgagee,
which shall not be unreasonably withheld.

         

        Section
17.    Prepayment if Event of
Loss.  In the event that the Vessel suffers an Event of Loss,
then and in each such case the Shipowner shall forthwith repay the Indebtedness
hereby secured at the time and in the amount set forth in Section 3.03(b) of the
Credit Agreement except to the extent such amounts have otherwise been paid as
therein provided.

         

        ARTICLE
III

         

        Events of
Default and Remedies

         

        Section
1.    Events of Default;
Remedies.  In case anyone or more of the following events,
herein termed “events of default”, shall happen:

         

        (a)    the
Shipowner fails to pay within three (3) Business Days of the date due any
payment in respect of the Indebtedness hereby secured as provided herein;
or

         

        (b)    the
statements in Article I shall prove to have been untrue in a material way when
made; or

         

        (c)    a default
in the due and punctual observance and performance of any of the provisions of
Sections 2, 3, 7, 8, 9(b), 11, 12, 13(a), (b), (d), (h) and (j), 16 or 17 of
Article II hereof shall have occurred and be continuing; or

         

        (d)    a breach
or omission in the due and punctual observance of any of the other covenants and
conditions herein required to be kept and performed by the Shipowner and such
breach or omission shall continue for 30 days after the day the Shipowner first
knew or should have known of such breach or omission; or

         

        (e)    an Event
of Default shall have occurred and be continuing under the Credit Agreement;
or

         

        (f)    a payment
default by the Borrower under any Interest Rate Protection Agreement or Other
Hedging Agreement shall have occurred and be continuing; or

         

        (g)    any
notice shall have been issued by the government or any bureau, department,
officer, board or agency thereof of the country of registry of the Vessel to the
effect that the Vessel is subject to cancellation from such registry or the
certificate of registry of the Vessel is subject to revocation or cancellation
for any reason whatsoever, and such notice shall not have been cancelled or
annulled on or before seven (7) Business Days prior to the date set forth in
such notice for such cancellation or revocation; or

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

         

        (h)    the
Vessel shall be cancelled from the country of registry of the Vessel or the
certificate of registry of the Vessel is revoked or cancelled for any reason
whatsoever;

         

        then:

         

        the
security constituted by this Mortgage shall become immediately enforceable and
that without limitation, the enforcement remedies specified can be exercised
irrespective of whether or not the Mortgagee has exercised the right of
acceleration under the Credit Agreement or any of the other Credit Documents and
the Mortgagee shall have the right to:

         

        (i)    Declare
all the then unpaid Indebtedness hereby secured to be due and payable
immediately, and upon such declaration, the same shall become and be immediately
due and payable provided, however, that no declaration shall be required if an
event of default shall have occurred by reason of a default under Section 10.05
of the Credit Agreement, then and in such case, the Indebtedness hereby secured
shall become immediately due and payable on the occurrence of such event of
default without any notice or demand;

         

        (ii)    Exercise
all of the rights and remedies in foreclosure and otherwise given to a mortgagee
by the provisions of the laws of the country of registry of the Vessel or of any
other jurisdiction where the Vessel may be found;

         

        (iii)    Bring
suit at law, in equity or in admiralty, as it may be advised, to recover
judgment for the Indebtedness hereby secured, and collect the same out of any
and all property of the Shipowner whether covered by this Mortgage or
otherwise;

         

        (iv)    Take and
enter into possession of the Vessel, at any time, wherever the same may be,
without legal process and without being responsible for loss or damage and the
Shipowner or other person in possession forthwith upon demand of the Mortgagee
shall surrender to the Mortgagee possession of the Vessel;

         

        (v)    Without
being responsible for loss or damage, the Mortgagee may hold, lay up, lease,
charter, operate or otherwise use such Vessel for such time and upon such terms
as it may deem to be for its best advantage, and demand, collect and retain all
hire, freights, earnings, issues, revenues, income, profits, return premiums,
salvage awards or recoveries, recoveries in general average, and all other sums
due or to become due in respect of such Vessel or in respect of any insurance
thereon from any person whomsoever, accounting only for the net profits, if any,
arising from such use of the Vessel and charging upon all receipts from the use
of the Vessel or from the sale thereof by court proceedings or pursuant to
subsection (vi) next following, all costs, expenses, charges, damages or losses
by reason of such use; and if at any time the Mortgagee shall avail itself of
the right herein given them to take the Vessel, the Mortgagee shall have the
right to dock the Vessel, for a reasonable time at any dock, pier or other
premises of the Shipowner without charge, or to dock her at any other place at
the cost and expense of the Shipowner;

         

        (vi)    Without
being responsible for loss or damage, the Mortgagee may sell the Vessel upon
such terms and conditions as to the Mortgagee shall seem best, free

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

         

        from any
claim of or by the Shipowner, at public or private sale, by sealed bids or
otherwise, by mailing, by air or otherwise, notice of such sale, whether public
or private, addressed to the Shipowner at its last known address and to any
other registered mortgagee, twenty (20) calendar days prior to the date fixed
for entering into the contract of sale and by first publishing notice of any
such public sale for ten (10) consecutive days, in daily newspapers of general
circulation published in the City of New York, State of New York; in the event
that the Vessel shall be offered for sale by private sale, no newspaper
publication of notice shall be required, nor notice of adjournment of sale; sale
may be held at such place and at such time as the Mortgagee by notice may have
specified, or may be adjourned by the Mortgagee from time to time by
announcement at the time and place appointed for such sale or for such adjourned
sale, and without further notice or publication the Mortgagee may make any such
sale at the time and place to which the same shall be so adjourned; and any sale
may be conducted without bringing the Vessel to the place designated for such
sale and in such manner as the Mortgagee may deem to be for its best advantage,
and the Mortgagee may become the purchaser at any sale.  The Shipowner
agrees that any sale made in accordance with the terms of this paragraph shall
be deemed made in a commercially reasonable manner insofar as it is
concerned;

         

        (vii)    Require
that all policies, contracts, certificates of entry and other records relating
to the insurance with respect to the Vessel, including, but not limited to,
those described in Article II, Section 13 hereof (the “Insurances”)
(including details of and correspondence concerning outstanding claims) be
forthwith delivered to or to the order of the Mortgagee; and/or

         

        (viii)    Collect,
recover, compromise and give a good discharge for any and all monies and claims
for monies then outstanding or thereafter arising under the Insurances or in
respect of the earnings or any requisition compensation and to permit any
brokers through whom collection or recovery is effected to charge the usual
brokerage therefor.

         

        Section
2.    Power of
Sale.  Any sale of the Vessel made in pursuance of this
Mortgage, whether under the power of sale hereby granted or any judicial
proceedings, shall operate to divest all right, title and interest of any nature
whatsoever of the Shipowner therein and thereto, and shall bar the Shipowner,
its successors and assigns, and all persons claiming by, through or under
them.  No purchaser shall be bound to inquire whether notice has been
given, or whether any default has occurred, or as to the propriety of the sale,
or as to the application of the proceeds thereof.  In case of any such
sale, the Mortgagee, if it is the purchaser, shall be entitled, for the purpose
of making settlement or payment for the property purchased, to use and apply the
Indebtedness hereby secured in order that there may be credited against the
amount remaining due and unpaid thereon the sums payable out of the net proceeds
of such sale to the Mortgagee after allowing for the costs and expense of sale
and other charges; and thereupon such purchaser shall be credited, on account of
such purchase price, with the net proceeds that shall have been so credited upon
the Indebtedness hereby secured.  At any such sale, the Mortgagee may
bid for and purchase such property and upon compliance with the terms of sale
may hold, retain and dispose of such property without further accountability
therefor.

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        Section
3.    Power of
Attorney-Sale.  The Mortgagee is hereby irrevocably appointed
attorney-in-fact of the Shipowner to execute and deliver to any purchaser
aforesaid, and is hereby vested with full power and authority to make, in the
name and on behalf of the Shipowner, a good conveyance of the title to the
Vessel so sold.  Any person dealing with the Mortgagee or
attorney-in-fact shall not be put on enquiry as to whether the power of attorney
contained herein has become exercisable.  In the event of any sale of
the Vessel, under any power herein contained, the Shipowner will, if and when
required by the Mortgagee, execute such form of conveyance of the Vessel as the
Mortgagee may direct or approve.

         

        Section
4.    Power of
Attorney-Collection.  The Mortgagee is hereby irrevocably
appointed attorney-in-fact of the Shipowner upon the happening of any event of
default, in the name of the Shipowner to demand, collect, receive, compromise
and sue for, so far as may be permitted by law, all freight, hire, earnings,
issues, revenues, income and profits of the Vessel and all amounts due from
underwriters under any insurance thereon as payment of losses or as return
premiums or otherwise, salvage awards and recoveries, recoveries in general
average or otherwise, and all other sums due or to become due at the time of the
happening of any event of default as defined in Section 1 of Article III hereof
in respect of the Vessel, or in respect of any insurance thereon, from any
person whomsoever, and to make, give and execute in the name of the Shipowner
acquittances, receipts, releases or other discharges for the same, whether under
seal or otherwise, and to endorse and accept in the name of the Shipowner all
checks, notes, drafts, warrants, agreements and other instruments in writing
with respect to the foregoing.  Any person dealing with the Mortgagee
or attorney-in-fact shall not be put on enquiry as to whether the Power of
Attorney contained herein has become exercisable.

         

        Section
5.    Delivery of
Vessel.  Upon the security constituted by this Mortgage
becoming immediately enforceable pursuant to Section 1 of Article III, the
Mortgagee shall (in addition to the powers described in Section 1 of Article
III) become forthwith entitled (but not bound) to appoint, by an instrument in
writing under its seal or under the hand of any director or officer or
authorized signatory, a receiver and/or manager of the Vessel upon such terms as
to remuneration and otherwise as the Mortgagee shall deem fit with power from
time to time to remove any receiver and appoint another in his stead and any
receiver shall be the agent of the Shipowner (who shall be solely responsible
for his acts and defaults and remuneration) and shall have all the powers
conferred by law by way of addition to, but without limiting, those powers any
receiver shall have all the powers and entitlements conferred on the Mortgagee
by this Mortgage and generally shall be entitled to the same protection and to
exercise the same powers and discretions as are granted to the Mortgagee under
this Mortgage.

         

        Section
6.    Mortgagee to Discharge
Liens.  The Shipowner authorizes and empowers the Mortgagee or
its appointees or any of them to appear in the name of the Shipowner, its
successors and assigns, in any court of any country or nation of the world where
a suit is pending against the Vessel because of or on account of any alleged
lien against the Vessel from which the Vessel has not been released and to take
such proceedings as to them or any of them may seem proper towards the defense
of such suit and the purchase or discharge of such lien, and all expenditures
made or incurred by them or any of them for the purpose of such defense or
purchase or discharge shall be a debt due from the Shipowner, its successors and
assigns, to the Mortgagee, and shall be secured by the lien of this Mortgage in
like manner and extent as if the amount and description thereof were written
herein.

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

         

        Section
7.    Payment of
Expenses.  The Shipowner covenants that upon the happening of
any one or more of the events of default, then, upon written demand of the
Mortgagee, the Shipowner will pay to the Mortgagee the whole amount due and
payable in respect of the Indebtedness hereby secured; and in case the Shipowner
shall fail to pay the same forthwith upon such demand, the Mortgagee shall be
entitled to recover judgment for the whole amount so due and unpaid, together
with such further amounts as shall be sufficient to cover the reasonable
compensation of the Mortgagee or its agents, attorneys and counsel and any
necessary advances, expenses and liabilities made or incurred by it or them or
the Mortgagee hereunder.  All moneys collected by the Mortgagee under
this Section 7 shall be applied by the Mortgagee in accordance with the
provisions of Section 11 of this Article III.

         

        Section
8.    Remedies
Cumulative.  Each and every power and remedy herein given to
the Mortgagee shall be cumulative and shall be in addition to every other power
and remedy herein given or now or hereafter existing at law, in equity, in
admiralty or by statute, and each and every power and remedy whether herein
given or otherwise existing may be exercised from time to time and as often and
in such order as may be deemed expedient by the Mortgagee, and the exercise or
the beginning of the exercise of any power or remedy shall not be construed to
be a waiver of the right to exercise at the same time or thereafter any other
power or remedy.  The Mortgagee shall not be required or bound to
enforce any of its rights under any of the other Credit Documents, prior to
enforcing its rights under this Mortgage.  No delay or omission by the
Mortgagee in the exercise of any right or power or in the pursuance of any
remedy accruing upon any default as above defined shall impair any such right,
power or remedy or be construed to be a waiver of any such event of default or
to be an acquiescence therein; nor shall the acceptance by the Mortgagee of any
security or of any payment of or on account of the Indebtedness hereby secured
maturing after any event of default or of any payment on account of any past
default be construed to be a waiver of any right to exercise its remedies due to
any future event of default or of any past event of default not completely cured
thereby.  No consent, waiver or approval of the Mortgagee shall be
deemed to be effective unless in writing and duly signed by authorized
signatories of the Mortgagee;  any waiver by the Mortgagee of any of
the terms of this Mortgage or any consent given under this Mortgage shall only
be effective for the purpose and on the terms which it is given and shall be
without prejudice to the right to give or withhold consent in relation to future
matters (which are either the same or different).

         

        Section
9.    Cure of
Defaults.  If at any time after an event of default and prior
to the actual sale of the Vessel by the Mortgagee or prior to any enforcement or
foreclosure proceedings the Shipowner offers completely to cure all events of
default and to pay all expenses, advances and damages to the Mortgagee
consequent on such events of default, with interest at the interest rate set
forth in Section 1.07 of the Credit Agreement, then the Mortgagee may, but shall
not be obligated to, accept such offer and payment and restore the Shipowner to
its former position, but such action, if taken, shall not affect any subsequent
event of default or impair any rights consequent thereon.

         

        Section
10.    Discontinuance of
Proceedings.  In case the Mortgagee shall have proceeded to
enforce any right, power or remedy under this Mortgage by foreclosure, entry or
otherwise, and such proceedings shall have been discontinued or abandoned for
any reason or shall have been determined adversely to the Mortgagee, then and in
every such case the Shipowner and the Mortgagee shall be restored to its former
position and right hereunder with respect to the

         

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

         

        property
subject or intended to be subject to this Mortgage, and all rights, remedies and
powers of the Mortgagee shall continue as if no such proceedings had been
taken.

         

        Section
11.    Application of
Proceeds.  After an event of default hereunder shall have
occurred and be continuing, the proceeds of any sale of the Vessel and any and
all other moneys received by the Mortgagee pursuant to or under the terms of
this Mortgage or in any proceedings hereunder, the application of which has not
elsewhere herein been specifically provided for, shall be applied as
follows:

         

        First:               
To the
payment of all costs and expenses (together with interest thereon as set forth
in Section 14 of Article II) of the Mortgagee, including the reasonable
compensation of its agents and attorneys, by reason of any sale, retaking,
management or operation of the Vessel and all other sums payable to the
Mortgagee hereunder by reason of any expenses or liabilities incurred or
advances made by it for the protection, maintenance and enforcement of the
security or of any of its rights hereunder, under the Credit Agreement, the
Guaranty and under the other Credit Documents or in the pursuit of any remedy
hereby or thereby conferred; and at the option of the Mortgagee to the payment
of any taxes, assessments or liens claiming priority over the lien of this
Mortgage; and

         

        Second:              To the
Pledgee (as defined in the Pledge Agreement) for its distribution in accordance
with the provisions of Section 9 of the Pledge Agreement; and

         

        Third:                  To the
Shipowner or as may be directed by a court of competent
jurisdiction.

         

        Section
12.    Possession Until
Default.  Until one or more of the events of default
hereinafter described shall happen, the Shipowner (a) shall be suffered and
permitted to retain actual possession and use of the Vessel and (b) shall have
the right, from time to time, in its discretion, and without application or
notice to the Mortgagee, and without obtaining a release thereof by the
Mortgagee, to dispose of, free from the lien hereof, any boilers, engines,
machinery, masts, spars, sails, rigging, boats, anchors, chains, tackle,
apparel, furniture, fittings or equipment or any other appurtenances of the
Vessel that are no longer useful, necessary, profitable or advantageous in the
operation of the Vessel, first or simultaneously replacing the same by new
boilers, engines, machinery, masts, spars, sails, rigging, boats, anchors,
chains, tackle, apparel, furniture, fittings, equipment, or other appurtenances
of substantially equal value to the Shipowner, which shall forthwith become
subject to the lien of this Mortgage as a first priority mortgage
thereon.

         

        Section
13.    Severability of Provisions,
etc.  (a) If any provision of this Mortgage should be deemed
invalid or shall be deemed to affect adversely the preferred status of this
Mortgage under any applicable law, such provision shall be void and of no effect
and shall cease to be a part of this Mortgage without affecting the remaining
provisions, which shall remain in full force and effect.

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        (b)    In the
event that the Guaranty, this Mortgage, any of the other Credit Documents or any
of the documents or instruments which may from time to time be delivered
thereunder or hereunder or any provision thereof or hereof shall be deemed
invalidated by present or future law of any nation or by decision of any court,
this shall not affect the validity and/or enforceability of all or any other
parts of the Guaranty, this Mortgage, any of the other Credit Documents or such
documents or instruments and, in any such case, the Shipowner covenants and
agrees that, on demand, it will execute and deliver such other and further
agreements and/or documents and/or instruments and do such things as the
Mortgagee in its sole discretion may reasonably deem to be necessary to carry
out the true intent of this Mortgage, the Guaranty and the other Credit
Documents.

         

        (c)    In the
event that the title, or ownership of the Vessel shall be requisitioned,
purchased or taken by any government of any country or any department, agency or
representative thereof, pursuant to any present or future law, proclamation,
decree order or otherwise, the lien of this Mortgage shall be deemed to attach
to the claim for compensation therefor, and the compensation, purchase or other
taking of such title or ownership is hereby agreed to be payable to the
Mortgagee who shall be entitled to receive the same and shall apply it as
provided in Section 11 of this Article III.  In the event of any such
requisition, purchase or taking, and the failure of the Mortgagee to receive
proceeds as herein provided, the Shipowner shall promptly execute and deliver to
the Mortgagee such documents, if any, as in the opinion of the Mortgagee may be
necessary or useful to facilitate or expedite the collection by the Mortgagee of
such part of the compensation, purchase price, reimbursement or award as is
payable to it hereunder.

         

        (d)    Anything
herein to the contrary notwithstanding, it is intended that nothing herein shall
waive the priority status of this Mortgage, and if any provision of this
Mortgage or portion thereof shall be construed to waive the priority status of
this Mortgage, then such provision to such extent shall be void and of no
effect.

         

        ARTICLE
IV

         

        Sundry
Provisions

         

        Section
1.    Successors and
Assigns.  All of the covenants, promises, stipulations and
agreements of the Shipowner in this Mortgage contained shall bind the Shipowner
and its successors and shall inure to the benefit of the Mortgagee and its
successors and assigns. In the event of any assignment or transfer of this
Mortgage, the term “Mortgagee”, as used in this Mortgage, shall be deemed to
mean any such assignee or transferee.

         

        Section
2.    Power of
Substitution.  Wherever and whenever herein any right, power or
authority is granted or given to the Mortgagee, such right, power or authority
may be exercised in all cases by the Mortgagee or such agent or agents as it may
appoint, and the act or acts of such agent or agents when taken shall constitute
the act of the Mortgagee hereunder.

         

        Section
3.    Counterparts.  This
Mortgage may be executed in any number of counterparts, each of which shall be
an original, but such counterparts shall together constitute but one and the
same instrument.

         

         

        
          
            
            

          

          
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          EXHIBIT L-2

        

         

         

        Section
4.    Notices.  Except
as otherwise expressly provided herein, all notices and other communications
provided for hereunder shall be in writing (including telexed, telegraphic,
telex, telecopier or cable communication) and mailed, telexed, telecopied,
cabled or delivered, if to the Shipowner or to the Mortgagee, at its address as
specified below, or at such other address as shall be designated by such party
in a written notice to the other party:

         

        If to the
Shipowner, addressed to it in care of:

         

        Genco
Ship Management LLC

        299 Park
Avenue, 20th Floor

        New York,
NY 10171

        USA

        Telephone:
646-443-8525

        Facsimile:  646-443-8551

        Email:
finance@gencoshipping.com

         

        If to the
Mortgagee, addressed to it:

         

        Nordea
Bank Finland Plc,

        New York
branch

        437
Madison Avenue, 21st Floor

        New York,
NY 10022

        Attention:  Colleen
M. Durkin

        Telephone:  212-318-9636

        Facsimile:
212-421-4420

         

        All such
notices and communications shall, (i) when mailed, be effective three Business
Days after being deposited in the mails, prepaid and properly addressed for
delivery, (ii) when sent by overnight courier, be effective one Business Day
after delivery to the overnight courier prepaid and properly addressed for
delivery on such next Business Day, or (iii) when sent by telex or telecopier,
be effective when sent by telex or telecopier, except that notices and
communications to the Mortgagee shall not be effective until received by the
Mortgagee.

         

        Section
5.    Recording:
Clause.  For purposes of recording this First Preferred
Mortgage as required by Chapter 3 of the Republic of the Marshall Islands
Maritime Act of 1990, as amended, the total amount of the direct and contingent
obligations secured by this Mortgage is
[               ]
United States Dollars (U.S.
$[        ]), comprising of Three
Hundred Twenty Million United States Dollars (U.S. $320,000,000) for the
Facility and
[            ] (U.S.
$[         ]) for the Hedging
Liabilities, and interest and performance of mortgage covenants.  The
maturity date is on demand.  There is no separate discharge
amount.

         

        Section
6.    Further
Assurances.  The Shipowner shall execute and do all such
assurances, acts and things as the Mortgagee, or any receiver in its absolute
discretion may require for:

         

        (a)    perfecting
or protecting the security created (or intended to be created) by this Mortgage;
or

         

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT L-2

        

         

         

        (b)    preserving
or protecting any of the rights of the Mortgagee under this Mortgage (or any of
them); or

         

        (c)    ensuring
that the security constituted by this Mortgage and the covenants and obligations
of the Shipowner under this Mortgage shall enure to the benefit of assignees of
the Mortgagee (or any of them); or

         

        (d)    facilitating
the appropriation or realization of the Vessel or any part thereof and enforcing
the security constituted by this Mortgage on or at any time after the same shall
have become enforceable; or

         

        (e)    the
exercise of any power, authority or discretion vested in the Mortgagee under
this Mortgage,

         

        in any
such case, forthwith upon demand by the Mortgagee and at the expense of the
Shipowner.

         

        Section
7.    Governing
Law.  The provisions of this Mortgage shall, with respect to
its validity, effect, recordation and enforcement, be governed by and construed
in accordance with the applicable laws of the Republic of the Marshall
Islands.

         

        Section
8.    Additional Rights of the
Mortgagee.  In the event the Mortgagee shall be entitled to
exercise any of its remedies under Article III hereof, the Mortgagee shall have
the right to arrest and take action against the Vessel at whatever place the
Vessel shall be found lying and for the purpose of any action which the
Mortgagee may bring before the Courts of such jurisdiction or other judicial
authority and for the purpose of any action which the Mortgagee may bring
against the Vessel, any writ, notice, judgment or other legal process or
documents may (without prejudice to any other method of service under applicable
law) be served upon the Master of the Vessel (or upon anyone acting as the
Master) and such service shall be deemed good service on the Shipowner for all
purposes.

         

        [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

         

         

         

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT L-2

        

         

         

         

        IN
WITNESS WHEREOF, the Shipowner has caused this First Preferred Mortgage over the
[VESSEL NAME] to be duly executed by its authorized representative the day and
year first above written.

         

        [NAME OF
SHIPOWNER]

        

        

        

        By:  ____________________

        Name:

        Title:

         

         

         

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT L-2

        

         

         

         

         

        ACKNOWLEDGMENT

         

        STATE OF
NEW
YORK                                                      )

        :  SS:

        COUNTY OF
NEW
YORK                                                   )

         

        On this
[     ] day of [DATE], before me personally appeared
[NAME], known to me to be the person who executed the foregoing instrument, who,
being by me duly sworn did depose and say that he resides at
_______________________, New York, NY;  that he is [TITLE] of
[SHIPOWNER], the Marshall Islands corporation described in and which executed
the foregoing instrument; that he signed his name pursuant to authority granted
to him by [SHIPOWNER]; and that he further acknowledged that said instrument is
the act and deed of [SHIPOWNER].

         

                                                                ______________________

                                                                Notary
Public

         

        [FOR USE
IN THE REPUBLIC OF THE MARSHALL ISLANDS]

      

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT M

       

       

       

      
        ASSIGNMENT OF PURCHASE
CONTRACT

        

        [VESSEL
NAME]

        

        

        THIS
ASSIGNMENT OF PURCHASE CONTRACT, dated [DATE], 2008, is given by [SHIPOWNER], a
corporation organized and existing pursuant to the laws of the Republic of the
Marshall Islands  (the “Assignor”), in favor of NORDEA BANK FINLAND
PLC, acting through its New York branch, with offices at 437 Madison Avenue, New
York, New York 10022, as collateral agent (in such capacity, the “Collateral
Agent”) under the Credit Agreement referred to below (the
“Assignee”).  Except as otherwise defined herein, capitalized terms
used herein and defined in the Credit Agreement (as defined below) shall be used
herein as so defined.

        

        RECITALS

        

        A.           The
Assignor has entered into that certain memorandum of agreement dated [DATE],
200__ (the “Purchase Contract”) attached hereto as Appendix A between the
Assignor, as buyer, and [SELLER’S NAME], a company organized and existing under
the laws of [_____], as seller, with respect to the purchase of [describe vessel
and status] (the “Vessel”).

        

        B.           Genco
Shipping & Trading Limited, a corporation organized and existing pursuant to
the laws of the Republic of the Marshall Islands (the “Borrower”) has entered
into a Credit Agreement dated as of September 4, 2008 (as the same may be
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among (i) various Lenders referred to therein, (ii) the Assignee, as
administrative agent (in such capacity, the “Administrative Agent”), mandated
lead arranger, bookrunner and Collateral Agent, providing a senior secured
credit facility (the “Facility”) to the Borrower in the principal amount of up
to Three Hundred Twenty Million United States Dollars (U.S. $320,000,000) (the
Lenders, the Administrative Agent and Collateral Agent, collectively, the
“Lender Creditors”).

        

        C.           The
Assignor is a wholly-owned subsidiary of the Borrower.

        

        D.           The
Borrower may at any time and from time to time enter into, or guaranty the
obligations of one or more Subsidiary Guarantors or any of their respective
Subsidiaries under, one or more Interest Rate Protection Agreements or Other
Hedging Agreements with respect to the Loan (and/or the Commitments) with one or
more Lenders or any Affiliate thereof (each such Lender or Affiliate, even if
the respective Lender subsequently ceases to be a Lender under the Credit
Agreement for any reason, together with such Lender’s or Affiliate’s successors
and assigns, if any, collectively, the “Other Creditors” and, together with the
Lender Creditors, the “Secured Creditors”).

        

        E.           The
Assignor has entered into the Guaranty in favor of the Secured Creditors
pursuant to which the Assignor has guaranteed (i) to the Lender Creditors, all
obligations of the Borrower under the Credit Agreement and each other Credit
Document to which the Borrower is a party, and (ii) to each of the Other
Creditors, all obligations of the Borrower under each Interest Rate Protection
Agreement and each Other Hedging Agreement entered into with respect to the Loan
(and/or the Commitments), among other things, its obligations under the
Guaranty.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT M

           

        

        
 

        F.           It
is a condition to the Lenders’ making the Facility available to the Borrower
under the Credit Agreement that the Assignor enters into this Assignment as
security for its obligations under the Guaranty.

        

        NOW,
THEREFORE, the parties hereto agree as follows:

        

        Section 1.    As security
for all amounts due and to become due to the Secured Creditors under the
Guaranty, the Assignor as beneficial owner hereby grants, sells, conveys,
assigns, transfers, mortgages and pledges to the Assignee, and unto the
Assignee’s successors and assigns, all its right, title, interest, claim and
demand in and to, and hereby also grants unto the Assignee a security interest
in and to (i) the Purchase Contract, (ii) all moneys and claims for moneys due
and to become due to the Assignor under and all claims for damages arising out
of the breach (or payments for variation or termination) of the Purchase
Contract, including but not limited to the Assignor’s interest in the deposit
being made in connection with the entry into the Purchase Contract and any
escrow account in respect of such deposit, and (iii) any proceeds of any of the
foregoing.  The Assignor hereby covenants and undertakes to give
prompt notice of this Assignment to the seller of the Vessel in the form of
Exhibit A hereto.

        

        Section 2.    Anything
herein contained to the contrary notwithstanding, the Assignee, or its
respective successors and assigns, shall have no obligation or liability under
the Purchase Contract arising out of this Assignment.

        

        Section 3.    The Assignor
hereby constitutes the Assignee, its successors and assigns, its true and lawful
attorney-in-fact, irrevocably, with full power, in the name of the Assignor or
otherwise, upon the occurrence and continuance of a Default or an Event of
Default, to ask, require, demand, receive, compound and give acquittance for any
and all moneys and claims for moneys due and to become due, property and rights
hereby assigned, to endorse any checks or other instruments or orders in
connection therewith and to file any document or to take any action or institute
any proceedings which the Assignee and its successors and assigns may reasonably
deem necessary or advisable in the premises.

        

        Section 4.    The powers
and authorities granted to the Assignee and its successors or assigns herein
have been given for valuable consideration and are hereby declared to be
irrevocable.

        

        Section 5.    The Assignor
warrants and represents that it has not assigned or pledged the rights, title
and interest assigned hereunder to anyone other than the
Assignee.  The Assignor hereby covenants that, without the prior
written consent thereto of the Assignee, so long as this Assignment shall remain
in effect, it will not assign or pledge the whole or any part of the rights,
title and interest hereby assigned to anyone other than the Assignee, and it
will not take or omit to take any action, the taking or omission of which might
result in an alteration or impairment of this Assignment, or of any of the
rights created by this Assignment.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT M

        

         

         

        
 

        Section 6.    The Assignor
agrees that at any time and from time to time, upon the written request of the
Assignee, the Assignor will promptly and duly execute and deliver any and all
further instruments and documents as the Assignee may deem desirable in
obtaining the full benefits of this Assignment.

        

        Section 7.    THIS
ASSIGNMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES (OTHER THAN TITLE 14 OF ARTICLE 5
OF THE GENERAL OBLIGATIONS LAW).  This Assignment shall not be amended
and/or varied except by agreement in writing signed by the parties
hereto.

        

        Section 8.    Any notice,
demand or other communication to be given under or for the purposes of this
Assignment shall be made as provided in Section 13.03 of the Credit
Agreement.

        

        Section 9.    This
Assignment may be executed in any number of counterparts each of which shall be
an original, but all such counterparts shall together constitute one and the
same instrument.

        

        IN
WITNESS WHEREOF, the Assignor has duly executed this instrument on the day and
year first above written.

        

                    [SHIPOWNER],

                    as
Assignor

        

        

        

                    By:  __________________

                    Name:
[                                      ]

                    Title:
[                           ]

         

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        
          EXHIBIT M

        

         

         

         

        Exhibit A
to

        PURCHASE
CONTRACT ASSIGNMENT

         

         

        FORM OF NOTICE OF
ASSIGNMENT

        

        The
undersigned, [SHIPOWNER], the purchaser of the Vessel described in the
assignment attached hereto, hereby gives you notice that by an Assignment of
Purchase Contract dated [DATE], 200__, entered into by us with NORDEA BANK
FINLAND PLC, acting through its New York branch in its capacity as Collateral
Agent for certain Lenders (hereinafter called the “Assignee”), a copy of which
is attached hereto, there has been assigned by us to the Assignee all of our
right, title and interest in and to (i) the memorandum of agreement dated
_______, 200_ (the “Purchase Contract”) between us and [Seller’s name], a
company organized and existing under the laws of [_____], as seller, with
respect to the acquisition of the Vessel named therein, (ii) all moneys and
claims for moneys due and to become due to the undersigned, whether as
indemnities, payments or otherwise, and all claims for damages arising out of
any breach of such Purchase Contract, and (b) you are hereby irrevocably
authorized and instructed to pay as from the date hereof all such aforesaid
moneys to the Assignee (Account No. []) at 437 Madison Avenue, New York, New
York 10022.

        

        

                    [SHIPOWNER]

                    as
Owner,

        

        

        

                    By:  __________________

                    Name:

                    Title:

        

                    Dated:  _____________EX-10.1

Exhibit 10.1

2006 EQUITY INCENTIVE PLAN

As amended and restated June 3, 2008

1. PURPOSE.

          This 2006 Equity Incentive Plan is intended to provide incentive to Employees and Directors of
ABM Industries Incorporated (the “Company”) and its eligible Affiliates, to encourage proprietary
interest in the Company and to encourage Employees and Directors to remain in the service of the
Company or its Affiliates.

2. DEFINITIONS.

          (a) “Administrator” means the Board or the Committee appointed to administer the Plan,
or a delegate of the Board as provided in Section 4(c).

          (b) “Affiliate” means any entity, whether a corporation, partnership, joint venture or
other organization that directly, or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with the Company.

          (c) “After-Tax Amount” means any amount to be received by an Executive in connection
with a Change in Control determined on an after-tax basis taking into account the excise tax
imposed pursuant to Code Section 4999, or any successor provision thereto, any tax imposed by any
comparable provision of state law, and any applicable federal, state and local income and
employment taxes.

          (d) “Award” means any award of an Option, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Units, Performance Shares or an Other Share-Based Award under the Plan.

          (e) “Award Agreement” means the agreement between the Company and the recipient of an
Award which contains the terms and conditions pertaining to the Award.

          (f) “Beneficiary” means a person designated as such by a Participant or a Beneficiary
for purposes of the Plan or determined with reference to Section 20.

          (g) “Board” means the Board of Directors of the Company.

          (h) “Cause” means (i) theft or dishonesty, (ii) more than one instance of neglect or
failure to perform employment duties, (iii) inability or unwillingness to perform employment duties
for an Employer, (iv) insubordination, (v) abuse of alcohol or other drugs or substances affecting
Participant’s performance of his or her employment duties, (vi) the breach of an employment
agreement, including covenants not to compete, or any other agreement between Participant and an
Employer, (vii) the breach of fiduciary duties to an Employer or any securities laws applicable to
the Company (viii) other misconduct, unethical or unlawful activity, (ix) being charged with a
crime involving a fraud, embezzlement or theft in connection with Participant’s duties or in the
course of Participant’s employment with an Employer, (x) a conviction of or plea

 

 

of “guilty” or “no contest” to a felony under the laws of the United States or any state
thereof, or (xi) a conviction of or plea of “guilty” or “no contest” to a misdemeanor involving a
crime of moral turpitude under the laws of the United States or any state thereof.

          (i) “Change in Control” means, unless otherwise set forth in an award agreement, that
any of the following events occurs:

               (i) any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act) (a “Person”) (A) is or becomes the beneficial owner
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than
35% of the combined voting power of the then-outstanding Voting Stock of the Company
or succeeds in having nominees as directors elected in an “election contest” within
the meaning of Rule 14a-12(c) under the Exchange Act and (B) within 18 months
thereafter, individuals who were members of the Board of Directors of the Company
immediately prior to either such event cease to constitute a majority of the members
of the Board of Directors of the Company; or unlawful activity, (ix) being charged
with a crime involving fraud, embezzlement or theft in connection with Participant’s
duties or in the course of Participant’s employment with an Employer, (x) a
conviction of or plea of “guilty” or “no contest” to a felony under the laws of the
United States or any state thereof, or (xi) a conviction of or plea of “guilty” or
“no contest” to a misdemeanor involving a crime of moral turpitude under the laws of
the United States or any state thereof.

               (ii) a majority of the Board ceases to be comprised of Incumbent Directors; or

               (iii) the consummation of a reorganization, merger, consolidation, plan of
liquidation or dissolution, recapitalization or sale or other disposition of all or
substantially all of the assets of the Company or the acquisition of the stock or
assets of another Company, or other transaction (each, a “Business Transaction”),
unless, in any such case, (A) no Person (other than the Company, any entity
resulting from such Business Transaction or any employee benefit plan (or related
trust) sponsored or maintained by the Company, any Subsidiary or such entity
resulting from such Business Transaction) beneficially owns, directly or indirectly,
35% or more of the combined voting power of the then outstanding shares of Voting
Stock of the entity resulting from such Business Transaction and (B) at least
one-half of the members of the Board of Directors of the entity resulting from such
Business Transaction were Incumbent Directors at the time of the execution of the
initial agreement providing for such Business Transaction.

          (j) “Code” means the Internal Revenue Code of 1986, as amended.

          (k) “Committee” means the Officer Compensation and Stock Option Committee of the
Board.

2

 

          (l) “Common Stock” means the $.01 par value common stock of the Company.

          (m) “Company” means ABM Industries Incorporated, a Delaware Company.

          (n) “Covered Employee” shall have the meaning assigned in Code Section 162(m), as
amended, which generally includes the chief executive officer or any Employee whose total
compensation for the taxable year is required to be reported to shareholders under the Exchange Act
by reason of such Employee being among the four highest compensated officers for the taxable year
(other than the chief executive officer).

          (o) “Director” means a director of the Company.

          (p) “Disability” or “Disabled” means, unless otherwise set forth in an award
agreement, that the Participant is unable to engage in any substantial gainful activity by reason
or any medically determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12 months.

          (q) “Employee” means an individual employed by the Company or an Affiliate (within the
meaning of Code Section 3401 and the regulations thereunder).

          (r) “Employer” means the Company or an Affiliate, which is the employer of a
Participant.

          (s) “Excess Parachute Payment” means a payment that creates an obligation for
Executive to pay excise taxes under Code Section 280G or any successor provision thereto.

          (t) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (u) “Exercise Price” means the price per Share of Common Stock at which an Option or
Stock Appreciation Right may be exercised.

          (v) “Fair Market Value” of a Share as of a specified date means the closing price at
which Shares are traded on such date as reported in the New York Stock Exchange composite
transactions published in the Wall Street Journal, or if no trading of Shares is reported for that
day, on the next following day on which trading is reported; provided that for purposes of
determining the exercise price of an Incentive Stock Option the Fair Market Value of a Share as of
the date of grant means the average of the opening and closing price at which Shares are traded on
such date as reported in the New York Stock Exchange composite transactions published in the Wall
Street Journal, or if no trading of Shares is reported for that day, on the next preceding day on
which trading was reported.

          (w) “Family Member” means any person identified as an “immediate family” member in
Rule 16(a)-1(c) of the Exchange Act, as such Rule may be amended from time to time.
Notwithstanding the foregoing, the Administrator may designate any other person(s) or entity(ies)
as a “family member.”

3

 

          (x) “Full Value Award” means an Award denominated in Shares that does not provide for
full payment in cash or property by the Participant.

          (y) “Incentive Stock Option” means an Option described in Code Section 422(b).

          (z) “Incumbent Directors” means the individuals who, as of the date of adoption of
this Plan, are Directors of the Company and any individual becoming a Director subsequent to the
date hereof whose election, nomination for election by the Company’s shareholders, or appointment,
was approved by a vote of at least two-thirds of the then Incumbent Directors (either by a specific
vote or by approval of the proxy statement of the Company approval of the proxy statement of the
Company in which such person is named as a nominee for director, without objection to such
nomination); provided, however, that an individual shall not be an Incumbent Director if such
individual’s election or appointment to the Board occurs as a result of an actual or threatened
election contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to the election
or removal of Directors or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board.

          (aa) “Nonqualified Stock Option” means an Option not described in Code Section 422(b)
or 423(b).

          (bb) “Option” means a stock option granted pursuant to Section 7.

          (cc) “Other Share-Based Award” means an Award granted pursuant to Section 12.

          (dd) “Outside Director” means a Director who is not an Employee.

          (ee) “Participant” means an Employee or Director who has received an Award.

          (ff) “Performance Shares” means an Award denominated in Shares granted pursuant to
Section 11 that may be earned in whole or in part based upon attainment of performance objectives
established by the Administrator pursuant to Section 14.

          (gg) “Plan” means this 2006 Stock Incentive Plan.

          (hh) “Prior Plans” means the Company’s 2002 Price-Vested Stock Option Plan, the 1996
Price-Vested Stock Option Plan and the Time-Vested Stock Option Plan

          (ii) “Purchase Price” means the Exercise Price times the number of whole Shares with
respect to which an Option is exercised.

          (jj) “Restricted Stock” means Shares granted pursuant to Section 9.

          (kk) “Restricted Stock Unit” means an Award denominated in Shares granted pursuant to
Section 10 in which the Participant has the right to receive a specified number of Shares over a
specified period of time.

4

 

          (ll) “Retirement” means the voluntary termination of Employment by an Employee at (i)
age 60 or (ii) age 55 or older at a time when age plus years of service equals or exceeds 65.

          (mm) “Share” means one share of Common Stock, adjusted in accordance with Section 18
(if applicable).

          (nn) “Share Equivalent” means a bookkeeping entry representing a right to the
equivalent of one Share.

          (oo) “Stock Right” means a right to receive an amount equal to the value of a
specified number of Shares which will be payable in Shares or cash as established by the
Administrator.

          (pp) “Subsidiary” means any company in an unbroken chain of companies beginning with
the Company if each of the companies other than the last company in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other Companies in such chain.

3. EFFECTIVE DATE.

          This Plan was adopted by the Board on January 10, 2006, to be effective on the date the Plan
is approved by the Company’s shareholders.

4. ADMINISTRATION.

          (a) Administration with respect to Outside Directors. With respect to Awards to
Outside Directors, the Plan shall be administered by the Board or the Governance Committee of the
Board. Notwithstanding the foregoing, all Awards made to members of the Governance Committee of
the Board shall be approved by the Board.

          (b) Administration with respect to Employees. With respect to Awards to Employees,
the Plan shall be administered by the Board or the Committee.

               (i) If any member of the Committee does not qualify as an “outside director” for
purposes of Code Section 162(m), Awards under the Plan for the Covered Employees shall be
administered by a subcommittee consisting of each Committee member who qualifies as an
“outside director.” If fewer than two Committee members qualify as “outside directors,” the
Board shall appoint one or more other Board members to such subcommittee who do qualify as
“outside directors,” so that the subcommittee will at all times consist of two or more
members all of whom qualify as “outside directors” for purposes of Code Section 162(m).

               (ii) If any member of the Committee does not qualify as a “non-employee director” for
purposes of Rule 16b-3 promulgated under the Exchange Act, then Awards under the Plan for
the executive officers of the Company and Directors shall be administered by a subcommittee
consisting of each Committee member who qualifies as a “non-employee director.” If fewer
than two Committee members qualify as “non-

5

 

employee directors,” then the Board shall appoint one or more other Board members to
such subcommittee who do qualify as “non-employee directors,” so that the subcommittee will
at all times consist of two or more members all of whom qualify as “non-employee directors”
for purposes of Rule 16b-3 promulgated under the Exchange Act.

          (c) Delegation of Authority to an Officer of the Company. The Board may delegate to
an officer or officers of the Company the authority to administer the Plan with respect to Awards
made to Employees who are not subject to Section 16 of the Exchange Act.

          (d) Powers of the Administrator. The Administrator shall from time to time at its
discretion make determinations with respect to Employees and Directors who shall be granted Awards,
the number of Shares or Share Equivalents to be subject to each Award, the vesting of Awards, the
designation of Options as Incentive Stock Options or Nonqualified Stock Options and other
conditions of Awards to Employees and Directors.

          The interpretation and construction by the Administrator of any provisions of the Plan or of
any Award shall be final. No member of a Committee shall be liable for any action or determination
made in good faith with respect to the Plan or any Award.

          (e) Claims Administration. Notwithstanding the foregoing, within 30 days after a
Change in Control, the Committee shall appoint an independent committee consisting of at least
three current (as of the effective date of such event) or former officers and Directors of the
Company, which shall thereafter administer all claims for benefits under the Plan. Upon such
appointment the Administrator shall cease to have any responsibility for claims administration
under the Plan but shall continue to administer the Plan.

5. ELIGIBILITY.

          Subject to the terms and conditions set forth below, Awards may be granted to Employees and
Directors. Notwithstanding the foregoing, only employees of the Company and its Subsidiaries may
be granted Incentive Stock Options.

          (a) Ten Percent Shareholders. An Employee who owns more than 10% of the total combined
voting power of all classes of outstanding stock of the Company, its parent or any of its
Subsidiaries is not eligible to receive an Incentive Stock Option pursuant to this Plan. For
purposes of this Section 5(a) the stock ownership of an Employee shall be determined pursuant to
Code Section 424(d).

          (b) Number of Awards. A Participant may receive more than one Award, including Awards of
the same type, but only on the terms and subject to the restrictions set forth in the Plan.
Subject to adjustment as provided in Section 18, the maximum aggregate number of Shares or Share
Equivalents that may be subject to Awards to a Participant in any calendar year is 1,000,000
Shares. Notwithstanding the foregoing, for any one Share granted pursuant to a Full Value Award,
3.3 fewer Shares may be made subject to Awards to that Participant in that calendar year.

6

 

6. STOCK.

          The stock subject to Awards granted under the Plan shall be Shares of the Company’s authorized
but unissued or reacquired Common Stock. The aggregate number of Shares subject to Awards issued
under this Plan shall not exceed 2.5 million Shares plus the number of shares previously authorized
for issuance under the 2002 Price-Vested Stock Option Plan, the 1996 Price-Vested Stock Option Plan
and the Time-Vested Stock Option Plan which are not required to be issued upon the exercise of
outstanding options under those plans on the effective date of this Plan. Notwithstanding the
foregoing, for any one Share issued in connection with a Full Value Award, 3.3 fewer Shares will be
available for issuance in connection with future Awards. If any outstanding Option under the Plan
or any outstanding stock option grant under the Prior Plans for any reason expires or is terminated
or any Restricted Stock or Other Share-Based Award is forfeited and under the terms of the expired
or terminated Award the Participant received no benefits of ownership during the period the Award
was outstanding, then the Shares allocable to the unexercised portion of such Option or the
forfeited Restricted Stock or Other Share-Based Award may again be subjected to Awards under the
Plan. The following Shares may not again be made available for issuance under the Plan: Shares
not issued or delivered as a result of the net exercise of a Stock Appreciation Right or Option and
Shares used to pay the withholding taxes related to an Award.

          The limitations established by this Section 6 shall be subject to adjustment as provided in
Section 18.

7. TERMS AND CONDITIONS OF OPTIONS.

          Options granted to Employees and Directors pursuant to the Plan shall be evidenced by written
Option Agreements in such form as the Administrator shall determine, subject to the following terms
and conditions:

          (a) Number of Shares. Each Option shall state the number of Shares to which it
pertains, which shall be subject to adjustment in accordance with Section 18.

          (b) Exercise Price. Each Option shall state the Exercise Price, determined by the
Administrator, which shall not be less than the Fair Market Value of a Share on the date of grant,
except as provided in Section 18.

          (c) Medium and Time of Payment. The Purchase Price shall be payable in full in United
States dollars upon the exercise of the Option; provided that with the consent of the Administrator
and in accordance with its rules and regulations, the Purchase Price may be paid by the surrender
of Shares in good form for transfer, owned by the person exercising the Option and having a Fair
Market Value on the date of exercise equal to the Purchase Price, or in any combination of cash and
Shares, or in such acceptable form of payment as approved by the Administrator, so long as the
total of the cash and the Fair Market Value of the Shares surrendered equals the Purchase Price.
No Shares shall be issued until full payment has been made.

7

 

          (d) Term and Exercise of Options; Nontransferability of Options. Each Option shall
state the date after which it shall cease to be exercisable. No Option shall be exercisable after
the expiration of seven years from the date it is granted or such lesser period established by the
Administrator. An Option shall, during a Participant’s lifetime, be exercisable only by the
Participant. No Option or any right granted thereunder shall be transferable by the Participant by
operation of law or otherwise, other than by will or the laws of descent and distribution.
Notwithstanding the foregoing, (i) a Participant may designate a Beneficiary to succeed, after the
Participant’s death, to all of the Participant’s Options outstanding on the date of death; (ii) a
Nonstatutory Stock Option or any right granted thereunder may be transferable pursuant to a
qualified domestic relations order as defined in the Code or Title I of the Employee Retirement
Income Security Act; and (iii) any Participant may voluntarily transfer any Nonstatutory Stock
Option to a Family Member as a gift or through a transfer to an entity domiciled in the United
States in which more than 50% of the voting or beneficial interests are owned by Family Members (or
the Participant) in exchange for an interest in that entity. In the event of any attempt by a
Participant to alienate, assign, pledge, hypothecate, or otherwise dispose of an Option or of any
right thereunder, except as provided herein, or in the event of the levy of any attachment,
execution, or similar process upon the rights or interest hereby conferred, the Company at its
election may terminate the affected Option by notice to the Participant and the Option shall
thereupon become null and void.

          (e) Termination of Employment. In the event that a Participant who is an Employee
ceases to be employed by the Company or any of its Affiliates for any reason, such Participant (or
in the case of death, such Participant’s designated Beneficiary) shall have the right (subject to
the limitation that no option may be exercised after its stated expiration date) to exercise the
Option either:

               (i) within four months after such termination of employment; or

               (ii) in the case of Retirement or death within one year after the date thereof; or

               (iii) in the case of Disability, within one year from the date the Committee or its
delegate determines that the Participant is Disabled, or

               (iv) on such other terms established by the Committee in the Agreement or otherwise
prior to termination to the extent that, at the date of termination of employment, the
Option had vested pursuant to the terms of the Option Agreement with respect to which such
Option was granted and had not previously been exercised. However, in addition to the
rights and obligations established in Section 16 below, if the employment of a Participant
is terminated by the Company or an Affiliate by reason of Cause, such Option shall cease to
be exercisable at the time of the Participant’s termination of employment. The
Administrator (or its delegate) shall determine whether a Participant’s employment is
terminated by reason of Cause. In making such determination the Administrator (or its
delegate) shall act fairly and shall give the Participant an opportunity to be heard and
present evidence on his or her behalf. If a Participant’s employment terminates for reasons
other than Cause, but Cause is discovered after the termination and is determined to have
occurred by the Administrator

8

 

(or its delegate), all outstanding Options shall cease to be exercisable upon such
determination.

          For purposes of this Section, the employment relationship will be treated as continuing while
the Participant is on military leave, sick leave (including short term disability) or other bona
fide leave of absence (to be determined in the sole discretion of the Administrator, in accordance
with rules and regulations construing Code Sections 422(a)(2) and 409A). Notwithstanding the
foregoing, in the case of an Incentive Stock Option, employment shall not be deemed to continue
beyond three months after the Participant ceased active employment, unless the Participant’s
reemployment rights are guaranteed by statute or by contract. In the event that an Incentive Stock
Option is exercised after the period following termination of employment that is required for
qualification under Code Section 422(b), such option shall be treated as a Nonqualified Stock
Option for all Plan purposes.

          In the event an Outside Director terminates service as a Director, the former Director (or his
or her designated Beneficiary in the event of the Outside Director’s death) shall have the right
(subject to the limitation that no option may be exercised after its stated expiration date) to
exercise the Option (to the extent vested pursuant to the terms of the Option Agreement and not
previously exercised) within one year after such termination or on such other terms established by
the Board in the Agreement or otherwise prior to termination of service.

          (f) Rights as a Shareholder. A Participant or a transferee of a Participant shall
have no rights as a shareholder with respect to any Shares covered by his or her Option until the
date of issuance of a stock certificate for such Shares. No adjustment shall be made for
dividends, distributions or other rights for which the record date is prior to the date such stock
certificate is issued, except as provided in Section 18.

          (g) Modification, Extension and Renewal of Options. Subject to the terms and
conditions and within the limitations of the Plan, including the limitations of Section 22, the
Administrator may modify, extend or renew outstanding Options granted to Employees and Directors
under the Plan. Notwithstanding the foregoing, however, no modification of an Option shall,
without the consent of the Participant, alter or impair any rights or obligations under any Option
previously granted under the Plan or cause any Option to fail to be exempt from the requirements of
Code Section 409A.

          (h) Limitation of Incentive Stock Option Awards. If and to the extent that the
aggregate Fair Market Value (determined as of the date the Option is granted) of the Shares with
respect to which any Incentive Stock Options are exercisable for the first time by a Participant
during any calendar year under this Plan and all other plans maintained by the Company, its parent
or its Subsidiaries exceeds $100,000, the excess (taking into account the order in which they were
granted) shall be treated as Nonqualified Stock Options.

          (i) No Reload Options. Options that provide for the automatic grant of another option
upon exercise of the original option may not be granted under the Plan.

9

 

          (j) Other Provisions. The Option Agreement shall contain such other provisions that
are consistent with the terms of the Plan, including, without limitation, restrictions upon the
exercise of the Option, as the Administrator shall deem advisable.

8. STOCK APPRECIATION RIGHTS.

          Stock Appreciation Rights granted to Participants pursuant to the Plan may be granted alone,
in addition to, or in conjunction with, Options.

          (a) Number of Shares. Each Stock Appreciation Right shall state the number of Shares
or Share Equivalents to which it pertains, which shall be subject to adjustment in accordance with
Section 18.

          (b) Calculation of Appreciation; Exercise Price. The appreciation distribution
payable on the exercise of a Stock Appreciation Right will be equal to the excess of (i) the
aggregate Fair Market Value (on the day before the date of exercise of the Stock Appreciation
Right) of a number of Shares equal to the number of Shares or Share Equivalents in which the
Participant is vested under such Stock Appreciation Right on such date, over (ii) the Exercise
Price determined by the Administrator on the date of grant of the Stock Appreciation Right which
shall not be less than 100% of the Fair Market Value of a Share on the date of grant.

          (c) Term and Exercise of Stock Appreciation Rights. Each Stock Appreciation Right
shall state the time or times when it may become exercisable. No Stock Appreciation Right shall be
exercisable after the expiration of seven years from the date it is granted or such lesser period
established by the Administrator.

          (d) Payment. The appreciation distribution in respect of a Stock Appreciation Right
may be paid in Common Stock or in cash, or any combination of the two, or in any other form of
consideration as determined by the Administrator and contained in the Stock Appreciation Right
Agreement.

          (e) Limitations on Transferability. A Stock Appreciation Right shall, during a
Participant’s lifetime, be exercisable only by the Participant. No Stock Appreciation Right or any
right granted thereunder shall be transferable by the Participant by operation of law or otherwise,
other than by will or the laws of descent and distribution. Notwithstanding the foregoing, (i) a
Participant may designate a beneficiary to succeed, after the Participant’s death, to all of the
Participant’s Stock Appreciation Rights outstanding on the date of Termination of Employment. Each
Stock Appreciation Right Agreement shall set forth the extent to which the Participant shall have
the right to exercise the Stock Appreciation Right following termination of the Participant’s
employment or service with the Company and its Affiliates. Such provisions shall be determined in
the sole discretion of the Administrator, need not be uniform among all Stock Appreciation Right
Agreements entered into pursuant to the Plan, and may reflect distinctions based on the reasons for
termination of employment.

          (f) Termination of Employment. Each Stock Appreciation Right Agreement shall set
forth the extent to which the Participant shall have the right to exercise the Stock Appreciation
Right following termination of the Participant’s employment of service with the

10

 

Company and its Affiliates. Such provisions shall be determined in the sole discretion of the
Administrator, need not be uniform among all Sock Appreciation Rights Agreements entered into
pursuant to the Plan, and may reflect distinctions based on the reasons for termination of
employment.

          (g) Rights as a Shareholder. A Participant or a transferee of a Participant shall
have no rights as a shareholder with respect to any Shares covered by his or her Stock Appreciation
Right until the date of issuance of such Shares. Except as provided in Section 18, no adjustment
shall be made for dividends, distributions or other rights for which the record date is prior to
the date such Shares are issued.

          (h) Other Terms and Conditions. The Stock Appreciation Right Agreement may contain
such other terms and conditions, including restrictions or conditions on the vesting of the Stock
Appreciation Right or the conditions under which the Stock Appreciation Right may be forfeited, as
may be determined by the Administrator that are consistent with the Plan.

9. RESTRICTED STOCK.

          (a) Grants. Subject to the provisions of the Plan, the Administrator shall have sole
and complete authority to determine the Employees and Directors to whom, and the time or times at
which, grants of Restricted Stock will be made, the number of shares of Restricted Stock to be
awarded, the price (if any) to be paid by the recipient of Restricted Stock, the time or times
within which such Awards may be subject to forfeiture, and all other terms and conditions of the
Awards. The Administrator may condition the grant of Restricted Stock upon the attainment of
specified performance objectives established by the Administrator pursuant to Section 14 or such
other factors as the Administrator may determine, in its sole discretion.

          The terms of each Restricted Stock Award shall be set forth in a Restricted Stock Agreement
between the Company and the Participant, which Agreement shall contain such provisions as the
Administrator determines to be necessary or appropriate to carry out the intent of the Plan. Each
Participant receiving a Restricted Stock Award shall be issued a stock certificate in respect of
such shares of Restricted Stock. Such certificate shall be registered in the name of such
Participant, and shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such Award. The Administrator shall require that stock certificates
evidencing such shares be held by the Company until the restrictions lapse and that, as a condition
of any Restricted Stock Award, the Participant shall deliver to the Company a stock power relating
to the stock covered by such Award. Notwithstanding any other provision of the Plan to the
contrary, except with respect to a maximum of 5% of the shares authorized for issuance under
Section 6, any Awards of Restricted Stock which vest on the basis of the Participant’s length of
service with the Company or its subsidiaries shall not provide for vesting that is any more rapid
than annual pro rata vesting over a three-year period and any Awards of Restricted Stock which
provide for vesting upon the attainment of performance goals shall provide for a performance period
of at least 12 months.

          (b) Restrictions and Conditions. The shares of Restricted Stock awarded pursuant to
this Section 9 shall be subject to the following restrictions and conditions:

11

 

               (i) During a period set by the Administrator commencing with the date of such Award
(the “Restriction Period”), the Participant shall not be permitted to sell, transfer,
pledge, assign or encumber shares of Restricted Stock awarded under the Plan. Within these
limits, the Administrator, in its sole discretion, may provide for the lapse of such
restrictions in installments and may accelerate or waive such restrictions in whole or in
part, based on service, performance, or such other factors or criteria as the Administrator
may determine in its sole discretion.

               (ii) Except as provided in this paragraph (ii) and paragraph (i) above, the Participant
shall have, with respect to the shares of Restricted Stock, all of the rights of a
shareholder of the Company, including the right to vote the shares and the right to receive
any cash dividends. The Administrator, in its sole discretion, as determined at the time of
Award, may provide that the payment of cash dividends shall or may be deferred and, if the
Administrator so determines, invested in additional shares of Restricted Stock to the extent
available under Section 6, or otherwise invested. Stock dividends issued with respect to
Restricted Stock shall be treated as additional shares of Restricted Stock that are subject
to the same restrictions and other terms and conditions that apply to the shares with
respect to which such dividends are issued.

               (iii) The Administrator shall specify the conditions under which shares of Restricted
Stock shall vest or be forfeited and such conditions shall be set forth in the Restricted
Stock Agreement.

               (iv) If and when the Restriction Period applicable to shares of Restricted Stock
expires without a prior forfeiture of the Restricted Stock, certificates for an appropriate
number of unrestricted shares shall be delivered promptly to the Participant, and the
certificates for the shares of Restricted Stock shall be cancelled.

10. RESTRICTED STOCK UNITS.

          (a) Grants. Subject to the provisions of the Plan, the Administrator shall have sole
and complete authority to determine the Employees and Directors to whom, and the time or times at
which, grants of Restricted Stock Units will be made, the number of Restricted Stock Units to be
awarded, the price (if any) to be paid by the recipient of the Restricted Stock Units, the time or
times within which such Restricted Stock Units may be subject to forfeiture, and all other terms
and conditions of the Restricted Stock Unit Awards. The Administrator may condition the grant of
Restricted Stock Unit Awards upon the attainment of specified performance objectives established by
the Administrator pursuant to Section 14 or such other factors as the Administrator may determine,
in its sole discretion.

          The terms of each Restricted Stock Unit Award shall be set forth in a Restricted Stock Unit
Award Agreement between the Company and the Participant, which Agreement shall contain such
provisions as the Administrator determines to be necessary or appropriate to carry out the intent
of the Plan. With respect to a Restricted Stock Unit Award, no certificate for shares of stock
shall be issued at the time the grant is made (nor shall any book entry be made in the records of
the Company) and the Participant shall have no right to or interest in shares of stock of the
Company as a result of the grant of Restricted Stock Units.

12

 

          (b) Restrictions and Conditions. The Restricted Stock Units awarded pursuant to this
Section 10 shall be subject to the following restrictions and conditions:

               (i) At the time of grant of a Restricted Stock Unit Award, the Administrator may impose
such restrictions or conditions on the vesting of the Restricted Stock Units, as the
Administrator deems appropriate. Within these limits, the Administrator, in its sole
discretion, may provide for the lapse of such restrictions in installments and may
accelerate or waive such restrictions in whole or in part, based on service, performance, a
Change in Control or such other factors or criteria as the Administrator may determine in
its sole discretion. The foregoing notwithstanding, no action pursuant to the preceding
sentence may alter the time of payment of the Restricted Stock Unit Award, if such
alteration would cause the Award to be subject to penalty under Code Section 409A.

               (ii) Dividend equivalents may be credited in respect of Restricted Stock Units, as the
Administrator deems appropriate. Such dividend equivalents may be paid in cash or converted
into additional Restricted Stock Units by dividing (1) the aggregate amount or value of the
dividends paid with respect to that number of Shares equal to the number of Restricted Stock
Units then credited by (2) the Fair Market Value per Share on the payment date for such
dividend. The additional Restricted Stock Units credited by reason of such dividend
equivalents will be subject to all of the terms and conditions of the underlying Restricted
Stock Unit Award to which they relate.

               (iii) The Administrator shall specify the conditions under which Restricted Stock Units
shall vest or be forfeited and such conditions shall be set forth in the Restricted Stock
Unit Agreement.

          (c) Deferral Election. Each recipient of a Restricted Stock Unit Award may be
eligible, subject to Administrator approval, to elect to defer all or a percentage of any Shares he
or she may be entitled to receive upon the lapse of any restrictions or vesting period to which the
Award is subject. This election shall be made by giving notice in a manner and within the time
prescribed by the Administrator and in compliance with the requirements of Code Section 409A. Each
Participant must indicate the percentage (expressed in whole percentages) he or she elects to defer
of any Shares he or she may be entitled to receive. If no notice is given, the Participant shall
be deemed to have made no deferral election. Each deferral election filed with the Administrator
shall become irrevocable on and after the prescribed deadline.

11. PERFORMANCE SHARES.

          (a) Grants. Subject to the provisions of the Plan, the Administrator shall have sole
and complete authority to determine the Employees and Directors to whom, and the time or times at
which, grants of Performance Shares will be made, the number of Performance Shares to be awarded,
the price (if any) to be paid by the recipient of the Performance Shares, the time or times within
which such Performance Shares may be subject to forfeiture, and all other terms and conditions of
the Performance Share Awards. The Administrator may condition the grant of Performance Share
Awards upon the attainment of specified performance objectives established

13

 

by the Administrator pursuant to Section 14 or such other factors as the Administrator may
determine, in its sole discretion.

          The terms of each Performance Share Award shall be set forth in a Performance Share Award
Agreement between the Company and the Participant, which Agreement shall contain such provisions as
the Administrator determines to be necessary or appropriate to carry out the intent of the Plan.
With respect to a Performance Share Award, no certificate for shares of stock shall be issued at
the time the grant is made (nor shall any book entry be made in the records of the Company) and the
Participant shall have no right to or interest in shares of stock of the Company as a result of the
grant of Performance Shares.

          (b) Restrictions and Conditions. The Performance Shares awarded pursuant to this
Section 11 shall be subject to the following restrictions and conditions: At the time of grant of
a Performance Share Award, the Administrator may set performance objectives in its discretion
which, depending on the extent to which they are met, will determined the number of Performance
Shares that will be paid out to the Participant. The time period during which the performance
objectives must be met will be called the “Performance Period.” After the applicable Performance
Period has ended, the recipient of the Performance Shares will be entitled to receive the number of
Performance Shares earned by the Participant over the Performance Period, to be determined as a
function of the extent to which the corresponding performance objectives have been achieved. After
the grant of a Performance Share Award, the Administrator, in its sole discretion, may reduce or
waive any performance objective for such Performance Share Award; provided, however, that no
performance objective may be waved or reduced for a Covered Employee and further provided that no
such action may alter the time of payment of the Performance Share Award, if such alteration would
cause the award to be subject to penalty under Code Section 409A.

12. OTHER SHARE-BASED AWARDS.

          (a) Grants. Other Awards of Shares and other Awards that are valued in whole or in
part by reference to, or are otherwise based on, Shares (“Other Share-Based Awards”), may be
granted either alone or in addition to or in conjunction with other Awards under this Plan. Awards
under this Section 12 may include (without limitation) Stock Rights, the grant of Shares
conditioned upon some specified event, the payment of cash based upon the performance of the Shares
or the grant of securities convertible into Shares.

          Subject to the provisions of the Plan, the Administrator shall have sole and complete
authority to determine the Employees and Directors to whom and the time or times at which Other
Share-Based Awards shall be made, the number of Shares or other securities, if any, to be granted
pursuant to Other Share-Based Awards, and all other conditions of the Other Share-Based Awards.
The Administrator may condition the grant of an Other Share-Based Award upon the attainment of
specified performance goals or such other factors as the Administrator shall determine, in its sole
discretion. In granting an Other Share-Based Award, the Administrator may determine that the
recipient of an Other Share-Based Award shall be entitled to receive, currently or on a deferred
basis, interest or dividends or dividend equivalents with respect to the Shares or other securities
covered by the Award, and the Administrator may provide that such amounts (if any) shall be deemed
to have been reinvested in additional Shares

14

 

or otherwise reinvested. The terms of any Other Share-Based Award shall be set forth in an
Other Share-Based Award Agreement between the Company and the Participant, which Agreement shall
contain such provisions as the Administrator determines to be necessary or appropriate to carry out
the intent of the Plan.

          (b) Terms and Conditions. In addition to the terms and conditions specified in the
Other Share-Based Award Agreement, Other Share-Based Awards shall be subject to the following:

               (i) Any Other Share-Based Award may not be sold, assigned, transferred, pledged or
otherwise encumbered prior to the date on which the Shares are issued or the Award becomes
payable, or, if later, the date on which any applicable restriction, performance or deferral
period lapses.

               (ii) The Other Share-Based Award Agreement shall contain provisions dealing with the
disposition of such Award in the event of termination of the Employee’s employment or the
Director’s service prior to the exercise, realization or payment of such Award, and the
Administrator in its sole discretion may provide for payment of the Award in the event of
the Participant’s retirement, Disability or death or a Change of Control, with such
provisions to take account of the specific nature and purpose of the Award.

13. OTHER PAYMENTS IN SHARES.

          Shares may be issued under this Plan to satisfy the payment of all or part of an award
pursuant to the Company’s annual bonus plan. In addition, all or part of any Director’s fees may
be paid in Shares or Share Equivalents issued under this Plan. Any Shares issued pursuant to this
Section 13 shall reduce the number of Shares authorized under Section 6 but shall not be considered
an Award for purposes of the maximum grant limitation in Section 5(b).

14. PERFORMANCE OBJECTIVES.

          (a) Authority to Establish. The Administrator shall determine the terms and
conditions of Awards at the date of grant or thereafter; provided that performance
objectives for each year, if any, shall be established by the Administrator not later than the
latest date permissible under Code Section 162(m).

          (b) Criteria. To the extent that such Awards are paid to Employees the performance
objectives to be used, if any, shall be expressed in terms of one or more of the following: total
shareholder return; earnings per share; stock price; return on equity; net earnings; income from
continuing operations; related return ratios; cash flow; net earnings growth; earnings before
interest, taxes, depreciation and amortization (EBITDA); gross or operating margins; productivity
ratios; expense targets; operating efficiency; market share; customer satisfaction; working capital
targets (including, but not limited to days sales outstanding); return on assets; increase in
revenues; decrease in expenses; increase in funds from operations (FFO); and increase in FFO per
share. Awards may be based on performance against objectives for more than one Subsidiary or
segment of the Company. For example, awards for an Executive

15

 

employed by the Company may be based on overall corporate performance against objectives, but
awards for an Executive employed by a Subsidiary may be based on a combination of corporate,
segment, and Subsidiary performance against objectives. Performance objectives, if any,
established by the Administrator may be (but need not be) different from year-to-year, and
different performance objectives may be applicable to different Participants. Performance
objectives may be determined on an absolute basis or relative to internal goals or relative to
levels attained in prior years or related to other companies or indices or as ratios expressing
relationships between two or more performance objectives. In addition, performance objectives may
be based upon the attainment of specified levels of Company performance under one or more of the
measures described above relative to the performance of other corporations.

          (c) Adjustments. The Committee shall specify the manner of adjustment of any
performance objectives to the extent necessary to prevent dilution or enlargement of any award as a
result of extraordinary events or circumstances, as determined by the Committee, or to exclude the
effects of extraordinary, unusual, or non-recurring items; changes in applicable laws, regulations,
or accounting principles; currency fluctuations; discontinued operations; non-cash items, such as
amortization, depreciation, or reserves; asset impairment; or any recapitalization, restructuring,
reorganization, merger, acquisition, divestiture, consolidation, spin-off, split-up, combination,
liquidation, dissolution, sale of assets, or other similar corporate transaction. Any adjustment
to performance objectives pursuant to this Section 14(c) shall be done in accordance with Code
Section 162(m).

15. CHANGE IN CONTROL.

          (a) Discretion to Accelerate. An Award may be subject to additional acceleration of
vesting and exercisability upon or after a Change in Control as may be provided in the applicable
Award Agreement and determined by the Administrator on a grant by grant basis or as may be provided
in any other written agreement between the Company and any Affiliate or Subsidiary and the
Participant; provided, however, that in the absence of such provision, no such
acceleration shall occur and any such acceleration shall be subject to the limits set forth in
Section 15(b).

          (b) Limitation on Acceleration. In connection with any acceleration of vesting or
change in exercisability upon or after a Change in Control, if any amount or benefit to be paid or
provided under an Award or under any other agreement between a Participant and Company would be an
Excess Parachute Payment (including after taking into account the value, to the maximum extent
permitted by Code Section 280G, of covenants by or restrictions on Participant following the Change
in Control), then the payments and benefits to be paid or provided will be reduced to the minimum
extent necessary (but in no event to less than zero) so that no portion of any such payment or
benefit, as so reduced, constitutes an Excess Parachute Payment; provided, however,
that the foregoing reduction will not be made if such reduction would result in a Participant
receiving an After-Tax Amount less than 90% of the After-Tax Amount of the payments Participant
would have received under such Awards or any other agreement without regard to this limitation.
Whether requested by a Participant or the Company, the determination of whether any reduction in
such payments or benefits is required pursuant to the preceding sentence, and the value to be
assigned to any covenants by or restrictions on Participant, for purposes of determining the
amount, if any, of the Excess Parachute Payment

16

 

will be made at the expense of the Company by the Company’s independent accountants or
benefits consultant. The fact that a Participant’s right to payments or benefits may be reduced by
reason of the limitations contained in this paragraph will not of itself limit or otherwise affect
any other rights of a Participant under any other agreement. In the event that any payment or
benefit intended to be provided is required to be reduced pursuant to this paragraph, a Participant
will be entitled to designate the payments and/or benefits to be so reduced in order to give effect
to this paragraph, provided, however, that payments that do not constitute deferred compensation
within the meaning of Section 409A will be reduced first. The Company will provide Participant with
all information reasonably requested by Participant to permit Participant to make such designation.
In the event that Participant fails to make such designation within 10 business days after
receiving notice from the Company of a reduction under this paragraph, the Company may effect such
reduction in any manner it deems appropriate.

16. FORFEITURE FOR CAUSE.

          Notwithstanding any other provision of this Plan to the contrary, if the Participant engages
in conduct which constitutes Cause prior to, or during the twelve month period following, the
exercise of the Option or the vesting of the Award, the Administrator (or its delegate) may

          (a) rescind the exercise of any Option exercised during the period beginning twelve months
prior to through 24 months after the Participant’s termination of employment or service with the
Company or its Affiliates and cancel all outstanding Awards within 24 months after the
Participant’s termination of employment or service with the Company or its Affiliates, and

          (b) demand that the Participant pay over to the Company the proceeds (less the Participant’s
purchase price, if any) received by the Participant upon (i) the sale, transfer or other
transaction involving the Shares acquired upon the exercise of any Option exercised during the
period beginning twelve months prior to through 24 months after the Participant’s termination of
employment or service with the Company or its Affiliates or (ii) the vesting of any Award within
twelve months prior to through 24 months after the Participant’s termination of employment or
service with the Company or its Affiliates, in such manner and on such terms and conditions as may
be required, and, without limiting any other remedy the Company or its Affiliates may have, the
Company shall be entitled to set-off against the amount of any such proceeds any amount owed the
Participant by the Company or its Affiliates to the fullest extent permitted by law.

17. TERM OF PLAN.

          Awards may be granted pursuant to the Plan until the termination of the Plan on January 10,
2016.

18. RECAPITALIZATION.

          Subject to any required action by the shareholders, the number of Shares covered by this Plan
as provided in Section 6, the maximum grant limitation in Section 5(b), the number

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of Shares or Share Equivalents covered by or referenced in each outstanding Award, and the
Exercise Price of each outstanding Option or Stock Appreciation Right and any price required to be
paid for Restricted Stock or Other Share-Based Award shall be proportionately adjusted for any
increase or decrease in the number of issued Shares resulting from a subdivision or consolidation
of Shares, the payment of a stock dividend (but only of Common Stock) or any other increase or
decrease in the number of such Shares effected without receipt of consideration by the Company or
the declaration of a dividend payable in cash that has a material effect on the price of issued
Shares.

          Subject to any required action by the shareholders, if the Company shall be a party to any
merger, consolidation or other reorganization, each outstanding Award shall pertain and apply to
the securities to which a holder of the number of Shares or Share Equivalents subject to the Award
would have been entitled. In the event of a change in the Common Stock as presently constituted,
which is limited to a change of all of its authorized shares with par value into the same number of
shares with a different par value or without par value, the shares resulting from any such change
shall be deemed to be the Common Stock within the meaning of the Plan.

          To the extent that the foregoing adjustments relate to stock or securities of the Company,
such adjustments shall be made by the Administrator, whose determination in that respect shall be
final, binding and conclusive, provided that each Incentive Stock Option granted pursuant to this
Plan shall not be adjusted in a manner that causes the Option to fail to continue to qualify as an
incentive stock option within the meaning of Code Section 422 or subject the Option to the
requirements of Code Section 409A.

          Except as expressly provided in this Section 18, a Participant shall have no rights by reason
of any subdivision or consolidation of shares of stock of any class or the payment of any stock
dividend or any other increase or decrease in the number of shares of stock of any class or by
reason of any dissolution, liquidation, merger or consolidation or spin-off of assets or stock of
another Company, and any issue by the Company of shares of stock of any class or securities
convertible into shares of stock of any class, shall not affect the number or price of Shares
subject to the Option.

          The grant of an Option pursuant to the Plan shall not affect in any way the right or power of
the Company to make adjustments, reclassifications, reorganizations or changes of its capital or
business structure or to merge or consolidate or to dissolve, liquidate, sell or transfer all or
any part of its business assets.

19. SECURITIES LAW REQUIREMENTS AND LIMITATION OF RIGHTS.

          (a) Securities Law. No Shares shall be issued pursuant to the Plan unless and until
the Company has determined that: (i) it and the Participant have taken all actions required to
register the Shares under the Securities Act of 1933 or perfect an exemption from registration;
(ii) any applicable listing requirement of any stock exchange on which the Common Stock is listed
has been satisfied; and (iii) any other applicable provision of state or federal law has been
satisfied.

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          (b) Employment Rights. Neither the Plan nor any Award granted under the Plan shall be
deemed to give any individual a right to remain employed by the Company or an Affiliate or to
remain a Director. The Company and its Affiliates reserve the right to terminate the employment of
any employee at any time, with or without cause or for no cause, subject only to a written
employment contract (if any), and the Board reserves the right to terminate a Director’s membership
on the Board for cause in accordance with the Company’s Restated Certificate of Incorporation.

          (c) Shareholders’ Rights. Except as provided by the Administrator in accordance with
or Section 12, a Participant shall have no dividend rights, voting rights or other rights as a
shareholder with respect to any Shares covered by his or her Award prior to the issuance of a stock
certificate for such Shares. No adjustment shall be made for cash dividends or other rights for
which the record date is prior to the date when such certificate is issued.

          (d) Creditors’ Rights. A holder of an Other Share-Based Award shall have no rights
other than those of a general creditor of the Company. An Other Share-Based Award shall represent
an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the
applicable Other Share-Based Award Agreement. An Other Share-Based Award shall not be deemed to
create a trust for the benefit of any individual.

20. BENEFICIARY DESIGNATION.

          Participants and their Beneficiaries may designate on the prescribed form one or more
Beneficiaries to whom distribution shall be made of any Award outstanding at the time of the
Participant’s or Beneficiary’s death. A Participant or Beneficiary may change such designation at
any time by filing the prescribed form with the Administrator. If a Beneficiary has not been
designated or if no designated Beneficiary survives the Participant or Beneficiary, distribution
will be made to the residuary beneficiary under the terms of the Participant’s or Beneficiary’s
last will and testament or, in the absence of a last will and testament, to the Participant’s or
Beneficiary’s estate as Beneficiary.

21. AMENDMENT OF THE PLAN.

          The Board may suspend or discontinue the Plan or revise or amend it with respect to any Shares
at the time not subject to Awards except that, without approval of the shareholders of the Company,
no such revision or amendment shall:

          (a) Increase the number of Shares subject to the Plan;

          (b) Change the designation in Section 5 of the class of Employees eligible to receive Awards;

          (c) Decrease the price at which Incentive Stock Options may be granted;

          (d) Remove the administration of the Plan from the Administrator; or

          (e) Amend this Section 21 to defeat its purpose.

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22. NO AUTHORITY TO REPRICE.

          Without the consent of the shareholders of the Company, except as provided in Section 18, the
Administrator shall have no authority to effect either (i) the repricing of any outstanding Options
or Stock Appreciation Rights under the Plan or (ii) the cancellation of any outstanding Options or
Stock Appreciation Rights under the Plan and the grant in substitution therefor of new Options or
Stock Appreciation Rights under the Plan covering the same or different numbers of shares of Common
Stock.

23. NO OBLIGATION TO EXERCISE OPTION.

          The granting of an Option shall impose no obligation upon the Participant to exercise such
Option.

24. APPROVAL OF SHAREHOLDERS.

          This Plan and any amendments requiring shareholder approval pursuant to Section 21 shall be
subject to approval by affirmative vote of the shareholders of the Company. Such vote shall be
taken at the first annual meeting of shareholders following the adoption of the Plan or of any such
amendments, or any adjournment of such meeting.

25. WITHHOLDING TAXES.

          (a) General. To the extent required by applicable law, the person exercising any
Option granted under the Plan or the recipient of any payment or distribution under the Plan shall
make arrangements satisfactory to the Company for the satisfaction of any applicable withholding
tax obligations. The Company shall not be required to make such payment or distribution until such
obligations are satisfied.

          (b) Other Awards. The Administrator may permit a Participant who exercises
Nonqualified Stock Options or who vests in Restricted Stock Awards to satisfy all or part of his or
her withholding tax obligations by having the Company withhold a portion of the Shares that
otherwise would be issued to him or her under such Nonqualified Stock Options or Restricted Stock
Awards. Such Shares shall be valued at the Fair Market Value on the day preceding the day when
taxes otherwise would be withheld in cash. The payment of withholding taxes by surrendering Shares
to the Company, if permitted by the Administrator, shall be subject to such restrictions as the
Administrator may impose, including any restrictions required by rules of the Securities and
Exchange Commission.

26. SUCCESSORS AND ASSIGNS.

          The Plan shall be binding upon the Company, its successors and assigns, and any parent Company
of the Company’s successors or assigns. Notwithstanding that the Plan may be binding upon a
successor or assign by operation of law, the Company shall require any successor or assign to
expressly assume and agree to be bound by the Plan in the same manner and to the same extent that
the Company would be if no succession or assignment had taken place.

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27. EXECUTION.

          To record the adoption of the Plan as amended and restated on June 3, 2008, the Company has
caused its authorized officer to execute the same.

	 	 	 	 	 
	 	ABM INDUSTRIES INCORPORATED

 	 
	 	By:  	/s/ Erin Andre
 	 
	 	 	Its:      Senior Vice President, 	 
	 	 	Human Resources 	 
	 

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