Document:

Exhibit 10.128

 

Execution Version

 

CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT (this “Agreement”) is entered into as of June 11, 2013, by and between GENERAL MARITIME CORPORATION, a Marshall Islands corporation (“Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”).

 

RECITALS

 

Borrower has requested that Bank extend or continue credit to Borrower as described below, and Bank has agreed to provide such credit to Borrower on the terms and conditions contained herein.

 

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Bank and Borrower hereby agree as follows:

 

ARTICLE I 

CREDIT TERMS

 

SECTION 1.1.  LINE OF CREDIT.

 

(a)                                 Line of Credit.  Subject to the terms and conditions of this Agreement, Bank hereby agrees to make advances to Borrower from time to time up to and including the Maturity Date (as defined in Section 1.1(c)), not to exceed at any time the aggregate principal amount of Nine Million Three Hundred Forty-One Thousand Six Hundred Fifty-Six Dollars ($9,341,656.000) (“Line of Credit”), the proceeds of which shall be used for Borrower’s working capital and general corporate purposes.  Borrower’s obligation to repay advances under the Line of Credit shall be evidenced by a promissory note dated as of June 11, 2013 (“Line of Credit Note”), all terms of which are incorporated herein by this reference.

 

(b)                                 Borrowing and Repayment.  Borrower may from time to time during the term of the Line of Credit borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions contained herein or in the Line of Credit Note; provided however, that the total outstanding borrowings under the Line of Credit shall not at any time exceed the maximum principal amount available thereunder, as set forth above.

 

(c)                                  Maturity Date.  As used herein, the term “Maturity Date” means July 31, 2014 or if the maturity of the Line of Credit is extended pursuant to Section 1.1(d), such extended maturity date as determined pursuant to such Section.

 

(d)                                 Extension of Maturity Date.

 

(i)                                     Not earlier than April 31, 2014 nor later than June 30, 2014, Borrower may, upon notice to Bank, request a one-year extension of the Maturity Date then in effect.  Within twenty (20) days of delivery of such notice, Bank shall notify Borrower whether or not it consents to such extension (which consent may be given or withheld in Bank’s sole and absolute discretion).  If Bank fails to respond within the above time period, it shall be deemed not to have consented to such extension.

 

 

(ii)                                  If Bank consents to such extension, the Maturity Date shall be extended by one year.  As a condition precedent to such extension, Borrower shall deliver to Bank a certificate of a responsible official of Borrower certifying that, before and after giving effect to such extension, (A) the representations and warranties contained in Article 2 of this Agreement and in the other Loan Documents are true and correct on and as of the effective date of such extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and (B) no Potential Event of Default (as defined in Section 3.2(a)) or Event of Default (as defined in Section 5.1) exists.

 

SECTION 1.2.  INTEREST/FEES.

 

(a)                                 Interest.  The outstanding principal balance of the Line of Credit shall bear interest at the rate of interest set forth in the Line of Credit Note.

 

(b)                                 Computation and Payment.  Interest shall be computed on the basis of a 360-day year, actual days elapsed.  Interest shall be payable at the times and place set forth in each promissory note or other instrument or document required hereby.

 

(c)                                  Unused Commitment Fee.  Borrower shall pay to Bank a fee equal to thirty-five hundredths percent (0.35%) per annum (computed on the basis of a 360-day year, actual days elapsed) on the average daily unused amount of the Line of Credit, which fee shall be calculated on a monthly basis by Bank and shall be due and payable by Borrower in arrears within ten (10) days after each billing is sent by Bank, which shall be sent no more frequently than monthly.

 

SECTION 1.3.  COLLECTION OF PAYMENTS.  Borrower authorizes Bank to collect all principal, interest and fees due under the Line of Credit by charging any deposit account now or hereafter maintained by Borrower with Bank, for the full amount thereof.  Should there be insufficient funds in any such deposit account to pay all such sums when due, or if no such account shall then be maintained, the full amount of such deficiency shall be immediately due and payable by Borrower.

 

SECTION 1.4.  GUARANTIES.  The payment and performance of all indebtedness and other Obligations (as defined in Section 6.15) of Borrower to Bank under this Agreement, the Line of Credit Note and the other Loan Documents (as defined in Section 2.2) shall be guaranteed severally (and not jointly), on a specified pro rata basis, by the Guarantors (as defined in Section 6.15).  To the extent any the Guaranties would be considered a partial guarantee under California Civil Code Section 2822, Borrower hereby waives all rights under California Civil Code Section 2822, including without limitation any right to designate the portion of Borrower’s indebtedness to which a partial payment is to be applied.

 

ARTICLE II 

REPRESENTATIONS AND WARRANTIES

 

Borrower makes the following representations and warranties to Bank, which representations and warranties shall survive the execution of this Agreement and shall continue in full force and effect until the full and final payment, and satisfaction and discharge, of all Obligations (other than contingent indemnification obligations not yet due and payable).

 

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SECTION 2.1.  LEGAL STATUS.  Borrower is a corporation, duly organized and existing and in good standing under the laws of the Marshall Islands, and is qualified or licensed to do business (and is in good standing as a foreign corporation, if applicable) in all jurisdictions in which such qualification or licensing is required or in which the failure to so qualify or to be so licensed could have a Material Adverse Effect (as defined in Section 3.2(b)).

 

SECTION 2.2.  AUTHORIZATION AND VALIDITY.  This Agreement and each promissory note (including the Line of Credit Note), contract, instrument and other document required hereby or at any time hereafter delivered to Bank in connection herewith (collectively, the “Loan Documents”) have been duly authorized, and upon their execution and delivery in accordance with the provisions hereof will constitute legal, valid and binding agreements and obligations of Borrower which executes the same, enforceable in accordance with their respective 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).

 

SECTION 2.3.  NO VIOLATION.  The execution, delivery and performance by Borrower of each of the Loan Documents do not violate any provision of any law or regulation, or contravene any provision of the organizational documents of Borrower, or result in any breach of or default under any material contract, obligation, indenture or other instrument to which Borrower is a party or by which Borrower may be bound.

 

SECTION 2.4.  LITIGATION.  There are no pending, or to the best of Borrower’s knowledge threatened, actions, claims, investigations, suits or proceedings by or before any governmental authority, arbitrator, court or administrative agency which could have a Material Adverse Effect other than those disclosed by Borrower to Bank in writing prior to the date hereof.

 

SECTION 2.5.  CORRECTNESS OF FINANCIAL STATEMENT.  The annual financial statement of Borrower dated as of December 31, 2012, and all interim financial statements delivered to Bank since said date, true copies of which have been delivered by Borrower to Bank prior to the date hereof, (a) are complete and correct and present fairly the financial condition of Borrower, (b) disclose all liabilities of Borrower that are required to be reflected or reserved against under generally accepted accounting principles, whether liquidated or unliquidated, fixed or contingent, and (c) have been prepared in accordance with generally accepted accounting principles consistently applied (except as approved by its accountants and disclosed therein).

 

SECTION 2.6.  INCOME TAX RETURNS.  Borrower has no knowledge of any pending material assessments or adjustments of its income tax payable with respect to any year.

 

SECTION 2.7.  NO SUBORDINATION.  There is no agreement, indenture, contract or instrument to which Borrower is a party or by which Borrower may be bound that requires the subordination in right of payment of any of Borrower’s obligations subject to this Agreement to any other obligation of Borrower.

 

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SECTION 2.8.  PERMITS, FRANCHISES.  Borrower possesses, and will hereafter possess, all permits, consents, approvals, franchises and licenses required and rights to all trademarks, trade names, patents, and fictitious names, if any, necessary to enable it to conduct the business in which it is now engaged in compliance with applicable law, except where the failure to possess any such permits, consents, approvals, franchises, licenses or rights would not reasonably be expected to have a Material Adverse Effect.

 

SECTION 2.9.  COMPLIANCE WITH ERISA.

 

(a) Schedule 2.9 to this Agreement sets forth, as of the Closing Date, each Plan; with respect to each Plan, other than any Multiemployer Plan (and each related trust, insurance contract or fund), there has been no failure to be in substantial compliance with its terms and with all applicable laws, including without limitation ERISA (as defined in Section 6.15) and the Code, that could reasonably be expected to give rise to a Material Adverse Effect; 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 Code has received a determination letter (or an opinion letter) from the United States Internal Revenue Service to the effect that it meets the requirements of Sections 401(a) and 501(a) of the Code; no Reportable Event (as defined in Section 6.15) has occurred; to the best knowledge of 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 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 failed to satisfy minimum funding standards, or has applied for or received a waiver of the minimum funding standards or an extension of any amortization period, within the meaning of Section 412 or 430 of the Code or Section 302 or 303 of ERISA; with respect to each Plan (other than a Multiemployer Plan) its actuary has certified that such Plan is not an at-risk plan within the meaning of Section 430 of the Code or Section 303 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 2.9); neither 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 436(f), 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 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 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 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, 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; neither Borrower nor any of its subsidiaries nor any ERISA Affiliate has received any notice that a Plan which is a

 

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Multiemployer Plan is in endangered or critical status under Section 305 of ERISA; 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 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 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 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.

 

(b) Each Foreign Pension Plan 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 Borrower nor any of its subsidiaries has incurred any obligation in connection with the termination of or withdrawal from any Foreign Pension Plan that could reasonably be expected to have a Material Adverse Effect.  Neither 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.

 

SECTION 2.10.  OTHER OBLIGATIONS.  Except as set forth in Schedule 2.10 to this Agreement, Borrower is not in default on any obligation for borrowed money, any purchase money obligation or any other lease, commitment, contract, instrument or obligation that would reasonably be expected to have a Material Adverse Effect or constitutes Indebtedness with a principal amount greater than $10,000,000.

 

SECTION 2.11.  ENVIRONMENTAL MATTERS.  Except as disclosed by Borrower to Bank in writing prior to the date hereof, or as would not reasonably be expected to have a Material Adverse Effect, Borrower is in compliance with all applicable federal or state environmental, hazardous waste, health and safety statutes, and any rules or regulations adopted pursuant thereto, which govern or affect any of Borrower’s operations and/or properties, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the Federal Resource Conservation and Recovery Act of 1976, and the Federal Toxic Substances Control Act, as any of the same may be amended, modified or supplemented from time to time.  To Borrower’s knowledge, none of the operations of Borrower is the subject of any federal or state investigation evaluating whether any remedial action involving a material expenditure is needed to respond to a release of any toxic or hazardous waste or substance into the environment, in each case which would reasonably be expected to have a Material Adverse Effect.  To Borrower’s knowledge, Borrower has no material contingent liability in connection with any release of any toxic or hazardous waste or substance into the environment which would reasonably be expected to have a Material Adverse Effect.

 

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ARTICLE III 

CONDITIONS

 

SECTION 3.1.  CONDITIONS OF INITIAL EXTENSION OF CREDIT.  The obligation of Bank to extend any credit contemplated by this Agreement is subject to the fulfillment to Bank’s satisfaction of all of the following conditions (the date on which such conditions are satisfied (or waived in writing by Bank) being the “Closing Date”):

 

(a)                                 Approval of Bank Counsel.  All legal matters incidental to the extension of credit by Bank shall be satisfactory to Bank’s counsel.

 

(b)                                 Documentation.  Bank shall have received, in form and substance satisfactory to Bank, each of the following, duly executed:

 

(i)                                     This Agreement and the Line of Credit Note.  

 

(ii)                                  The Guaranties.

 

(iii)                               Such documentation as Bank may reasonably require to establish Borrower and each Guarantor’s due organization or formation, valid existence and good standing in its jurisdiction of formation, its qualification to engage in business in the jurisdiction of its principal place of business, its authority to execute, deliver and perform the Loan Documents to which it is a party, the identity, authority and capacity of each responsible official thereof authorized to act on its behalf in connection with the Loan Documents, (including copies of, as applicable, (i) its certified articles or certificate of incorporation and amendments thereto, (ii) its partnership agreement and amendments thereto, and (iii) its bylaws and amendments thereto, in each case, certified by a responsible official of such party), certificates of good standing and/or qualifications to engage in business, certified copies of resolutions, incumbency certificates, certificates of responsible officials and the like.

 

(iv)                              Executed legal opinions of counsel to Borrower and the Guarantors, each in form and substance satisfactory to Bank which shall cover such matters incident to the transactions contemplated by this Agreement, the Line of Credit Note and the other Loan Documents, as Bank may reasonably require and Borrower hereby authorizes and directs such counsel to deliver such opinions to Bank.

 

(v)                                 A fully-executed amendment to the PF V Guarantor Credit Agreement, which shall provide for a direct cross-default to this Agreement.

 

(c)                                  Financial Condition.  There shall not have occurred any Material Adverse Effect since December 31, 2012.

 

(d)                                 Insurance.  Borrower shall have delivered to Bank evidence of insurance coverage on all Borrower’s property, in form, substance, amounts, covering risks and issued by companies satisfactory to Bank.

 

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SECTION 3.2.  CONDITIONS OF EACH EXTENSION OF CREDIT.  The obligation of Bank to make each extension of credit requested by Borrower hereunder shall be subject to the fulfillment to Bank’s satisfaction of each of the following conditions:

 

(a)                                 Compliance.  The representations and warranties contained herein and in each of the other Loan Documents shall be true on and as of the date of the signing of this Agreement and on the date of each extension of credit by Bank pursuant hereto, with the same effect as though such representations and warranties had been made on and as of each such date (except (i) with respect to representations and warranties which, by their terms, relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such date, (ii) to the extent Borrower has previously notified Bank of a change in such representations and warranties and Bank, in writing, has approved such change to the representations and warranties and confirmed that such change is to be deemed a modification to such representations and warranties as set forth in this Agreement, and (iii) that any representation or warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct in all respects on such date), and on each such date, no Event of Default, and no condition, event or act which with the giving of notice or the passage of time or both would constitute such an Event of Default (each, a “Potential Event of Default”), shall have occurred and be continuing or shall exist.

 

(b)                                 No Material Adverse Effect.  Since December 31, 2012, there shall not have occurred and be continuing (i) a material adverse change in, or a material adverse effect upon, the financial condition, operations, assets, business or properties of Borrower, (ii) a material impairment of the ability of Borrower or any other Obligor to perform any of its obligations under any Loan Document to which it is a party or (iii) a material adverse effect upon the legality, validity, binding effect or enforceability against Borrower or any other Obligor of any Loan Document to which it is a party (any of the foregoing constituting a “Material Adverse Effect”).

 

(c)                                  Documentation.  Bank shall have received all additional documents which may be required in connection with such extension of credit.

 

ARTICLE IV 

COVENANTS

 

Borrower covenants that so long as Bank remains committed to extend credit to Borrower pursuant hereto, or any Obligation (other than contingent indemnification obligations not yet due and payable) remains outstanding, Borrower shall, unless Bank otherwise consents in writing:

 

SECTION 4.1.  FINANCIAL STATEMENTS.  Provide to Bank all of the following, in form and detail satisfactory to Bank:

 

(a)                                 Quarterly Financial Statements.  Within 45 days after the close of the first three quarterly accounting periods in each fiscal year of Borrower (provided that for the first fiscal quarter following the Closing Date, such delivery shall be within 60 days after the end of such fiscal quarter), (i) the consolidated balance sheets of Borrower and its subsidiaries as at the end of such quarterly accounting period and the related consolidated statements of operations and

 

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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 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 (a) 90 days after the close of each fiscal year of Borrower in which any of Borrower’s securities are listed on a nationally recognized securities exchange and (b) 120 days after the close of each fiscal year of Borrower (provided, that for the first fiscal year following the Closing Date, such delivery shall be within 150 days after the end of such fiscal year) in which none of Borrower’s securities are listed on a nationally recognized securities exchange, (i) the consolidated balance sheets of Borrower and its subsidiaries as at the end of such fiscal year and the related consolidated statements of operations and retained earnings and of cash flows for such fiscal year setting forth comparative figures for the preceding fiscal year and certified by Deloitte & Touche LLP or such other independent certified public accountants of recognized national standing reasonably acceptable to Bank, together with a report of such accounting firm stating that in the course of its regular audit of the financial statements of Borrower and its subsidiaries, which audit was conducted in accordance with generally accepted auditing standards, such accounting firm obtained no knowledge of any Potential Event of Default or Event of Default as a result of a failure to maintain the covenants described in Section 4.2, which has occurred and is continuing or, if in the opinion of such accounting firm such a Potential Event of 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.

 

(c)                                  Monthly Financial Statements.  To the extent required by the Senior Credit Agreements (as defined in Section 6.15), within 30 days after the end of each of the first two calendar months of each fiscal quarter of Borrower occurring prior to the Trigger Date (as defined in the Senior Credit Agreements), the unaudited trial balance sheets of Borrower and its subsidiaries as at the end of such month, and setting forth comparative figures for the prior calendar month, all of which shall be certified by the senior financial officer of Borrower, subject to normal year-end audit adjustments and including normal recurring adjustments.

 

(d)                                 Projections, Budget, etc.  (i) As soon as available but not less than 30 days prior to the commencement of each fiscal year of Borrower beginning with its fiscal year commencing on January 1, 2014, a preliminary budget of Borrower and its subsidiaries in reasonable detail for each of the twelve months and four fiscal quarters of such fiscal year, and (ii) as soon as available but not more than 45 days after the commencement of each fiscal year of Borrower beginning with its fiscal year commencing on January 1, 2014, (x) a budget of Borrower and its subsidiaries in reasonable detail for each of the twelve months and four fiscal quarters of such fiscal year and (y) Borrower’s forecasted consolidated: (1) balance sheets; (2) profit and loss statements; (3) cash flow statements and (4) capitalization statements, all prepared and based upon good faith estimates and assumptions believed by Borrower to be reasonable at the time made, together with appropriate supporting details and a statement of underlying assumptions in reasonable detail for the period that then extends to one year after the Maturity Date.  It is recognized by Bank that such projections and determinations provided by Borrower, although

 

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reflecting Borrower’s good faith projections and determinations, are not to be viewed as facts and that actual results covered by any such determination may differ from the projected results.

 

(e)                                  Officer’s Compliance Certificates.  (i) At the time of the delivery of the financial statements provided for in Section 4.1 (a) and (b), a certificate of the senior financial officer of Borrower to the effect that, to the best of such officer’s knowledge, no Potential Event of Default or Event of Default has occurred and is continuing or, if any Potential Event of 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 Borrower was in compliance with the covenants in Section 4.2 at the end of such fiscal quarter or year, as the case may be.

 

(f)                                   Notice of Default, Litigation or Event of Loss.  Promptly, and in any event within three business days after Borrower obtains knowledge thereof, (i) the occurrence of any event which constitutes a Potential Event of Default or Event of Default which notice shall specify the nature thereof, the period of existence thereof and what action Borrower proposes to take with respect thereto, and (ii) any litigation or governmental investigation or proceeding pending or threatened in writing against Borrower or any of its subsidiaries which, if adversely determined, could reasonably be expected to have a Material Adverse Effect.

 

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

 

(h) Material Breach; Other Documents.  Promptly upon, and in any event within five business days after, without duplication of any other reporting requirements herein, receipt of any notices of default under the Senior Credit Agreements or the Other Credit Documents (as defined in the Senior Credit Documents), and copies of all effectuated amendments, restatements, supplements or other modifications in respect of the Senior Credit Documents or the Other Credit Documents.

 

(i) Management Letters.  Promptly after Borrower’s or any of its subsidiaries’ receipt thereof, a copy of any “management letter” received from its certified public accountants and management’s response thereto.

 

(j) Other Information.  From time to time, such other information or documentation (financial or otherwise) with respect to Borrower or its subsidiaries as Bank may reasonably request in writing.

 

SECTION 4.2.  FINANCIAL CONDITION.  Comply with the following, calculated using GAAP (except to the extent modified by the definitions herein):

 

(a)                                 Minimum Cash Balance.  Borrower will not permit the Unrestricted Cash and Cash Equivalents held by Borrower and its subsidiaries (other than amounts subject to a control agreement in favor of Nordea Bank Finland PLC, New York Branch (“Nordea Bank”) to be less than (x) $10,000,000 at any time from the Closing Date to and including December 31, 2013, (y)

 

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$15,000,000 at any time from January 1, 2014 to and including June 30, 2014 and (z) $20,000,000 at any time thereafter, with “Unrestricted Cash and Cash Equivalents” meaning, when referring to cash or Cash Equivalents of Borrower or any of its subsidiaries, that such cash or Cash Equivalents (i) does not appear (or would not be required to appear) as “restricted” on a consolidated balance sheet of Borrower or of any such subsidiary, (ii) are not subject to any lien in favor of any person other than Nordea Bank for the benefit of certain secured parties or (iii) are otherwise generally available for use by Borrower or such subsidiary; and with “Cash Equivalents” meaning (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, (x) surplus and undivided profits aggregating in excess of $200,000,000 and (y) a long-term unsecured debt rating of at least “A” or the equivalent thereof from S&P or “A2” or the equivalent thereof from Moody’s with maturities of not more than one year from the date of acquisition by such 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.

 

(b)                                 Borrower will not permit the EBITDA Coverage Ratio as of each quarter end, determined on a rolling 4-quarter basis, to be less than the ratio set forth opposite such fiscal quarter below, with “EBITDA Coverage Ratio” meaning for any period, the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Cash Interest Expense for such period; with “Consolidated EBITDA” meaning the consolidated net after tax income of Borrower and its subsidiaries determined in accordance with GAAP (“Consolidated Net Income”) for such period adjusted by (A) adding thereto the following to the extent deducted in calculating such Consolidated Net Income: (i) consolidated interest expense and amortization of debt discount and commissions and other fees and charges associated with Indebtedness (as defined in the Senior Credit Agreements as in effect on the Closing Date) for such period, (ii) consolidated income tax expense for such period, (iii) all amounts attributable to depreciation and amortization for such period, (iv) any extraordinary losses, expenses or charges for such period, (v) any non-cash management retention or incentive program payments for such period, (vi) non-cash restricted stock compensation, (vii) any non-cash charges or losses, including, without limitation, non-cash compensation expenses for such period, less any extraordinary gains for such period, (viii) any losses from the sales of any vessels for such period, (ix) all costs and expenses incurred (a) prior to or within 180 days following the Restatement Effective Date and, in no event, later than December 31, 2012, in connection with the Transaction (including, without limitation, any payments of interest, fees and expenses made pursuant to, or in connection with, the DIP Credit Agreement and the Plan of Reorganization (in each case, including, but not limited to, fees to advisors, professionals, attorneys, the administrative agents, lenders and Oaktree Capital Management L.P.  and its Affiliates in connection with the closing of the Senior Credit Agreements)) and (b) in connection with any equity issuances permitted

 

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hereunder so long as, notwithstanding anything set forth herein to the contrary, the net cash proceeds of such equity issuances are applied to the prepayment of outstanding debt due under the Senior Credit Agreements, (x) non-recurring costs, charges and expenses for severance and restructuring (including, without limitation, fees and expenses incurred in connection with the winding up of all of Borrower’s and its subsidiaries’ activities and operations in Portugal and any one-time cash charges in connection with the closing of an office for such period), (xi) all non-recurring fees, costs and expenses related to any litigation or settlements, and (xii) the amount of cost savings and expenses projected by Borrower to be realized (including synergies) as a result of, or as a result of actions taken, committed to be taken or planned to be taken within one year, pursuant to a binding written contract with a tangible and quantifiable cost savings (calculated on a pro forma basis as though such items had been realized on the first day of the period provided that all such adjustments pursuant to this clause (xii) shall not exceed (a) $10,000,000 in the aggregate in any four-quarter period and (b) $25,000,000 in the aggregate from the Closing Date to and including the Maturity Date, and (B) subtracting therefrom the following to the extent added in calculating such Consolidated Net Income: (i) any extraordinary gains for such period and (ii) any gains from the sales of any vessels for such period (for purposes of this definition of “Consolidated EBITDA,” “non-recurring” means any expense, loss or gain as of any date that (i) did not occur in the ordinary course of Borrower or its subsidiaries’ business and (ii) is of a nature and type that has not occurred in the prior two years and is not reasonably expected to recur in the future); and with “Consolidated Cash Interest Expense” meaning, for any period, (i) the total consolidated interest expense paid or payable in cash of Borrower and its subsidiaries (including, without limitation, to the extent included under GAAP, all commission, discounts and other commitment fees and charges for such period (calculated without regard to any limitations on payment thereof), adjusted to exclude (to the extent same would otherwise be included in the calculation above in this clause (i)), the amortization of any deferred financing costs for such period and any interest expense actually “paid in kind” or accreted during such period, plus (ii) without duplication, that portion of all rental obligations which, under GAAP, are or will be required to be capitalized on the books of Borrower or its subsidiaries, in each case taken at the amount thereof accounted for as indebtedness in accordance with such principles of Borrower and its subsidiaries on a consolidated basis representing the interest factor for such period, minus (iii) cash interest income:

 

	
Fiscal Quarter Ending
    	
 
    	
Ratio
    
	
March 31, 2014
    	
 
    	
0.95:1.00
    
	
June 30, 2014
    	
 
    	
1.58:1.00
    
	
September 30, 2014
    	
 
    	
2.20:1.00
    
	
December 31, 2014
    	
 
    	
2.85:1.00
    
	
March 31, 2015
    	
 
    	
3.16:1.00
    
	
June 30, 2015
    	
 
    	
3.19:1.00
    
	
September 30, 2015
    	
 
    	
3.19:1.00
    
	
December 31, 2015 and thereafter
    	
 
    	
3.20:1.00
    

 

SECTION 4.3  INCORPORATED SENIOR CREDIT AGREEMENT COVENANTS.  In addition to the foregoing financial reporting and financial condition covenants, Borrower covenants and agrees that, so long as any Obligations (other than contingent indemnification

 

11

 

obligations not yet due and payable) remain outstanding, Borrower shall and shall cause each of its subsidiaries to comply with the covenants set forth in Section 8 and Section 9 of the Senior Credit Agreements (which are incorporated herein by this reference as if fully set forth herein) (except for the covenants and agreements as set forth in Sections 8.01, 8.11, 8.12, 8.14, 9.08,  9.09, 9.10 and 9.16 of the Senior Credit Agreements) for the benefit of Bank as if Bank were the “Administrative Agent” and the “Lenders” in such Section 8 and Section 9).

 

ARTICLE V 

EVENTS OF DEFAULT

 

SECTION 5.1.  The occurrence of any of the following shall constitute an “Event of Default” under this Agreement:

 

(a)                                 Borrower shall fail to pay (i) any principal when due, or (ii) any interest, fees or other amounts payable under any of the Loan Documents within two (2) business days of when due.

 

(b)                                 Any financial statement or certificate furnished to Bank in connection with, or any representation or warranty made by Borrower or any other party under this Agreement or any other Loan Document shall prove to be incorrect, false or misleading in any material respect when furnished or made.

 

(c)                                  Any default in the performance of or compliance with any obligation, agreement or other provision contained herein or in any other Loan Document, including any Guaranty (other than those specifically described as an “Event of Default” in this section 5.1), and with respect to any such default that by its nature can be cured, such default shall continue for a period of twenty (20) days from the earlier of (i) the date Borrower first knew of such default or (ii) written notice thereof from Bank unless such default is with respect to a covenant incorporated by reference pursuant to Section 4.3, in which case, such default shall continue for a period of thirty (30) days from the earlier of (A) the date Borrower first knew of such default or (B) written notice thereof from Bank.

 

(d)                                 (i) 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) 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 Borrower or any of its subsidiaries shall be declared to be due and payable, or required to be prepaid, redeemed, defeased or repurchased other than by a regularly scheduled required prepayment, prior to the stated maturity thereof, provided that it shall not be a Potential Event of Default or Event of Default under this Section 5.1(d) unless the aggregate principal amount of all Indebtedness as described in preceding clauses (i) through (iii), inclusive, exceeds $10,000,000.

 

12

 

Notwithstanding the foregoing, no Event of Default shall occur hereunder as a result of the “Events of Default” under the Senior Credit Agreements identified on Schedule 2.10 to this Agreement (the “Existing Defaults”) unless any such Existing Default shall remain uncured (or is not waived in writing by the applicable required lenders under the Senior Credit Agreements) as of July 31, 2013.

 

(e)                                  Borrower or any other Obligor shall suffer or consent to or apply for the appointment of a receiver, trustee, custodian or liquidator of itself or any of its property, or shall make a general assignment for the benefit of creditors; Borrower or any other Obligor shall file a voluntary petition in bankruptcy, or seeking reorganization, in order to effect a plan or other arrangement with creditors or any other relief under Bankruptcy Reform Act, Title 11 of the United States Code, as amended or recodified from time to time (“Bankruptcy Code”), or under any state or federal law granting relief to debtors, whether now or hereafter in effect; or Borrower or any other Obligor shall file an answer admitting the jurisdiction of the court and the material allegations of any involuntary petition; or Borrower or any other Obligor shall be adjudicated a bankrupt, or an order for relief shall be entered against Borrower or any other Obligor by any court of competent jurisdiction under Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors.

 

(f)                                   The filing of a notice of judgment lien against Borrower or any other Obligor; or the recording of any abstract of judgment against Borrower or any other Obligor in any county in which Borrower or such other Obligor has an interest in real property; or the service of a notice of levy and/or of a writ of attachment or execution, or other like process, against the assets of Borrower or any other Obligor; or the entry of a judgment against Borrower or any other Obligor 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 10,000,000; or any involuntary petition or proceeding pursuant to Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors is filed or commenced against Borrower or any other Obligor and not dismissed in 60 days.

 

(g)                                  The dissolution or liquidation of Borrower or any other Obligor if a corporation, partnership, joint venture or other type of entity; or Borrower or any such other Obligor, or any of its directors, stockholders or members, shall take action seeking to effect the dissolution or liquidation of Borrower or such other Obligor.

 

(h)                                         A Change of Control shall occur.

 

(i)                                     An “Event of Default” of the obligations of Borrower under the Nordea Credit Agreement or the Other Nordea Credit Agreement, which has not been cured, waived or otherwise amended; provided however, that with respect to the Existing Defaults, no Event of Default shall occur hereunder unless any such Existing Default shall remain uncured (or is not waived in writing by the applicable required lenders under the Senior Credit Agreements) as of July 31, 2013.

 

(j)                                    A default of the obligations of any Oaktree PF V Guarantor under the PF V Guarantor Credit Agreement, which default is not cured within any applicable grace period.

 

13

 

SECTION 5.2.  REMEDIES.  Upon the occurrence of any Event of Default: (a) all indebtedness of Borrower under each of the Loan Documents, any term thereof to the contrary notwithstanding, shall at Bank’s option and without notice become immediately due and payable without presentment, demand, protest or notice of dishonor, all of which are hereby expressly waived by Borrower; (b) the obligation, if any, of Bank to extend any further credit under any of the Loan Documents shall immediately cease and terminate; and (c) Bank shall have all rights, powers and remedies available under each of the Loan Documents, or accorded by law, including without limitation the right to resort to any or all security for any credit subject hereto and to exercise any or all of the rights of a beneficiary or secured party pursuant to applicable law.  All rights, powers and remedies of Bank may be exercised at any time by Bank and from time to time after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity.

 

ARTICLE VI 

MISCELLANEOUS

 

SECTION 6.1.  NO WAIVER.  No delay, failure or discontinuance of Bank in exercising any right, power or remedy under any of the Loan Documents shall affect or operate as a waiver of such right, power or remedy; nor shall any single or partial exercise of any such right, power or remedy preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any other right, power or remedy.  Any waiver, permit, consent or approval of any kind by Bank of any breach of or default under any of the Loan Documents must be in writing and shall be effective only to the extent set forth in such writing.

 

SECTION 6.2.  NOTICES.  All notices, requests and demands which any party is required or may desire to give to any other party under any provision of this Agreement must be in writing delivered to each party at the following address:

 

	
BORROWER:
    	
GENERAL   MARITIME CORPORATION
    
	
 
    	
299   Park Avenue
    
	
 
    	
New   York, New York 10171
    
	
 
    	
Attention:   Leo Vrondissis
    
	
 
    	
Telecopier:   (212) 763-5608
    
	
 
    	
 
    
	
 
    	
With   copies to:
    
	
 
    	
 
    
	
 
    	
OAKTREE   CAPITAL MANAGEMENT, L.P.
    
	
 
    	
333   South Grand Avenue, 28th Floor
    
	
 
    	
Los   Angeles, California 90071
    
	
 
    	
Attention:   Amy Rice
    
	
 
    	
Telephone:   (213) 830-
    
	
 
    	
Facsimile:   (213) 830-
    
	
 
    	
Email:   arice@oaktreecapital.com
    
	
 
    	
 
    
	
 
    	
KIRKLAND &   ELLIS LLP
    
	
 
    	
555   California Street
    
	
 
    	
San   Francisco, CA 94104
    

 

14

 

	
 
    	
Telecopier:   415-439-1500
    
	
 
    	
Attention:   Samantha Good
    
	
 
    	
Email:   sgood@kirkland.com
    
	
 
    	
 
    
	
BANK:
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION Los Angeles RCBO
    
	
 
    	
333   S. Grand Avenue, Third Floor
    
	
 
    	
Los   Angeles, California 90071
    
	
 
    	
Attention:   General Maritime Corporation Account Officer
    
	
 
    	
Telecopier:   (213) 253-6208
    

 

or to such other address as any party may designate by written notice to all other parties.  Each such notice, request and demand shall be deemed given or made as follows: (a) if sent by hand delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S.  mail, first class and postage prepaid; and (c) if sent by telecopy, upon receipt.

 

SECTION 6.3.  COSTS, EXPENSES AND ATTORNEYS’ FEES.  Borrower shall pay to Bank immediately upon demand the full amount of all reasonable out-of pocket, documented payments, advances, charges, costs and expenses, including reasonable attorneys’ fees, expended or incurred by Bank in connection with (a) the negotiation and preparation of this Agreement and the other Loan Documents, Bank’s continued administration hereof and thereof, and the preparation of any amendments and waivers hereto and thereto, (b) the enforcement of Bank’s rights and/or the collection of any amounts which become due to Bank under any of the Loan Documents, and (c) the prosecution or defense of any action in any way related to any of the Loan Documents, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating to Borrower or any other person or entity.

 

SECTION 6.4.  SUCCESSORS, ASSIGNMENT.  This Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, legal representatives, successors and assigns of the parties; provided however, that Borrower may not assign or transfer its interests or rights hereunder without Bank’s prior written consent.  Bank reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Bank’s rights and benefits under each of the Loan Documents to any person; provided that if Bank intends to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Bank’s rights and benefits under each of the Loan Documents to a competitor of Borrower or a controlling owner of such competitor, Bank agrees to provide the Guarantors a purchase option with respect to any such sale, assignment, transfer, negotiation or grant on terms and in accordance set forth with respect to the “Purchase Option” (as defined and used in the Guaranties).  In connection with any such sale, assignment, transfer, negotiation or grant, Bank may disclose all documents and information which Bank now has or may hereafter acquire relating to any credit subject hereto, Borrower or its business, any Guarantor or the business of such Guarantor, or any collateral required hereunder, but in all cases subject to the confidentiality provisions set forth in Section 6.16.

 

15

 

SECTION 6.5.  ENTIRE AGREEMENT; AMENDMENT.  This Agreement and the other Loan Documents constitute the entire agreement between Borrower and Bank with respect to each credit subject hereto and supersede all prior negotiations, communications, discussions and correspondence concerning the subject matter hereof.  This Agreement may be amended or modified only in writing signed by each party hereto.

 

SECTION 6.6.  NO THIRD PARTY BENEFICIARIES.  This Agreement is made and entered into for the sole protection and benefit of the parties hereto and their respective permitted successors and assigns, and no other person or entity shall be a third party beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any other of the Loan Documents to which it is not a party.

 

SECTION 6.7.  TIME.  Time is of the essence of each and every provision of this Agreement and each other of the Loan Documents.

 

SECTION 6.8.  SEVERABILITY OF PROVISIONS.  If any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or any remaining provisions of this Agreement.

 

SECTION 6.9.  COUNTERPARTS.  This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which when taken together shall constitute one and the same Agreement.

 

SECTION 6.10.  GOVERNING LAW.  This Agreement shall be governed by and construed in accordance with the laws of the State of California.

 

SECTION 6.11.  INDEMNITY BY BORROWER.  Borrower agrees to indemnify, save and hold harmless Bank and its directors, officers, agents, attorneys and employees (collectively, the “Indemnitees”) from and against: (a) Any and all claims, demands, actions or causes of action that are asserted against any Indemnitee if the claim, demand, action or cause of action arises out of or relates in any manner whatsoever to the advances made by Bank to Borrower, or relates to the Loan Documents, or to the transactions governed thereby; (b) Any and all administrative or investigative proceedings by any governmental agency or authority arising out of or related to any claim, demand, action or cause of action described in clause (a) above; and (c) Any and all liabilities, losses, costs or reasonable expenses (including reasonable attorneys’ fees and disbursements and other professional services) that any Indemnitee suffers or incurs as a result of the assertion of any of the foregoing; provided that no Indemnitee shall be entitled to indemnification for any loss caused by its own or its employees’ or agents’ gross negligence or willful misconduct.  Each Indemnitee is authorized to employ counsel in enforcing its rights hereunder and in defending against any claim, demand, action, cause of action or administrative or investigative proceeding covered by this Section 6.11; provided that the Indemnitees as a group may retain only one law firm to represent them with respect to any such matter unless there is, under applicable standards of professional conduct, conflict on any significant issue between the positions of any two or more Indemnitees.  Any obligation or liability of Borrower to any Indemnitee under this Section 6.11 shall be and hereby is covered and secured by the Loan Documents and the collateral referred to in Section 1.4 and shall survive the expiration or

 

16

 

termination of this Agreement and the payment and performance of all Obligations owed to Bank under this Agreement and the other Loan Documents.

 

SECTION 6.12.  NONLIABILITY OF BANK.  Borrower acknowledges and agrees that: 

 

(a)                                        By accepting or approving anything required to be observed, performed, fulfilled or given to Bank pursuant to the Loan Documents, including any certificate, financial statement, insurance policy or other document, Bank shall not be deemed to have warranted or represented the sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof, and such acceptance or approval thereof shall not constitute a warranty or representation to anyone with respect thereto by Bank;

 

(b)                                 The relationship between Borrower and Bank in connection with this Agreement and the other Loan Documents is, and shall at all times remain, solely that of borrower and lender; Bank shall not under any circumstance be construed to be a partner or joint venturer of Borrower; Bank shall not under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with Borrower, or to owe any fiduciary duty to Borrower as a result of the transactions arising under this Agreement and the other Loan Documents; Bank does not undertake or assume any responsibility or duty to Borrower to select, review, inspect, supervise, pass judgment upon or inform Borrower of any matter in connection with its property, any collateral held by Bank or the operations of Borrower; Borrower shall rely entirely upon its own judgment with respect to such matters; and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by Bank in connection with such matters is solely for the protection of Bank and neither Borrower nor any other person or entity is entitled to rely thereon; and

 

(c)                                  Bank shall not be responsible or liable to any person or entity for any loss, damage, liability or claim of any kind relating to injury or death to persons or damage to property caused by the actions, inaction or negligence of Borrower and Borrower hereby indemnifies and holds Bank harmless from any such loss, damage, liability or claim.

 

SECTION 6.13.  FURTHER ASSURANCES.  Borrower shall, at its expense and without expense to Bank, do, execute and deliver such further acts and documents as Bank from time to time reasonably requires for the assuring and confirming unto Bank of the rights hereby created, or for carrying out the provisions or facilitating the performance of the terms of any Loan Document, or for assuring the validity, perfection, priority or enforceability of any lien or security interest under any Loan Document.

 

SECTION 6.14.  ARBITRATION.

 

(a)                                 Arbitration.  The parties hereto agree, upon demand by any party, to submit to binding arbitration all claims, disputes and controversies between or among them (and their respective employees, officers, directors, attorneys, and other agents), whether in tort, contract or otherwise in any way arising out of or relating to (i) any credit subject hereto, or any of the Loan Documents, and their negotiation, execution, collateralization, administration, repayment, modification, extension, substitution, formation, inducement, enforcement, default or termination; or (ii) requests for additional credit.

 

17

 

(b)                                 Governing Rules.  Any arbitration proceeding will (i) proceed in a location in California selected by the American Arbitration Association (“AAA”); (ii) be governed by the Federal Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice of law provision in any of the documents between the parties; and (iii) be conducted by the AAA, or such other administrator as the parties shall mutually agree upon, in accordance with the AAA’s commercial dispute resolution procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which case the arbitration shall be conducted in accordance with the AAA’s optional procedures for large, complex commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes to be referred to herein, as applicable, as the “Rules”).  If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein shall control.  Any party who fails or refuses to submit to arbitration following a demand by any other party shall bear all costs and expenses incurred by such other party in compelling arbitration of any dispute.  Nothing contained herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it under 12 U.S.C.  §91 or any similar applicable state law.

 

(c)                                  No Waiver of Provisional Remedies, Self-Help and Foreclosure.  The arbitration requirement does not limit the right of any party to (i) foreclose against real or personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a receiver, before during or after the pendency of any arbitration proceeding.  This exclusion does not constitute a waiver of the right or obligation of any party to submit any dispute to arbitration or reference hereunder, including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph.

 

(d)                                 Arbitrator Qualifications and Powers.  Any arbitration proceeding in which the amount in controversy is $5,000,000.00 or less will be decided by a single arbitrator selected according to the Rules, and who shall not render an award of greater than $5,000,000.00.  Any dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of three arbitrators; provided however, that all three arbitrators must actively participate in all hearings and deliberations.  The arbitrator will be a neutral attorney licensed in the State of California or a neutral retired judge of the state or federal judiciary of California, in either case with a minimum of ten years’ experience in the substantive law applicable to the subject matter of the dispute to be arbitrated.  The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining any claim.  In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication.  The arbitrator shall resolve all disputes in accordance with the substantive law of California and may grant any remedy or relief that a court of such state could order or grant within the scope hereof and such ancillary relief as is necessary to make effective any award.  The arbitrator shall also have the power to award recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the California Rules of Civil Procedure or other applicable law.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction.  The institution

 

18

 

and maintenance of an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for judicial relief.

 

(e)                                  Discovery.  In any arbitration proceeding, discovery will be permitted in accordance with the Rules.  All discovery shall be expressly limited to matters directly relevant to the dispute being arbitrated and must be completed no later than 20 days before the hearing date.  Any requests for an extension of the discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential for the party’s presentation and that no alternative means for obtaining information is available.

 

(f)                                   Class Proceedings and Consolidations.  No party hereto shall be entitled to join or consolidate disputes by or against others in any arbitration, except parties who have executed any Loan Document, or to include in any arbitration any dispute as a representative or member of a class, or to act in any arbitration in the interest of the general public or in a private attorney general capacity.

 

(g)                                  Payment Of Arbitration Costs And Fees.  The arbitrator shall award all costs and expenses of the arbitration proceeding.

 

(h)                                 Real Property Collateral; Judicial Reference.  Notwithstanding anything herein to the contrary, no dispute shall be submitted to arbitration if the dispute concerns indebtedness secured directly or indirectly, in whole or in part, by any real property unless (i) the holder of the mortgage, lien or security interest specifically elects in writing to proceed with the arbitration, or (ii) all parties to the arbitration waive any rights or benefits that might accrue to them by virtue of the single action rule statute of California, thereby agreeing that all indebtedness and obligations of the parties, and all mortgages, liens and security interests securing such indebtedness and obligations, shall remain fully valid and enforceable.  If any such dispute is not submitted to arbitration, the dispute shall be referred to a referee in accordance with California Code of Civil Procedure Section 638 et seq., and this general reference agreement is intended to be specifically enforceable in accordance with said Section 638.  A referee with the qualifications required herein for arbitrators shall be selected pursuant to the AAA’s selection procedures.  Judgment upon the decision rendered by a referee shall be entered in the court in which such proceeding was commenced in accordance with California Code of Civil Procedure Sections 644 and 645.

 

(i)                                     Miscellaneous.  To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to conclude any arbitration proceeding within 180 days of the filing of the dispute with the AAA.  No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of information by a party required in the ordinary course of its business or by applicable law or regulation.  If more than one agreement for arbitration by or between the parties potentially applies to a dispute, the arbitration provision most directly related to the Loan Documents or the subject matter of the dispute shall control.  This arbitration provision shall survive termination, amendment or expiration of any of the Loan Documents or any relationship between the parties.

 

19

 

(j)                                    Small Claims Court.  Notwithstanding anything herein to the contrary, each party retains the right to pursue in Small Claims Court any dispute within that court’s jurisdiction.  Further, this arbitration provision shall apply only to disputes in which either party seeks to recover an amount of money (excluding attorneys’ fees and costs) that exceeds the jurisdictional limit of the Small Claims Court.

 

SECTION 6.15.  CERTAIN DEFINITIONS AND INTERPRETATION.

 

(a)                                 Definitions.  Capitalized terms used but not defined in this Agreement have the meanings given in the Senior Credit Agreements.  For purposes of this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to the singular and the plural forms thereof):

 

“Guarantors” means collectively Oaktree Principal Fund V, L.P., a Cayman Islands exempted limited partnership (acting by its general partner, Oaktree Principal Fund V GP, L.P., acting by its general partner, Oaktree Principal Fund V GP Ltd.), Oaktree Principal Fund V (Parallel), L.P., a Cayman Islands exempted limited partnership (acting by its general partner, Oaktree Principal Fund V GP, L.P., acting by its general partner, Oaktree Principal Fund V GP Ltd.), Oaktree FF Investment Fund, L.P., a Cayman Islands exempted limited partnership (acting by its general partner, Oaktree FF Investment Fund GP, L.P., acting by its general partner, Oaktree FF Investment Fund GP Ltd.) and OCM Asia Principal Opportunities Fund, L.P., a Cayman Islands exempted limited partnership (acting by its general partner, OCM Asia Principal Opportunities Fund GP, L.P., acting by its general partner, OCM Asia Principal Opportunities Fund GP Ltd.) and “Guarantor” means any one of them.

 

“Guaranty” means shall mean any guaranty of the Obligations executed by a Guarantor in favor of Bank, in form and substance satisfactory to Bank.

 

“Nordea Bank” means Nordea Bank Finland PNC, New York Branch.

 

“Nordea Credit Agreement” means that certain Third Amended and Restated Credit Agreement dated as of May 17, 2012, by and among Borrower, certain of its subsidiaries, certain lenders and Nordea Bank as agent for the lenders, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Oaktree PF V Guarantors” means collectively Oaktree Principal Fund V, L.P., a Cayman Islands exempted limited partnership (acting by its general partner, Oaktree Principal Fund V GP, L.P., acting by its general partner, Oaktree Principal Fund V GP Ltd.) and Oaktree Principal Fund V (Parallel), L.P., a Cayman Islands exempted limited partnership (acting by its general partner, Oaktree Principal Fund V GP, L.P., acting by its general partner, Oaktree Principal Fund V GP Ltd.).

 

“Obligations” means all present and future obligations of every kind or nature of any Obligor at any time and from time to time owed to Bank, under any one or more of the Loan Documents, whether due or to become due, matured or unmatured, liquidated or unliquidated, or contingent or noncontingent, including obligations of performance as well as obligations of payment, and including interest that accrues after the

 

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commencement of any proceeding under the Bankruptcy Code, or any other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws from time to time in effect affecting the rights of creditors generally, by or against any Obligor.

 

“Obligors”  means, collectively, Borrower, each Guarantor and, in each case where any of the foregoing is a partnership, each general partner thereof.

 

“Other Nordea Credit Agreement” means that certain Second Amended and Restated Credit Agreement dated as of May 17, 2012, by and among Borrower, certain of its subsidiaries, certain lenders and Nordea Bank as agent for the lenders, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“PF V Guarantor Credit Agreement” means that certain Credit Agreement dated as of December 15, 2009, by and among the Oaktree PF V Guarantors and Bank, as the same may be amended, restated, supplemented, or otherwise modified from time to time.

 

“Senior Credit Agreements” means collectively the Nordea Credit Agreement and the Other Nordea Credit Agreement.

 

(b)                                 Calculations; Computations.  The financial statements to be furnished to Bank 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 Borrower to Bank).  In addition, all determinations of compliance with this Agreement or any other Loan Document shall utilize accounting principles and policies in conformity with those used to prepare the historical financial statements delivered to Bank for the fiscal year ended December 31, 2010 (with the foregoing generally accepted accounting principles, subject to the preceding proviso, herein called “GAAP”).  Unless otherwise noted, all references in this Agreement to GAAP shall mean generally accepted accounting principles as in effect in the United States.

 

(a)                                 Interpretation.  The parties hereto hereby confirm and agree that to the extent this Agreement refers to defined terms, covenants or other provisions of the Senior Credit Agreements, such defined terms, covenants and provisions shall refer to the defined terms, covenants and other provisions of the Senior Credit Agreements (regardless of whether or not (i) Borrower has been released or discharged from any of its obligations or liabilities under either Senior Credit Agreement or (ii) the Senior Credit Agreements are in full force and effect), and, subject to the foregoing and except as otherwise indicated in this Agreement, all references in such defined terms and provisions of the Senior Credit Agreements to (A) “Administrative Agent”, or words of like import referring to Nordea Bank, shall mean Bank hereunder, (B) “Lenders”, or words of like import referring to the lenders under the Senior Credit Agreements, shall mean Bank hereunder, (C) “Borrower”, “Parent”, or words of like import, shall mean Borrower hereunder, (D) “Credit Party”, “Credit Parties”, or words of like import, shall mean Borrower, (E) “Agreement”, “or words of like import referring to either Senior Credit Agreement, shall mean this Agreement, (F) “Loan Documents”, or words of like import referring to the documents executed in connection with the Senior Credit Agreements, shall mean the Loan Documents hereunder, (G) “Default”, or words of like import referring to a default under

 

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the Senior Credit Agreements, shall mean a “Potential Event of Default” hereunder, (H) “Event of Default”, or words of like import referring to an event of default under the Senior Credit Agreements, shall mean an “Event of Default” hereunder, (I) “Obligations”, “Loans”, or words of like import referring to the obligations under the Senior Credit Agreements, shall mean the Obligations hereunder, (J) “Required Lenders”, or words of like import referring to such defined term, shall mean Bank hereunder, and (K) sections and schedules referenced in the Senior Credit Agreement shall mean those sections and schedules in this Agreement relating to comparable or parallel provisions.  The parties hereto also confirm and agree that to the extent a schedule or provision of the Senior Credit Agreements that is incorporated herein by reference refers to defined terms specifically defined in this Agreement, such defined terms shall have the meaning of the terms defined herein.  The parties hereto further confirm and agree that (x) the schedules referenced in Sections 8 and 9 of the Senior Credit Agreements shall refer to such schedules of the Senior Credit Agreements as in effect as of the date hereof (regardless of whether or not (1) Borrower has been released or discharged from any of its obligations or liabilities under either Senior Credit Agreement or (2) the Senior Credit Agreements are in full force and effect), and such schedules are hereby incorporated herein by reference subject to the exceptions set forth in Section 4.3 of this Agreement, and (y) the covenants referenced in Sections 8, and 9 respectively, of the Senior Credit Agreements shall refer to such representations and warranties, covenants, and events of default of the Senior Credit Agreements as in effect as of the date hereof (regardless of whether or not (1) Borrower has been released or discharged from any of its obligations or liabilities under either Senior Credit Agreement or (2) the Senior Credit Agreements are in full force and effect).

 

SECTION 6.16.  CONFIDENTIALITY.  Borrower agrees that material, non-public information regarding Borrower, its operations, assets, and existing and contemplated business plans (“Confidential Information”) shall be treated by Bank in a confidential manner, and shall not be disclosed by Bank to persons who are not parties to this Agreement, except: (a) to attorneys for and other advisors, accountants, auditors, and consultants to Bank and to employees, directors and officers of Bank (the persons in this clause (a), “Bank Representatives”) on a “need to know” basis in connection with this Agreement and the transactions contemplated hereby and on a confidential basis; provided that the recipient of such information either has an obligation to keep such information confidential or agrees to be subject to the terms of this Section 6.16, (b) to subsidiaries and affiliates of Bank, provided that any such subsidiary or affiliate shall have agreed to receive such information hereunder subject to the terms of this Section 6.16, (c) as may be required by any regulatory authority having jurisdiction over Bank, (d) as may be required by statute, decision, or judicial or administrative order, rule, or regulation; provided that (x) prior to any disclosure under this clause (d), the disclosing party agrees to provide Borrower with prior notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior notice to Borrower pursuant to the terms of the applicable statute, decision, or judicial or administrative order, rule, or regulation and (y) any disclosure under this clause (d) shall be limited to the portion of the Confidential Information as may be required by such statute, decision, or judicial or administrative order, rule, or regulation, (e) as may be agreed to in advance in writing by Borrower, (f) as required by any regulatory authority, or as requested or required by any governmental agency or authority pursuant to any subpoena or other legal process, provided, that, (x) prior to any disclosure under this clause (f) the disclosing party agrees to provide Borrower with prior written notice thereof to the extent that it is practicable to do so, and to the

 

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extent that the disclosing party is permitted to provide such prior written notice to Borrower pursuant to the terms of the subpoena or other legal process and (y) any disclosure under this clause (f) shall be limited to the portion of the Confidential Information as may be required by such governmental agency or authority pursuant to such subpoena or other legal process, (g) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Bank or Bank Representatives), (h) in connection with any assignment, participation or pledge of Bank’s interest under this Agreement, provided that prior to receipt of Confidential Information any such assignee, participant, or pledgee shall have agreed in writing to receive such Confidential Information hereunder subject to the terms of this Section 6.16, (i) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the other Loan Documents; (j) to any of the Guarantors, Oaktree Capital Management, L.P.  and/or its affiliates, and, with the prior written consent of Oaktree Capital Management, L.P., any other equity owners of Borrower and (k) in connection with, and to the extent reasonably necessary for, the exercise of any secured creditor remedy under this Agreement or under any other Loan Document.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first written above.

 

	
GENERAL   MARITIME
   CORPORATION, a Marshall
   Islands corporation
    	
 
    	
WELLS FARGO BANK,
   NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Leonidas J.  Vrondissis
    	
 
    	
By:
    	
/s/   [ILLEGIBLE]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:   
    	
Leonidas   J.  Vrondissis
    	
 
    	
Title:
    	
SVP
    
	
Title:   
    	
Chief   Financial Officer
    	
 
    	
 
    

 

SIGNATURE PAGE TO CREDIT AGREEMENT

 

 

SCHEDULE 2.9

 

Plans

 

The Company provides the following Plans to its employees:

 

·                  401(k) plan with employer matching

 

·                  Healthcare provided through Oxford

 

·                  Dental, Vision, Short and Long Term Disability provided through the Guardian

 

 

SCHEDULE 2.10

 

Existing Defaults Under Senior Credit Agreements

 

As of May 14, the Company was not in compliance with its Collateral Maintenance Covenants in Sections 9.09(a) and 9.09(b) of the Senior Credit Agreements.  The covenant requires that (a) the market value of each collateral pool of vessels is at least 100% of the debt outstanding under that credit agreement and (b) that the combined market value of the fleet is at least 110% as of Q4 2012 (115% as of Q1 2013) of the combined secured debt.  As of the date of testing, the collateral under the $508 million Credit Agreement is 99.6% of the corresponding debt and the combined collateral is 109.1% of the combined debt.  The Company may not have complied with reporting requirements relating such covenants and the event of default related thereto.Exhibit 10.129

 

EXECUTION COPY

 

SENIOR PROMISSORY NOTE

 

	
$9,341,656.00
    	
April 11, 2013
    

 

FOR VALUE RECEIVED, General Maritime Corporation, a Marshall Islands corporation (“Parent”), General Maritime Subsidiary Corporation, a Marshall Islands corporation (“GMR Sub”) and General Maritime Subsidiary II Corporation (“GMR Sub II” and, together with Parent and GMR Sub, each a “Borrower” and, collectively, the “Borrowers”), hereby promises to pay to OCM Marine Holdings TP, L.P. (the “Initial Lender”) or its permitted assigns (together with the Initial Lender, each a “Lender” and, collectively, the “Lenders”) on the Maturity Date, the principal sum of nine million three hundred forty one thousand six hundred fifty six dollars ($9,341,656.00) or such lesser principal amount thereof as may remain outstanding in lawful money of the United States of America in immediately available funds, and to pay interest from the date of issuance of this Note on the principal amount hereof from time to time outstanding, in like funds, at a rate or rates per annum and payable on such dates as determined pursuant to the terms of this Note.  Capitalized terms used herein without definition shall have the meanings ascribed thereto in Exhibit A attached hereto.

 

SECTION 1.                                                                         MATURITY DATE

 

The unpaid principal amount of this Note plus all accrued and unpaid interest hereon and all other amounts owed hereunder with respect thereto will be paid in full in cash on the Maturity Date.

 

SECTION 2.                                                                         TERMS OF THE NOTE

 

2.1                               Interest.

 

2.1.1                     This Note will bear interest at a rate equal to 12% per annum, from and including the date of issuance of this Note until the outstanding principal amount hereof, together with all accrued and unpaid interest thereon shall be paid in full in cash, in the manner specified in this Note. Upon the occurrence and during the continuance of any Event of Default hereunder, the interest rate on the principal amount of this Note shall increase immediately by an increment of two percentage points (2.0%), and any such increase in the interest rate shall terminate as of the close of business on the first date after imposition thereof on which no Event of Default exists, subject to subsequent increases as a result of the occurrence and continuance of any subsequent Event of Default.

 

2.1.2                     Interest with respect to this Note shall be payable in cash on the last day of each calendar month and on the Maturity Date. Under no circumstances shall the rate of interest chargeable under this Note be in excess of the maximum amount permitted by applicable laws of the State of New York. If for any reason any such excess interest is charged and paid, then the excess amount shall be promptly refunded by the Lenders to the Company.

 

2.1.3                     Interest on this Note shall be computed on the basis of a 365/366-day year.  In computing such interest, the date this Note is issued shall be included and the date of payment shall be excluded.

 

2.2                               Borrowing. Subject to the terms and conditions set forth in this Note, the Lenders hereby commit and shall, if requested by the Borrowers, lend to the Borrowers up to an aggregate outstanding

 

 

principal amount of $9,341,656.00 from time to time prior to the Maturity Date. Such loans shall be made on the date of this Note or within five (5) Business Days when requested by the Borrowers. Notwithstanding the foregoing, the Initial Lender shall not have any commitment and may elect to make loans in its sole discretion.

 

2.3                               Optional Prepayments. This Note may be prepaid, at the Borrowers’ option, at any time prior to the Maturity Date, in whole or in part, without premium or penalty, except as set forth in Section 9.2. Subject to the other terms and conditions hereof (including Section 2.2), amounts borrowed under Section 2.2 may be repaid and reborrowed from time to time and amounts repaid under this Section 2.3 may be reborrowed from time to time. Each such reborrowing referenced in the previous sentence shall be made in accordance with Section 2.2.

 

2.4                               [Omitted.]

 

2.5                               Manner and Time of Payment.

 

2.5.1                     All payments by Borrowers under this Note of principal, interest and all other amounts hereunder shall be made in same day funds and delivered to the Lenders not later than 1:00 p.m. (California time) (or such later time as may be agreed to by Lenders) on the date such payment is due, with such payment to be made by wire transfer of immediately available funds to the account designated by Lenders to Borrowers in writing; provided that funds received by Lenders after 1:00 p.m. (California time) (or such later time as may be agreed to by Lenders) shall be deemed to have been paid by Borrowers on the next succeeding business day.

 

2.5.2                     Whenever any payment to be made hereunder shall be stated to be due on a day which is not a business day, the payment shall be made on the next succeeding business day and such additional period shall be included in the computation of the payment of interest hereunder.

 

SECTION 3.                                                                         REPRESENTATIONS AND WARRANTIES

 

As of the Closing Date and upon each drawing under the Note, the Note Parties represent and warrant that each of the representations and warranties contained in Section 7 of each of the Nordea Credit Agreements (as in effect on the date hereof) shall be true and correct in all material respects; provided, however, that any representation or warranty related to any item referenced on any schedule to either of the Nordea Credit Agreements shall be true and correct in all material respects as of the date originally referenced in the relevant Nordea Credit Agreement (as in effect on the date hereof); provided, further, that the foregoing shall not include those representations and warranties contained in the last sentence of Section 7.05(a), Sections 7.05(b), 7.05(c), 7.09, 7.11, 7.22, 7.23, 7.24 and 7.27 of the Nordea Credit Agreements.

 

SECTION 4.                                                                         CONDITIONS PRECEDENT

 

4.1                               Conditions to the Initial Extension of Credit. The obligation of any Lender to make its initial extension of credit hereunder is subject to the satisfaction of the following conditions precedent:

 

4.1.1                     Executed Note.  Receipt of executed counterparties of this Note, each properly executed by a responsible officer of each Note Party.

 

4.1.2                     [Omitted.]

 

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4.1.3                     Corporate Authorizations. The Lenders shall have received copies of corporate or other resolutions approving the execution and performance of the Note.

 

4.1.4                     Fees. The Upfront Fee shall have been paid by the Borrowers to the Initial Lender.

 

4.2                               Conditions to Each Extension of Credit. The obligation of any Lender to make any extension of credit hereunder (including the initial extension of credit) is subject to the satisfaction of the following conditions precedent:

 

4.2.1                     Representations and Warranties. Each of the representations and warranties made by any Note Party in Section 3 hereto shall be true and correct in all material respects (without duplication of any materiality qualifiers contained therein) on and as of such date as if made on and as of the date of extension of credit hereunder, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (without duplication of any materiality qualifiers contained therein) as of such earlier date.

 

4.2.2                     No Default. No Default or Event of Default shall have occurred and be continuing on the date of extension of credit hereunder or immediately after giving effect to the extensions of credit requested to be made on such date.

 

SECTION 5.                                                                         COVENANTS.

 

5.1                               Affirmative Covenants. Each of the affirmative covenants contained in Section 8 of each of the Nordea Credit Agreements (as in effect on the date hereof) is hereby incorporated herein by reference for the benefit of the holder of the Note; provided, however, that the foregoing shall not include those affirmative covenants contained in the Sections 8.01(d), 8.11, 8.12 and 8.14 of the Nordea Credit Agreements.

 

5.2                               Negative Covenants. Each of the negative covenants contained in Section 9 of each of the Nordea Credit Agreements (as in effect on the date hereof) is hereby incorporated herein by reference for the benefit of the holder of this Note; provided, however, that the foregoing shall not include those negative covenants contained in the Sections 9.09 and 9.16 of the Nordea Credit Agreements.

 

5.3                               Delivery of Opinion. Parent (or its board of directors or a committee thereof (the “Board”)) shall exercise commercially reasonable efforts to procure, within thirty (30) days after the Closing Date (or such later date as the Initial Lender shall agree in its sole discretion), an opinion, issued by an independent financial advisor or valuation firm of national recognition satisfactory to the Initial Lender, substantially to the effect that the terms of this Note were, as of the Closing Date, fair, from a financial point of view, to the holders of common stock of the Parent (other than OCM Marine Holdings TP, L.P. and its affiliates); provided, that Parent shall not be obligated to incur more than $300,000 in procuring any such opinion. To the extent Parent or the Board cannot, despite its commercially reasonable efforts, procure such an opinion (or a substantially similar opinion) as a result of the unwillingness of any such financial advisor or valuation firm to deliver such an opinion (but for the avoidance of doubt other than due to Parent’s failure to pay any fees or expenses of such person), the Initial Lender agrees to cooperate with the Note Parties to use commercially reasonable efforts to revise the terms of the Note to the minimum extent necessary to make possible the delivery of such an opinion (it being understood that any such revised terms shall be binding upon the Note Parties and each Lender).

 

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SECTION 6.                                                                                EVENTS OF DEFAULT AND REMEDIES

 

6.1                               Events of Default. It shall be an “Event of Default” if one or more of the following events shall occur and be continuing:

 

6.1.1                     [Omitted.]

 

6.1.2                     Non-Payment. Borrowers fails (i) to pay when and as required to be paid herein, any amount of principal, including, without limitation, after the Maturity Date or (ii) to pay within three (3) Business Days after the same shall become due, interest, any fee or any other amount payable hereunder; or

 

6.1.3                     Cross Default. Any “Event of Default” (under and as defined in each of the Nordea Credit Agreements) shall occur and be continuing; or

 

6.1.4                     Representations and Warranties. Any representation, warranty or certification by or on behalf of any Note Party or any of their subsidiaries made or deemed made under Section 3 herein shall prove to have been incorrect in any material respect (without duplication of any materiality qualifiers contained therein) on or as of the date made or deemed to be made.

 

6.1.5                     Covenant and Other Defaults. Any Note Party or subsidiary of any Note Party fails to perform or observe any term, covenant or agreement contained in Section 5 or elsewhere in this Note and such default shall continue unremedied for a period of thirty (30) days after the earlier to occur or (i) the date upon which an officer of any Note Party becomes aware of such default or (ii) the date upon which notice thereof is given to any Note Party by any Lender.

 

THEN, Upon the occurrence of any Event of Default, the Required Lenders may, upon written notice to Borrowers, declare this Note to be due and payable, whereupon the unpaid principal amount of this Note, together with accrued interest thereon, shall automatically become immediately due and payable, without any other notice of any kind, and without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by Borrowers.

 

6.2                               Remedies. In addition, and without prejudice, to the rights and remedies of Lenders set forth in Section 6.1 herein, upon the occurrence and during the continuance of any Event of Default, the Required Lenders may:

 

(a)                                 declare all or any portion of any Lender’s commitment to extend extensions of credit hereunder to be suspended or terminated, whereupon such commitments shall forthwith be suspended or terminated; and/or

 

(b)                                 exercise any and all rights and remedies of a lender under all applicable laws, rules, regulations and orders.

 

SECTION 7.                                                                         MISCELLANEOUS

 

7.1                               Right of Set-off. If an Event of Default shall have occurred and be continuing, Lenders and their affiliates are hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such affiliate to or for the credit or the account of the Note Parties against any and all

 

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of the Obligations now or hereafter existing under this Note to Lenders, and irrespective of whether or not Lenders shall have made any demand under this Note and although such obligations of the Note Parties may be contingent or unmatured. The rights of Lenders and their affiliates under this Section 7.1 are in addition to other rights and remedies (including other rights of setoff) that Lenders or their affiliates may have.

 

7.2                               Amendments, Waivers and Events of Default.  Except as otherwise set forth herein, no amendment, modification, termination, waiver or consent to departure of any provision of this Note shall in any event be effective without the prior written consent of the Required Lenders and the Note Parties. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.  No notice to or demand on the Note Parties in any case shall entitle the Note Parties to any further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this Section 7.2 shall be binding upon all present and future permitted holders of this Note.

 

7.3                               Transfers; Successors and Assigns. This Note may be assigned or transferred by the Lenders to any person or entity with the consent of Borrowers (which consent shall not be unreasonably withheld or delayed and shall not be required (i) if any Event of Default is then in existence or (ii) if such assignment or transfer is made to an existing Lender or any affiliate or investment fund of any Lender, provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the assignor within five Business Days after having received notice thereof). Borrowers shall not be permitted to assign or transfer any of their rights, liabilities or obligations hereunder without the prior written consent of Lenders, and any such assignment or transfer without Lenders’ prior written consent shall be null and void in all respects. This Note shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted under this Section 7.3.

 

7.4                               Heading. Section and subsection headings in this Note are included herein for convenience of reference only and shall not constitute a part of this Note for any other purpose or be given any substantive effect.

 

7.5                               Applicable Law.  This Note shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of New York without regard to the principles of conflicts of laws.

 

7.6                               Consent to Jurisdiction. Any action or proceeding relating to this Note shall be brought in any court of competent jurisdiction in New York, New York, and the Note Parties (and by their acceptance of delivery of this Note, Lenders and any other permitted holder of this Note) for that purpose (i) irrevocably and unconditionally attorns and submits to the jurisdiction of such courts; (ii) irrevocably waives any right to, and shall not, oppose any such New York, New York action or proceeding on any jurisdictional basis, including forum non conveniens; and (iii) agrees not to oppose the enforcement against it in any other jurisdiction of any judgment or order duly obtained from a court located in New York, New York as contemplated hereby. Notwithstanding the foregoing, nothing in this Section 7.6 shall affect the right of Lenders or any of its designees to serve process in any manner permitted by applicable law or commence legal proceedings or otherwise proceed against the Note Parties in any other jurisdiction

 

7.7                               Waiver of Jury Trial.  The Note Parties (and by their acceptance of delivery of this Note, Lenders and any other permitted holder of this Note) waive, to the fullest extent permitted by law, trial by jury in any litigation arising out of or related to this Note.

 

7.8                               Entirety. This Note embodies the entire agreement among the parties and supersedes all prior agreements and understandings, if any, relating to the subject matter hereof.

 

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7.9                               No Strict Construction. The language used in this Note shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction will be applied against any person or entity. The use of the word “including” and “includes” in this Note shall be by way of example rather than by limitation.

 

7.10                        No Third Party Beneficiaries. Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or entity, other than the Note Parties and Lenders and their respective permitted successors and assigns, any rights or remedies under or by reason of this Note.

 

7.11                        Waiver of Notice, Etc. Borrowers hereby waive diligence, presentment, demand, protest and notice of any kind whatsoever, other than as expressly required by this Note. The nonexercise by the holders of this Note of any of their rights hereunder in any particular instance shall not constitute a waiver thereof in that or any subsequent instance.  Any notice to be given to the Note Parties or Lenders shall be deemed effective only if in writing and delivered by personal service or delivered to an overnight courier service, with guaranteed next day delivery or mailed by registered or certified mail, return receipt requested, postage prepaid, or sent by facsimile to the addresses indicated below or such other address as may be provided by notice hereunder:

 

If to the Lender:

 

c/o Oaktree Capital Management, L.P.

333 South Grand Ave., 28th Floor

Los Angeles, CA 90071

Attn: Amy Rice

Facsimile: (213) 830-6394 

 

with a copy to

 

Kirkland & Ellis LLP

555 California Street

San Francisco, CA 94104

Attn: Samantha Good

Facsimile: (415) 439-1500

Attn: Hamed Meshki

Facsimile: (213) 808-8145

 

If to the Note Parties:

 

General Maritime Corporation

299 Park Avenue

New York, NY 10171

Attn: Leonard J. Vrondissis

Facsimile: (212) 763-5644 

 

with a copy to:

 

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Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, NY 10036

Attn: Kenneth Chin

Facsimile: (212) 715-8278

 

7.12                        Further Assurances. The Note Parties hereby agree from time to time, as and when requested by the Lenders, to execute and deliver or cause to be executed and delivered, all such documents, instruments and agreements and to take or cause to be taken such further or other action as the Lenders may reasonably deem necessary or desirable in order to carry out the intent and purposes of this Note and any other documents or agreements executed or otherwise delivered in connection herewith.

 

SECTION 8                                                                            GUARANTY AND SECURITY

 

8.1                               The Guaranty. Each of the Guarantors hereby jointly and severally guarantees to each Lender, as primary obligor and not as surety, the prompt payment of the Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof (for each Guarantor, subject to the following paragraph, its “Guaranteed Obligations”). The Guarantors hereby further agree that if any of the Guaranteed Obligations are not paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) in accordance with the terms of such extension or renewal.

 

Notwithstanding any provision to the contrary contained herein the obligations of each Guarantor under this Note shall not exceed an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under applicable debtor relief laws.

 

8.2                               Obligations Unconditional. The obligations of the Guarantors under Section 8.1 are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of the Note, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 8.2 that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrowers or any other Guarantor for amounts paid under this Section 8 until such time as the Obligations have been paid in full. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:

 

a)             at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived;

 

b)             any of the acts mentioned in any of the provisions of the Note shall be done or omitted;

 

7

 

c)              the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in any respect, or any right under the Note related to the Obligations shall be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;

 

d)             any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any person (including, without limitation, any creditor of any Guarantor).

 

With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Lenders exhaust any right, power or remedy or proceed against any person under the Note.

 

8.3                               Reinstatement. The obligations of each Guarantor under this Section 8 shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any debtor relief laws or otherwise, and each Guarantor agrees that it will indemnify the Lenders on demand for all reasonable costs and expenses (including, without limitation, the fees, charges and disbursements of counsel) incurred by the Lenders in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any debtor relief law.

 

8.4                               Certain Additional Waivers. Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to Section 8.2.

 

8.5                               Remedies. The Guarantors agree that, to the fullest extent permitted by Law, as between the Guarantors, on the one hand, and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as specified in Section 6 for purposes of Section 8.1 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other person) shall forthwith become due and payable by the Guarantors for purposes of Section 8.1.

 

8.6                               Guaranty of Payment; Continuing Guaranty. The guaranty in this Section 8 is a guaranty of payment and not of collection, is a continuing guaranty, and shall apply to the Obligations whenever arising.

 

SECTION 9                                                                            FEES

 

The following fees shall be due and payable by the Borrowers to the Initial Lender:

 

9.1                                      Upfront Fee. An upfront fee of 2.0% of the aggregate amount of the Note, payable in cash in immediately available funds on the Closing Date (the “Upfront Fee”). The Upfront Fee shall be refunded by the Initial Lender to the Borrowers in the event that the Note is prepaid in full on or prior to

 

8

 

the date that is 60 days after the Closing Date.

 

9.2                               Exit Fee. Commencing with the date that is 61 days after the Closing Date, an exit fee of 2.5% on the principal amount of the Note permanently repaid to the Initial Lender, payable in cash in immediately available funds upon the termination or permanent repayment of any portion of the Note.

 

[Remainder of Page Intentionally Left Blank]

 

9

 

IN WITNESS WHEREOF, Note Parties have executed and delivered this Note on the date set forth above.

 

	
 
    	
GENERAL   MARITIME CORPORATION,
    
	
 
    	
as Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Leonard J. Vrondissis
    
	
 
    	
Name:
    	
Leonard   J. Vrondissis
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GENERAL   MARITIME SUBSIDIARY CORPORATION,
    
	
 
    	
as Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Leonard J. Vrondissis
    
	
 
    	
Name:
    	
Leonard   J. Vrondissis
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GENERAL   MARITIME SUBSIDIARY II CORPORATION,
    
	
 
    	
as Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Leonard J. Vrondissis
    
	
 
    	
Name:
    	
Leonard   J. Vrondissis
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
ARLINGTON   TANKERS LTD.,
    
	
 
    	
as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Leonard J. Vrondissis
    
	
 
    	
Name:
    	
Leonard   J. Vrondissis
    
	
 
    	
Title:
    	
Director
    

 

[GMR - Signature Page to Senior Promissory Note]

 

 

	
Acknowledged   and Agreed:
    	
 
    
	
 
    	
 
    
	
OCM MARINE HOLDINGS TP, L.P.,
    	
 
    
	
as   Initial Lender
    	
 
    
	
 
    	
 
    
	
By:
    	
OCM   Marine GP CTB, Ltd.
    	
 
    
	
Its:
    	
General   Partner
    	
 
    
	
 
    	
 
    
	
By:
    	
Oaktree   Capital Management, L.P.
    	
 
    
	
Its:
    	
Director
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ B. James Ford
    	
 
    
	
 
    	
Name:
    	
B.   James Ford
    	
 
    
	
 
    	
Its:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Adam Pierce
    	
 
    
	
 
    	
Name:
    	
Adam   Pierce
    	
 
    
	
 
    	
Its:
    	
 
    	
 
    

 

[GMR - Signature Page to Senior Promissory Note]

 

 

Exhibit A

 

DEFINITIONS

 

“$273M Credit Agreement” means that certain Second Amended and Restated Credit Agreement (as amended. modified, and/or supplemented in accordance with the terms thereof), dated as of May 17, 2012, among, inter alios, Parent, General Maritime Subsidiary II Corporation, as borrower thereunder, General Maritime Subsidiary Corporation, Arlington Tankers, Ltd., the lenders party thereto from time to time and Nordea Bank Finland PLC, New York Branch as administrative agent and collateral agent

 

“$508M Credit Agreement” means that certain Third Amended and Restated Credit Agreement (as amended. modified, and/or supplemented in accordance with the terms thereof), dated as of May 17, 2012, among, inter alios, Parent, General Maritime Subsidiary Corporation, as borrower thereunder, General Maritime Subsidiary II Corporation, Arlington Tankers, Ltd., the lenders party thereto from time to time and Nordea Bank Finland PLC, New York Branch as administrative agent and collateral agent.

 

“Board” has the meaning set forth in Section 5.3 of this Note. 

 

“Borrower” has the meaning set forth in the preamble to this Note.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which federal reserve banks in New York are authorized or required by law to close.

 

“Closing Date” means April 11, 2013.

 

“Collateral Vessel” has the meaning assigned to such term in each of the Nordea Credit Agreements.

 

“Event of Default” has the meaning set forth in Section 6 of this Note.

 

“Guaranteed Obligations” has the meaning set forth in Section 8.1 of this Note.

 

“Guarantors” means, initially, Arlington Tankers Ltd., a Bermuda corporation and, upon the reasonable request of the Required Lenders, any other subsidiary of Parent (other than the Borrowers) that does not own a Collateral Vessel.

 

“Initial Lender” has the meaning set forth in the preamble to this Note. 

 

“Lender” has the meaning set forth in the preamble to this Note.

 

“Maturity Date” means April 11, 2014.

 

“Note” means the Note to which this Exhibit A is attached.

 

“Nordea Credit Agreements” means the $273M Credit Agreement and the $508M Credit Agreement.

 

“Note Parties” means the Borrowers and the Guarantors.

 

 

“Obligations” means, in each case whether now existing or hereafter arising, (a) the principal of and interest on the Note and (b) all other indebtedness, liabilities, obligations, covenants and duties of the Note Parties to the Lenders of every kind, nature and description arising under or in respect of the Note, or any documents or agreements executed, delivered or issued in connection with the Note, and whether or not evidenced by any note, and whether or not for the payment of money, including, without limitation, fees and expenses required to be paid pursuant to any of the foregoing.

 

“Required Lenders” shall mean Lenders holding an amount greater than 50% of the outstanding principal amount of the Note.

 

“Upfront Fee” has the meaning set forth in Section 9.1

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