Document:

Exhibit 10.1

 

Supplemental
Conditions of the Standard Form of Agreement Between Owner and

Design/Builder between AVANT Immunotherapeutics, Inc. (“Owner”) and

SPEC
Process Engineering & Construction, Inc. (“Design/Builder”)

 

These
Supplemental Conditions of the Standard Form of Agreement Between Owner and
Design/Builder (these “Supplemental Conditions”) supplement and modify the
Standard Form of Agreement Between Owner and Design/Builder, Part 2 Agreement, 1996
edition of AIA Document A191, as modified, which is being entered into by Owner
and Design/Builder simultaneously with the execution and delivery of these
Supplemental Conditions (the “Agreement”). 
In the event of any conflict between the Agreement and these
Supplemental Conditions, the terms of these Supplemental Conditions shall
control.  Capitalized terms used in these
Supplemental Conditions without definition shall have the meanings ascribed to
them in the Agreement.

 

1.                                       Project Program.  The Owner and the Design/Builder
have developed the program for the Project (the “Project Program”) described in
Exhibit 4.  The Project Program sets
forth the mutual understanding of the Owner and the Design/Builder of the Owner’s
needs and requirements for the Project.  In
establishing the Project Program, the Owner and the Design/Builder have
discussed and considered, without limitation: 
(a) the Owner’s overall objectives, limitations and criteria for
the Project; (b) human, vehicular and material flow patterns that
characterize the services that the Owner will provide; (c) tasks performed
by each operating unit that will be accommodated at the Project, each unit’s
overall space requirements and how each unit must work with other operating
units; (d) the number types of personnel assigned to each unit, and the amount
and type of space required by each; (e) any special processes conducted by
the Owner, including flow diagrams, personnel requirements and the relationship
of each process to other processes that will be conducted at the Project;
(f) all equipment and systems that will be located in the Project,
including the size and dimensions of each item of equipment, and the
relationship of each item of equipment to other equipment, processes and
personnel; (g) overall utility requirements for the Project; (h) special
utility requirements for equipment and processes; (i) security criteria;
(j) requirements for future expansion or alteration; (k) existing
utility characteristics and utility availability.  The Guaranteed Maximum Price (as hereinafter
defined) and Construction Schedule (as hereinafter defined) have been
established based on the Project Program. 

 

2.                                       Execution, Correlation and Intent.

 

(a)                                  The
Drawings and Specifications prepared by or on behalf of Design/Builder will be
based upon, and comply with, the Project Program.  Although the Owner will be provided with
copies of progress drafts of the Drawings and Specifications at appropriate
intervals as such documents are developed, and may be asked to approve the
same:  (i) the Design/Builder shall
be responsible to ensure that the Drawings and Specifications comply with the
Project Program and the provisions of the Contract Documents; and
(ii) should the Owner request any change in the Drawings and
Specifications which is inconsistent with the Project Program, such request for
a change will be handled in accordance with Article 8 of the Agreement.

 

(b)                                 In
the performance of its services hereunder, Design/Builder shall make a diligent
investigation of all laws, statutes, ordinances, building codes, rules and regulations

 

 

applicable to the design, construction and intended use of the Project
(“Laws”), including, without limitation, requirements of the Americans With
Disabilities Act, as interpreted and applied by governmental officials with
jurisdiction over the design and construction of the Project, and any energy
efficiency requirements, and shall prepare all Construction Documents and
perform the Work in compliance with all Laws, to the extent in force and effect
at the time Design/Builder renders such services.

 

(c)                                  All
manufactured articles, materials, and equipment shall be applied, installed,
connected, erected, used and cleaned in accordance with the manufacturer’s
written or printed directions and instructions unless otherwise indicated.

 

(d)                                 Where
no explicit quality or standards for materials or workmanship are established
for Work, such Work is to be consistent with the quality of the surrounding
Work and of the construction of the Project generally.

 

3.                                       Third Party Beneficiary. 
Supplementing the provisions of Paragraphs 1.2.3 and 3.1.1 of the
Agreement, the Owner shall be an intended third party beneficiary of the
services performed by the Architect, the Subcontractors, and all parties
providing labor, materials or services for the Project.

 

4.                                       Ownership and Use of Design Documents.  Article 3
of the Agreement is hereby superseded in its entirety by the provisions of this
Section.  All Plans and Specifications,
and any design or creative concepts contained therein, and any other design
materials submitted, created, developed, supplied or generated in connection
with the Project and this Agreement by or on behalf of the Design/Builder (the “Covered
Documents”) shall be considered “works made for hire” under 17 U.S.C. §101, and
shall be and remain the sole, exclusive and complete property of Owner at all
times, and Owner shall own all rights, copyrights, or other intellectual
property rights there may be with respect to the Covered Documents.  Design/Builder shall deliver copies,
including reproducible copies and copies of computer disks or other computer
memory storage devices, of the Covered Documents to Owner for information,
reference and use.  The Design/Builder
hereby agrees to execute and furnish, as necessary, any assignment or other
document that may be necessary to perfect, confirm or maintain the Owner’s
ownership of all intellectual property rights in the Covered Documents.  The Design/Builder shall not use the Covered
Documents for any purpose not relating to the Project without the Owner’s prior
written consent.  Prior to final payment
or at any other time requested by the Owner, the Design/Builder shall cause the
any separate architect, engineer or other party providing design services to
deliver instruments in form and substance satisfactory to the Owner confirming
Owner’s ownership of the Covered Documents. 
Submission or distribution of the Covered Documents to meet official
regulatory requirements or for similar purposes in connection with the Project
is not to be construed as publication in derogation of the reserved rights of
the Owner.  The Design/Builder shall not
be responsible for Owner’s use without the participation of the Design/Builder
on projects other than the Project; and Owner shall indemnify and hold harmless
the Design/Builder if any claim is brought by a third party against the
Design/Builder based on such use of the Covered Documents by Owner without the
participation of the Design/Builder on projects other than the Project.

 

5.                                       Construction Documents. 
Supplementing the provisions of Paragraph 3.2.3, each iteration of the
Construction Documents submitted to the Owner for approval shall show by

 

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clouding all changes from the previous versions
(including changes from the preliminary design documents prepared prior to the
execution of the Agreement), and shall be accompanied by a statement from the Design/Builder
delineating with reasonable specificity the nature and extent of all such
changes.  The Owner will endeavor to complete
its review of each progress draft of the Construction Documents submitted to
the Owner within ten (10) working days following Owner’s receipt.  If the Owner requests any changes to a
progress draft of the Construction Documents after the expiration of such ten
(10) working day period, the Design/Builder may be entitled to an extension of
the time for performing the Work (subject to Section 9 hereof) unless the
change is required to (a) conform such Construction Documents to the
Project Program or Laws, (b) make the Construction Documents consistent
with any previous draft of the Construction Documents reviewed and accepted by
the Owner, (c) fully and properly implement or correct any items which
were previously the subject of any Owner comments or otherwise supposed to be
included the Construction Documents, or (d) correct any errors, omissions
or internal inconsistencies contained within the Contract Documents.

 

6.                                       Licenses, Permits and Approvals. 
Supplementing the provisions of Paragraph 3.2.10, the Design/Builder
shall obtain as a Basic Service within the Guaranteed Maximum Price all
designated or required governmental inspections and all required certificates
of occupancy and operating permits for machinery and equipment included in the
Project.

 

7.                                       Record Documents.  Notwithstanding anything to the
contrary (including, without limitation, the provisions of Paragraph 3.3.6 of
the Agreement), the Design/Builder shall prepare and deliver to Owner prior to
final payment reproducible sets of the Construction Documents, in print and
electronic format acceptable to the Owner, showing (a) deviations from the
Construction Documents made during construction, (ii) details in the Work
not previously shown, (iii) changes to existing conditions or existing
conditions found to differ from those shown on the Construction Documents,
(iv) the actual installed position of cable, equipment, piping conduits,
switches, electric fixtures, circuiting, access panels, openings, stub-outs and
similar items, and (v) such other information as the Owner may reasonably
request.  This shall be done as a Basic
Service within the Guaranteed Maximum Price (the “Record Documents”).

 

8.                                       Additional Services. 
Notwithstanding anything to the contrary, any services which are
required of Design/Builder and its consultants due to errors or omissions of
Design/Builder or its subcontractors or consultants (including the Architect)
shall not be considered Additional Services and shall not entitle
Design/Builder and its consultants to compensation.

 

9.                                       Time.

 

(a)                                  The
Design/Builder shall perform and deliver the Work in accordance with the schedule for
the Work attached hereto as Exhibit 1 (as amended from time to time with the
written approval of the Owner or otherwise in accordance with the Contract
Documents, the “Construction Schedule”). 
The Construction Schedule includes dates that are critical in
ensuring the timely and orderly completion of the Work in accordance with the
Contract Documents.  In the event that
the performance of the Work has not progressed or reached the level of
completion required by the Construction Schedule, Owner shall have the right to
compel Design/Builder to take corrective measures to expedite the progress of
the Work, including, without limitation, (i) working additional shifts or
overtime and/or (ii) supplying additional manpower, equipment

 

3

 

and facilities (collectively, “Extraordinary Measures”).  Such Extraordinary Measures shall be
performed at no additional cost to the Owner and shall continue until the
progress of the Work complies with the level of completion required by the
Construction Schedule.  The
Design/Builder shall not be entitled to any adjustment in the Contract Sum in
connection with Extraordinary Measures required by the Owner.

 

(b)                                 The
Design/Builder acknowledges and agrees that (1) no adjustments to the time for
performing the Work shall be made unless the events described in Paragraph 4.5
of the Agreement shall have the effect of actually delaying completion of
components of the Work on the critical path indicated in the Construction Schedule and
(2) adjustments to the time for performing the Work will be permitted in
connection with any such delay only to the extent such delay (i) is not caused,
or could not have been avoided, by the Design/Builder or anyone for whom the
Design/Builder is responsible, (ii) could not be limited or avoided by the
Design/Builder’s timely notice to the Owner of the delay and (iii) has no
concurrent or contributing cause for which the Design/Builder would not be
entitled to an extension of the time for performing the Work.  Notwithstanding anything to the contrary
(including, without limitation, the provisions of Paragraph 4.5 of the
Agreement), the Design/Builder shall not be entitled to any extension of the
time for performing the Work or any increase in the Contract Sum on account of
any labor action directed at the Design/Builder, any subcontractor, any lower
tier subcontractor, any supplier or any other party for whom the Design/Builder
is responsible.

 

10.                                 Progress Payments.  The
provisions of this Section modify and supplement the provisions of Article 5
of the Agreement

 

(a)                                  Applications
for Payment shall be submitted on a form approved by the Owner.  Each Application for Payment shall cover a
period of one calendar month.  In
addition to other required items, each Application for Payment shall be
accompanied by the following, all in form and substance satisfactory to the
Owner:

 

(i)                                     A
certified report from the Design/Builder (in form and substance satisfactory to
the Owner) showing all suppliers who have provided supplies and/or materials to
the Project and Subcontractors with whom the Design/Builder has entered into
subcontracts, the amounts of such subcontracts, the amount requested for any
Subcontractor in the Application for Payment and the amount to be paid to the
Design/Builder from such progress payment;

 

(ii)                                  A
duly executed Partial Waiver and Subordination of Lien from the Design/Builder
in the form required by M.G.L. c. 254, § 32, together with the Owner’s
Supplement to Partial Waiver and Subordination of Lien, each in the form
attached as Exhibit 2, completed in a manner satisfactory to the Owner;

 

(iii)                               A
duly executed Payment Acknowledgment and Lien Waiver, in the form attached
hereto as Exhibit 3, from each Subcontractor (and, to the extent requested
by the Owner, each lower tier subcontractor and supplier) for whom payment was
made under previous Applications for Payment; and

 

(iv)                              Such
other information, documentation and materials as the Owner may reasonably
require.

 

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(b)                                 Provided
an Application for Payment properly prepared and accompanied by all required
lien waivers and supporting materials is received by the Owner not later than
the 5th day of a month for the immediately preceding calendar month, the Owner
shall make payment to the Design/Builder not later than the 5th day
of the following month.  If an
Application for Payment properly prepared and accompanied by all required lien
waivers and supporting materials is received by the Owner after the application
date fixed above, payment shall be made by the Owner not later than the 30th
day following the date when such materials were received.

 

(c)                                  Retainage
will not be withheld from progress payments except as set forth in this
paragraph.  No further payments shall be
made to Design/Builder after the Owner has paid ninety percent (90%) of the
Contract Sum (as reasonably estimated by the Owner) to Design/Builder.  Upon achievement of Substantial Completion of
the Work, the Owner shall release to the Design/Builder all retainage except an amount equal to the
sum of (i) five percent (5%) of the Design/Builder’s  Fee plus (ii) two
hundred percent (200%) of the estimated cost to correct or complete incorrect
or incomplete Work as shown on the Punchlist (as hereinafter defined).  The Owner shall thereafter make payments
monthly for corrected and/or completed Punchlist items as such Punchlist items
are corrected
and/or completed.  Final payment
of the balance of such withheld sum shall be made upon correction or completion
of all incomplete or nonconforming Work.

 

11.                                 Completion of the Work.

 

(a)                                  Substantial
Completion of the Work shall be achieved when (1) all Project systems
included in the Work are operational as designed and specified, (2) all
designated or required municipal governmental inspections (e.g.,
building department, etc.) have been successfully completed, and temporary or
permanent certificates of occupancy have been obtained (allowing unrestricted
use and occupancy by the Owner as intended), and (3) all of the other
conditions precedent to Substantial Completion of the Work set forth on Schedule E
have been satisfied.  When the Design/Builder
believes that Substantial Completion of the Work has been achieved, the Design/Builder
shall submit to the Owner a list of items to be completed or corrected together
with the Design/Builder’s proposed estimated value of completing or correcting
such item (as approved or the Owner, the “Punchlist”).  Upon receipt of the Design/Builder’s list,
the Owner will make an inspection to determine whether (i) Substantial
Completion of the Work has been achieved and/or (ii) whether the proposed
Punchlist submitted by Design/Builder is correct and complete.  The Owner shall have the right to modify and/or
supplement the list of items on the proposed Punchlist submitted by
Design/Builder and to modify or, for items added by the Owner, establish the
estimated value of completing or correcting such items.  The failure to include any items on the
Punchlist does not alter the responsibility of the Design/Builder to complete
all Work in accordance with the Contract Documents.

 

(b)                                 Supplementing
the provisions of Paragraph 5.2 of the Agreement, final completion of the Work
shall not be deemed to have occurred, and final payment shall not become due
and payable unless and until, all Work has been fully completed and
Design/Builder has delivered to Owner, and Owner has approved, the following
items:  (i) conditional final lien
waivers from Design/Builder and all Subcontractors in form and substance
satisfactory to the Owner demonstrating receipt by such parties of all prior
payments and confirming that the only

 

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outstanding amounts payable with respect to the Work are amounts to be
paid out of the final payment; (ii) the Record Documents; (iii) all
special warranties and binders containing information on equipment and controls
that are part of the Work; and (iv) to the extent not previously
delivered, final and unconditional certificates of occupancy for the Work.

 

12.                                 Hazardous Materials.  In the
event the Design/Builder encounters at the Project site material reasonably
believed to be hazardous under state or federal law which has not been rendered
harmless, the Design/Builder shall report the condition to the Owner in
writing.  The Work in the affected area
shall not thereafter be resumed except by written agreement of the Owner and Design/Builder
if hazardous or contaminated under state or federal law and has not been
rendered harmless.  The Work in the
affected area shall be resumed in the absence of material defined as hazardous
or contaminated under state or federal law or when it has been rendered
harmless.  The Design/Builder shall not
be required pursuant to Article 8 of the Agreement to perform without
consent any Work relating to material defined as hazardous or contaminated
under state or federal law.  If, without
negligence on the part of the Design/Builder or anyone for whom the
Design/Builder is responsible, the Design/Builder is held liable for the cost
of remediation of a hazardous material or substance outside the scope of the
Work solely by reason of performing Work as required by the Contract Documents,
the Owner shall indemnify the Design/Builder for all cost and expense thereby
incurred.

 

13.                                 Insurance.  The provisions of this Section modify
and supplement Article 7 of the Agreement.

 

(a)                                  Design/Builder’s
Insurance.  The Design/Builder shall
procure and maintain, at the Design/Builder’s expense, the following insurance
coverages, which insurance shall be placed with insurance companies rated at
least A/VI or better in Best’s Key Rating Guide.  Each policy shall include an endorsement
requiring that the insurance company give written notice to Owner at least
thirty (30) days prior to the modification, cancellation, non-renewal or
reduction in the coverage limits of such policy:

 

(i)                                     Workers’
compensation insurance in statutory amounts and employer’s liability insurance
in the amount of $500,000;

 

(ii)                                  Motor
vehicle insurance covering owned, non-owned and hired vehicles for personal
injury in the amount of $1,000,000 combined single limit for bodily injury and
for property damage;

 

(iii)                               Commercial
general liability coverage for bodily injury, personal injury and property
damage in the amount of $1,000,000 bodily injury per occurrence, $1,000,000
property damage per occurrence and $5,000,000 aggregate limit;

 

(iv)                              Professional
liability coverage for all professional services relating to the Project in the
minimum amount of $2,000,000; and

 

(v)                                 Umbrella
Liability Coverage over Commercial General Liability and Motor Vehicle
Insurance in the amount of $5,000,000.

 

6

 

The liability policies
shall include a contractual liability endorsement covering the indemnification
obligations under the Contract Documents. 
The “other insurance” clause shall be deleted from each policy of
insurance carried by the Design/Builder so as to make it clear that the
coverage of such policy is primary and any coverage under any policy or
policies of insurance held by the Owner or any other additional insured is
secondary.  Each policy of insurance carried by the
Design/Builder shall be endorsed to provide a separate general aggregate limit
for the Work performed under this Contract, and will, by its terms,
specifically cover the entire term of the Contract Documents.  All of the insurance required to maintained
by Design/Builder shall be written on an occurrence basis, except that
professional liability and umbrella liability can be written on a claims made
basis provided that such coverages are maintained for six years following final
payment.   The Owner, the Landlord, any lender(s) and
such other persons designated by the Owner from time to time shall be named as
additional insureds on all insurance policies required hereunder except workers’
compensation and professional liability policies.  The Design/Builder shall, upon demand,
provide the Owner with proof that the insurance requirements have been met,
which shall be in the form of certificates of insurance (or, at the Owner’s
request, insurance policies) reasonably acceptable to the Owner.  Renewal certificates for all policies that
expire during the term of the Contract Documents must also be provided at least
thirty (30) days prior to each policy’s respective expiration.  Nothing in this clause, or any failure of
Design/Builder to secure required coverages or otherwise comply with the
insurance provisions of the Contract Documents, shall modify or limit the
Design/Builder’s liability or other obligations under the Contract Documents.

 

(b)                                 Owner’s
Insurance.  Notwithstanding anything
to the contrary in the Contract Documents: 
(a) any property insurance maintained by the Owner or the Landlord
shall not be required to cover portions of the Work stored off site or portions
of the Work in transit; (b) the Owner shall have the sole right to adjust
and settle claims with its property insurers and shall have no obligation to
post any bond for performance of its duties; (c) although the Owner shall
be required to act in good faith in adjusting any claims with its property
insurers and thereafter applying any insurance proceeds received from its
property insurers, the Owner shall not be a fiduciary of the Design/Builder or
any Subcontractor; and (d) any liability insurance maintained by the Owner
is and shall be secondary to and excess of any insurance maintained by the
Design/Builder, the Architect, any subcontractor or any other party for whom
the Design/Builder is responsible.

 

14.                                 Changes in the Work.

 

(a)                                  No
change in the Work shall proceed and no claim for additional monies or
additional time for any extra Work will be valid unless such Work is done
pursuant to a written Change Order or Construction Change Directive.  Notwithstanding anything to the contrary, the
maximum allowable percentages for fee and so-called “general conditions” and “general
requirements” items to Design/Builder on proposals for an increase in the
Contract Sum shall not exceed sixteen percent (16%) of the net increase in the
direct Cost of the Work (i.e.,
the Cost of the Work excluding Design/Builder’s fee and so-called “general
conditions” and “general requirements” items).

 

(b)                                 The
Owner will designate individuals (each, an “Owner Representative”) who shall be
authorized to approve or direct changes in the Work.  The initial Owner

 

7

 

Representatives are Mary Nicholson. 
The Owner may change, or name additional, Owner Representatives from
time to time by written notice to Design/Builder.

 

15.                                 Claims and Disputes.

 

(a)                                  In
the event of any mediation, arbitration or legal proceeding between the Owner
and any third party arising out of or relating to the Project, the
Design/Builder agrees that (i) the Owner may join the Design/Builder in any
such proceedings and that the Owner may consolidate any such proceedings with
any proceeding between the Design/Builder and the Owner under the Contract
Documents, and (ii) the Owner may make persons other than the Owner and the
Design/Builder parties to any mediation, arbitration or legal proceeding
hereunder with respect to any claim, dispute or other matter in question
arising out the Project.

 

(b)                                 The
provisions of Paragraph 11.4 of the Agreement shall not limit the time within
which the Owner may assert any claim against the Design/Builder alleging a
failure to comply with the Contract Documents or any defective or nonconforming
Work.

 

16.                                 Indemnification.  The obligations of the
Design/Builder to indemnify and hold harmless under Paragraph 11.5 of the
Agreement shall:  (a) extend to the
Landlord, any lender(s) and the partners, officers, directors, trustees and
employees of the Owner, the Landlord and any lender(s); and (b) include,
to the fullest extent permitted by law, any claims, damages, losses or expenses
in any way arising or alleged to be arising from the design or performance of
the Work or the failure of the Design/Builder, the Design/Builder’s
Subcontractors, lower level subcontractors and employees or agents of any of
them to design or perform the Work in accordance with applicable Laws.

 

17.                                 Compensation.

 

(a)                                  Contract
Sum.  For Design/Builder’s performance
of the Work, Owner shall pay Design/Builder an amount (the “Contract Sum”)
consisting of the Cost of the Work (as hereinafter defined) and the
Design/Builder’s Fee (as hereinafter defined); provided, however, that the
Contract Sum shall in no event exceed One Million Nine Hundred Seventeen
Thousand Seven Hundred Two Dollars ($1,917,702) (as adjusted by Change Order
pursuant the Contract Documents, the “Guaranteed Maximum Price”).

 

(i)                                     Cost
of the Work.  The term “Cost of the
Work” shall mean the costs set forth on Schedule A attached hereto which
are actually and necessarily incurred by Design/Builder in the proper
performance of the Work.  Such costs
shall be at rates not higher than those customarily paid at the place of the
Project except with prior consent of Owner. 
..

 

(ii)                                  Design/Builder’s
Fee.  Design/Builder’s fee for all
services hereunder (“Design/Builder’s Fee”) shall be the stipulated lump sum
amount of One Hundred Eight Thousand Five Hundred Forty-Nine Dollars ($108,549).

 

(iii)                               Savings.  All “Guaranteed Maximum Price Savings” (as
such term is defined below), if any, shall accrue to the Owner.  As of the date of final completion of the
Work the amount, if any, by which (x) exceeds (y) shall be considered the

 

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“Guaranteed Maximum Price
Savings,” where (x) is the Guaranteed Maximum Price and (y) is the sum of the
actual Cost of the Work and the actual Design/Builder’s Fee.

 

(b)                                 Competitive
Bids.  Except as otherwise agreed in
writing by the Owner, all labor, materials and equipment (whether rented or
purchased) for each portion of the Work with a cost (together with all other
items to be provided by the proposed subcontractor or supplier) of Ten Thousand
Dollars ($10,000) or more shall be obtained on the basis of competitive bids in
accordance with this paragraph.  Design/Builder
shall provide the Owner with a list of proposed bidders for each portion of the
Work who have been selected by Design/Builder for their ability to perform the
applicable Work.  The Owner may, but
shall have no obligation to, review and approve the Design/Builder’s list of
proposed bidders prior to the Design/Builder’s solicitation of bids.  Design/Builder shall request bids from at
least three (3) prospective qualified subcontractors or suppliers from such
list for each portion of the Work that Design/Builder does not intend to
perform with Design/Builder’s own forces or through an affiliate of
Design/Builder.  For any portion of the
Work that Design/Builder intends to perform with Design/Builder’s own forces or
through an affiliate, Design/Builder shall (i) request bids from at least
two (2) prospective qualified subcontractors or suppliers unaffiliated with
Design/Builder from the list and (ii) submit, or cause its affiliate to
submit, a bid for the Work to Owner at least one (1) business day prior to
receipt of bids from the unaffiliated prospective subcontractors or
suppliers.  Following receipt of all bids
for a portion of the Work, Design/Builder shall equalize (based on scope of
Work and bid responses) and summarize the bids received and make
recommendations to Owner as to which bids should be accepted.  Design/Builder, with the Owner’s consent,
shall then determine which bids will be accepted.  Work by a Design/Builder or affiliate of
Design/Builder shall be permitted only if (1) Owner consents thereto in writing
after full disclosure in writing by the Design/Builder to the Owner of the
affiliation or relationship and (2) Owner approves in writing any subcontract,
contract, purchase order, agreement or other arrangement in form and substance.  Unless the Owner otherwise approves in
writing, the lowest qualified bidder (that is a bidder who, if selected, is
capable of performing the applicable Work without having a negative effect on
the outcome of the project or impairing the Design/Builder’s ability to meet
the requirements of this Agreement) will be selected by Design/Builder;
however, the Design/Builder may elect to use a bidder other than the low bidder
without the written approval of the Owner if the selected bidder is within 2.5%
of the cost of the low bidder (but any such selection shall not increase the
Guaranteed Maximum Price).  If the Owner
without reasonable justification requires the Design/Builder to select a bidder
other than the lowest priced qualified bidder recommended by Design/Builder,
and the bid price of the bidder required by Owner is higher than the bid price
of the lowest priced qualified bidder recommended by Design/Builder, the
Guaranteed Maximum Price shall be increased by the difference between the bid
price of the bidder required by Owner and the bid price of the lowest priced
qualified bidder recommended by Design/Builder, which adjustment to the
Guaranteed Maximum Price shall be implemented by Change Order prior to
commencement of the applicable subcontractor’s Work.

 

(c)                                  Discounts,
Rebates and Refunds.  All discounts,
rebates or refunds in connection with the Work shall be credited against the
Cost of the Work.

 

(d)                                 Books
and Records.  Design/Builder shall
keep full and detailed accounts as necessary for proper financial management of
the Project.  Owner and its
representatives shall

 

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at all reasonable times be afforded access to all records, books,
correspondence, instructions, drawings, receipts, vouchers, memoranda and
similar data of Design/Builder and any and all of its consultants and
subcontractors relating to the Agreement and performance of the Work, and may
make copies of such items. 
Design/Builder and all of its consultants and subcontractors shall
preserve all such records for a period of at least three years after the final
payment or longer where required by law. 
Design/Builder shall cause all of its consultants and subcontractors to
comply with the provisions of this paragraph. 
If any review by Owner reveals an overpayment by Owner, Design/Builder
shall pay to the Owner the amount of such overpayment within ten (10) days of
Owner’s demand.

 

18.                                 Schedule of Values; Allowances.

 

(a)                                  The
initial schedule of values allocating the Guaranteed Maximum Price among
the various components of the Work prepared by the Design/Builder and approved
by the Owner is attached hereto as Schedule C (as amended from time to
time with the approval of the Owner, the “Schedule of Values”).  The Schedule of Values shall be updated
by the Design/Builder as frequently as necessary to reflect changes as the Work
proceeds.

 

(b)                                 The
Guaranteed Maximum Price includes allowances for the items, and in the amounts,
set forth on Schedule D attached hereto and made a part hereof.  The Guaranteed Maximum Price shall be
increased or decreased, as applicable, by the difference between (i) the
amount of each allowance then listed on Schedule D and (ii) the
actual out-of-pocket cost to the Design/Builder of providing any of the
allowance items.

 

19.                                 Liens.  In the event that any
Subcontractor, supplier or other party for whom the Design/Builder is
responsible establishes a lien against the Project and/or the Project site, the
Design/Builder shall, within five (5) days following the request of the Owner,
obtain for the Owner’s benefit and at no cost to the Owner, cause such lien to
be discharged (by filing a lien discharge bond from a surety and in a form
acceptable to the Owner or otherwise). 
If the Design/Builder fails to obtain a cause such lien to be discharged
within such five (5) day period, the Owner shall have the right to
(a) withhold succeeding progress payments or any other sums payable to the
Design/Builder and/or (b) have such lien discharged (by bonding, by making
payment to the lienor, or otherwise) at the Design/Builder’s cost and
expense.  The Owner may either apply
amounts so withheld to discharging such lien(s) or may retain such amounts
until such lien(s) are discharged or released by the Design/Builder or the
lienor and shall thereafter credit to the Design/Builder any amounts remaining
after payment of the fees and expenses the Owner incurs in connection with such
lien(s).  The Design/Builder agrees to
indemnify and hold harmless the Owner from all costs and expenses incurred by
the Owner in connection with defending or discharging such lien(s).

 

20.                                 Non-Recourse.  No partner, member, shareholder,
director, officer, agent or employee of the Owner or any of the foregoing shall
have any personal liability arising out of the Contract Documents or the
Project.

 

21.                                 Key Personnel.  The members of the Design/Builder’s
and Architect’s staff assigned to and primarily responsible for supervising
and/or performing the Work shall be the following persons:

 

10

 

	
  Person

  	
   

  	
  Position

  	
   

  
	
  Steve Murray

  	
   

  	
  Project Manager

  	
   

  
	
  Steve Savage

  	
   

  	
  Project Superintendent

  	
   

  
	
  Anne Myers

  	
   

  	
  Project Architect

  	
   

  

 

Such key members of the Design/Builder’s staff shall
not be changed without the written consent of the Owner, unless such person
becomes unable to perform his or her duties due to death, disability or
termination of employment, or unless the Owner requests removal.  If a key member is no longer capable of
performing in the capacity described in the attached exhibit, or is removed by
the Owner, the Owner and the Design/Builder shall agree on a mutually
acceptable substitute.

 

22.                                 Protection From Water Damage.  In
performing the Work, the Design/Builder shall exercise diligent efforts to
protect the Project and to cause all materials, supplies, systems and equipment
which are delivered to the Project site from exposure to, and damage from,
water.  Without limiting the generality
of the foregoing, the Design/Builder shall (a) cause all materials,
supplies, systems and equipment which are delivered to the Project site to be
stored in a safe and secure location, packaged in a watertight manner where
possible, and stored in a manner which protects such items from inclement
weather, the elements (including, without limitation, rain, snow and water
damage) and other damage until such items are incorporated into the Work, and
(b) ensure that all plumbing components and exterior elements included within the
Work are constructed and installed in accordance with the Contract Documents so
as not to allow water leaks or penetration. 
In addition to (and not in limitation of) the indemnification
obligations of Design/Builder set forth in Paragraph 11.5 of the Agreement,
Design/Builder shall indemnify and hold harmless the indemnified parties to the
fullest extent permitted by law from all claims, liabilities and losses arising
out of or resulting from the failure of the Design/Builder (or any
subcontractor of any tier) to comply with the provisions of this
paragraph.  The foregoing indemnification
shall include, without limitation, any claim, liability of loss attributable to
(i) bodily injury, sickness, disease or death arising out of or relating
to, and (ii) the costs of any abatement, clean-up, removal and disposal
(to the satisfaction of Owner) of, any mold, fungal growth, spores or the like
which occurs at the Project site as a result of any failure by Design/Builder
(or any subcontractor of any tier) to comply with the provisions of this
paragraph.

 

23.                                 Termination by the Owner for Convenience. 
Subparagraph 12.1.1 of the Agreement is hereby deleted in its entirety
and superseded by this Section.  The
Owner may terminate the Design/Builder’s services in whole or in part for the
Owner’s convenience without cause.  In
case of termination for the Owner’s convenience without cause, the
Design/Builder shall be entitled to receive payment for Work properly executed
in accordance with the Contract Documents (the basis for such payment shall be
as provided in the Agreement and these Supplemental Conditions) and for
reasonable demobilization and cancellation charges incurred by the
Design/Builder directly related to the termination of the Work (including
reasonable amounts necessary to terminate agreements with Subcontractors and
suppliers).  The Design/Builder shall not
be entitled (nor shall any Subcontractor be entitled) to consequential or
incidental damages, including, but not limited to, damages for loss of anticipated
profits on Work not performed, on account of any termination for the Owner’s
convenience.”

 

11

 

24.                                 Financing for the Project. 
Subparagraph 2.10 of the Agreement is hereby deleted in its
entirety.  The Design/Builder
acknowledges that the Owner may finance the work with funds provided and/or
administered by one or more construction lenders (each, a “Lender”).  The Design/Builder agrees to comply with the
requirements of each Lender which bear upon the performance of the Work.  The Design/Builder shall also:  (a) make the site of the Work available
at reasonable times for inspection by the Lender or the Lender’s
representatives; (b) consent to and execute all documents reasonably
requested by the Owner or any Lender in connection with the assignment of the
Contract to any Lender for collateral purposes and/or the disbursement of funds
by any Lender; (c) promptly furnish the Owner with information, documents,
materials and/or certificates that the Owner may reasonably request from time
to time in order to comply with the requirements of the Lender; and
(d) otherwise comply with all requirements of any Lender to the extent
applicable to the performance of the Work.

 

25.                                 Special Provisions Regarding Lease.  Notwithstanding
anything to the contrary, the Design/Builder acknowledges and agrees that:  (a) the Work is to be performed in
premises leased from Massachusetts Development Finance Agency (“Landlord”);
(b) the Design/Builder shall make the site of the Work available at
reasonable times for inspection by Landlord or Landlord’s representatives;
(c) all or a portion of the Contract Sum shall be paid with funds provided
by Landlord; (d) the Design/Builder shall comply with any requirements,
rules or procedures imposed by Landlord and agreed to by the Owner which relate
to the design and/or performance of the Work or payment for the Work within the
Guaranteed Maximum Price (including all charges imposed by Landlord
thereunder); (e) the Landlord, and not the Owner, shall be providing
property insurance for the Project and the Project site, which property
insurance shall include only the coverages and limits normally carried by the
Landlord; (f) the Landlord shall be an indemnified party and shall be
named as an additional insured to the same extent as Owner under the Contract
Documents; and (g) the Design/Builder’s architect or engineer shall
certify to Owner and Landlord that all components of the Work, once installed,
will be compatible with the building’s plumbing, electrical and mechanical
systems.

 

26.                                 Confidentiality.  Design/Builder shall maintain,
and cause all of its subcontractors to maintain, the confidentiality of all
information about the Owner and the Project that would reasonably be considered
confidential (including, without limitation, technical information or
specifications regarding the Project and/or the Owner’s proprietary processes
and procedures), unless withholding such information would violate the law or
prevent Design/Builder from establishing a claim or defense in an adjudicatory
proceeding.

 

27.                                 Building in Use.  Design/Builder recognizes that
the Project may involve working in a facility which will be in use during the
period of construction, and Design/Builder shall cooperate with the Owner and
perform its Work hereunder in such a manner and at such times so as to
(a) protect persons and property in the facility and (b) minimize
interference with the present operation of the facility.  Design/Builder acknowledges that it
incorporated into it’s Contract budget that the facility and surrounding areas
are open to the public, and Design/Builder agrees to make no claims for
additional costs or damages associated with any inefficiencies caused by the
normal building operations.  Neither
shall the Owner be required to make any adjustment in the Contract Time for the
Design/Builder for any delays associated with normal building operations.  The Design/Builder may make claims for
additional costs or

 

12

 

adjustments to the Contract Time if the
inefficiencies are caused by unreasonable Landlord imposed conditions that are
not associated with normal building operations.

 

28.                                 Counterparts.  These Supplemental Conditions may
be executed in one or more counterparts, each of which shall be deemed an
original binding on the parties hereto.

 

[Signatures on Following Page(s)]

 

13

 

IN WITNESS WHEREOF, the Owner and the Design/Builder
have entered into this Rider as of the date first set forth in the Agreement.

 

	
   

  	
  AVANT
  IMMUNOTHERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SPEC PROCESS ENGINEERING &

  CONSTRUCTION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

14Exhibit 10.1

 

 

 

$825,000,000

CREDIT AGREEMENT

 

among

 

GENERAL MARITIME CORPORATION,

 

VARIOUS LENDERS

 

and

 

NORDEA BANK FINLAND PLC, NEW YORK BRANCH,

 

as Sole Lead Arranger and Sole Bookrunner and

 

as Administrative Agent

 

 

Dated as of July 1, 2004

 

 

and

 

THE GOVERNOR AND COMPANY OF THE BANK OF
SCOTLAND, CITIBANK, N.A., DRESDNER BANK AG IN HAMBURG, HSH NORDBANK AG

and
 THE ROYAL BANK OF SCOTLAND PLC

 

as Co-Arrangers

 

 

 

TABLE OF CONTENTS

 

	
  SECTION
  1.

  	
  Amount
  and Terms of Credit Facilities

  	
   

  
	
   

  	
   

  	
   

  
	
  1.01

  	
  The Commitments

  	
   

  
	
  1.02

  	
  Minimum Amount of Each Borrowing;
  Limitation on Number of Borrowings

  	
   

  
	
  1.03

  	
  Notice of Borrowing

  	
   

  
	
  1.04

  	
  Disbursement of Funds

  	
   

  
	
  1.05

  	
  Notes

  	
   

  
	
  1.06

  	
  Pro Rata Borrowings

  	
   

  
	
  1.07

  	
  Interest

  	
   

  
	
  1.08

  	
  Interest Periods

  	
   

  
	
  1.09

  	
  Increased Costs, Illegality, etc.

  	
   

  
	
  1.10

  	
  Compensation

  	
   

  
	
  1.11

  	
  Change
  of Lending Office

  	
   

  
	
  1.12

  	
  Replacement
  of Lenders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  [INTENTIONALLY
  OMITTED]

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  Commitment
  Commission; Reductions of Commitment

  	
   

  
	
   

  	
   

  	
   

  
	
  3.01

  	
  Commitment Commission

  	
   

  
	
  3.02

  	
  Voluntary Termination of Unutilized
  Commitments

  	
   

  
	
  3.03

  	
  Mandatory Reduction of Commitments

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  Prepayments;
  Payments; Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  4.01

  	
  Voluntary Prepayments

  	
   

  
	
  4.02

  	
  Mandatory Repayments and Commitment
  Reductions

  	
   

  
	
  4.03

  	
  Method and Place of Payment

  	
   

  
	
  4.04

  	
  Net
  Payments; Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  Conditions
  Precedent to the Initial Borrowing Date

  	
   

  
	
   

  	
   

  	
   

  
	
  5.01

  	
  Effective
  Date; Notes

  	
   

  
	
  5.02

  	
  Fees, etc.

  	
   

  
	
  5.03

  	
  Opinions
  of Counsel

  	
   

  
	
  5.04

  	
  Corporate Documents; Proceedings; etc.

  	
   

  
	
  5.05

  	
  Shareholders’ Agreements; Management Agreements; Debt Agreements;
  Employment Agreements; Tax Sharing Agreements

  	
   

  
	
  5.06

  	
  Subsidiaries Guaranty

  	
   

  
	
  5.07

  	
  Pledge and Security Agreement

  	
   

  
	
  5.08

  	
  Solvency Certificate

  	
   

  
	
  5.09

  	
  Financial Statements; Projections

  	
   

  
	
  5.10

  	
  Material Adverse Change; Approvals.

  	
   

  

 

 

	
  5.11

  	
  Litigation

  	
   

  
	
  5.12

  	
  Appraisals

  	
   

  
	
  5.13

  	
  Refinancing

  	
   

  
	
  5.14

  	
  Assignments
  of Earnings and Insurances

  	
   

  
	
  5.15

  	
  Mortgages; Certificates of Ownership; Searches; Class Certificates;
  Appraisal Report; Insurance

  	
   

  
	
  5.16

  	
  Environmental Laws

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  Conditions
  Precedent to All Credit Events

  	
   

  
	
   

  	
   

  	
   

  
	
  6.01

  	
  No
  Default; Representations and Warranties

  	
   

  
	
  6.02

  	
  Notice
  of Borrowing

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  Representations,
  Warranties and Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  7.01

  	
  Corporate/Limited
  Liability Company/Limited Partnership Status

  	
   

  
	
  7.02

  	
  Corporate Power and Authority

  	
   

  
	
  7.03

  	
  No
  Violation

  	
   

  
	
  7.04

  	
  Governmental Approvals

  	
   

  
	
  7.05

  	
  Financial Statements; Financial Condition;
  Undisclosed Liabilities.

  	
   

  
	
  7.06

  	
  Litigation

  	
   

  
	
  7.07

  	
  True and Complete Disclosure

  	
   

  
	
  7.08

  	
  Use of Proceeds; Margin Regulations

  	
   

  
	
  7.09

  	
  Tax Returns and Payments

  	
   

  
	
  7.10

  	
  Compliance with ERISA

  	
   

  
	
  7.11

  	
  The Security Documents

  	
   

  
	
  7.12

  	
  Capitalization

  	
   

  
	
  7.13

  	
  Subsidiaries

  	
   

  
	
  7.14

  	
  Compliance with Statutes, etc.

  	
   

  
	
  7.15

  	
  Investment Company Act

  	
   

  
	
  7.16

  	
  Public Utility Holding Company Act

  	
   

  
	
  7.17

  	
  Pollution and Other Regulations

  	
   

  
	
  7.18

  	
  Labor Relations

  	
   

  
	
  7.19

  	
  Patents, Licenses, Franchises and Formulas

  	
   

  
	
  7.20

  	
  Indebtedness

  	
   

  
	
  7.21

  	
  Insurance

  	
   

  
	
  7.22

  	
  Concerning the Vessels

  	
   

  
	
  7.23

  	
  Citizenship

  	
   

  
	
  7.24

  	
  Vessel Classification

  	
   

  
	
  7.25

  	
  No Immunity

  	
   

  
	
  7.26

  	
  Fees and Enforcement

  	
   

  
	
  7.27

  	
  Form of Documentation

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.

  	
  Affirmative Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  8.01

  	
  Information Covenants

  	
   

  
	
  8.02

  	
  Books, Records and Inspections

  	
   

  
	
  8.03

  	
  Maintenance of Property; Insurance

  	
   

  
	
  8.04

  	
  Corporate Franchises

  	
   

  

 

ii

 

	
  8.05

  	
  Compliance with Statutes, etc.

  	
   

  
	
  8.06

  	
  Compliance with Environmental Laws

  	
   

  
	
  8.07

  	
  ERISA

  	
   

  
	
  8.08

  	
  End of Fiscal Years; Fiscal Quarters

  	
   

  
	
  8.09

  	
  Performance of Obligations

  	
   

  
	
  8.10

  	
  Payment of Taxes

  	
   

  
	
  8.11

  	
  Further Assurances

  	
   

  
	
  8.12

  	
  Deposit of Earnings

  	
   

  
	
  8.13

  	
  Ownership of Subsidiaries

  	
   

  
	
  8.14

  	
  Flag of Mortgaged Vessels

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.

  	
  Negative Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  9.01

  	
  Liens

  	
   

  
	
  9.02

  	
  Consolidation, Merger, Sale of Assets, etc.

  	
   

  
	
  9.03

  	
  Dividends

  	
   

  
	
  9.04

  	
  Indebtedness

  	
   

  
	
  9.05

  	
  Advances, Investments and Loans

  	
   

  
	
  9.06

  	
  Transactions with Affiliates

  	
   

  
	
  9.07

  	
  Consolidated Interest Coverage Ratio

  	
   

  
	
  9.08

  	
  Minimum Consolidated Working Capital Ratio

  	
   

  
	
  9.09

  	
  Maximum Leverage Ratio

  	
   

  
	
  9.10

  	
  Minimum Consolidated Net Worth

  	
   

  
	
  9.11

  	
  Collateral Maintenance

  	
   

  
	
  9.12

  	
  Limitation on Modifications of Certificate of Incorporation, By-Laws
  and Certain Other Agreements; Prohibited Repayments of Certain Debt; etc.

  	
   

  
	
  9.13

  	
  Limitation on Certain Restrictions on Subsidiaries

  	
   

  
	
  9.14

  	
  Limitation on Issuance of Capital Stock

  	
   

  
	
  9.15

  	
  Business

  	
   

  
	
  9.16

  	
  Double-Hull Vessel Ratio

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.

  	
  Events of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  10.01

  	
  Payments

  	
   

  
	
  10.02

  	
  Representations, etc.

  	
   

  
	
  10.03

  	
  Covenants

  	
   

  
	
  10.04

  	
  Default Under Other Agreements

  	
   

  
	
  10.05

  	
  Bankruptcy, etc.

  	
   

  
	
  10.06

  	
  ERISA

  	
   

  
	
  10.07

  	
  Security Documents

  	
   

  
	
  10.08

  	
  Subsidiaries
  Guaranty

  	
   

  
	
  10.09

  	
  Judgments

  	
   

  
	
  10.10

  	
  Change of Control

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.

  	
  Definitions and Accounting Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  11.01

  	
  Defined Terms

  	
   

  

 

iii

 

	
  SECTION
  12.

  	
  Agency and Security Trustee Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  12.01

  	
  Appointment

  	
   

  
	
  12.02

  	
  Nature of Duties

  	
   

  
	
  12.03

  	
  Lack of Reliance on the Agents

  	
   

  
	
  12.04

  	
  Certain Rights of the Agents

  	
   

  
	
  12.05

  	
  Reliance

  	
   

  
	
  12.06

  	
  Indemnification

  	
   

  
	
  12.07

  	
  The Administrative Agent in its Individual Capacity

  	
   

  
	
  12.08

  	
  Holders

  	
   

  
	
  12.09

  	
  Resignation by the Administrative Agent

  	
   

  
	
  12.10

  	
  The Co-Arrangers

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  13.

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  13.01

  	
  Payment of Expenses, etc.

  	
   

  
	
  13.02

  	
  Right of Setoff

  	
   

  
	
  13.03

  	
  Notices

  	
   

  
	
  13.04

  	
  Benefit of Agreement

  	
   

  
	
  13.05

  	
  No Waiver; Remedies Cumulative

  	
   

  
	
  13.06

  	
  Payments Pro Rata

  	
   

  
	
  13.07

  	
  Calculations; Computations

  	
   

  
	
  13.08

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

  	
   

  
	
  13.09

  	
  Counterparts

  	
   

  
	
  13.10

  	
  Effectiveness

  	
   

  
	
  13.11

  	
  Headings Descriptive

  	
   

  
	
  13.12

  	
  Amendment or Waiver; etc.

  	
   

  
	
  13.13

  	
  Survival

  	
   

  
	
  13.14

  	
  Domicile of Loans

  	
   

  
	
  13.15

  	
  Limitation on Additional Amounts, etc.

  	
   

  
	
  13.16

  	
  Confidentiality

  	
   

  
	
  13.17

  	
  Register

  	
   

  
	
  13.18

  	
  Judgment
  Currency

  	
   

  
	
  13.19

  	
  Language

  	
   

  
	
  13.20

  	
  Waiver of Immunity

  	
   

  
	
  13.21

  	
  USA PATRIOT Act Notice.

  	
   

  

 

	
  SCHEDULE I

  	
  -

  	
  Commitments

  
	
  SCHEDULE II

  	
  -

  	
  Lender
  Addresses

  
	
  SCHEDULE III

  	
  -

  	
  Mortgaged
  Vessels

  
	
  SCHEDULE IV

  	
  -

  	
  Existing
  Liens

  
	
  SCHEDULE V

  	
  -

  	
  Indebtedness

  
	
  SCHEDULE VI

  	
  -

  	
  Insurance

  
	
  SCHEDULE VII

  	
  -

  	
  ERISA

  
	
  SCHEDULE VIII

  	
  -

  	
  Subsidiaries

  

 

iv

 

	
  SCHEDULE IX

  	
  -

  	
  Capitalization

  
	
  SCHEDULE X

  	
  -

  	
  Approved
  Classification Societies

  
	
  SCHEDULE XI

  	
  -

  	
  Existing
  Investments

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  -

  	
  Notice of
  Borrowing

  
	
  EXHIBIT B

  	
  -

  	
  Term Note

  
	
  EXHIBIT C

  	
  -

  	
  Revolving
  Note

  
	
  EXHIBIT D-1

  	
  -

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

  
	
  EXHIBIT D-2

  	
  -

  	
  Opinion of
  Seward & Kissel LLP, New York counsel to the Borrower and its
  Subsidiaries

  
	
  EXHIBIT D-3

  	
  -

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

  
	
  EXHIBIT D-4

  	
  -

  	
  Form of
  Opinion of George E. Henries, Esq., Liberian counsel to the Borrower and its
  Subsidiaries

  
	
  EXHIBIT D-5

  	
  -

  	
  Form of
  Opinion of Dennis J. Reeder, Esq., Marshall Islands counsel to the Borrower
  and its Subsidiaries

  
	
  EXHIBIT D-6

  	
  -

  	
  Form of
  Opinion of Ganado Associates, Maltese counsel to the Borrower and its
  Subsidiaries

  
	
  EXHIBIT E

  	
  -

  	
  Officer’s
  Certificate

  
	
  EXHIBIT F

  	
  -

  	
  Subsidiaries
  Guaranty

  
	
  EXHIBIT G

  	
  -

  	
  Pledge
  Agreement

  
	
  EXHIBIT H

  	
  -

  	
  Assignment
  of Earnings

  
	
  EXHIBIT I

  	
  -

  	
  Assignment
  of Insurances

  
	
  EXHIBIT J-1

  	
  -

  	
  Form of
  Marshall Islands Vessel Mortgage

  
	
  EXHIBIT J-2

  	
  -

  	
  Form of
  Liberian Vessel Mortgage

  
	
  EXHIBIT J-3

  	
  -

  	
  Form of
  Maltese Vessel Mortgage

  
	
  EXHIBIT K

  	
  -

  	
  Solvency
  Certificate

  
	
  EXHIBIT L

  	
  -

  	
  Assignment
  and Assumption Agreement

  
	
  EXHIBIT M

  	
  -

  	
  Form of
  Compliance Certificate

  
	
  EXHIBIT N

  	
  -

  	
  Subordination
  Provisions

  

 

v

 

CREDIT AGREEMENT, dated as of July 1, 2004, among GENERAL MARITIME
CORPORATION, a Marshall Islands corporation (the “Borrower”), the
Lenders party hereto from time to time, and NORDEA BANK FINLAND PLC, NEW YORK
BRANCH, as Administrative Agent (in such capacity, the “Administrative Agent”)
and as Collateral Agent under the Security Documents (in such capacity, the “Collateral
Agent”). All capitalized terms used herein and defined in Section 11 are
used herein as therein defined.

 

W  I  T  N
E  S  S  E  T  H:

 

WHEREAS, subject to and upon the terms and conditions herein set forth,
the Lenders are willing to make available to the Borrower the credit facilities
provided for herein;

 

NOW, THEREFORE, IT IS AGREED:

 

SECTION 1.  Amount and Terms of Credit Facilities.  

 

1.01  The
Commitments.  (a) Subject to and
upon the terms and conditions set forth herein, each Lender with a Term Loan
Commitment severally agrees to make a term loan or term loans (each a “Term
Loan” and, collectively, the “Term Loans”) to the Borrower, which
Term Loans (i) shall bear interest in accordance with Section 1.07, (ii) may
only be incurred pursuant to a single drawing on the Initial Borrowing Date,
(iii) shall be denominated in Dollars, and (iv) shall not exceed for any
Lender, that amount which equals the Term Loan Commitment of such Lender as in
effect on such Borrowing Date.  Once
repaid, Term Loans incurred hereunder may not be reborrowed.

 

(b)                                 Subject
to and upon the terms and conditions set forth herein, each Lender with a
Revolving Loan Commitment severally agrees to make at any time on or after the
Initial Borrowing Date and prior to the Maturity Date a revolving loan or
revolving loans (each, a “Revolving Loan” and, collectively, the “Revolving
Loans”) to the Borrower, which Revolving Loans (i) shall bear interest in
accordance with Section 1.07, (ii) shall be denominated in Dollars, (iii) may
be repaid and reborrowed in accordance with the provisions hereof, and (iv)
shall not exceed for any Lender at any time that aggregate principal amount
outstanding which equals the Revolving Loan Commitment of such Lender at such time.

 

1.02  Minimum Amount of Each Borrowing; Limitation
on Number of Borrowings.    (a) 
The aggregate principal amount of each Borrowing of Loans under a
Tranche shall not be less than the Minimum Borrowing Amount for each such
Tranche.

 

(b)                                 More
than one Borrowing may occur on the same date, but at no time shall there be
outstanding more than six Borrowings of Loans subject to different Interest
Periods in the aggregate for all Tranches.

 

1.03  Notice of Borrowing.    (a) 
Whenever the Borrower desires to make a Borrowing hereunder, it shall
give the Administrative Agent at its Notice Office at least three Business Days’
prior written notice of each Loan to be made hereunder, provided that
any such notice shall be deemed to have been given on a certain day only if
given before 11:00 A.M. (New York time).  Each such written notice (each a “Notice
of Borrowing”), except as otherwise

 

 

expressly provided in Section
1.09, shall be irrevocable and shall be given by the Borrower in the form of
Exhibit A, appropriately completed to specify (i) the aggregate principal
amount of the Loans to be made pursuant to such Borrowing, (ii) the date of
such Borrowing (which shall be a Business Day), (iii) the initial Interest
Period to be applicable thereto, (iv) whether the Loans being made pursuant to
such Borrowing shall constitute Term Loans or Revolving Loans and (v) to which
account the proceeds of such Loans are to be deposited.  The Administrative Agent shall promptly give
each Lender which is required to make Loans, notice of such proposed Borrowing,
of such Lender’s proportionate share thereof and of the other matters required
by the immediately preceding sentence to be specified in the Notice of
Borrowing.

 

(b)                                 Without
in any way limiting the obligation of the Borrower to deliver a written Notice
of Borrowing in accordance with Section 1.03(a), the Administrative Agent may
act without liability upon the basis of telephonic notice of such Borrowing,
believed by the Administrative Agent in good faith to be from the Chairman of
the Board or the Treasurer of the Borrower (or any other officer of the
Borrower designated in writing to the Administrative Agent by the Chief
Executive Officer, President or Treasurer of the Borrower as being authorized
to give such notices under this Agreement) prior to receipt of Notice of
Borrowing.  In each such case, the
Borrower hereby waives the right to dispute the Administrative Agent’s record
of the terms of such telephonic notice of such Borrowing of Loans, absent
manifest error.

 

1.04  Disbursement of Funds.    Except as otherwise specifically provided in
the immediately succeeding sentence, no later than 12:00 Noon (New York
time) on the date specified in each Notice of Borrowing, each Lender with a
Commitment of the respective Tranche will make available its pro  rata
portion of each such Borrowing requested to be made on such date.  All such amounts shall be made available in
Dollars and in immediately available funds at the Payment Office of the
Administrative Agent and the Administrative Agent will make available to the
Borrower (prior to 1:00 P.M. (New York Time) on such day to the extent of funds
actually received by the Administrative Agent prior to 12:00 Noon (New York
Time) on such day) at the Payment Office, in the account specified in the
applicable Notice of Borrowing, the aggregate of the amounts so made available
by the Lenders. Unless the Administrative Agent shall have been notified by any
Lender prior to the date of Borrowing that such Lender does not intend to make
available to the Administrative Agent such Lender’s portion of any Borrowing to
be made on such date, the Administrative Agent may assume that such Lender has
made such amount available to the Administrative Agent on such date of
Borrowing and the Administrative Agent may, in reliance upon such assumption,
make available to the Borrower a corresponding amount.  If such corresponding amount is not in fact
made available to the Administrative Agent by such Lender, the Administrative
Agent shall be entitled to recover such corresponding amount on demand from
such Lender.  If such Lender does not pay
such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrower and the
Borrower shall immediately pay such corresponding amount to the Administrative
Agent.  The Administrative Agent shall
also be entitled to recover on demand from such Lender or the Borrower, as the
case may be, interest on such corresponding amount in respect of each day from
the date such corresponding amount was made available by the Administrative
Agent to the Borrower until the date such corresponding amount is recovered by
the Administrative Agent, at a rate per annum equal to (i) if recovered from
such Lender, at the overnight Federal Funds Rate and (ii) if recovered
from the Borrower, the rate of interest applicable to the respective Borrowing,
as determined pursuant to Section 1.07. 
Nothing in this

 

2

 

Section 1.04 shall be deemed to
relieve any Lender from its obligation to make Loans hereunder or to prejudice
any rights which the Borrower may have against any Lender as a result of any
failure by such Lender to make Loans hereunder.

 

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

 

(b)  Each Term Note shall (i) be executed by the Borrower,
(ii) be payable to the order of such Lender and be dated the Initial Borrowing
Date, (iii) be in a stated principal amount equal to the Term Loan of such
Lender on the Initial Borrowing Date (or, in the case of Term Notes issued
after the Initial Borrowing Date, be in a stated principal amount equal to the
outstanding principal amount of Term Loans of such Lender on the date of the
issuance thereof) and be payable in the principal amount of the Term Loan
evidenced thereby, (iv) mature on the Maturity Date, (v) bear interest as
provided in Section 1.07 in respect of the Term Loan evidenced thereby, (vi) be
subject to voluntary prepayment and mandatory repayment as provided in Sections
4.01 and 4.02 and (vii) be entitled to the benefits of this Agreement and the
other Credit Documents.

 

(c)  Each Revolving Note shall (i) be executed by the
Borrower, (ii) be payable to the order of such Lender and be dated the Initial
Borrowing Date (or, in the case of Revolving Notes issued after the Initial
Borrowing Date, be dated the date of the issuance thereof), (iii) be in a
stated principal amount equal to the Revolving Loan Commitment of such Lender
and be payable in the principal amount of the Revolving Loans evidenced
thereby, (iv) mature on the Maturity Date, (v) bear interest as provided in
Section 1.07 in respect of the Revolving Loans evidenced thereby, (vi) be
subject to voluntary prepayment and mandatory repayment as provided in Sections
4.01 and 4.02 and (vii) be entitled to the benefits of this Agreement and the
other Credit Documents.

 

(d)  Each Lender will note on its internal records the amount
of each Loan made by it and each payment in respect thereof and will, prior to
any transfer of any of its Notes, endorse on the reverse side thereof the
outstanding principal amount of Loans evidenced thereby.  Failure to make any such notation or any
error in any such notation or endorsement shall not affect the Borrower’s
obligations in respect of such Loans.

 

(e)                                  Notwithstanding
anything to the contrary contained above in this Section 1.05 or elsewhere in
this Agreement, Notes shall be delivered only to Lenders that at any time
specifically request the delivery of such Notes.  No failure of any Lender to request or obtain
a Note evidencing its Loans to the Borrower shall affect or in any manner impair
the obligations of the Borrower to pay the Loans (and all related Obligations)
incurred by the Borrower that would otherwise be evidenced thereby in
accordance with the requirements of this Agreement, and shall not in any way
affect the security or guaranties therefor provided pursuant to the Credit

 

3

 

Documents. 
Any Lender that does not have a Note evidencing its outstanding Loans
shall in no event be required to make the notations otherwise described in
preceding clause (d).  At any time (including,
without limitation, to replace any Note that has been destroyed or lost) when
any Lender requests the delivery of a Note to evidence any of its Loans, the
Borrower shall promptly execute and deliver to such Lender the requested Note
in the appropriate amount or amounts to evidence such Loans provided that, in
the case of a substitute or replacement Note, the Borrower shall have received
from such requesting Lender (i) an affidavit of loss or destruction and (ii) a
customary lost/destroyed Note indemnity, in each case in form and substance
reasonably acceptable to the Borrower and such requesting Lender, and duly
executed by such requesting Lender.

 

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

 

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

 

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

 

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

 

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

 

1.08  Interest Periods.    At
the time the Borrower gives any Notice of Borrowing in respect of the making of
any Loan (in the case of the initial Interest Period applicable thereto) or on
the third Business Day prior to the expiration of an Interest Period applicable
to such Loan (in the case of any subsequent Interest Period), it shall have the
right to elect, by giving the

 

4

 

Administrative Agent notice
thereof, the interest period (each an “Interest Period”) applicable to
such Loan, which Interest Period shall, at the option of the Borrower, be a
one, three or six month period; provided that:

 

(i)                                     all
Loans comprising a Borrowing shall at all times have the same Interest Period;

 

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

 

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

 

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

 

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

 

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

 

(vii)                           no
Interest Period in respect of any Borrowing of Term Loans longer than one month
shall be selected which extends beyond any date upon which a mandatory
repayment of Term Loans will be required to be made under Section 4.02(a) if
the aggregate principal amount of Term Loans which have Interest Periods which
will expire after such date will be in excess of the aggregate principal amount
of Term Loans then outstanding less the aggregate amount of such required
repayment on such date; and

 

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

 

If upon the expiration of any Interest Period applicable to a
Borrowing, the Borrower has failed to elect a new Interest Period to be
applicable to such Loans as provided above, the Borrower shall be deemed to
have elected a one month Interest Period to be applicable to such Loans
effective as of the expiration date of such current Interest Period.

 

1.09  Increased
Costs, Illegality, etc. 
(a)  In the event that any Lender
shall have determined in good faith (which determination shall, absent manifest
error, be final and

 

5

 

conclusive and binding upon all parties
hereto but, with respect to clause (i) below, may be made only by the
Administrative Agent):

 

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

 

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

 

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

 

then, and in any such event, such Lender (or
the Administrative Agent, in the case of clause (i) above) shall promptly give
notice (by telephone confirmed in writing) to the Borrower and, except in the
case of clause (i) above, to the Administrative Agent of such determination
(which notice the Administrative Agent shall promptly transmit to each of the
Lenders).  Thereafter (x) in the case of
clause (i) above, any Notice of Borrowing given by the Borrower with respect to
any affected Loans which have not yet been incurred shall be deemed rescinded
by the Borrower and the Total Term Loan Commitment and the Total Unutilized
Revolving Loan Commitment shall thereafter not be available to be borrowed
hereunder, and the rate of interest applicable to any affected Loans then
outstanding shall be the Base Rate, as in effect from time to time, plus the
Applicable Margin as in effect from time to time minus 1.00%, from the date
such notice is delivered to the Borrower and thereafter until such time as the
Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice by the Administrative Agent no longer
exist, (y) in the case of clause (ii) above, the Borrower agrees, subject to
the provisions of Section 1.11 and Section 13.15 (to the extent applicable), to
pay to such Lender,

 

6

 

upon written demand therefor,
such additional amounts (in the form of an increased rate of, or a different
method of calculating, interest or otherwise as such Lender in its reasonable
good faith discretion shall determine) as shall be required to compensate such
Lender for such increased costs or reductions in amounts received or receivable
hereunder (a written notice as to the additional amounts owed to such Lender,
showing in reasonable detail the basis for and the calculation thereof,
submitted to the Borrower by such Lender in good faith shall, absent manifest
error, be final and conclusive and binding on all the parties hereto) and (z)
in the case of clause (iii) above, and subject to Section 1.11, such Lender
shall so notify the Administrative Agent and the Borrower (and the
Administrative Agent shall promptly give notice thereof to the other Lenders)
and thereafter (A) except in the case of an event of the type described in clause
(iii)(z) above, the Term Loan Commitment and/or Revolving Loan Commitment of
such Lender shall be permanently reduced by an amount sufficient to alleviate
such circumstance arising pursuant to clause (iii)(x) or (y) above, or shall be
terminated in its entirety if all of such Lender’s Term Loans or Revolving
Loans (as the case may be) are so affected, and the Borrower shall prepay in
full the affected Loans of such Lender, together with accrued interest thereon
and, in the event of a termination of such Lender’s Term Loan Commitment and/or
Revolving Loan Commitment, any Commitment Commission which may be due to such
Lender under this Agreement (and, in the event all of such Lender’s Loans are
being repaid, any other amounts which may be owing to such Lender hereunder
(including, without limitation, any accrued and unpaid interest)), on either
the last day of the then current Interest Period applicable to each such
affected Loan (if such Lender may lawfully continue to maintain and fund such
Loans) or immediately (if such Lender may not lawfully continue to maintain and
fund such Loans to such day) and (B) in the case of an event of the type
described in clause (iii)(z) above, the Term Loan Commitment and/or Revolving
Loan Commitment of such Lender shall be terminated in its entirety and the
Borrower shall pay to such Lender any accrued and unpaid Commitment Commission
which may be due to such Lender under this Agreement, and all outstanding Loans
of such Lender shall, from the date such notice is delivered to the Borrower
and thereafter until such time as the Administrative Agent or such Lender shall
notify the Borrower that the circumstances giving rise to the operation of
clause (iii)(z) above with respect to such Lender no longer exist, bear
interest at a rate equal to the Base Rate, as in effect from time to time, plus
the Applicable Margin as in effect from time to time minus 1.00%, it being
understood that, notwithstanding anything to the contrary in this Agreement, to
the extent any repayment of Revolving Loans of any Lender affected by
circumstances described in clause (iii)(z) above are repaid prior to receipt by
the Borrower of the notice described above with respect to the elimination of
such circumstances giving rise to the operation of clause (iii)(z) above with
respect to such Lender, any amount of the Unutilized Revolving Loan Commitment
of such Lender which may otherwise result from such repayment shall be deemed
permanently reduced upon the effectiveness of such repayment.  The Administrative Agent and each Lender (to
the extent it continues to be a Lender hereunder) agree that if any of them
gives notice to the Borrower of any of the events described in clause (i), (ii)
or (iii) above, it shall promptly notify the Borrower and, in the case of any
such Lender, the Administrative Agent, if such event ceases to exist.  If any such event described in clause (iii)
above ceases to exist as to a Lender (to the extent it continues at such time
to be a Lender hereunder), the obligations of such Lender to make Loans on the
terms and conditions contained herein shall to the extent of such Lender’s
outstanding Loans and Commitments as in effect at such time, be immediately
reinstated.

 

7

 

(b)                                 If
any Lender in good faith determines that after the Effective Date the
introduction of or effectiveness of or any change in any applicable law or
governmental rule, regulation, order, guideline, directive or request (whether
or not having the force of law) concerning capital adequacy, or any change in
interpretation or administration thereof by the NAIC or any governmental
authority, central bank or comparable agency will have the effect of increasing
the amount of capital required or requested to be maintained by such Lender, or
any corporation controlling such Lender, based on the existence of such Lender’s
Commitments hereunder or its obligations hereunder, then the Borrower agrees,
subject to the provisions of Section 13.15 (to the extent applicable), to pay
to such Lender, upon its written demand therefor, such additional amounts as
shall be required to compensate such Lender or such other corporation for the
increased cost to such Lender or such other corporation or the reduction in the
rate of return to such Lender or such other corporation as a result of such
increase of capital.  In determining such
additional amounts, each Lender will act reasonably and in good faith and will
use averaging and attribution methods which are reasonable, provided
that such Lender’s determination of compensation owing under this Section
1.09(b) shall, absent manifest error, but subject to the provisions of Section
13.15 (to the extent applicable), be final and conclusive and binding on all
the parties hereto.  Each Lender, upon
determining that any additional amounts will be payable pursuant to this
Section 1.09(b), will give prompt written notice thereof to the Borrower, which
notice shall show in reasonable detail the basis for and calculation of such
additional amounts.

 

1.10  Compensation. 
  The Borrower agrees, subject to
the provisions of Section 13.15 (to the extent applicable), to compensate each
Lender, upon its written request (which request shall set forth in reasonable
detail the basis for requesting and the calculation of such compensation), for
all reasonable losses, expenses and liabilities (including, without limitation,
any such loss, expense or liability incurred by reason of the liquidation or
reemployment of deposits or other funds required by such Lender to fund its Loans
but excluding any loss of anticipated profits) which such Lender may sustain in
respect of Loans made to the Borrower: 
(i) if for any reason (other than a default by such Lender or the
Administrative Agent) a Borrowing of Loans does not occur on a date specified
therefor in a Notice of Borrowing (whether or not withdrawn by the Borrower or
deemed withdrawn pursuant to Section 1.09(a)); (ii) if any prepayment or
repayment (including any prepayment or repayment made pursuant to Section
1.09(a), Section 4.01 or Section 4.02 or as a result of an acceleration of the
Loans pursuant to Section 10) of any of its Loans, or assignment of its Loans
pursuant to Section 1.12, occurs on a date which is not the last day of an
Interest Period with respect thereto; (iii) if any prepayment of any of its
Loans is not made on any date specified in a notice of prepayment given by the
Borrower; or (iv) as a consequence of any other Default or Event of Default
arising as a result of the Borrower’s failure to repay Loans or make payment on
any Note held by such Lender when required by the terms of this Agreement.

 

1.11  Change of Lending Office.    Each
Lender agrees that on the occurrence of any event giving rise to the operation
of Section 1.09(a)(ii) or (iii), Section 1.09(b) or Section 4.04
with respect to such Lender, it will, if requested by the Borrower, use
reasonable good faith efforts (subject to overall policy considerations of such
Lender) to designate another lending office for any Loans affected by such event,
provided that such designation is made on such terms that such Lender
and its lending office suffer no economic, legal or regulatory disadvantage,
with the object of avoiding the consequence of the event giving rise to the
operation

 

8

 

of such Section.  Nothing in this Section 1.11 shall
affect or postpone any of the obligations of the Borrower or the rights of any
Lender provided in Section 1.09 and Section 4.04.

 

1.12  Replacement of Lenders.    (x)  If
any Lender becomes a Defaulting Lender or otherwise defaults in its obligations
to make Loans, (y) upon the occurrence of any event giving rise to the
operation of Section 1.09(a)(ii) or (iii), Section 1.09(b) or Section 4.04 with
respect to any Lender which results in such Lender charging to the Borrower
increased costs in excess of those being generally charged by the other
Lenders, or (z) as provided in Section 13.12(b) in the case of certain refusals
by a Lender to consent to certain proposed changes, waivers, discharges or
terminations with respect to this Agreement which have been approved by the
Required Lenders, the Borrower shall have the right, if no Default or Event of
Default will exist immediately after giving effect to the respective
replacement, to either replace such Lender (the “Replaced Lender”) with
one or more other Eligible Transferee or Eligible Transferees, none of whom
shall constitute a Defaulting Lender at the time of such replacement
(collectively, the “Replacement Lender”) reasonably acceptable to the
Administrative Agent or, at the option of the Borrower, to replace only (a) the
Revolving Loan Commitment (and outstandings pursuant thereto) of the Replaced
Lender with an identical Revolving Loan Commitment provided by the Replacement
Lender or (b) in the case of a replacement as provided in Section 13.12(b)
where the consent of the respective Lender is required with respect to less
than all Tranches of its Loans or Commitments, the Commitments and/or
outstanding Loans of such Lender where the consent of such Lender would
otherwise be individually required, with identical Commitments and/or Loans of
the respective Tranches provided by the Replacement Lender, provided
that:

 

(i)                                     at
the time of any replacement pursuant to this Section 1.12, the Replacement
Lender shall enter into one or more Assignment and Assumption Agreements
pursuant to Section 13.04(b) (and with all fees payable pursuant to said
Section 13.04(b) to be paid by the Replacement Lender) pursuant to which the
Replacement Lender shall acquire all of the Commitments and outstanding Loans
(or, in the case of the replacement of only (a) the Revolving Loan Commitment,
the Revolving Loan Commitment and outstanding Revolving Loans or (b) the
outstanding Term Loans and Term Loan Commitment (if any), the outstanding Term
Loans and Term Loan Commitment (if any)) of the Replaced Lender and, in
connection therewith, shall pay to the Replaced Lender in respect thereof an
amount equal to the sum (without duplication) of (x) an amount equal to the
principal of, and all accrued interest on, all outstanding Loans (or, in the
case of the replacement of only (I) the Revolving Loan Commitment, the
outstanding Revolving Loans or (II) the Term Loans and Term Loan Commitment (if
any), the outstanding Term Loans) of the Replaced Lender, and (y) an amount
equal to all accrued, but unpaid, Commitment Commission owing to the Replaced
Lender (but only with respect to the relevant Tranche, in the case of the
replacement of less than all Tranches of Loans then held by the respective
Replaced Lender) pursuant to Section 3.01; and

 

(ii)                                  all
obligations of the Borrower due and owing to the Replaced Lender at such time
(other than those (a) specifically described in clause (i) above in respect of
which the assignment purchase price has been, or is concurrently being, paid or
(b) relating to any Loans and/or Commitments of the respective Replaced Lender
which will

 

9

 

remain outstanding after giving effect to the respective replacement)
shall be paid in full to such Replaced Lender concurrently with such
replacement.

 

Upon the execution of the respective Assignment and Assumption
Agreement, the payment of amounts referred to in clauses (i) and (ii) above
and, if so requested by the Replacement Lender, delivery to (i) the Replacement
Lender of the appropriate Note or Notes executed by the Borrower, the
Replacement Lender shall become a Lender hereunder and, unless the respective
Replaced Lender continues to have outstanding Term Loans or a Term Loan
Commitment hereunder, the Replaced Lender shall cease to constitute a Lender
hereunder, except with respect to indemnification provisions under this
Agreement (including, without limitation, Sections 1.09, 1.10, 4.04, 13.01 and
13.06), which shall survive as to such Replaced Lender and (ii) if so requested
by the Borrower, the Replaced Lender shall deliver all Notes in its possession
to the Borrower.

 

SECTION 2.  [INTENTIONALLY OMITTED].  

 

SECTION 3.  Commitment Commission; Reductions of
Commitment.  

 

3.01  Commitment Commission.    (a) 
The Borrower agrees to pay the Administrative Agent for distribution to
each Non-Defaulting Lender with a Revolving Loan Commitment a commitment
commission (the “Commitment Commission”) for the period from the Initial
Borrowing Date to and including the Maturity Date (or such earlier date as the
Total Revolving Loan Commitment shall have been terminated) computed at a rate
for each day equal to 1/2 of 1% per annum on the daily average Unutilized Revolving
Loan Commitment of such Non-Defaulting Lender. 
Accrued Commitment Commission shall be due and payable quarterly in
arrears on each Scheduled Repayment Date and on the Maturity Date (or such
earlier date upon which the Total Revolving Loan Commitment is terminated).

 

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

 

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

 

(b)                                 In
the event of certain refusals by a Lender as provided in Section 13.12(b) to
consent to certain proposed changes, waivers, discharges or terminations with
respect to this Agreement which have been approved by the Required Lenders, the
Borrower may, subject to the requirements of said Section 13.12(b) and upon
five Business Days’ written notice to the Administrative Agent at its Notice
Office (which notice the Administrative Agent shall promptly transmit to each
of the Lenders), terminate all of the Term Loan Commitment (if any) of such

 

10

 

Lender so long as all Loans,
together with accrued and unpaid interest, Commitment Commission and all other
amounts, owing to such Lender (other than amounts owing in respect of
outstanding Loans maintained by such Lender, if such Loans are not being repaid
pursuant to Section 13.12(b)) are repaid concurrently with the
effectiveness of such termination (at which time Schedule I shall be deemed
modified to reflect such changed amounts), and at such time, unless the
respective Lender continues to have outstanding Loans hereunder, such Lender
shall no longer constitute a “Lender” for purposes of this Agreement, except
with respect to indemnification provisions under this Agreement (including,
without limitation, Sections 1.09, 1.10, 4.04, 13.01 and 13.06), which shall
survive as to such repaid Lender.

 

3.03  Mandatory Reduction of Commitments.    (a)  In
addition to any other mandatory commitment reductions pursuant to this Section
3.03, the Total Term Loan Commitment (and the Term Loan Commitment of each
Lender) shall terminate in its entirety on the Initial Borrowing Date, after
giving effect to all Borrowings of Loans on such date.

 

(b)                                 In
addition to any other mandatory commitment reductions pursuant to this Section
3.03, the Total Revolving Loan Commitment (and the Revolving Loan Commitment of
each Lender) shall terminate in its entirety on the Maturity Date.

 

(c)                                  In
addition to any other mandatory commitment reductions pursuant to this Section
3.03, the Total Revolving Loan Commitment shall be reduced at the times, and in
the amounts, required by Section 4.02(c).

 

(d)                                 Each
reduction to the Total Term Loan Commitment and the Total Revolving Loan
Commitment pursuant to this Section 3.03 and Section 4.02(c) shall be applied
proportionately to reduce the Term Loan Commitment or the Revolving Loan
Commitment, as the case may be, of each Lender with such a Commitment.

 

SECTION 4.  Prepayments; Payments; Taxes.  

 

4.01  Voluntary Prepayments.    The
Borrower shall have the right to prepay the Loans, without premium or penalty
except as provided by law, in whole or in part at any time and from time to
time on the following terms and conditions:

 

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

 

(ii)                                  each
prepayment shall be in an aggregate principal amount of at least $1,000,000 or
such lesser amount of a Borrowing which is outstanding, provided that no
partial prepayment of Loans made pursuant to any Borrowing shall reduce the
outstanding Loans made pursuant to such Borrowing to an amount less than
$1,000,000;

 

11

 

(iii)                               at
the time of any prepayment of Loans pursuant to this Section 4.01 on any date
other than the last day of the Interest Period applicable thereto, the Borrower
shall pay the amounts required pursuant to Section 1.10;

 

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

 

(v)                                 except
as expressly provided in the preceding clause (iv), each prepayment in respect
of any Loans made pursuant to a Borrowing shall be applied pro  rata
among the Loans comprising such Borrowing, provided that in connection
with any prepayment of Revolving Loans pursuant to this Section 4.01, such
prepayment shall not be applied to any Revolving Loan of a Defaulting Lender
until all other Revolving Loans of Non-Defaulting Lenders have been repaid in
full.  Each prepayment of principal of
Term Loans pursuant to this Section 4.01 shall be applied to reduce the then
remaining Scheduled Repayments of Term Loans pro  rata based upon
the then remaining principal amounts of the Scheduled Repayments of Term Loans
after giving effect to all prior reductions thereto.

 

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

 

(b)                                 In
addition to any other mandatory repayments or commitment reductions pursuant to
this Section 4.02, on each date set forth below (each a “Scheduled Repayment
Date”), the Borrower shall be required to repay that aggregate principal
amount of Term Loans equal to the aggregate principal amount set forth opposite
such Scheduled Repayment Date in the table below (each such repayment, as the
same may be reduced as provided in Sections 4.01 and 4.02(d), a “Scheduled
Repayment”):

 

	
  Scheduled Payment Date

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September 30, 2004

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  December 31, 2004

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  March 31, 2005

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  June 30, 2005

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  September 30, 2005

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  December 31, 2005

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  March 31, 2006

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  September 30, 2006

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  December 31, 2006

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  September 30, 2007

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  September 30, 2008

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  Maturity Date

  	
   

  	
  $

  	
  35,000,000

  	
   

  

 

12

 

(c)                                  In
addition to any other mandatory repayments or commitment reductions pursuant to
this Section 4.02, but without duplication, on (i) the Business Day following
the date of any Collateral Disposition involving a Mortgaged Vessel (other than
a Collateral Disposition constituting an Event of Loss) and (ii) the earlier of
(A) the date which is 180 days following any Collateral Disposition
constituting an Event of Loss involving a Mortgaged Vessel and (B) the date of
receipt by the Borrower, any of its Subsidiaries or the Administrative Agent of
the insurance proceeds relating to such Event of Loss, the Borrower shall be
required to repay an aggregate principal amount of outstanding Term Loans and
reduce the Total Revolving Loan Commitment in an amount equal to the product of
the sum of the then outstanding aggregate principal amount of Term Loans and
the Total Revolving Loan Commitments multiplied by a fraction (A) the numerator
of which is equal to the appraised value (as determined in accordance with the
most recent appraisal report delivered to the Administrative Agent (or obtained
by the Administrative Agent) pursuant to Section 8.01(c)) of the Mortgaged
Vessel or Mortgaged Vessels which is/are the subject of such Collateral
Disposition and (B) the denominator of which is equal to the Aggregate
Mortgaged Vessel Value (as determined in accordance with the most recent
appraisal report delivered to the Administrative Agent (or obtained by the
Administrative Agent) pursuant to Section 8.01(c) before giving effect to such
Collateral Disposition); provided that (m) without limiting anything otherwise
provided for in this Agreement, the Borrower hereby acknowledges that it is
obliged to comply with Section 9.11 at all times (including, without
limitation, after giving effect to any payment contemplated by the foregoing
Section 4.02(b)) and (n) in the event that if the Borrower is required to apply
any portion of asset sale proceeds to prepay or offer to prepay Indebtedness
evidenced by the Senior Notes (under the terms of the Senior Notes Indenture),
then, notwithstanding anything contained in this Agreement to the contrary, the
Borrower shall apply such asset sale proceeds as a mandatory prepayment of the
principal of outstanding Term Loans in accordance with requirements of Sections
4.02(d) and 4.02(e).

 

(d)                                 Each
repayment of the Term Loans and reductions of the Total Revolving Loan
Commitments pursuant to Section 4.02(c) shall be applied pro  rata
to the Term Loans and the Total Revolving Loan Commitment, based upon the
aggregate principal amount of the Term

 

13

 

Loans at such time and the amount of the
Total Revolving Loan Commitment at such time. 
The amount of each principal repayment of Term Loans required by Section
4.02(c) shall be applied to reduce the then remaining Scheduled Repayments pro
rata based upon the then remaining principal amounts of such Scheduled
Repayments after giving effect to all prior reductions thereto.

 

(e)                                  With
respect to each repayment of Loans required by this Section 4.02, the Borrower
may designate the specific Borrowing or Borrowings pursuant to which such Loans
were made, provided that (i) all Loans with
Interest Periods ending on such date of required repayment shall be paid in
full prior to the payment of any other Loans and (ii) each repayment of any
Loans comprising a Borrowing shall be applied pro
rata among such Loans.  In the
absence of a designation by the Borrower as described in the preceding
sentence, the Administrative Agent shall, subject to the preceding provisions
of this clause (e), make such designation in its sole reasonable discretion
with a view, but no obligation, to minimize breakage costs owing pursuant to
Section 1.10.

 

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

 

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

 

4.04  Net Payments; Taxes.    (a) 
All payments made by any Credit Party hereunder or under any Note will
be made without setoff, counterclaim or other defense. All such payments will
be made free and clear of, and without deduction or withholding for, any
present or future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature now or hereafter imposed by any jurisdiction or by
any political subdivision or taxing authority thereof or therein with respect
to such payments (but excluding, except as provided in the second succeeding
sentence, any tax imposed on or measured by the net income, net profits or any
franchise tax based on net income, net profits or net worth, of a Lender
pursuant to the laws of the jurisdiction in which it is organized or the
jurisdiction in which the principal office or applicable lending office of such
Lender is located or any subdivision thereof or therein) and all interest,
penalties or similar liabilities with respect to such non-excluded taxes,
levies, imposts, duties, fees, assessments or other charges (all such
non-excluded taxes, levies, imposts, duties, fees, assessments or other charges
being referred to collectively as “Taxes”).  If any Taxes are so levied or imposed, the
Borrower agrees to pay the full amount of such Taxes, and such additional
amounts as may be necessary so that every payment of all amounts due under this
Agreement or under any Note, after withholding or deduction for or on account
of any Taxes, will not be less than the amount provided for herein or in such
Note.  If any amounts are payable in
respect of Taxes pursuant to the preceding sentence, the Borrower agrees to
reimburse each Lender, upon the written request of such Lender, for taxes
imposed on or measured by the net income, net

 

14

 

profits or any franchise tax
based on net income, net profits or net worth, of such Lender pursuant to the
laws of the jurisdiction in which such Lender is organized or in which the
principal office or applicable lending office of such Lender is located or
under the laws of any political subdivision or taxing authority of any such
jurisdiction in which such Lender is organized or in which the principal office
or applicable lending office of such Lender is located and for any withholding
of taxes as such Lender shall determine are payable by, or withheld from, such
Lender, in respect of such amounts so paid to or on behalf of such Lender
pursuant to the preceding sentence and in respect of any amounts paid to or on
behalf of such Lender pursuant to this sentence.  The Borrower will furnish to the
Administrative Agent within 45 days after the date of payment of any Taxes is
due pursuant to applicable law certified copies of tax receipts evidencing such
payment by the Borrower.  The Borrower
agrees to indemnify and hold harmless each Lender, and reimburse such Lender
upon its written request, for the amount of any Taxes so levied or imposed and
paid by such Lender.

 

(b)                                 Each
Lender agrees to use reasonable efforts (consistent with legal and regulatory
restrictions and subject to overall policy considerations of such Lender) to
file any certificate or document or to furnish to the Borrower any information
as reasonably requested by the Borrower that may be necessary to establish any
available exemption from, or reduction in the amount of, any Taxes; provided,
however, that nothing in this Section 4.04(b) shall require a Lender to
disclose any confidential information (including, without limitation, its tax
returns or its calculations).

 

(c)                                  If
the Borrower pays any additional amount under this Section 4.04 to a Lender and
such Lender determines in its sole discretion exercised in good faith that it
has actually received or realized in connection therewith any refund or any
reduction of, or credit against, its Tax liabilities in or with respect to the
taxable year in which the additional amount is paid (a “Tax Benefit”),
such Lender shall pay to the Borrower an amount that such Lender shall, in its
sole discretion exercised in good faith, determine is equal to the net benefit,
after tax, which was obtained by such Lender in such year as a consequence of
such Tax Benefit; provided, however, that (i) any Lender may
determine, in its sole discretion exercised in good faith consistent with the
policies of such Lender, whether to seek a Tax Benefit, (ii) any Taxes
that are imposed on a Lender as a result of a disallowance or reduction
(including through the expiration of any tax credit carryover or carryback of
such Lender that otherwise would not have expired) of any Tax Benefit with
respect to which such Lender has made a payment to the Borrower pursuant to
this Section 4.04(c) shall be treated as a Tax for which the Borrower is
obligated to indemnify such Lender pursuant to this Section 4.04 without any
exclusions or defenses, (iii) nothing in this Section 4.04(c) shall require any
Lender to disclose any confidential information to the Borrower (including,
without limitation, its tax returns), and (iv) no Lender shall be required to
pay any amounts pursuant to this Section 4.04(c) at any time during which a
Default or Event of Default exists.

 

SECTION 5.  Conditions Precedent to the Initial
Borrowing Date.    The obligation of each Lender to make Loans
on the Initial Borrowing Date is subject at the time of the making of such
Loans to the satisfaction or waiver of the following conditions:

 

5.01  Effective Date; Notes.    On or
prior to the Initial Borrowing Date (i) the Effective Date shall have occurred
and (ii) if requested by a Lender, there shall have been

 

15

 

delivered to the Administrative
Agent, for the account of such Lender, the appropriate Term Note and/or
Revolving Note for such Lender executed by the Borrower, in each case in the
amount, maturity and as otherwise provided herein.

 

5.02  Fees,
etc.  On the Initial Borrowing Date,
the Borrower shall have paid to the Administrative Agent, the Co-Arrangers and
the Lenders all costs, fees and expenses (including, without limitation,
reasonable legal fees and expenses) payable to the Administrative Agent, the
Joint Lead Arrangers, the Co-Arrangers and the Lenders in respect of the
transactions contemplated by this Agreement to the extent then due.

 

5.03  Opinions of Counsel.  

 

(a)                                  On
the Initial Borrowing Date, the Administrative Agent shall have received from
Kramer Levin Naftalis & Frankel LLP, special New York counsel to the
Borrower and its Subsidiaries, an opinion addressed to the Administrative Agent
and each of the Lenders and dated the Initial Borrowing Date covering the
matters set forth in Exhibit D-1 which shall (x) be in form and substance
reasonably acceptable to the Administrative Agent and (y) cover the perfection
of the security interests (other than those to be covered by opinions delivered
pursuant to clauses (b) through (e) below) granted pursuant to the Security
Documents and such other matters incidental to the transactions contemplated
herein as the Administrative Agent may reasonably request.

 

(b)                                 On
the Initial Borrowing Date, the Administrative Agent shall have received from
Seward & Kissel LLP, special New York counsel to the Borrower and its
Subsidiaries, an opinion addressed to the Administrative Agent and each of the
Lenders and dated the Initial Borrowing Date covering the matters set forth in
Exhibit D-2 which shall state that the transactions contemplated by this
Agreement do not violate the Senior Note Indenture and such other matters
incidental to the transactions contemplated herein as the Administrative Agent
may reasonably request.

 

(c)                                  On
the Initial Borrowing Date, the Administrative Agent shall have received from
Constantine P. Georgiopoulos,
special New York maritime counsel to the Borrower and its Subsidiaries, an
opinion addressed to the Administrative Agent and each of the Lenders and dated
the Initial Borrowing Date covering the matters set forth in Exhibit D-3 which
shall (x) be in form and substance reasonably acceptable to the Administrative
Agent and (y) cover the perfection of the security interests granted pursuant
to the Vessel Mortgages and such other matters incidental thereto as the
Administrative Agent may reasonably request.

 

(d)                                 On
the Initial Borrowing Date, the Administrative Agent shall have received from
George E. Henries, Esq., special Liberian counsel to the Borrower and its
Subsidiaries (or other counsel to the Borrower and its Subsidiaries qualified
in such jurisdiction and reasonably satisfactory to the Administrative Agent),
an opinion addressed to the Administrative Agent and each of the Lenders and
dated the Initial Borrowing Date covering the matters set forth in Exhibit D-4,
which shall (x) be in form and substance reasonably acceptable to the
Administrative Agent and (y) in the case of each Mortgaged Vessel registered
under the laws and flag of the Republic of Liberia, cover the perfection of the
security interests granted

 

16

 

pursuant to the relevant Vessel Mortgage(s)
and such other matters incidental thereto as the Administrative Agent may
reasonably request.

 

(e)                                  On
the Initial Borrowing Date the Administrative Agent shall have received from
Dennis J. Reeder, Esq., special Marshall Islands counsel to the Borrower and
its Subsidiaries (or other counsel to the Borrower and its Subsidiaries qualified
in such jurisdiction and reasonably satisfactory to the Administrative Agent),
an opinion addressed to the Administrative Agent and each of the Lenders and
dated the Initial Borrowing Date covering the matters set forth in Exhibit D-5,
which shall (x) be in form and substance reasonably acceptable to the
Administrative Agent and (y) in the case of each Mortgaged Vessel registered
under the laws and flag of the Republic of Marshall Islands, cover the
perfection of the security interests granted pursuant to the relevant Vessel
Mortgage(s) and such other matters incidental thereto as the Administrative
Agent may reasonably request.

 

(f)                                    On
the Initial Borrowing Date, the Administrative Agent shall have received from
Ganado & Associates, special Maltese counsel to the Borrower and its
Subsidiaries (or other counsel to the Borrower and its Subsidiaries qualified
in such jurisdiction and reasonably satisfactory to the Administrative Agent),
an opinion addressed to the Administrative Agent and each of the Lenders and
dated the Initial Borrowing Date covering the matters set forth in Exhibit D-6,
which shall (x) be in form and substance reasonably acceptable to the
Administrative Agent and (y) in the case of each Mortgaged Vessel registered
under the laws and flag of the Republic of Malta, cover the perfection of the
security interests granted pursuant to the relevant Vessel Mortgage(s) and such
other matters incidental thereto as the Administrative Agent may reasonably
request.

 

5.04  Corporate
Documents; Proceedings; etc. 
On the Initial Borrowing Date, the Administrative Agent shall have
received a certificate, dated the Initial Borrowing Date, signed by the
Chairman of the Board, the President, any Vice President, the Treasurer or an
authorized manager, member or general partner of each Credit Party, and
attested to by the Secretary or any Assistant Secretary (or, to the extent such
Credit Party does not have a Secretary or Assistant Secretary, the analogous
Person within such Credit Party) of such Credit Party, as the case may be, in
the form of Exhibit E, with appropriate insertions, together with copies of the
Certificate of Incorporation and By-Laws (or equivalent organizational
documents) of such Credit Party and the resolutions of such Credit Party referred
to in such certificate, and the foregoing shall be reasonably acceptable to the
Administrative Agent.

 

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

 

17

 

5.05  Shareholders’ Agreements; Management
Agreements; Debt Agreements; Employment Agreements; Tax Sharing Agreements.    On or
prior to the Initial Borrowing Date, there shall have been delivered to the
Administrative Agent or its counsel true and correct copies of the following
documents:

 

(a)                                  all
agreements entered into by the Borrower or any of its Subsidiaries governing
the terms and relative rights of their capital stock or membership interests
and any agreements entered into by shareholders or members relating to any such
entity with respect to its capital stock or membership interests (collectively,
the “Shareholders’ Agreements”);

 

(b)                                 all
agreements (other than Employment Agreements) with respect to the management of
the Borrower or any of its Subsidiaries or any of the Vessels (collectively,
the “Management Agreements”);

 

(c)                                  all
agreements evidencing or relating to Indebtedness of the Borrower or any of its
Subsidiaries which is to remain outstanding (other than the Credit Documents)
after giving effect to the incurrence of Loans on the Initial Borrowing Date
(if any) (collectively, the “Debt Agreements”);

 

(d)                                 all
employment agreements entered into by the Borrower or any of its Subsidiaries
with members of management of the Borrower or any of such Subsidiaries
(collectively, the “Employment Agreements”);

 

(e)                                  all
service agreements entered into between the Borrower and its Subsidiaries (“Service
Agreement”); and

 

(f)                                    all
tax sharing, tax allocation and other similar agreements entered into by the
Borrower or any of its Subsidiaries (collectively, the “Tax Sharing Agreements”);

 

all of which Shareholders’ Agreements, Management Agreements, Debt
Agreements, Employment Agreements, Service Agreements and Tax Sharing
Agreements shall be in form and substance reasonably satisfactory to the
Administrative Agent and shall be in full force and effect on the Initial
Borrowing Date.

 

5.06  Subsidiaries Guaranty.    On
the Initial Borrowing Date, each Subsidiary Guarantor shall have duly
authorized, executed and delivered to the Administrative Agent the Subsidiaries
Guaranty in the form of Exhibit F (as modified, supplemented or amended from
time to time, the “Subsidiaries Guaranty”), and the Subsidiaries
Guaranty shall be in full force and effect.

 

5.07  Pledge and Security Agreement.    On
the Initial Borrowing Date, each of the Borrower and each of the Subsidiary
Guarantors shall have (x) duly authorized, executed and delivered the Pledge
and Security Agreement in the form of Exhibit G (as modified, supplemented or
amended from time to time, the “Pledge Agreement”) and shall have (A)
delivered to the Collateral Agent, as pledgee, all the Pledged Securities
referred to therein, together with executed and undated stock powers in the
case of capital stock constituting Pledged Securities, and (B) otherwise
complied with all of the requirements set forth in the Pledge Agreement and (y)
duly authorized, executed and delivered any other related documentation

 

18

 

necessary or advisable to
perfect the Lien on the Pledge Agreement Collateral in the respective
jurisdictions of formation of the respective Subsidiary Guarantor or the
Borrower, as the case may be.

 

5.08  Solvency Certificate.    On
the Initial Borrowing Date, the Borrower shall cause to be delivered to the
Administrative Agent a solvency certificate from the senior financial officer
of the Borrower, in the form of Exhibit K, which shall be addressed to the
Administrative Agent and each of the Lenders and dated the Initial Borrowing
Date, setting forth the conclusion that, after giving effect to the incurrence
of all the financings contemplated hereby, the Borrower individually, and the
Borrower and its Subsidiaries taken as a whole, are not insolvent and will not
be rendered insolvent by the incurrence of such indebtedness, and will not be
left with unreasonably small capital with which to engage in their respective
businesses and will not have incurred debts beyond their ability to pay such
debts as they mature.

 

5.09  Financial Statements; Projections.    On
the Initial Borrowing Date, the Administrative Agent shall have received copies
of the financial statements and Projections referred to in Sections 7.05(a) and
(b), which financial statements and Projections shall be in form and substance
reasonably satisfactory to the Administrative Agent.

 

5.10  Material Adverse Change; Approvals.  (a)  On
the Initial Borrowing Date, nothing shall have occurred (and the Administrative
Agent shall have become aware of no facts or conditions not previously known to
the Administrative Agent) which the Administrative Agent shall determine is
reasonably likely to have a material adverse effect on the rights and remedies
of the Lenders, or the Administrative Agent, or on the ability of the Borrower
or the Borrower and its Subsidiaries, taken as a whole, to perform its or their
Obligations, or which is reasonably likely to have a Material Adverse Effect.

 

(b)                                 On
or prior to the Initial Borrowing Date, all necessary governmental (domestic
and foreign) and third party approvals and/or consents in connection with the
Loans, the other transactions contemplated hereby and the granting of Liens
under the Credit Documents shall have been obtained and remain in effect, and
all applicable waiting periods with respect thereto shall have expired without
any action being taken by any competent authority which restrains, prevents or
imposes materially adverse conditions upon the consummation of this Agreement
or the other transactions contemplated by the Credit Documents or otherwise
referred to herein or therein.  On the Initial
Borrowing Date, there shall not exist any judgment, order, injunction or other
restraint issued or filed or a hearing seeking injunctive relief or other
restraint pending or notified prohibiting or imposing materially adverse
conditions upon this Agreement or the other transactions contemplated by the
Credit Documents or otherwise referred to herein or therein.

 

5.11  Litigation.    On the Initial Borrowing Date, there shall be
no actions, suits or proceedings pending or threatened (i) with respect to the
this Agreement or any other Credit Document or (ii) which the Administrative
Agent or the Required Lenders shall determine has had, or could reasonably be
expected to have, a Material Adverse Effect as described in preceding Section
5.10.

 

19

 

5.12  Appraisals.   On or prior to the Initial Borrowing Date, the
Administrative Agent shall have received an appraisal report of a recent date
(and in no event dated earlier than 90 days prior to the Initial Borrowing
Date) in scope, form and substance, and from independent appraisers, reasonably
satisfactory to the Lenders, stating the then current fair market value of each
of the Mortgaged Vessels on such date, the results of which shall be reasonably
satisfactory to the Administrative Agent.

 

5.13  Refinancing.  (a)  On
or prior to the Initial Borrowing Date, the total commitments pursuant to the
Existing Credit Agreements shall have been terminated, and all loans and notes
with respect thereto shall have been repaid in full (together with interest
thereon), all letters of credit issued thereunder shall have been terminated
and all other amounts owing pursuant to the Existing Credit Agreements shall
have been repaid in full (the “Refinancing”).  The creditors in respect of the Existing
Credit Agreements shall have terminated and released all security interests in
and Liens on the assets of Borrower and its Subsidiaries created pursuant to
the security documentation relating to the Existing Credit Agreements, and such
creditors shall have returned all assets (if any) in their possession pursuant
to the security documentation relating to the Existing Credit Agreements to the
Borrower, and the Administrative Agent shall have received evidence, in form
and substance reasonably satisfactory to the Administrative Agent, that the
matters set forth in this Section 5.13 have been satisfied as of the Initial
Borrowing Date.

 

(b)                                 On
or prior to the Initial Borrowing Date, the Borrower and its Subsidiaries shall
have no outstanding Indebtedness except for (i) the Loans, (ii) the Senior
Notes and (iii) certain other Indebtedness of the Borrower and its Subsidiaries
listed on Schedule V.

 

(c)                                  After
giving effect to the Refinancing and this Agreement, the financings incurred in
connection herewith and the other transactions contemplated hereby, there shall
be no conflict with, or default under, any material agreement of the Borrower
or any of its Subsidiaries.

 

5.14  Assignments of Earnings and Insurances.    On
the Initial Borrowing Date, each Credit Party which owns a Mortgaged Vessel on
such date shall have duly authorized, executed and delivered an Assignment of
Earnings in the form of Exhibit H (as modified, supplemented or amended from
time to time, the “Assignments of Earnings”) and a Assignment of
Insurances in the form of Exhibit I (as modified, supplemented or amended from
time to time, the “Assignments of Insurances”), together covering all of
such Credit Party’s present and future Earnings and Insurance Collateral, in
each case together with:

 

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

 

(b)                                 certified
copies of Requests for Information or Copies (Form UCC-11), or equivalent
reports, listing all effective financing statements that name any Credit Party
as debtor and that are filed in the jurisdictions referred to in Section
5.14(a) above, together with copies of such other financing statements (none of
which shall cover the Collateral except to the extent

 

20

 

evidencing Permitted Liens unless in respect
of which the Collateral Agent shall have received Form UCC-3 Termination
Statements (or such other termination statements as shall be required by local
law) fully executed for filing if required by applicable laws); and

 

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

 

5.15  Mortgages; Certificates of Ownership;
Searches; Class Certificates; Appraisal Report; Insurance.    On
the Initial Borrowing Date:

 

(a)                                  Each
Subsidiary Guarantor shall have duly authorized, executed and delivered, and
caused to be recorded in the appropriate vessel registry a first preferred
mortgage (as modified, amended or supplemented from time to time in accordance
with the terms thereof and hereof, the “Vessel Mortgages”),
substantially in the form of Exhibit J-1, J-2 or J-3, as applicable, with
respect to each Vessel listed on Schedule III or any Acceptable Replacement
Vessel (each, a “Mortgaged Vessel”) and the Vessel Mortgages shall be
effective to create in favor of the Collateral Agent a legal, valid and
enforceable first priority security interest, in and lien upon such Mortgaged
Vessels, subject only to Permitted Liens. 
Except as specifically provided above, all filings, deliveries of
instruments and other actions necessary or desirable in the reasonable opinion
of the Collateral Agent to perfect and preserve such security interests shall
have been duly effected and the Collateral Agent shall have received evidence
thereof in form and substance reasonably satisfactory to the Collateral Agent.

 

(b)                                 The
Administrative Agent shall have received (x) certificates of ownership from
appropriate authorities showing (or confirmation updating previously reviewed
certificates and indicating) the registered ownership of each Mortgaged Vessel
by the relevant Subsidiary Guarantor and (y) the results of maritime registry
searches with respect to the Mortgaged Vessels, indicating no record liens
other than Liens in favor of the Collateral Agent and Permitted Liens.

 

(c)                                  The
Administrative Agent shall have received class certificates from a
classification society listed on Schedule X hereto or another internationally
recognized classification society acceptable to the Collateral Agent,
indicating that each Mortgaged Vessel meets the criteria specified in Section
7.24.

 

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

 

21

 

5.16  Environmental Laws.    On
the Initial Borrowing Date, there shall not exist any condition or occurrence
on or arising from any Vessel or property owned or operated or occupied by the
Borrower or any of its Subsidiaries that (a) results in material noncompliance
by the Borrower or such Subsidiary with any applicable Environmental Law or (b)
could reasonably be expected to form the basis of a material Environmental Claim
against the Borrower or any of its Subsidiaries or any such Vessel or property.

 

SECTION 6.  Conditions Precedent to All Credit Events.    The
obligation of each Lender to make Loans (including Loans made on the Initial
Borrowing Date and each Borrowing Date thereafter) is subject to the
satisfaction of the following conditions:

 

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

 

6.02  Notice of Borrowing.    Prior
to the making of each Loan, the Administrative Agent shall have received the
Notice of Borrowing required by Section 1.03(a).  The acceptance of the proceeds of each Credit
Event shall constitute a representation and warranty by the Borrower to the
Administrative Agent and each of the Lenders that all of the applicable
conditions specified in Section 5 and in this Section 6 and applicable to such
Credit Event have been satisfied as of that time.  All of the applicable Notes, certificates,
legal opinions and other documents and papers referred to in Section 5 and in
this Section 6, unless otherwise specified, shall be delivered to the
Administrative Agent at the Notice Office for the account of each of the
Lenders and, except for the Notes, in sufficient counterparts for each of the
Lenders and shall be in form and substance reasonably satisfactory to the
Administrative Agent.

 

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

 

7.01  Corporate/Limited Liability Company/Limited
Partnership Status.    The Borrower and each of its Subsidiaries (i)
is a duly organized and validly existing corporation, limited liability company
or limited partnership, as the case may be, in good standing under the laws of
the jurisdiction of its incorporation or formation, (ii) has the corporate or
other applicable power and authority to own its property and assets and to
transact the business in which it is

 

22

 

currently engaged and presently
proposes to engage and (iii) is duly qualified and is authorized to do business
and is in good standing in each jurisdiction where the conduct of its business
as currently conducted requires such qualifications, except for failures to be
so qualified which, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

 

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

 

7.03  No Violation. 
  Neither the execution, delivery
or performance by any Credit Party of the Documents to which it is a party, nor
compliance by it with the terms and provisions thereof, will (i) contravene any
material provision of any applicable law, statute, rule or regulation or any
applicable order, writ, injunction or decree of any court or governmental
instrumentality, (ii) conflict with or result in any breach of any of the
terms, covenants, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of (or the obligation to create or
impose) any Lien (except pursuant to the Security Documents) upon any of the
material properties or assets of the Borrower or any of its Subsidiaries
pursuant to the terms of any indenture, mortgage, deed of trust, credit
agreement or loan agreement (including, without limitation, the Senior Note
Documents), or any other material agreement, contract or instrument, to which
the Borrower or any of its Subsidiaries is a party or by which it or any of its
material property or assets is bound or to which it may be subject or (iii)
violate any provision of the Certificate of Incorporation or By-Laws (or
equivalent organizational documents) of the Borrower or any of its
Subsidiaries.

 

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

 

7.05  Financial Statements; Financial Condition;
Undisclosed Liabilities.  (a)  The audited consolidated balance sheets of
the Borrower as at December 31, 2002 and December 31, 2003 and the unaudited
consolidated balance sheets of the Borrower as at March 31, 2004 and the
related consolidated statements of operations and of cash flows for the fiscal
years or

 

23

 

quarters, as the case may be, ended on such
dates, reported on by and accompanied by an unqualified report from Deloitte
& Touche LLP, present fairly the consolidated financial condition of the
Borrower as at such date, and the consolidated results of its operations and
its consolidated cash flows for the respective fiscal years or quarters, as the
case may be, then ended.  All such
financial statements, including the related schedules and notes thereto, have
been prepared in accordance with GAAP applied consistently throughout the
periods involved (except as approved by the aforementioned firm of accountants
and disclosed therein).  Neither the
Borrower nor any of its Subsidiaries has any material guarantee obligations,
contingent liabilities and liabilities for taxes, or any long-term leases or
unusual forward or long-term commitments, including any interest rate or
foreign currency swap or exchange transaction or other obligation in respect of
derivatives, that are not reflected in the financial statements referred to in
the preceding sentence (it being understood that with respect to guarantee
obligations, the underlying debt is so reflected).

 

(b)                                 On
the Initial Borrowing Date, the Projections which have been delivered to the
Administrative Agent prior to the Effective Date have been prepared on a basis
consistent with the financial statements referred to in Section 7.05(a), and
are based on good faith estimates and assumptions believed by management of the
Borrower to be reasonable as of the date of such Projections, and there are no
statements or conclusions in any of the Projections which are based upon or
include information known to the Borrower to be misleading in any material
respect or which fail to take into account material information known to the
Borrower regarding the matters reported therein.  On the Initial Borrowing Date, the Borrower
believes that the Projections are reasonable and attainable, it being
understood by the Lenders that projections as to future results should not be
viewed as fact and that actual results may differ from those set forth in the
Projections.

 

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

 

(d)                                 Since
December 31, 2003, nothing has occurred that has had or could reasonably be
expected to have a Material Adverse Effect.

 

7.06  Litigation. 
  There are no actions, suits,
investigations (conducted by any governmental or other regulatory body of
competent jurisdiction) or proceedings pending or, to the knowledge of the
Borrower, threatened that could reasonably be expected to have a Material
Adverse Effect.

 

24

 

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

 

7.08  Use of Proceeds; Margin Regulations.    (a)
All proceeds of the Loans shall be used (i) to effect the Refinancing and (ii)
for working capital, capital expenditures and general corporate purposes.

 

(b)                                 No
part of the proceeds of any Loan will be used to purchase or carry any Margin
Stock or to extend credit for the purpose of purchasing or carrying any Margin
Stock.  Neither the making of any Loan
nor the use of the proceeds thereof nor the occurrence of any other Credit Event
will violate or be inconsistent with the provisions of Regulation T, U or X of
the Board of Governors of the Federal Reserve System.

 

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

 

7.10  Compliance with ERISA.    (i)  Schedule
VII sets forth, as of the Effective Date, each Plan; each Plan, other than any
Multiemployer Plan (and each related trust, insurance contract or fund), is in
substantial compliance with its terms and with all applicable laws, including
without limitation ERISA and the Code; each Plan, other than any Multiemployer
Plan (and each related trust, if any), which is intended to be qualified under
Section 401(a) of the Code has received a determination letter from the
Internal Revenue Service to the effect that it meets the requirements of
Sections 401(a) and 501(a) of the Code; no Reportable Event has occurred; to
the best knowledge of the Borrower or any of its Subsidiaries or ERISA
Affiliates no Plan which is a Multiemployer Plan is insolvent or in reorganization;
no Plan has an

 

25

 

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

 

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

 

26

 

7.11  The Security Documents.    After
the execution and delivery thereof and upon the taking of the actions mentioned
in the second immediately succeeding sentence, each of the Security Documents
creates in favor of the Collateral Agent for the benefit of the Secured
Creditors a legal, valid and enforceable fully perfected first priority
security interest in and Lien on all right, title and interest of the Credit
Parties party thereto in the Collateral described therein, subject to no other
Liens except for Permitted Liens.   No
filings or recordings are required in order to perfect the security interests
created under any Security Document except for filings or recordings which
shall have been made on or prior to the tenth day after the Initial Borrowing
Date in the case of all Collateral.

 

7.12  Capitalization. 
  (a)  On the Initial Borrowing Date, the authorized
capital stock of the Borrower shall consist of (i) 75,000,000 shares of Common
Stock, $0.01 par value per share, no less than 37,772,645 of which shall be
issued and outstanding and (ii) no shares of preferred stock, $0.01 par value
per share, have been issued and outstanding. 
All such outstanding shares and membership interests have been duly and
validly issued, are fully paid and non-assessable and have been issued free of
preemptive rights.  As of the Initial
Borrowing Date, the Borrower has no outstanding securities convertible into or
exchangeable for its capital stock or outstanding any rights to subscribe for
or to purchase, or any options for the purchase of, or any agreement providing
for the issuance (contingent or otherwise) of, or any calls, commitments or
claims of any character relating to, its capital stock, except (i) as set forth
on Schedule IX and (ii) for options, warrants and rights to purchase shares of
the Borrower’s common stock which may be issued from time to time.

 

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

 

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

 

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

 

7.16  Public Utility Holding Company Act.    Neither the Borrower, nor any of its
Subsidiaries, is a “holding company,” or a “subsidiary company” of a “holding
company,” or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company” within the meaning of the Public Utility Holding Company
Act of 1935, as amended.

 

7.17  Pollution and Other Regulations.    (a) 
Each of the Borrower and its Subsidiaries is in compliance with all
applicable Environmental Laws governing its business, except for such failures
to comply as are not reasonably likely to have a Material Adverse Effect,

 

27

 

and neither the Borrower nor
any of its Subsidiaries is liable for any material penalties, fines or
forfeitures for failure to comply with any of the foregoing.  All licenses, permits, registrations or
approvals required for the business of the Borrower and each of its
Subsidiaries, as conducted as of the Effective Date, under any Environmental
Law have been secured and the Borrower and each of its Subsidiaries is in
substantial compliance therewith, except for such failures to secure or comply
as are not reasonably likely to have a Material Adverse Effect.  Neither the Borrower nor any of its
Subsidiaries is in any respect in noncompliance with, breach of or default
under any applicable writ, order, judgment, injunction, or decree to which the
Borrower or such Subsidiary is a party or which would affect the ability of the
Borrower or such Subsidiary to operate any Vessel, Real Property or other
facility and no event has occurred and is continuing which, with the passage of
time or the giving of notice or both, would constitute noncompliance, breach of
or default thereunder, except in each such case, such noncompliance, breaches
or defaults as are not likely to, individually or in the aggregate, have a
Material Adverse Effect.  There are, as
of the Effective Date, no Environmental Claims pending or, to the knowledge of
the Borrower, threatened, against the Borrower or any of its Subsidiaries in
respect of which an unfavorable decision, ruling or finding would be reasonably
likely to have a Material Adverse Effect. 
There are no facts, circumstances, conditions or occurrences on any
Vessel, Real Property or other facility owned or operated by the Borrower or
any of its Subsidiaries that is reasonably likely (i) to form the basis of an
Environmental Claim against the Borrower, any of its Subsidiaries or any
Vessel, Real Property or other facility owned by the Borrower or any of its
Subsidiaries, or (ii) to cause such Vessel, Real Property or other facility to
be subject to any restrictions on its ownership, occupancy, use or
transferability under any Environmental Law, except in each such case, such
Environmental Claims or restrictions that individually or in the aggregate are
not reasonably likely to have a Material Adverse Effect.

 

(b)                                 Hazardous
Materials have not at any time prior to the date of this Agreement or any
subsequent Credit Event, been (i) generated, used, treated or stored on, or
transported to or from, any Vessel, Real Property or other facility at any time
owned or operated by the Borrower or any of its Subsidiaries or (ii) released
on or from any such Vessel, Real Property or other facility, in each case where
such occurrence or event, either individually or in the aggregate, is
reasonably likely to have a Material Adverse Effect.

 

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

 

28

 

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

 

7.20  Indebtedness. 
  Schedule V sets forth a
true and complete list of all Indebtedness of the Borrower and its Subsidiaries
as of the Initial Borrowing Date and which is to remain outstanding after
giving effect to the Initial Borrowing Date (the “Existing Indebtedness”),
in each case showing the aggregate principal amount thereof and the name of the
borrower and any other entity which directly or indirectly guarantees such
debt.

 

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

 

7.22  Concerning the Vessels.    The
name, registered owner, official number, and jurisdiction of registration and
flag of each Mortgaged Vessel is set forth on Schedule III.  Each Mortgaged Vessel is and will be operated
in material compliance with all applicable law, rules and regulations.

 

7.23  Citizenship. 
  The Borrower and each other
Credit Party which owns or operates, or will own or operate, one or more
Vessels is, or will be, qualified to own and operate such Vessels under the
laws of the Republic of the Marshall Islands, the Republic of Malta and the
Republic of Liberia, as may be applicable, or such other jurisdiction in which
any such Vessels are permitted, or will be permitted, to be flagged in
accordance with the terms of the respective Vessel Mortgages.

 

7.24  Vessel Classification.    Each
Mortgaged Vessel is or will be, classified in the highest class available for
vessels of its age and type with a classification society listed on Schedule X
hereto or another internationally recognized classification society acceptable
to the Collateral Agent, free of any conditions or recommendations, other than
as permitted, or will be permitted, under the Vessel Mortgage.

 

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

 

7.26  Fees and Enforcement.    No
fees or taxes, including, without limitation, stamp, transaction, registration
or similar taxes, are required to be paid to ensure the legality, validity, or
enforceability of this Agreement or any of the other Credit Documents other
than

 

29

 

recording taxes which have
been, or will be, paid as and to the extent due.  Under the laws of the Republic of the
Marshall Islands, the Republic of Malta or the Republic of Liberia, as
applicable, the choice of the laws of the State of New York as set forth in the
Credit Documents which are stated to be governed by the laws of the State of
New York is a valid choice of law, and the irrevocable submission by each Credit
Party to jurisdiction and consent to service of process and, where necessary,
appointment by such Credit Party of an agent for service of process, in each
case as set forth in such Credit Documents, is legal, valid, binding and
effective.

 

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

 

SECTION 8.  Affirmative Covenants.    The
Borrower hereby covenants and agrees that on and after the Effective Date and
until the Total Term Loan Commitments and the Total Revolving Loan Commitments
have terminated and the Loans and Notes, together with interest, Commitment
Commission and all other obligations incurred hereunder and thereunder, are
paid in full:

 

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

 

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

 

(b)                                 Annual
Financial Statements.  Within 90 days
after the close of each fiscal year of the Borrower, (i) the consolidated
balance sheets of the Borrower and its Subsidiaries as at the end of such
fiscal year and the related consolidated statements of income and retained
earnings and of cash flows for such fiscal year setting forth comparative
figures for the preceding fiscal year and certified by an independent certified
public accountants of recognized national standing reasonably acceptable to the
Administrative Agent, together with a report of such accounting firm stating
that in the course of its regular audit of the financial statements of the
Borrower and its Subsidiaries, which audit was conducted in accordance with
generally accepted

 

30

 

auditing standards, such
accounting firm obtained no knowledge of any Default or Event of Default
pursuant to Sections 9.07 through 9.11, inclusive, which has occurred and is
continuing or, if in the opinion of such accounting firm such a Default or
Event of Default has occurred and is continuing, a statement as to the nature
thereof and (ii) management’s discussion and analysis of the important
operational and financial developments during such fiscal year.

 

(c)                                  Appraisal
Reports.  Together with delivery of
the financial statements described in Section 8.01(b) for each fiscal year, and
at any other time within 33 days of the written request of the Administrative
Agent, appraisal reports of recent date in form and substance and from
independent appraisers reasonably satisfactory to the Administrative Agent,
stating the then current fair market value of each of the Mortgaged Vessels on
an individual charter-free basis.  All
such appraisals shall be conducted by, and made at the expense of, the Borrower
(it being understood that the Administrative Agent may and, at the request of
the Required Lenders, shall, upon notice to the Borrower, obtain such
appraisals and that the cost of all such appraisals will be for the account of
the Borrower); provided that in no event shall the Borrower be required
to pay for more than two appraisal reports obtained pursuant to this
Section 8.01(c) in any single fiscal year of the Borrower, with the cost
of any such reports in excess thereof to be paid by the Lenders on a pro
rata basis.

 

(d)                                 Projections,
etc.  As soon as available but not
more than 45 days after the commencement of each fiscal year of the Borrower
beginning with its fiscal year commencing on January 1, 2004, a budget of the
Borrower and its Subsidiaries in reasonable detail for each of the twelve
months and four fiscal quarters of such fiscal year.

 

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

 

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

 

31

 

Borrower is in compliance with
the provisions of Section 9.11 after giving effect to such disposition or
exchange, as the case may be.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

32

 

All such notices shall describe in reasonable detail the nature of the
claim, investigation, condition, occurrence or removal or remedial action and
the Borrower’s or such Subsidiary’s response thereto.  In addition, the Borrower will provide the
Administrative Agent with copies of all material communications with any
government or governmental agency and all material communications with any
Person relating to any Environmental Claim of which notice is required to be
given pursuant to this Section 8.01(h), and such detailed reports of any
such Environmental Claim as may reasonably be requested by the Administrative
Agent or the Required Lenders.

 

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

 

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

 

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

 

8.04  Corporate Franchises.    The
Borrower will, and will cause each of its Subsidiaries, to do or cause to be
done, all things necessary to preserve and keep in full force and effect its
existence and its material rights, franchises, licenses and patents (if any)
used in its business; provided, however, that nothing in this
Section 8.04 shall prevent (i) sales or other dispositions of assets,
consolidations or mergers by or involving the Borrower or any of its

 

33

 

Subsidiaries which are
permitted in accordance with Section 9.02, (ii) any Subsidiary Guarantor from
changing the jurisdiction of its organization to the extent permitted by
Section 9.12 or (iii) the abandonment by the Borrower or any of its
Subsidiaries of any rights, franchises, licenses and patents that could not be
reasonably expected to have a Material Adverse Effect.

 

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

 

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

 

(b)                                 At
the written request of the Administrative Agent or the Required Lenders, which
request shall specify in reasonable detail the basis therefor, at any time and
from time to time, the Borrower will provide, at the Borrower’s sole cost and
expense, an environmental assessment of any Vessel by such Vessel’s
classification society (to the extent such classification society is listed on
Schedule X hereto) or another internationally recognized classification society
acceptable to the Administrative Agent. 
If said classification society, in its assessment, indicates that such
Vessel is not in compliance with the Environmental Laws, said society shall set
forth potential costs of the remediation of such non-compliance; provided
that such request may be made only if (i) there has occurred and is continuing
an Event of Default, (ii) the Administrative Agent or the Required Lenders
reasonably and in good faith believe that the Borrower, any of its Subsidiaries
or any such Vessel is not in compliance with Environmental Law and such
non-compliance could reasonably be expected to have a Material Adverse Effect,
or (iii) circumstances exist that reasonably could be expected to form the
basis of a material Environmental Claim against the Borrower or any of its
Subsidiaries or any such Vessel.  If the
Borrower fails to provide the same within 90 days after such request was made,
the Administrative Agent may order the same and the Borrower shall grant and hereby
grants to the Administrative Agent and the Lenders and their agents access to
such Vessel and specifically

 

34

 

grants the Administrative Agent
and the Lenders an irrevocable non-exclusive license, subject to the rights of
tenants, to undertake such an assessment, all at the Borrower’s expense.

 

8.07  ERISA.    As soon as reasonably possible and, in any
event, within ten (10) days after the Borrower or any of its Subsidiaries or
any ERISA Affiliate knows or has reason to know of the occurrence of any of the
following, the Borrower will deliver to the Administrative Agent, with
sufficient copies for each of the Lenders, a certificate of the senior
financial officer of the Borrower setting forth the full details as to such
occurrence and the action, if any, that the Borrower, such Subsidiary or such
ERISA Affiliate is required or proposes to take, together with any notices
required or proposed to be given to or filed with or by the Borrower, the
Subsidiary, the ERISA Affiliate, the PBGC, a Plan participant or the Plan
administrator with respect thereto:  that
a Reportable Event has occurred (except to the extent that the Borrower has
previously delivered to the Administrative Agent a certificate and notices (if
any) concerning such event pursuant to the next clause hereof); that a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan
subject to Title IV of ERISA is subject to the advance reporting requirement of
PBGC Regulation Section 4043.61 (without regard to subparagraph (b)(1)
thereof), and an event described in subsection .62, .63, .64, .65, .66, .67 or
..68 of PBGC Regulation Section 4043 is reasonably expected to occur with
respect to such Plan within the following 30 days; that an accumulated funding
deficiency, within the meaning of Section 412 of the Code or Section 302 of
ERISA, has been incurred or an application may be or has been made for a waiver
or modification of the minimum funding standard (including any required installment
payments) or an extension of any amortization period under Section 412 of the
Code or Section 303 or 304 of ERISA with respect to a Plan; that any
contribution required to be made with respect to a Plan or Foreign Pension Plan
has not been timely made and such failure could result in a material liability
for the Borrower or any of its Subsidiaries; that a Plan has been or may be
reasonably expected to be terminated, reorganized, partitioned or declared
insolvent under Title IV of ERISA with a material amount of unfunded benefit
liabilities; that a Plan (in the case of a Multiemployer Plan, to the best
knowledge of the Borrower or any of its Subsidiaries or ERISA Affiliates) has a
material Unfunded Current Liability; that proceedings may be reasonably expected
to be or have been instituted by the PBGC to terminate or appoint a trustee to
administer a Plan which is subject to Title IV of ERISA; that a proceeding has
been instituted pursuant to Section 515 of ERISA to collect a material
delinquent contribution to a Plan; that the Borrower, any of its Subsidiaries
or any ERISA Affiliate will or may reasonably expect to incur any material
liability (including any indirect, contingent, or secondary liability) to or on
account of the termination of or withdrawal from a Plan under Section 4062,
4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or with respect to a Plan under
Section 401(a)(29), 4971, 4975 or 4980 of the Code or Section 409 or 502(i) or
502(l) of ERISA or with respect to a group health plan (as defined in Section
607(1) of ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of the
Code; or that the Borrower, or any of its Subsidiaries may incur any material
liability pursuant to any employee welfare benefit plan (as defined in Section
3(1) of ERISA) that provides benefits to retired employees or other former
employees (other than as required by Section 601 of ERISA) or any Plan or any
Foreign Pension Plan.  Upon request, the
Borrower will deliver to the Administrative Agent with sufficient copies to the
Lenders (i) a complete copy of the annual report (on Internal Revenue Service
Form 5500-series) of each Plan (including, to the extent required, the related
financial and actuarial statements and opinions and other supporting
statements, certifications, schedules and information) required to be filed
with the Internal Revenue Service and (ii) copies of any records, documents or
other information that must be

 

35

 

furnished to the PBGC with
respect to any Plan pursuant to Section 4010 of ERISA.  In addition to any certificates or notices
delivered to the Lenders pursuant to the first sentence hereof, copies of
annual reports and any records, documents or other information required to be
furnished to the PBGC, and any notices received by the Borrower, any of its
Subsidiaries or any ERISA Affiliate with respect to any Plan or Foreign Pension
Plan with respect to any circumstances or event that could reasonably be
expected to result in a material liability shall be delivered to the Lenders no
later than ten (10) days after the date such annual report has been filed with
the Internal Revenue Service or such records, documents and/or information has
been furnished to the PBGC or such notice has been received by the Borrower,
such Subsidiary or such ERISA Affiliate, as applicable.

 

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

 

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

 

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

 

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

 

36

 

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

 

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

 

8.13  Ownership of Subsidiaries.    (a)  The Borrower shall at all times
directly or indirectly own 100% of the capital stock or other equity interests
of each of the Subsidiary Guarantors.

 

(b)                                 The
Borrower shall cause each Subsidiary Guarantor to at all times be directly
owned by one or more Credit Parties.

 

8.14  Flag of Mortgaged Vessels.    (a) 
The Borrower shall, and shall cause each of its Subsidiaries to, cause
each Mortgaged Vessel to be registered under the laws and flag of (x) the
Republic of Liberia, (y) the Republic of Marshall Islands or (z) the Republic
of Malta (each jurisdiction in clauses (x), (y) and (z), an “Acceptable Flag
Jurisdiction”).  Notwithstanding the
foregoing, any Credit Party may transfer a Mortgaged Vessel to another
Acceptable Flag Jurisdiction pursuant to a Flag Jurisdiction Transfer.

 

SECTION 9.  Negative Covenants.    The
Borrower hereby covenants and agrees that on and after the Initial Borrowing
Date and until all Commitments have terminated and the Loans and Notes,
together with interest, Commitment Commission and all other Obligations
incurred hereunder and thereunder, are paid in full:

 

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

 

37

 

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

 

(ii)                                  Liens
imposed by law, which were incurred in the ordinary course of business and do
not secure Indebtedness for borrowed money, such as carriers’, warehousemen’s,
materialmen’s and mechanics’ liens and other similar Liens arising in the
ordinary course of business, and (x) which do not in the aggregate
materially detract from the value of the Collateral and do not materially
impair the use thereof in the operation of the business of the Borrower or such
Subsidiary or (y) which are being contested in good faith by appropriate
proceedings, which proceedings (or orders entered in connection with such
proceedings) have the effect of preventing the forfeiture or sale of the
Collateral subject to any such Lien;

 

(iii)                               Liens
in existence on the Initial Borrowing Date which are listed, and the property
subject thereto described, in Schedule IV, without giving effect to any
renewals or extensions of such Liens, provided that the aggregate
principal amount of the Indebtedness, if any, secured by such Liens does not increase
from that amount outstanding on the Effective Date, less any repayments of
principal thereof;

 

(iv)                              Permitted
Encumbrances;

 

(v)                                 Liens
created pursuant to the Security Documents;

 

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

 

(vii)                           Liens
(other than any Lien imposed by ERISA) incurred or deposits made in the
ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security, Liens to secure the
performance of tenders, statutory obligations (other than excise taxes),
surety, stay, customs and appeal bonds, statutory bonds, bids, leases,
government contracts, trade contracts, performance and return of money bonds
and other similar obligations in each case incurred in the ordinary course of
business (exclusive of obligations for the payment of borrowed money) and Liens
arising by virtue of deposits made in the ordinary course of business to secure
liability for premiums to insurance carriers; provided that the
aggregate value of all cash and property at any time encumbered pursuant to
this clause (vii) shall not exceed $5,000,000; and

 

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

 

38

 

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

 

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

 

(i)                                     the
Borrower and each of its Subsidiaries may sell, lease or otherwise dispose of
any Mortgaged Vessels, provided that (x)(A) such sale is made at fair
market value (as determined in accordance with the appraisal report most
recently delivered to the Administrative Agent (or obtained by the
Administrative Agent) pursuant to Section 8.01(c) or delivered at the time of
such sale to the Administrative Agent by the Borrower), (B) 100% of the
consideration in respect of such sale shall consist of cash or Cash Equivalents
received by the Borrower, or the respective Subsidiary Guarantor which owned
such Mortgaged Vessel, on the date of consummation of such sale, (C) the Net
Cash Proceeds of such sale or other disposition shall be applied as required by
Section 4.02(c) to repay outstanding Loans or (y) so long as no Default or Event
of Default has occurred and is continuing (or would arise after giving effect
thereto) and so long as all representations and warranties made by the Borrower
pursuant to Section 7 of this Agreement are true and correct both before and
after any such exchange, such Mortgaged Vessel is exchanged for a Acceptable
Replacement Vessel pursuant to a Vessel Exchange; provided further that
in the case of both clause (x) and (y) above, that the Borrower shall have
delivered to the Administrative Agent an officer’s certificate, certified by
the senior financial officer of the Borrower, demonstrating pro  forma
compliance (giving effect to such Collateral Disposition and, in the case of
calculations involving the appraised value of Mortgaged Vessels, using
valuations consistent with the appraisal report most recently delivered to the
Administrative Agent (or obtained by the Administrative Agent) pursuant to
Section 8.01(c)) with each of the covenants set forth in Sections 9.07 through
9.11, inclusive, for the most recently ended Test Period (or at the time of
such sale, as applicable) and projected compliance with such covenants for the
one year period following such Collateral Disposition, in each case setting
forth the calculations required to make such determination in reasonable
detail;

 

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

 

(iii)                               (A)
any Subsidiary Guarantor may transfer assets or lease to or acquire or lease
assets from any other Subsidiary Guarantor, or any Subsidiary Guarantor may be
merged into any other Subsidiary Guarantor, in each case so long as all actions
necessary

 

39

 

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

 

(iv)                              following
a Collateral Disposition permitted by this Agreement, the Subsidiary Guarantor
which owned the Vessel that is the subject of such Collateral Disposition may
dissolve, provided, that (x) all proceeds from such Collateral
Disposition shall have been applied to repayment of the Loans as required in
Section 4.02 of this Agreement, (y) all of the proceeds of such dissolution
shall be paid only to the Borrower and (z) no Event of Default is continuing
unremedied at the time of such dissolution.

 

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

 

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

 

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

 

(ii)                                  so
long as there shall exist no Default or Event of Default (both before and after
giving effect to the payment thereof), the Borrower may repurchase its
outstanding equity interests (or options to purchase such equity) theretofore
held by the respective employees, officers or directors following the death,
disability, retirement or termination of employment of employees, officers or
directors of the Borrower or any of its Subsidiaries, provided that the
aggregate amount expended to so repurchase equity of the Borrower shall not
exceed $1,000,000 in any fiscal year of the Borrower.

 

40

 

For avoidance of doubt, nothing herein shall prohibit the Borrower from
issuing or distributing to its shareholders rights to acquire common stock or
Qualified Preferred Stock.

 

9.04  Indebtedness. 
  (a)  The Borrower will not, and will not permit
any of its Subsidiaries to, contract, create, incur, assume or suffer to exist
any Indebtedness (other than Indebtedness incurred pursuant to this Agreement
ande the other Credit Documents pursuant to the commitments thereunder in
effect on the Effective Date) which would cause any Default or Event of
Default, either on a pro  forma basis for the most recently ended
Test Period (or at the time of such incurrence, as applicable), or on a
projected basis for the one year period following such incurrence, with each of
the covenants set forth in Sections 9.07 through 9.11, inclusive; provided
that, in the event any Indebtedness to be incurred by the Borrower or any of
its Subsidiaries in a single issuance or transaction or series of related
issuances or transactions will exceed $10,000,000, the Borrower shall have
delivered to the Administrative Agent an officer’s certificate, certified by
the senior financial officer of the Borrower, demonstrating compliance with the
preceding provisions of this Section 9.04 and setting forth the calculations
required to make such determination for the most recently ended Test Period in
reasonable detail.

 

(b)                                 Notwithstanding
anything to the contrary set forth above in this Section 9.04, no Subsidiary
Guarantor shall incur any Indebtedness for borrowed money (including contingent
liabilities in respect thereof) except for (i) Indebtedness incurred pursuant
to this Agreement and the other Credit Documents, (ii) guaranties provided
pursuant to the Senior Note Guaranty and (iii) intercompany Indebtedness
permitted pursuant to Section 9.05(iii).

 

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

 

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

 

(ii)                                  so
long as no Event of Default exists or would result therefrom, the Borrower and
its Subsidiaries may make loans and advances in the ordinary course of business
to its employees so long as the aggregate principal amount thereof at any time
outstanding which are made on or after the Effective Date (determined without
regard to any write-downs or write-offs of such loans and advances) shall not
exceed $2,000,000;

 

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

 

41

 

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

 

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

 

(vi)                              Investments
existing on the Effective Date and described on Schedule XI, without giving
effect to any additions thereto or replacement thereof.

 

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

 

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

 

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

 

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

 

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

 

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

 

9.07  Consolidated Interest Coverage Ratio.    The
Borrower will not permit the Consolidated Interest Coverage Ratio for any Test
Period, in each case taken as one accounting period, ended on the last day of
any fiscal quarter of the Borrower to be less than 2.50:1.00.

 

9.08  Minimum Consolidated Working Capital
Ratio.    The Borrower will not permit the Consolidated
Working Capital Ratio on the last day of any fiscal quarter of the Borrower to
be less than 1.50:1.00.

 

9.09  Maximum Leverage Ratio.    The
Borrower will not permit the Leverage Ratio on the last day of any fiscal
quarter of the Borrower (x) ended prior to January 1, 2005, to be greater than
0.65:1.00 and (y) ended after January 1, 2005, to be greater than 0.60:1.00.

 

42

 

9.10  Minimum Consolidated Net Worth.    The
Borrower will not permit the Consolidated Net Worth at any time to be less than
the Applicable Minimum Net Worth Amount at such time.

 

9.11  Collateral Maintenance.    The
Borrower will not permit the sum of the fair market value of all Mortgaged
Vessels owned by the Borrower and its Subsidiaries which have not been sold,
transferred, lost or otherwise disposed of, on an individual charter-free
basis, at any time (such value, the “Aggregate Mortgaged Vessel Value”),
as determined by the most recent appraisal delivered by the Borrower to the
Administrative Agent or obtained by the Administrative Agent in accordance with
Section 8.01(c), to equal less than 130% of the aggregate principal amount of
outstanding Term Loans at such time plus the Total Revolving Loan Commitment at
such time; provided that, so long as any default in respect of this
Section 9.11 is not caused by any voluntary Collateral Disposition, such
default shall not constitute an Event of Default so long as within 63 days of
the occurrence of such default, the Borrower shall either (i) post additional
collateral satisfactory to the Required Lenders, pursuant to security
documentation reasonably satisfactory in form and substance to the Collateral
Agent, sufficient to cure such default (and shall at all times during such
period and prior to satisfactory completion thereof, be diligently carrying out
such actions) or (ii) make such repayments of Term Loans and reductions of the
Total Revolving Loan Commitment in an amount sufficient to cure such default
(it being understood that any action taken in respect of this proviso shall
only be effective to cure such default pursuant to this Section 9.11 to the
extent that no Default or Event of Default exists hereunder immediately after
giving effect thereto).

 

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

 

(b)                                 The
Borrower will not, and will not permit any Subsidiary to, amend or modify, or
permit the amendment or modification of, any provision of any Senior Note
Document, except that the Borrower and its Subsidiaries may amend or modify the
Senior Note Indenture so long as such amendment or modification is made
pursuant to Section 3.1 of the Senior Note Indenture and does not require the
consent of the Securityholders (as defined in the Senior Note Indenture).

 

(c)                                  The
Borrower will not make (or give any notice in respect of) any voluntary or
optional payment (excluding, for avoidance of doubt, any payment of regularly
accruing interest on any Senior Notes) or optional prepayment on or optional
redemption, optional repurchase or acquisition for value of (including, without
limitation, by way of depositing with the trustee with respect thereto or any
other Person money or securities before due for the

 

43

 

purpose of paying
when due) of any Senior Notes, except that the Borrower may make a voluntary or
optional prepayment on the Senior Notes, so long as no Default or Event of
Default has occurred and is continuing (or would arise after giving effect
thereto) (x) in an aggregate principal amount not to exceed the greater of (x)
10% of the initial aggregate principal amount of the Senior Notes (i.e.,
$25,000,000) or (y) 50% of the Consolidated Net Income for the period (treated
as one accounting period) from the Initial Borrowing Date to the end of the
most recent fiscal quarter ending prior to the date of such payment; provided
that (A) prior to (and after giving effect to such prepayment) the Leverage
Ratio for the Borrower shall be less than 0.45:1.00 and (B) the senior implied
rating for the Borrower (with stable outlook) is no less than “BB” from S&P
and “Ba3” from Moody’s.

 

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

 

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

 

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

 

(b)                                 The
Borrower will not permit any Subsidiary Guarantor to issue any capital stock
(including by way of sales of treasury stock) or any options or warrants to
purchase,

 

44

 

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

 

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

 

9.16  Double-Hull Vessel Ratio.    The
Borrower will not permit the ratio of Double-Hull Vessels collectively owned by
the Borrower and the Subsidiary Guarantors at any time to Single-Hull Vessels
collectively owned by the Borrower and the Subsidiary Guarantors at such time
to be less than 2.00:1.00 at any time.

 

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

 

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

 

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

 

10.03  Covenants.    Any Credit Party shall (i) default in the due
performance or observance by it of any term, covenant or agreement contained in
Section 8.01(f)(i), 8.08, 8.13 or Section 9 or (ii) default in the due
performance or observance by it of any other term, covenant or agreement
contained in this Agreement and, in the case of this clause (ii), such default
shall continue unremedied for a period of 30 days after written notice to the
Borrower by the Administrative Agent or any of the Lenders; or

 

10.04  Default Under Other Agreements.    (i) 
The Borrower or any of its Subsidiaries shall default in any payment of
any Indebtedness (other than the Obligations) beyond the period of grace, if
any, provided in the instrument or agreement under which such Indebtedness was
created or (ii) the Borrower or any of its Subsidiaries shall default in the
observance or performance of any agreement or condition relating to any
Indebtedness (other than the Obligations) or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall
occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
(or a trustee or agent on behalf of such holder or holders) to cause
(determined without regard to whether any notice is required), any such
Indebtedness to become due prior to its stated maturity

 

45

 

or (iii) any Indebtedness
(other than the Obligations) of the Borrower or any of its Subsidiaries shall
be declared to be due and payable, or required to be prepaid other than by a
regularly scheduled required prepayment, prior to the stated maturity thereof, provided
that it shall not be a Default or Event of Default under this Section 10.04
unless the aggregate principal amount of all Indebtedness as described in
preceding clauses (i) through (iii), inclusive, exceeds $10,000,000; or

 

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

 

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

 

46

 

pursuant to one or more
employee welfare benefit plans (as defined in Section 3(1) of ERISA) that
provide benefits to retired employees or other former employees (other than as
required by Section 601 of ERISA) or Plans or Foreign Pension Plans; (b) there
shall result from any such event or events the imposition of a lien, the
granting of a security interest, or a liability or a material risk of incurring
a liability; and (c) such lien, security interest or liability, individually,
and/or in the aggregate, in the reasonable opinion of the Required Lenders, has
had, or could reasonably be expected to have, a Material Adverse Effect; or

 

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

 

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

 

10.09  Judgments.    One or more judgments or decrees shall be
entered against the Borrower or any of its Subsidiaries involving in the
aggregate for the Borrower and its Subsidiaries a liability (not paid or fully
covered by a reputable and solvent insurance company) 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

 

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

 

then, and in any such event, and at any time thereafter, if any Event
of Default shall then be continuing, the Administrative Agent, upon the written
request of the Required Lenders, shall by written notice to the Borrower, take
any or all of the following actions, without prejudice to the rights of the
Administrative Agent, any Lender or the holder of any Note to enforce its
claims against any Credit Party (provided that, if an Event of Default
specified in Section 10.05 shall occur, the result which would occur upon the
giving of written notice by the Administrative

 

47

 

Agent to the Borrower as specified in clauses (i) and (ii) below shall
occur automatically without the giving of any such notice):  (i) declare the Total Revolving Loan
Commitments terminated, whereupon all Commitments of each Lender shall
forthwith terminate immediately and any Commitment Commission shall forthwith
become due and payable without any other notice of any kind; (ii) declare the
principal of and any accrued interest in respect of all Loans and the Notes and
all Obligations owing hereunder and thereunder to be, whereupon the same shall
become, forthwith due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by each Credit Party; and
(iii) enforce, as Collateral Agent, all of the Liens and security interests
created pursuant to the Security Documents.

 

SECTION 11.  Definitions and Accounting Terms.  

 

11.01  Defined Terms. 
  As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

 

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

 

“Acceptable Replacement Vessel” shall mean, with respect to a
Mortgaged Vessel, any Vessel with an equal or greater fair market value than
such Mortgaged Vessel (as determined in accordance with the appraisal report
most recently delivered to the Administrative Agent (or obtained by the Administrative
Agent) pursuant to Section 8.01(c) or delivered pursuant to a Vessel Exchange
to the Administrative Agent by the Borrower); provided that such Vessel
must (i) constitute a double hull Vessel, (ii) be of at least 80,000 dwt, (iii)
have been built after such Mortgaged Vessel it replaces, (iv) have a class
certificate reasonably acceptable to the Administrative Agent and (v) be
registered and flagged in an Acceptable Flag Jurisdiction.

 

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

 

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

 

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

 

48

 

“Aggregate Mortgaged Vessel Value” shall have the meaning set
forth in Section 9.11.

 

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

 

“Applicable Margin” shall mean a percentage per annum equal to
1.0%.

 

“Applicable Minimum Net Worth Amount” shall mean, at any time of
determination thereof, an amount equal to the sum of $518,138,000, plus 50% of
Consolidated Net Income (to the extent positive) for each fiscal quarter of the
Borrower ended after March 31, 2004, plus 100% of the Net Cash Proceeds from
any issuance or sale of equity of the Borrower or any of its Subsidiaries after
March 31, 2004 (except, in the case of such Subsidiaries, any sale of such
equity to the Borrower or another Subsidiary permitted hereunder).

 

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

 

“Assignments of Earnings” shall have the meaning provided in
Section 5.14.

 

“Assignments of Insurances” shall have the meaning provided in
Section 5.14.

 

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

 

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

 

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

 

“Borrowing” shall mean the borrowing of Loans from all the
Lenders (other than any Lender which has not funded its share of a Borrowing in
accordance with this Agreement) having Commitments on a given date having the
same Interest Period.

 

“Borrowing Date” shall mean the Initial Borrowing Date and each
date on or after the Initial Borrowing Date and prior to the Maturity Date on
which a Borrowing occurs.

 

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

 

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

 

49

 

“Cash Equivalents” shall mean (i) securities issued or directly
and fully guaranteed or insured by the United States or any agency or
instrumentality thereof (provided that the full faith and credit of the
United States is pledged in support thereof) having maturities of not more than
one year from the date of acquisition, (ii) time deposits and certificates of
deposit of any commercial bank having, or which is the principal banking
subsidiary of a bank holding company having capital, surplus and undivided
profits aggregating in excess of $200,000,000, with maturities of not more than
one year from the date of acquisition by such Person, (iii) repurchase
obligations with a term of not more than 90 days for underlying securities of
the types described in clause (i) above entered into with any bank meeting the
qualifications specified in clause (ii) above, (iv) commercial paper issued by
any Person incorporated in the United States rated at least A-1 or the
equivalent thereof by S&P or at least P-1 or the equivalent thereof by
Moody’s and in each case maturing not more than one year after the date of
acquisition by such Person, and (v) investments in money market funds
substantially all of whose assets are comprised of securities of the types
described in clauses (i) through (iv) above.

 

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

 

“Change of Control” shall mean (i) the Borrower shall at any
time and for any reason fail to own, directly or indirectly, 100% of the
capital stock or other equity interests of each Subsidiary Guarantor, (ii) the
sale, lease or transfer of all or substantially all of the Borrower’s assets to
any Person or group (as such term is used in Section 13(d)(3) of the Exchange
Act), (iii) the liquidation or dissolution of the Borrower, (iv) any Person or
group (as such term is used in Section 13(d)(3) of the Exchange Act) other than
one or more of the Permitted Holders shall at any time become the owner,
directly or indirectly, beneficially or of record, of shares representing more
than 30% of the outstanding voting or economic equity interests of the
Borrower, (v) the replacement of a majority of the directors on the board of
directors of the Borrower over a two-year period from the directors who
constituted the board of directors of the Borrower at the beginning of such
period, and such replacement shall not have been approved by a vote of at least
a majority of the board of directors of the Borrower then still in office who
either were members of such board of directors at the beginning of such period
or whose election as a member of such Board of Directors was previously so
approved or (vi) a “change of control” or similar event shall occur as provided
in any outstanding Indebtedness (excluding Indebtedness with an aggregate
principal amount of less than $20,000,000) of Borrower or any of its
Subsidiaries (or the documentation governing the same).

 

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

 

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

 

50

 

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

 

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

 

“Commitment” shall mean, with respect to any Lender, the Term
Loan Commitment and/or Revolving Loan Commitment of such Lender.

 

“Commitment Commission” shall have the meaning provided in
Section 3.01(a).

 

“Concentration Account” shall have the meaning provided in the
Pledge Agreement.

 

“Consolidated Current Assets” shall mean, at any time, the
consolidated current assets of the Borrower and its Subsidiaries determined in
accordance with GAAP.

 

“Consolidated Current Liabilities” shall mean, at any time, the
consolidated current liabilities of the Borrower and its Subsidiaries at such
time determined in accordance with GAAP, minus the current portion of any long-term
Indebtedness of the Borrower and its Subsidiaries to the extent otherwise
included therein.

 

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

 

“Consolidated EBITDA” shall mean, for any period, Consolidated
EBIT, adjusted by adding thereto the amount of all amortization of intangibles
and depreciation, in each case that were deducted in arriving at Consolidated
EBIT for such period.

 

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

 

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

 

“Consolidated Interest Expense” shall mean, for any period, (i)
the total consolidated interest expense of the Borrower and its Subsidiaries
for such period (calculated without

 

51

 

regard to any limitations on
the payment thereof) plus, without duplication, that portion of Capitalized
Lease Obligations of the Borrower and its Subsidiaries representing the
interest factor for such period, minus (ii) cash interest income of the
Borrower and its Subsidiaries for such period and the amortization of any
deferred financing costs incurred in connection with the Transaction to the
extent otherwise included in the calculations thereof.

 

“Consolidated Net Income” shall mean, for any period, the
consolidated net after tax income of the Borrower and its Subsidiaries
determined in accordance with GAAP.

 

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

 

“Consolidated Total Capitalization” shall mean, at any time of
determination, the sum of Consolidated Indebtedness at such time and
Consolidated Net Worth at such time.

 

“Consolidated Working Capital” shall mean, at any time,
Consolidated Current Assets less Consolidated Current Liabilities at such time.

 

“Consolidated Working Capital Ratio” shall mean, at any time of
determination, the ratio of Consolidated Current Assets to Consolidated Current
Liabilities.

 

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

 

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

 

“Credit Event” shall mean the making of any Loan.

 

52

 

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

 

“Debt Agreements” shall have the meaning provided in Section
5.05.

 

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

 

“Defaulting Lender” shall mean any Lender with respect to which
a Lender Default is in effect.

 

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

 

“Documents” shall mean the Credit Documents.

 

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

 

“Double-Hull Vessels” shall mean all Mortgaged Vessels other
than the Single-Hull Vessels.

 

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

 

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

 

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

 

“Employment Agreements” shall have the meaning provided in
Section 5.05.

 

53

 

“Environmental Claims” shall mean any and all administrative,
regulatory or judicial actions, suits, demands, demand letters, directives,
claims, liens, notices of noncompliance or violation, investigations or
proceedings relating in any way to any Environmental Law or any permit issued,
or any approval given, under any such Environmental Law (hereafter, “Claims”),
including, without limitation, (a) any and all Claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law, and
(b) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief in connection
with alleged injury or threat of injury to health, safety or the environment
due to the presence of Hazardous Materials.

 

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

 

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

 

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

 

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

 

“Eurodollar Rate” shall mean with respect to each Interest
Period for a Loan, (a) the offered rate (rounded upward to the nearest 1/16 of
one percent) for deposits of Dollars for a period equivalent to such period at
or about 11:00 A.M. (London time) on the second Business Day before the first
day of such period as is displayed on Telerate page 3750 (British Bankers’
Association Interest Settlement Rates) (or such other page as may replace such
page 3750 on such system or on any other system of the information vendor for
the time being designated by the British Bankers’ Association to calculate the
BBA Interest Settlement Rate (as defined in the British Bankers’ Association’s
Recommended Terms and Conditions dated August 1985)), provided that if
on such date no such rate is so displayed, the Eurodollar Rate for such period
shall be the rate quoted to the Administrative Agent as the offered rate for
deposits of Dollars in an amount approximately equal to the amount in relation
to which the Eurodollar Rate is to be

 

54

 

determined for a period
equivalent to such applicable Interest Period by prime banks in the London
interbank Eurodollar market at or about 11:00 A.M. (London time) on the second
Business Day before the first day of such period, in each case divided (and
rounded upward to the nearest 1/16 of 1%) by (b) a percentage equal to 100%
minus the then stated maximum rate of all reserve requirements (including,
without limitation, any marginal, emergency, supplemental, special or other
reserves required by applicable law) applicable to any member bank of the
Federal Reserve System in respect of Eurocurrency funding or liabilities as
defined in Regulation D (or any successor category of liabilities under
Regulation D).

 

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

 

“Event of Loss” shall mean any of the following events: (x) the
actual or constructive total loss of a Vessel or the agreed or compromised
total loss of a Vessel; or (y) the capture, condemnation, confiscation,
requisition, purchase, seizure or forfeiture of, or any taking of title to, a
Vessel.  An Event of Loss shall be deemed
to have occurred: (i) in the event of an actual loss of a Vessel, at the time
and on the date of such loss or if that is not known at noon Greenwich Mean
Time on the date which such Vessel was last heard from; (ii) in the event of
damage which results in a constructive or compromised or arranged total loss of
a Vessel, at the time and on the date of the event giving rise to such damage;
or (iii) in the case of an event referred to in clause (y) above, at the time
and on the date on which such event is expressed to take effect by the Person
making the same.  Notwithstanding the
foregoing, if such Vessel shall have been returned to the Borrower following
any event referred to in clause (y) above prior to the date upon which payment
is required to be made under Section 4.02(c) hereof, no Event of Loss shall be
deemed to have occurred by reason of such event.

 

“Existing Credit Agreements” shall mean (x) the $300MM Existing
Credit Agreement, (y) the $165MM Existing Credit Agreement and (z) the $275MM
Existing Credit Agreement.

 

“Existing Indebtedness” shall have the meaning provided in
Section 7.20.

 

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

 

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

 

(i)                                     On
each Flag Jurisdiction Transfer Date, the Credit Party which is consummating a
Flag Jurisdiction Transfer on such date shall have duly authorized, executed
and delivered, and caused to be recorded in the appropriate vessel registry a

 

55

 

Vessel Mortgage, substantially in the form of Exhibit J-1, J-2 or J-3,
as applicable to the Acceptable Flag Jurisdiction, with respect to the
Mortgaged Vessel being transferred (the “Transferred Vessel”) and the
Vessel Mortgage shall be effective to create in favor of the Collateral Agent
and/or the Lenders a legal, valid and enforceable first priority security
interest, in and lien upon such Transferred Vessel, subject only to Permitted
Liens.  All filings, deliveries of
instruments and other actions necessary or desirable in the reasonable opinion
of the Collateral Agent to perfect and preserve such security interests shall
have been duly effected and the Collateral Agent shall have received evidence
thereof in form and substance reasonably satisfactory to the Collateral Agent.

 

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

 

(iii)                               On
each Flag Jurisdiction Transfer Date:

 

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

 

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

 

56

 

similarly situated insureds for the protection of the Administrative
Agent and/or the Lenders as mortgagee and (ii) conform with the insurance
requirements of the respective Vessel Mortgages.

 

(iv)                              On
or prior to each Flag Jurisdiction Transfer Date, the Administrative Agent
shall have received a certificate, dated the Flag Jurisdiction Transfer Date,
signed by the Chairman of the Board, the President, any Vice President, the
Treasurer or an authorized manager, member or general partner of the Credit
Party commencing suchFlag Jurisdiction Transfer, certifying that (A) all
necessary governmental (domestic and foreign) and third party approvals and/or
consents in connection with the Flag Jurisdiction Transfer being consummated on
such date and otherwise referred to herein shall have been obtained and remain
in effect, (B) there exists no judgment, order, injunction or other restraint
prohibiting or imposing materially adverse conditions upon such Flag
Jurisdiction Transfer or the other transactions contemplated by this Agreement
and (C) copies of resolutions approving the Flag Jurisdiction Transfer of such
Credit Party and any other matters the Administrative Agent may reasonably
request.

 

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

 

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

 

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

 

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

 

“Indebtedness” shall mean, as to any Person, without
duplication, (i) all indebtedness (including principal, interest, fees and
charges) of such Person for borrowed money or for the deferred purchase price
of property or services, (ii) the maximum amount available to be drawn under
all letters of credit issued for the account of such Person and all unpaid
drawings in respect of such letters of credit, (iii) all Indebtedness of the
types described in clause (i), (ii), (iv), (v), (vi) or (vii) of this definition
secured by any Lien on any property owned by such Person,

 

57

 

whether or not such
Indebtedness has been assumed by such Person (to the extent of the value of the
respective property), (iv) the aggregate amount required to be capitalized
under leases under which such Person is the lessee, (v) all obligations of such
person to pay a specified purchase price for goods or services, whether or not
delivered or accepted, i.e., take-or-pay and similar obligations, (vi)
all Contingent Obligations of such Person and (vii) all obligations under any
Interest Rate Protection Agreement or Other Hedging Agreement or under any
similar type of agreement; provided that Indebtedness shall in any event
not include trade payables and expenses accrued in the ordinary course of
business.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Leverage Ratio” shall mean, at any date of determination, the
ratio of Consolidated Indebtedness on such date to Consolidated Total
Capitalization on such date.

 

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

 

“Loan” shall mean and include the Revolving Loans and the Term
Loans.

 

“Management Agreements” shall have the meaning provided in Section
5.05.

 

58

 

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

 

“Material Adverse Effect” shall mean a material adverse effect
on the business, property, assets, liabilities, condition (financial or
otherwise) or prospects (x) of the Vessels listed on to Schedule III
hereto taken as a whole or (y) the Borrower and the Subsidiary Guarantors
taken as a whole.

 

“Maturity Date” shall mean the fifth anniversary of the Initial
Borrowing Date.

 

“Minimum Borrowing Amount” shall mean, (x) with respect to the
Revolving Loan Tranche, $1,000,000 and (y) with respect to the Term Loan
Tranche, $5,000,000.

 

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

 

“Mortgaged Vessels” shall have the meaning provided in Section
5.15.

 

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

 

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

 

“Net Cash Proceeds” shall mean, with respect to any Collateral
Disposition, the aggregate cash payments (including any cash received by way of
deferred payment pursuant to a note receivable issued in connection with such
Collateral Disposition or equity issuance, other than the portion of such
deferred payment constituting interest, but only as and when received) received
by the Borrower from such Collateral Disposition or equity issuance, net of (i)
reasonable transaction costs (including, without limitation, reasonable attorney’s
fees) and sales commissions and (ii) the estimated marginal increase in income
taxes and any stamp tax payable by the Borrower or any of its Subsidiaries as a
result of such Collateral Disposition.

 

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

 

“Non-Defaulting Lender” shall mean and include each Lender other
than a Defaulting Lender.

 

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

 

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

 

“Notice Office” shall mean the office of the Administrative
Agent located at 437 Madison Avenue, 21st Floor, New York, NY 10022,
or such other office as the Administrative Agent may hereafter designate in
writing as such to the other parties hereto.

 

59

 

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

 

“$165MM Existing Credit Agreement” shall mean the Credit
Agreement dated as of June 27, 2001, among the Borrower, various lenders
and Nordea Bank Norge ASA, New York Branch (as successor by merger to
Christiania Bank og Kreditkasse ASA, New York Branch), as Administrative Agent,
Syndication Agent and Lead Arranger, providing for aggregate credit facilities
of $165,000,000 (as the same may be amended, supplemented, restated or modified
from time to time).

 

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

 

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

 

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

 

“Payment Office” shall mean the office of the Administrative
Agent located at 437 Madison Avenue, 21st Floor, New York, NY 10022,
or such other office as the Administrative Agent may hereafter designate in
writing as such to the other parties hereto.

 

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

 

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

 

“Permitted Holders” shall mean (i) Peter Georgiopoulos and any
corporation or other entity directly controlled by Peter Georgiopoulos and (ii)
Oaktree Capital Management, LLC and any corporation or other entity directly
controlled by Oaktree Capital Management, LLC.

 

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

 

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

 

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

 

60

 

Borrower or any ERISA Affiliate
maintained, contributed to or had an obligation to contribute to such plan.

 

“Pledge Agreement” shall have the meaning provided in Section
5.07.

 

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

 

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

 

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

 

“Projections” shall mean the financial projections of the
Borrower and its Subsidiaries, in form reasonably satisfactory to the Lead
Arrangers, meeting the requirements of Section 7.05(b) and covering each of the
fiscal periods of the Borrower ending after the Effective Date and prior to the
Maturity Date.

 

“Qualified Preferred Stock” shall mean any preferred stock so
long as the terms of any such preferred stock (i) do not contain any mandatory
put, redemption, repayment, sinking fund or other similar provision occurring
prior to one year after the Maturity Date, (ii) do not require the cash payment
of dividends, (iii) do not contain any covenants other than periodic reporting
requirements, (iv) do not grant the holder thereof any voting rights except for
voting rights on fundamental matters such as mergers, consolidations, sales of
all or substantially all of the assets of the issuer thereof, or liquidations
involving the issuer thereof and other voting rights which holders of common
stock may have and (v) any other preferred stock that satisfies (i), (ii), and
(iii) of this definition of Qualified Preferred Stock and that is otherwise
issuable or may be distributed pursuant to a shareholder’s rights plan of the
Borrower.

 

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

 

“Refinancing” shall have the meaning provided in Section 5.13.

 

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

 

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

 

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

 

61

 

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

 

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

 

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

 

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

 

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

 

“Required Lenders” shall mean Lenders, the sum of whose
outstanding Term Loans (or, if prior to the Initial Borrowing Date, Term Loan
Commitments) and Revolving Loan Commitments at such time represent an amount
greater than 50% of the sum of all outstanding Term Loans (or, if prior to the
Initial Borrowing Date, Term Loan Commitments) and the Total Revolving Loan
Commitment  (or if determined after the
termination of the Total Revolving Loan Commitments, the principal amount of
outstanding Revolving Loans) at such time.

 

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

 

“Revolving Loan” shall have the meaning provided in Section
1.01(b).

 

“Revolving Loan Commitment” shall mean, for each Lender, the
amount set forth opposite such Lender’s name in Schedule I hereto directly
below the column entitled “Revolving Loan Commitment,” as same may be (x)
reduced from time to time pursuant to Sections 3.02, 3.03, 4.02 and/or 10 or
(y) adjusted from time to time as a result of assignments to or from such
Lender pursuant to Section 1.12 or 13.04(b).

 

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

 

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

 

“Scheduled Repayment” shall have the meaning provided in Section
4.02(b).

 

“Scheduled Repayment Date” shall have the meaning provided in
Section 4.02(b).

 

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

 

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

 

62

 

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

 

“Senior Note Documents” shall mean (i) the Senior Note Indenture
and (ii) any related documentation (including, without limitation, (x) the
Senior Note Guaranty, (y) a related securities purchase agreement, and (z) any
and all other related agreements, certificates and instruments to be executed
in respect to the Senior Notes).

 

“Senior Note Guaranty” shall mean a guaranty of the Senior Notes
by certain Subsidiaries of the Borrower from time to time, pursuant to, and in
accordance with the terms of, the Senior Note Indenture.

 

“Senior Note Indenture” shall mean the Indenture, dated as of
March 20, 2003, among the Borrower, the Subsidiary Guarantors (as defined
therein) and LaSalle Bank National Association as trustee.

 

“Senior Notes” shall mean the $250,000,000, 10% senior unsecured
notes due 2013 issued by the Borrower pursuant to the Senior Note Indenture.

 

“Service Agreements” shall have the meaning provided in Section
5.05.

 

“Shareholders’ Agreements” shall have the meaning provided in
Section 5.05.

 

“Single-Hull Vessels” shall mean all Mortgaged Vessels indicated
to be Single-Hull Vessels on Schedule III hereto.

 

“Subsidiaries Guaranty” shall have the meaning provided Section
5.06.

 

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

 

“Subsidiary Guarantor” shall mean each direct and indirect
Subsidiary of the Borrower which is party to the Subsidiaries Guaranty, or
which executes a counterpart thereof after the Effective Date.

 

“Tax Sharing Agreement” shall have the meaning provided in
Section 5.05.

 

“Taxes” shall have the meaning provided in Section 4.04(a).

 

“Term Loan” shall have the meaning provided in Section 1.01(a).

 

63

 

“Term Loan Commitment” shall mean, for each Lender, the amount
set forth opposite such Lender’s name in Schedule I hereto directly below the
column entitled “Term Loan Commitment,” as same may be (x) reduced from time to
time pursuant to Sections 3.02, 3.03, 4.02 and/or 10 or (y) adjusted from time
to time as a result of assignments to or from such Lender pursuant to Section
1.12 or 13.04.

 

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

 

“Test Period” shall mean each period of four consecutive fiscal
quarters then last ended, in each case taken as one accounting period.

 

“$300MM Existing Credit Agreement” shall mean the Credit
Agreement dated as of June 12, 2001, among the Borrower, various lenders and
Nordea Bank Norge ASA, New York Branch (as successor by merger to Christiania
Bank og Kreditkasse ASA, New York Branch), as Administrative Agent, Syndication
Agent and Lead Arranger, providing for aggregate credit facilities of
$300,000,000 (as the same may be amended, supplemented, restated or modified
from time to time).

 

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

 

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

 

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

 

“Tranche” shall mean the respective facility and commitments
utilized in making Loans hereunder, with there being two separate Tranches, i.e.,
Term Loans and Revolving Loans.

 

“Transferred Vessel” shall have the meaning provided in the
definition of “Flag Jurisdiction Transfer” in this Section 11.

 

“$275MM Existing Credit Agreement” shall mean the Credit
Agreement dated as of March 11, 2003 and amended and restated as of June 11,
2003, among the Borrower, various lenders, J.P. Morgan PLC and Nordea Bank
Finland Plc as Joint Lead Arrangers and Joint Book Runners, JPMorgan Chase Bank
as Administrative Agent and Collateral Agent and the Governor and Company of
the Bank of Scotland and HSH Nordbank AG, as Co-arrangers (as the same may be amended,
supplemented, restated or modified from time to time).

 

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

 

“Unfunded Current Liability” of any Plan shall mean the amount,
if any, by which the value of the accumulated plan benefits under the Plan
determined on a plan termination basis in accordance with actuarial assumptions
at such time consistent with those prescribed by the PBGC for purposes of
Section 4044 of ERISA, exceeds the fair market value of all plan assets

 

64

 

allocable to such liabilities
under Title IV of ERISA (excluding any accrued but unpaid contributions).

 

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

 

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

 

“Vessel” shall mean, collectively, all sea going vessels and
tankers owned by the Borrower and its Subsidiaries, and, individually, any of
such vessels.

 

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

 

(i)                                     On
the Vessel Exchange Date, if the Subsidiary owning the Acceptable Replacement
Vessel is not a Credit Party, (A) such Subsidiary shall (1) grant to the
Collateral Agent a first priority Lien (subject only to Permitted Liens) on all
property of such Subsidiary by executing and delivering a counterpart of the
Pledge Agreement, taking all actions required pursuant to Section 25 of the
Pledge Agreement to become a Pledgor thereunder, and taking any other action
reasonably requested by the Administrative Agent and (2) execute and deliver a
counterpart of the Subsdiaries Guaranty and (B) the Borrower shall pledge and
deliver, or cause to be pledged and delivered, all of the capital stock of such
Subsidiary owned by any Credit Party to the Collateral Agent.

 

(ii)                                  On
the applicable Vessel Exchange Date, the Administrative Agent shall have
received from (A) Constantine P. Georgiopoulos,
special New York maritime counsel to the Borrower and each Credit Party (or
other counsel to the Borrower and such Credit Parties reasonably satisfactory
to the Administrative Agent), an opinion addressed to the Administrative Agent
and each of the Lenders and dated such Vessel Exchange Date, which shall (x) be
in form and substance reasonably acceptable to the Administrative Agent and (y)
cover the recordation of the security interests granted pursuant to the Vessel
Mortgage(s) to be delivered on such date and such other matters incident
thereto as the Administrative Agent may reasonably request and (B) local
counsel to the Credit Parties consummating the relevant Vessel Exchange
reasonably satisfactory to the Administrative Agent practicing in those jurisdictions
in which the Acceptable Replacement Vessel is registered and/or the Credit
Party owning such Acceptable Replacement Vessel is organized, which opinions
shall be addressed to the Administrative Agent and each of the Lenders and
dated such Vessel Exchange Date, which shall (x) be in form and substance
reasonably acceptable to the Administrative Agent and (y) cover the perfection
of the security interests granted pursuant to the Vessel Mortgage(s) and such
other matters incident thereto as the Administrative Agent may reasonably
request.

 

65

 

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

 

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

 

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

 

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

 

(iv)                              On
each Vessel Exchange Date:

 

(A)                              The
Credit Party which is consummating a Vessel Exchange on such date shall have
duly authorized, executed and delivered, and caused to be recorded in the
appropriate vessel registry a Vessel Mortgage, substantially in the form of
Exhibit J-1, J-2 or J-3, as applicable, with respect to each of such Acceptable
Replacement Vessel and the Vessel Mortgages shall be effective to create in
favor of the Collateral Agent and/or the Lenders a legal, valid and enforceable
first priority security interest, in and lien upon such Replacement Vessels,
subject only to Permitted Liens.  Except
as specifically provided above, all filings, deliveries of instruments and
other actions necessary or desirable in the reasonable opinion of the
Collateral Agent to perfect and preserve such security interests shall have
been duly effected and the Collateral Agent shall have received evidence
thereof in form and substance reasonably satisfactory to the Collateral Agent.

 

(B)                                The
Administrative Agent shall have received (x) certificates of ownership from
appropriate authorities showing (or confirmation updating previously reviewed
certificates and indicating) the registered ownership of the Acceptable
Replacement Vessel acquired on such date by the relevant Subsidiary

 

66

 

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

 

(C)                                The
Administrative Agent shall have received class certificates from a
classification society listed on Schedule X hereto or another internationally
recognized classification society acceptable to the Collateral Agent,
indicating that each Mortgaged Vessel acquired on such date meets the criteria
specified in Section 7.24.

 

(D)                               The
Administrative Agent shall have received appraisal reports of recent date in
scope, form and substance, and from independent appraisers, reasonably
satisfactory to the Administrative Agent, stating the then current fair market
value of the Acceptable Replacement Vessel acquired on such date, the results
of which shall be reasonably satisfactory to the Administrative Agent.

 

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

 

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

 

(A)                              The
Administrative Agent shall have received a certificate, dated the Vessel
Exchange Date, signed by a senior financial officer of the Borrower which
certificate shall set forth the calculations required to establish whether the
Borrower is in compliance with the provisions of Section 9.11.

 

(B)                                The
Administrative Agent shall have received a certificate, dated the Vessel
Exchange Date, signed by the Chairman of the Board, the President, any Vice
President, the Treasurer or an authorized manager, member or general partner of
the Credit Party commencing such Vessel Exchange, certifying that (1) all
necessary governmental (domestic and foreign) and third party approvals and/or
consents (including any necessary anti-trust approvals or consents) in
connection with the Vessel Exchange being consummated on such date and
otherwise referred to herein shall have been obtained and remain in effect, and
all applicable waiting periods shall have expired without any action being
taken by any competent authority which, in the reasonable judgment of the
Administrative Agent, restrains, prevents or imposes materially adverse
conditions upon the

 

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consummation of such Vessel Exchange or the transactions contemplated
by this Agreement and (2) there exists no judgment, order, injunction or other
restraint prohibiting or imposing materially adverse conditions upon such
Vessel Exchange or the other transactions contemplated by this Agreement.

 

“Vessel Mortgages” shall have the meaning set forth in Section
5.15.

 

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

 

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

 

SECTION 12.  Agency and Security Trustee Provisions.  

 

12.01  Appointment. 
  (a) The Lenders hereby designate
Nordea Bank Finland plc, New York Branch, as Administrative Agent (for purposes
of this Section 12, the term “Administrative Agent” shall include Nordea
Bank Finland plc, New York Branch (and/or any of its affiliates) in its
capacity as Collateral Agent pursuant to the Security Documents and in its
capacity as security trustee pursuant to the Vessel Mortgages) to act as
specified herein and in the other Credit Documents.  Each Lender hereby irrevocably authorizes,
and each holder of any Note by the acceptance of such Note shall be deemed irrevocably
to authorize, the Agents to take such action on its behalf under the provisions
of this Agreement, the other Credit Documents and any other instruments and
agreements referred to herein or therein and to exercise such powers and to
perform such duties hereunder and thereunder as are specifically delegated to
or required of the Agents by the terms hereof and thereof and such other powers
as are reasonably incidental thereto. 
The Agents may perform any of its duties hereunder by or through its
respective officers, directors, agents, employees or affiliates and, may assign
from time to time any or all of its rights, duties and obligations hereunder
and under the Security Documents to any of its banking affiliates.

 

(b)                                 The
Lenders hereby irrevocably appoint Nordea Bank Finland plc, New York Branch as
security trustee solely or the purpose of holding legal title to the Vessel
Mortgages on each of the Marshall Islands, Maltese and Liberian flag vessels on
behalf of the applicable Lenders, from time to time, with regard to the (i)
security, powers, rights, titles, benefits and interests (both present and
future) constituted by and conferred on the Lenders or any of them or for the
benefit thereof under or pursuant to the Vessel Mortgages (including, without
limitation, the benefit of all covenants, undertakings, representations,
warranties and obligations given, made or undertaken by any Lender in the
Vessel Mortgages), (ii) all money, property and other assets paid or
transferred to or vested in any Lender or any agent of any Lender or received
or recovered by any Lender or any agent of any Lender pursuant to, or in

 

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connection with the Vessel
Mortgages, whether from the Borrower or any Subsidiary Guarantor or any other
person and (iii) all money, investments, property and other assets at any time
representing or deriving from any of the foregoing, including all interest,
income and other sums at any time received or receivable by any Lender or any
agent of any Lender in respect of the same (or any part thereof).  Nordea Bank Finland plc, New York Branch
hereby accepts such appointment as security trustee.

 

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

 

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

 

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

 

69

 

acting or refraining from
acting hereunder or under any other Credit Document in accordance with the
instructions of the Required Lenders.

 

12.05  Reliance.    Each of the Agents shall be entitled to rely,
and shall be fully protected in relying, upon any note, writing, resolution,
notice, statement, certificate, telex, teletype or telecopier message,
cablegram, radiogram, order or other document or telephone message signed, sent
or made by any Person that the applicable Agent believed to be the proper
Person, and, with respect to all legal matters pertaining to this Agreement and
any other Credit Document and its duties hereunder and thereunder, upon advice
of counsel selected by the Administrative Agent.

 

12.06  Indemnification. 
  To the extent any of the Agents
is not reimbursed and indemnified by the Borrower, the Lenders will reimburse
and indemnify the applicable Agents, in proportion to their respective “percentages”
as used in determining the Required Lenders (without regard to the existence of
any Defaulting Lenders), for and against any and all liabilities, obligations,
losses, damages, penalties, claims, actions, judgments, costs, expenses or
disbursements of whatsoever kind or nature which may be imposed on, asserted
against or incurred by such Agents in performing their respective duties
hereunder or under any other Credit Document, in any way relating to or arising
out of this Agreement or any other Credit Document; provided that no
Lender shall be liable in respect to an Agent for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from such Agent’s gross
negligence or willful misconduct.

 

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

 

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

 

12.09  Resignation by the Administrative Agent.    (a) 
The Administrative Agent may resign from the performance of all its
functions and duties hereunder and/or under the other Credit Documents at any
time by giving 15 Business Days’ prior written notice to the Borrower

 

70

 

and the Lenders.  Such resignation shall take effect upon the
appointment of a successor Administrative Agent pursuant to clauses (b) and (c)
below or as otherwise provided below.

 

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

 

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

 

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

 

12.10  The Co-Arrangers.    Notwithstanding any other provision of this
Agreement or any provision of any other Credit Document, each of the
Co-Arrangers are named as such for recognition purposes only, and in their
respective capacities as such shall have no powers, duties, responsibilities or
liabilities with respect to this Agreement or the other Credit Documents or the
transactions contemplated hereby and thereby; it being understood and agreed
that the Co-Arrangers shall be entitled to all indemnification and
reimbursement rights in favor of any of the Agents as provided for under
Sections 12.06 and 13.01.  Without
limitation of the foregoing, none of the Co-Arrangers shall, solely by reason
of this Agreement or any other Credit Documents, have any fiduciary
relationship in respect of any Lender or any other Person.

 

SECTION 13.  Miscellaneous.  

 

13.01  Payment
of Expenses, etc.  The
Borrower agrees that it shall:  (i) whether or not the transactions
herein contemplated are consummated, pay all reasonable out-of-pocket costs and
expenses of each of the Agents (including, without limitation, the reasonable
fees and disbursements of White & Case LLP, Watson, Farley & Williams,
other counsel to the Administrative Agent and the Lead Arrangers and local
counsel) in connection with the preparation, execution and delivery of this
Agreement and the other Credit Documents and the documents and instruments
referred to herein and therein and any amendment, waiver or consent relating
hereto or thereto, of the Agents in connection with their respective
syndication efforts with respect to this Agreement and of the Agents and each
of the Lenders in connection with the enforcement of this Agreement and the
other Credit Documents and the documents and instruments referred to herein and
therein (including, without limitation, the reasonable fees and disbursements
of counsel (including in-house counsel) for each of the Agents and for each of the
Lenders); (ii) pay and hold each of the Lenders harmless from and against any
and all present and future stamp, documentary, transfer, sales and use, value
added,  excise and other similar

 

71

 

taxes with respect to the foregoing matters
and save each of the Lenders harmless from and against any and all liabilities
with respect to or resulting from any delay or omission (other than to the
extent attributable to such Lender) to pay such taxes; and (iii) indemnify the
Agents, the Collateral Agent and each Lender, and each of their respective
officers, directors, trustees, employees, representatives and agents from and
hold each of them harmless against any and all liabilities, obligations
(including removal or remedial actions), losses, damages, penalties, claims,
actions, judgments, suits, costs, expenses and disbursements (including
reasonable attorneys’ and consultants’ fees and disbursements) incurred by,
imposed on or assessed against any of them as a result of, or arising out of,
or in any way related to, or by reason of, (a) any investigation, litigation or
other proceeding (whether or not any of the Agents, the Collateral Agent or any
Lender is a party thereto) related to the entering into and/or performance of
this Agreement or any other Credit Document or the proceeds of any Loans
hereunder or the consummation of any transactions contemplated herein, or in
any other Credit Document or the exercise of any of their rights or remedies
provided herein or in the other Credit Documents, or (b) the actual or alleged
presence of Hazardous Materials on any Vessel or in the air, surface water or
groundwater or on the surface or subsurface of any property at any time owned
or operated by the Borrower or any of its Subsidiaries, the generation,
storage, transportation, handling, disposal or Environmental Release of
Hazardous Materials at any location, whether or not owned or operated by the
Borrower or any of its Subsidiaries, the non-compliance of any Vessel or property
with foreign, federal, state and local laws, regulations, and ordinances
(including applicable permits thereunder) applicable to any Vessel or property,
or any Environmental Claim asserted against the Borrower, any of its
Subsidiaries or any Vessel or property at any time owned or operated by the
Borrower or any of its Subsidiaries, including, in each case, without
limitation, the reasonable fees and disbursements of counsel and other
consultants incurred in connection with any such investigation, litigation or
other proceeding (but excluding any losses, liabilities, claims, damages,
penalties, actions, judgments, suits, costs, disbursements or expenses to the
extent incurred by reason of the gross negligence or willful misconduct of the
Person to be indemnified).  To the extent
that the undertaking to indemnify, pay or hold harmless each of the Agents or
any Lender set forth in the preceding sentence may be unenforceable because it
violates any law or public policy, the Borrower shall make the maximum contribution
to the payment and satisfaction of each of the indemnified liabilities which is
permissible under applicable law.

 

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

 

72

 

shall have made any demand
hereunder and although said Obligations, liabilities or claims, or any of them,
shall be contingent or unmatured.

 

13.03  Notices.    Except as otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be in
writing (including telexed, telegraphic or telecopier communication) and
mailed, telexed, telecopied or delivered: 
if to the Borrower, at the Borrower’s address specified under its
signature below; if to any Lender, at its address specified opposite its name
on Schedule II below; and if to the Administrative Agent, at its Notice Office;
or, as to any other Credit Party, at such other address as shall be designated
by such party in a written notice to the other parties hereto and, as to each
Lender, at such other address as shall be designated by such Lender in a
written notice to the Borrower and the Administrative Agent.  All such notices and communications shall,
(i) when mailed, be effective three Business Days after being deposited in the
mails, prepaid and properly addressed for delivery, (ii) when sent by overnight
courier, be effective one Business Day after delivery to the overnight courier
prepaid and properly addressed for delivery on such next Business Day, or (iii)
when sent by telex or telecopier, be effective when sent by telex or
telecopier, except that notices and communications to the Administrative Agent
shall not be effective until received by the Administrative Agent.

 

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

 

73

 

amounts payable by the Borrower
hereunder shall be determined as if such Lender had not sold such
participation.

 

(b)                                 Notwithstanding
the foregoing, any Lender (or any Lender together with one or more other
Lenders) may (x) assign all or a portion of its Revolving Loan Commitment (and
related outstanding Obligations hereunder), Term Loan Commitment and/or its
outstanding Term Loans to its (i) parent company and/or any affiliate of such
Lender which is at least 50% owned by such Lender or its parent company or (ii)
in the case of any Lender that is a fund that invests in bank loans, any other
fund that invests in bank loans and is managed or advised by the same investment
advisor of such Lender or by an Affiliate of such investment advisor or (iii)
to one or more Lenders or (y) assign with the consent of the Borrower (which
consent shall not be unreasonably withheld or delayed) all, or if less than
all, a portion equal to at least $5,000,000 in the aggregate for the assigning
Lender or assigning Lenders, of such Revolving Loan Commitments, Term Loan
Commitments and outstanding principal amount of Term Loans hereunder to one or
more Eligible Transferees (treating any fund that invests in bank loans and any
other fund that invests in bank loans and is managed or advised by the same
investment advisor of such fund or by an Affiliate of such investment advisor
as a single Eligible Transferee), each of which assignees shall become a party
to this Agreement as a Lender by execution of an Assignment and Assumption
Agreement, provided that (i) at such time Schedule I shall be deemed modified
to reflect the Commitments (and/or outstanding Term Loans, as the case may be)
of such new Lender and of the existing Lenders, (ii) new Notes will be issued,
at the Borrower’s expense, to such new Lender and to the assigning Lender upon
the request of such new Lender or assigning Lender, such new Notes to be in
conformity with the requirements of Section 1.05 (with appropriate
modifications) to the extent needed to reflect the revised Commitments (and/or
outstanding Term Loans, as the case may be), (iii) the consent of the
Administrative Agent shall be required in connection with any assignment
pursuant to preceding clause (y) (which consent shall not be unreasonably
withheld or delayed), and (iv) the Administrative Agent shall receive at the
time of each such assignment, from the assigning or assignee Lender, the
payment of a non-refundable assignment fee of $3,000.  To the extent of any assignment pursuant to
this Section 13.04(b), the assigning Lender shall be relieved of its
obligations hereunder with respect to its assigned Commitments (it being understood
that the indemnification provisions under this Agreement (including, without
limitation, Sections 1.09, 1.10, 4.04, 13.01 and 13.06) shall survive as to
such assigning Lender).  To the extent
that an assignment of all or any portion of a Lender’s Commitments and related
outstanding Obligations pursuant to Section 1.12 or this Section 13.04(b)
would, at the time of such assignment, result in increased costs under Section
1.09, 1.10 or 4.04 from those being charged by the respective assigning Lender
prior to such assignment, then the Borrower shall not be obligated to pay such
increased costs (although the Borrower shall be obligated to pay any other
increased costs of the type described above resulting from changes after the
date of the respective assignment).

 

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

 

74

 

13.05  No Waiver; Remedies Cumulative.    No
failure or delay on the part of the Administrative Agent or any Lender or any
holder of any Note in exercising any right, power or privilege hereunder or
under any other Credit Document and no course of dealing between the Borrower
or any other Credit Party and the Administrative Agent or any Lender or the
holder of any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder or under any other
Credit Document preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder or thereunder.  The rights, powers and remedies herein or in
any other Credit Document expressly provided are cumulative and not exclusive
of any rights, powers or remedies which the Administrative Agent or any Lender
or the holder of any Note would otherwise have. 
No notice to or demand on any Credit Party in any case shall entitle any
Credit Party to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of the Administrative Agent
or any Lender or the holder of any Note to any other or further action in any
circumstances without notice or demand.

 

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

 

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

 

(c)                                  Notwithstanding
anything to the contrary contained herein, the provisions of the preceding
Sections 13.06(a) and (b) shall be subject to the express provisions of this
Agreement which require, or permit, differing payments to be made to
Non-Defaulting Lenders as opposed to Defaulting Lenders.

 

13.07  Calculations; Computations.    (a) 
The financial statements to be furnished to the Lenders pursuant hereto
shall be made and prepared in accordance with generally accepted accounting
principles in the United States consistently applied throughout the periods
involved (except as set forth in the notes thereto or as otherwise disclosed in
writing by the Borrower to the Lenders). 
In addition, all computations determining compliance with Sections 9.07
through 9.10, inclusive, shall utilize accounting principles and policies in
conformity with those used to

 

75

 

prepare the historical
financial statements delivered to the Lenders for the first fiscal year of the
Borrower ended December 31, 2003 (with the foregoing generally accepted
accounting principles, subject to the preceding proviso, herein called “GAAP”).  Unless otherwise noted, all references in
this Agreement to “generally accepted accounting principles” shall mean
generally accepted accounting principles as in effect in the United States.

 

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

 

13.08  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY
TRIAL.    (a)  THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL,
EXCEPT AS OTHERWISE PROVIDED IN CERTAIN OF THE VESSEL MORTGAGES, BE CONSTRUED
IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK WITHOUT
REGARD TO ITS CONFLICT OF LAWS RULES (OTHER THAN TITLE 14 OF ARTICLE 5 OF THE
GENERAL OBLIGATIONS LAW).  ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE
CITY OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK,
AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER HEREBY
IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.  THE BORROWER FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED MAIL,
POSTAGE PREPAID, TO THE BORROWER AT ITS ADDRESS SET FORTH OPPOSITE ITS
SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH
MAILING.  NOTHING HEREIN SHALL AFFECT THE
RIGHT OF THE ADMINISTRATIVE AGENT UNDER THIS AGREEMENT, ANY LENDER OR THE
HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY CREDIT PARTY IN ANY
OTHER JURISDICTION.  IF AT ANY TIME DURING
WHICH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT REMAINS IN EFFECT, THE
BORROWER DOES NOT MAINTAIN A REGULARLY FUNCTIONING OFFICE IN NEW YORK CITY, IT
WILL DULY APPOINT, AND AT ALL TIMES MAINTAIN, AN AGENT IN NEW YORK CITY FOR THE
SERVICE OF PROCESS OR SUMMONS, AND WILL PROVIDE TO THE ADMINISTRATIVE AGENT AND
THE LENDERS WRITTEN NOTICE OF THE IDENTITY AND ADDRESS OF SUCH AGENT FOR
SERVICE OF PROCESS OR SUMMONS; PROVIDED THAT ANY FAILURE ON THE PART OF
THE BORROWER TO COMPLY WITH THE FOREGOING PROVISIONS OF THIS SENTENCE SHALL NOT
IN ANY WAY PREJUDICE OR LIMIT THE

 

76

 

SERVICE
OF PROCESS OR SUMMONS IN ANY OTHER MANNER DESCRIBED ABOVE IN THIS SECTION 13.08
OR OTHERWISE PERMITTED BY LAW.

 

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

 

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

 

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

 

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

 

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

 

13.12  Amendment
or Waiver; etc.  (a)  Neither this Agreement nor any other Credit
Document nor any terms hereof or thereof may be changed, waived, discharged or
terminated unless such change, waiver, discharge or termination is in writing
signed by the respective Credit Parties party thereto and the Required Lenders,
provided that no such change, waiver, discharge or termination shall,
without the consent of each Lender (other than a Defaulting Lender) (with
Obligations being directly affected in the case of following clause (i)) and in
the case of the following clause (vi), to the extent (in the case of the
following clause (vi)) that any such Lender would be required to make a Loan in
excess of its pro  rata portion provided for in this Agreement or
would receive a payment or prepayment of Loans or a commitment

 

77

 

reduction that (in any case) is less than its
pro  rata portion provided for in this Agreement, in each case, as
a result of any such amendment, modification or waiver referred to in the
following clause (vi)), (i) extend the final scheduled maturity of any Loan or
Note, extend the timing for or reduce the principal amount of any Scheduled
Repayment, or reduce the rate or extend the time of payment of interest on any
Loan or Note or Commitment Commission (except (x) in connection with the waiver
of applicability of any post-default increase in interest rates and (y) any
amendment or modification to the financial definitions in this Agreement shall
not constitute a reduction in the rate of interest for purposes of this clause
(i)), or reduce the principal amount thereof (except to the extent repaid in
cash), (ii) release all or substantially all of the Collateral (except as
expressly provided in the Credit Documents) under all the Security Documents,
(iii) amend, modify or waive any provision of this Section 13.12, (iv) reduce
the percentage specified in the definition of Required Lenders (it being
understood that, with the consent of the Required Lenders, additional
extensions of credit pursuant to this Agreement may be included in the
determination of the Required Lenders on substantially the same basis as the
extensions of Loans and Commitments are included on the Effective Date), (v)
consent to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement, (vi) amend, modify or waive Section 1.06 or
amend, modify or waive any other provision in this Agreement to the extent providing
for payments or prepayments of Loans or reductions in Commitments, in each
case, to be applied pro  rata among the Lenders entitled to such
payments or prepayments of Loans or reductions in Commitments (it being
understood that the provision of additional extensions of credit pursuant to
this Agreement, or the waiver of any mandatory commitment reduction or any
mandatory prepayment of Loans by the Required Lenders shall not constitute an
amendment, modification or waiver for purposes of this clause (vi)), or (vii)
release any Subsidiary Guarantor from a Subsidiaries Guaranty to the extent
same owns a Mortgaged Vessel; provided, further, that no such
change, waiver, discharge or termination shall (u) increase the Commitments of
any Lender over the amount thereof then in effect without the consent of such
Lender (it being understood that waivers or modifications of conditions
precedent, covenants, Defaults or Events of Default or of a mandatory reduction
in the Commitments shall not constitute an increase of the Commitment of any
Lender, and that an increase in the available portion of any Commitment of any
Lender shall not constitute an increase in the Commitment of such Lender), (v)
without the consent of each Agent, amend, modify or waive any provision of Section
12 as same applies to such Agent or any other provision as same relates to the
rights or obligations of such Agent or (w) without the consent of the
Collateral Agent, amend, modify or waive any provision relating to the rights
or obligations of the Collateral Agent.

 

(b)                                 If,
in connection with any proposed change, waiver, discharge or termination to any
of the provisions of this Agreement as contemplated by clauses (i) through (v),
inclusive, of the first proviso to Sections 13.12(a), the consent of the
Required Lenders is obtained but the consent of one or more of such other
Lenders whose consent is required is not obtained, then the Borrower shall have
the right, so long as all non-consenting Lenders whose individual consent is
required are treated as described in either clauses (A) or (B) below, to either
(A) replace each such non-consenting Lender or Lenders (or, at the option of
the Borrower if the respective Lender’s consent is required with respect to
less than all Loans (or related Commitments), to replace only the respective
Commitments and/or Loans of the respective non-consenting Lender which gave
rise to the need to obtain such Lender’s individual consent) with one or more
Replacement Lenders pursuant to Section 1.12 so long as at the time of such
replacement, each such Replacement Lender consents to the proposed change,
waiver, discharge

 

78

 

or termination or (B) terminate
such non-consenting Lender’s Commitment (if such Lender’s consent is required
as a result of its Commitment), and/or repay outstanding Loans and terminate
any outstanding Commitments of such Lender which gave rise to the need to
obtain such Lender’s consent, in accordance with Sections 3.02(b) and/or
4.01(iv), provided that, unless the Commitments are terminated, and
Loans repaid, pursuant to preceding clause (B) are immediately replaced in
full at such time through the addition of new Lenders or the increase of the
Commitments and/or outstanding Loans of existing Lenders (who in each case must
specifically consent thereto), then in the case of any action pursuant to
preceding clause (B) the Required Lenders (determined before giving effect
to the proposed action) shall specifically consent thereto, provided, further,
that in any event the Borrower shall not have the right to replace a Lender,
terminate its Commitment or repay its Loans solely as a result of the exercise
of such Lender’s rights (and the withholding of any required consent by such
Lender) pursuant to the second proviso to Section 13.12(a).

 

13.13  Survival.    All indemnities set forth herein including,
without limitation, in Sections 1.09, 1.10, 4.04, 13.01 and 13.06 shall,
subject to Section 13.15 (to the extent applicable), survive the execution,
delivery and termination of this Agreement and the Notes and the making and
repayment of the Loans.

 

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

 

13.15  Limitation on Additional Amounts,
etc.  Notwithstanding anything to the
contrary contained in Sections 1.09, 1.10 or 4.04 of this Agreement, unless a
Lender gives notice to the Borrower that it is obligated to pay an amount under
any such Section within one year after the later of (x) the date the Lender
incurs the respective increased costs, Taxes, loss, expense or liability,
reduction in amounts received or receivable or reduction in return on capital
or (y) the date such Lender has actual knowledge of its incurrence of the
respective increased costs, Taxes, loss, expense or liability, reductions in
amounts received or receivable or reduction in return on capital, then such
Lender shall only be entitled to be compensated for such amount by the Borrower
pursuant to said Section 1.09, 1.10 or 4.04, as the case may be, to the extent
the costs, Taxes, loss, expense or liability, reduction in amounts received or
receivable or reduction in return on capital are incurred or suffered on or after
the date which occurs one year prior to such Lender giving notice to the
Borrower that it is obligated to pay the respective amounts pursuant to said
Section 1.09, 1.10 or 4.04, as the case may be. 
This Section 13.15 shall have no applicability to any Section of this
Agreement other than said Sections 1.09, 1.10 and 4.04.

 

13.16  Confidentiality.    (a) 
Subject to the provisions of clauses (b) and (c) of this Section 13.16,
each Lender agrees that it will use its best efforts not to disclose without the
prior consent of the Borrower (other than to its employees, auditors, advisors
or counsel or to another Lender if the Lender or such Lender’s holding or
parent company or board of trustees in its sole

 

79

 

discretion determines that any
such party should have access to such information, provided such Persons shall
be subject to the provisions of this Section 13.16 to the same extent as such
Lender) any information with respect to the Borrower or any of its Subsidiaries
which is now or in the future furnished pursuant to this Agreement or any other
Credit Document, provided that any Lender may disclose any such
information (a) as has become generally available to the public other than by
virtue of a breach of this Section 13.16(a) by the respective Lender, (b) as
may be required in any report, statement or testimony submitted to any
municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such Lender or to the Federal Reserve Board or the Federal
Deposit Insurance Corporation or similar organizations (whether in the United
States or elsewhere) or their successors, (c) as may be required in respect to
any summons or subpoena or in connection with any litigation, (d) in order to comply
with any law, order, regulation or ruling applicable to such Lender, (e) to the
Administrative Agent or the Collateral Agent and (f) to any prospective or
actual transferee or participant in connection with any contemplated transfer
or participation of any of the Notes or Commitments or any interest therein by
such Lender, provided that such prospective transferee expressly agrees
to be bound by the confidentiality provisions contained in this Section 13.16.

 

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

 

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

 

80

 

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

 

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

 

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

 

13.21  USA PATRIOT Act Notice.    Each
Lender hereby notifies each Credit Party that pursuant to the requirements of
the USA PATRIOT Act (Title III of Pub.: 107-56

 

81

 

(signed into law October 26,
2001)) (the “PATRIOT Act”), it is required to obtain, verify, and record
information that identifies each Credit Party, which information includes the
name of each Credit Party and other information that will allow such Lender to
identify each Credit Party in accordance with the PATRIOT Act, and each Credit
Party agrees to provide such information from time to time to any Lender.

 

*     *     *

 

82

 

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

 

	
   

  	
  GENERAL MARITIME CORPORATION,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ John C. Georgiopoulos

  	
   

  
	
   

  	
  Title:  
  Vice President

  
	
   

  	
  Address: 35 West 56th Street,
  New York, NY 10019

  
	
   

  	
  Telephone: (212) 763-5600

  
	
   

  	
  Facsimile: (212) 763-5603

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
  Kramer Levin Naftalis & Frankel LLP

  
	
   

  	
  919 Third Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Attention: Thomas E. Molner, Esq.

  
	
   

  	
  Telephone: (212) 715-9100

  
	
   

  	
  Facsimile: (212) 715-8000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NORDEA BANK
  FINLAND PLC, NEW YORK

  BRANCH, as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Hans Chr. Kjelsrud

  	
   

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Alison B. Barber

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  NORDEA BANK
  NORGE ASA, GRAND CAYMAN

  BRANCH, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Hans Chr. Kjelsrud

  	
   

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Alison B. Barber

  	
   

  
	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  THE GOVERNOR AND COMPANY OF THE BANK OF

  SCOTLAND, Individually and as Co-Arranger

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Russell Parker

  	
   

  
	
   

  	
  Title: Director of Corporate Banking

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A., Individually and as Co-Arranger

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Charles R. Delamater

  	
   

  
	
   

  	
  Title:  Managing Director

  
	
   

  	
  Senior Credit Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DRESDNER BANK AG IN HAMBURG,

  
	
   

  	
  Individually and as Co-Arranger

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ B. Sorge

  	
   

  
	
   

  	
  Title: Assistant Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ D. Qian

  	
   

  
	
   

  	
  Title: Assistant Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSH NORDBANK AG,

  
	
   

  	
  Individually and as Co-Arranger

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Urbaniak

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Radtke

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC,

  
	
   

  	
  Individually and as Co-Arranger

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Colin Manchester

  	
   

  
	
   

  	
  Title: Senior Ship Finance Manager

  
						

 

 

	
   

  	
  DANISH SHIP FINANCE (DANMARKS

  SKIBSKREDITFOND),

  
	
   

  	
  Individually and as Senior Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Erik I. Lassen

  	
   

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Ole Staergaard

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DNB NOR BANK ASA, NEW YORK BRANCH,

  
	
   

  	
  Individually and as Senior Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Barbara Gronquist

  	
   

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Nikolai A. Nachamkin

  	
   

  
	
   

  	
  Title: First Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DVB BANK AKTIENGESELLSCHAFT,

  
	
   

  	
  Individually and as Senior Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Sybren Hoekstra

  	
   

  
	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Camila F. Policarpio

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FORTIS CAPITAL CORP.,

  	
   

  
	
   

  	
  Individually and as Senior Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Svein Engh

  	
   

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Chr. Tobias Backer

  	
   

  
	
   

  	
  Title: Vice President

  
					

 

 

	
   

  	
  LLOYDS TSB BANK PLC,

  
	
   

  	
  Individually and as Senior Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Debroah Mylod

  	
   

  
	
   

  	
  Title: Manager, Ship Finance

  
	
   

  	
   

  	
   

  
	
   

  	
  By: :

  	
   /s/ Kisten Kaarre Jensen

  	
   

  
	
   

  	
  Title: Deputy Head, Ship Finance

  
	
   

  	
   

  	
   

  
	
   

  	
  SKANDINAVISKA ENSKILDA BANKEN AB (PUBL),

  
	
   

  	
   

  	
   

  
	
   

  	
  Individually and as Senior Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Scott Lewallen

  	
   

  
	
   

  	
  Title: Head of Shipping

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Jonathan Maycock

  	
   

  
	
   

  	
  Title: Client Executive

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VEREINS- UND WESTBANK AG,

  
	
   

  	
  Individually and as Senior Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Nicolini

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Schepler

  	
   

  
	
   

  	
  Title: Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLIED IRISH BANKS, P.L.C.,

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Emsden

  	
   

  
	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE GOVERNOR AND COMPANY OF THE BANK OF

  IRELAND, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ John Hartigan

  	
   

  
	
   

  	
  Title: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul Packard

  	
   

  
	
   

  	
  Title: Head of Maritime Industries

  
					

 

 

	
   

  	
  NATEXIS BANQUES POPULAIRES,

  
	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Michel Degermann

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Antoine Saint Olive

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT INDUSTRIEL ET COMMERCIAL, NEW YORK

  BRANCH, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Alex Aupoix

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Adrienne Molloy

  	
   

  
	
   

  	
  Title: Vice President

  
					

 

 

SCHEDULE I

 

COMMITMENTS

 

	
  Lender

  	
   

  	
  Term Loan

  Commitments

  	
   

  	
  Revolving Loan

  Commitments

  	
   

  	
  Total

  	
   

  
	
  NORDEA BANK NORGE ASA, GRAND CAYMAN BRANCH

  	
   

  	
  $

  	
  27,272,727.27

  	
   

  	
  $

  	
  72,727,272.73

  	
   

  	
  $

  	
  100,000,000

  	
   

  
	
  THE GOVERNOR AND COMPANY OF THE BANK OF
  SCOTLAND

  	
   

  	
  $

  	
  19,636,363.64

  	
   

  	
  $

  	
  52,363,636.36

  	
   

  	
  $

  	
  72,000,000

  	
   

  
	
  CITIBANK, N.A.

  	
   

  	
  $

  	
  19,636,363.64

  	
   

  	
  $

  	
  52,363,636.36

  	
   

  	
  $

  	
  72,000,000

  	
   

  
	
  DRESDNER BANK AG IN HAMBURG

  	
   

  	
  $

  	
  19,636,363.64

  	
   

  	
  $

  	
  52,363,636.36

  	
   

  	
  $

  	
  72,000,000

  	
   

  
	
  HSH NORDBANK AG

  	
   

  	
  $

  	
  19,636,363.64

  	
   

  	
  $

  	
  52,363,636.36

  	
   

  	
  $

  	
  72,000,000

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND PLC

  	
   

  	
  $

  	
  19,636,363.64

  	
   

  	
  $

  	
  52,363,636.36

  	
   

  	
  $

  	
  72,000,000

  	
   

  
	
  DANISH SHIP FINANCE (DANMARKS
  SKIBSKREDITFOND)

  	
   

  	
  $

  	
  10,909,090.91

  	
   

  	
  $

  	
  29,090,909.09

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  DNB NOR BANK ASA, NEW YORK BRANCH

  	
   

  	
  $

  	
  10,909,090.91

  	
   

  	
  $

  	
  29,090,909.09

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  DVB BANK AKTIENGESELLSCHAFT

  	
   

  	
  $

  	
  10,909,090.91

  	
   

  	
  $

  	
  29,090,909.09

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  FORTIS CAPITAL CORP.

  	
   

  	
  $

  	
  10,909,090.91

  	
   

  	
  $

  	
  29,090,909.09

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  LLOYDS TSB BANK PLC

  	
   

  	
  $

  	
  10,909,090.91

  	
   

  	
  $

  	
  29,090,909.09

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

  	
   

  	
  $

  	
  10,909,090.91

  	
   

  	
  $

  	
  29,090,909.09

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  VEREINS- UND WESTBANK AG

  	
   

  	
  $

  	
  10,909,090.91

  	
   

  	
  $

  	
  29,090,909.09

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  ALLIED IRISH BANKS, P.L.C.

  	
   

  	
  $

  	
  6,818,181.82

  	
   

  	
  $

  	
  18,181,818.18

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  THE GOVERNOR AND COMPANY OF THE BANK OF
  IRELAND

  	
   

  	
  $

  	
  6,818,181.82

  	
   

  	
  $

  	
  18,181,818.18

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  NATEXIS BANQUES POPULAIRES (PARIS)

  	
   

  	
  $

  	
  6,818,181.82

  	
   

  	
  $

  	
  18,181,818.18

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  CREDIT INDUSTRIEL ET COMMERCIAL, NEW YORK
  BRANCH

  	
   

  	
  $

  	
  2,727,272.73

  	
   

  	
  $

  	
  7,272,727.27

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
  $

  	
  225,000,000

  	
   

  	
  $

  	
  600,000,000

  	
   

  	
  $

  	
  825,000,000

  	
   

  

 

 

SCHEDULE II

 

LENDER ADDRESSES

 

	
  INSTITUTIONS

  	
   

  	
  ADDRESSES

  
	
   

  	
   

  	
   

  
	
  NORDEA BANK FINLAND PLC, 

  NEW YORK BRANCH

  	
   

  	
  437 Madison Avenue, 21st Floor

  New York, NY 10022

  Attn: Hans Chr. Kjelsrud

  Telephone: 212-318-9634

  Facsimile: 212-421-4420

  e-mail: hans.kjelsrud@nordea.com

  
	
   

  	
   

  	
   

  
	
  NORDEA BANK NORGE ASA, GRAND CAYMAN BRANCH

  	
   

  	
  437 Madison Avenue, 21st Floor

  New York, NY 10022

  Attn: Hans Chr. Kjelsrud

  Telephone: 212-318-9634

  Facsimile: 212-421-4420

  e-mail: hans.kjelsrud@nordea.com

  
	
   

  	
   

  	
   

  
	
  THE GOVERNOR AND COMPANY OF THE BANK OF
  SCOTLAND

  	
   

  	
  Corporate Banking, 

  Marine Finance

  11 Earl Grey Street, 1st Floor

  Edinburgh EH3 9BN

  Attn: Martin Strevens

  Telephone: 44 131 659 0319

  Facsimile: 44 131 659 0387

  e-mail:

  martin_strevens@bankofscotland.co.uk

  
	
   

  	
   

  	
   

  
	
  CITIBANK, N.A.

  	
   

  	
  388 Greenwich Street

  23rd Floor

  New York, NY 10013

  Attn: Charles Delamater

  Telephone: 212-816-5430

  Facsimile: 212-816-5429

  e-mail: charles.r.delamater@citigroup.com

  
	
   

  	
   

  	
   

  
	
  DRESDNER BANK AG IN HAMBURG

  	
   

  	
  Jungfernstieg 22

  20349 Hamburg, Germany

  Attn: Mr. Daming Qian

  Telephone: 49-40-3501 4012

  Facsimile: 49-40-3501 4007

  e-mail: daming.qian@dresdner-bank.com

  

 

 

	
  HSH NORDBANK AG

  	
   

  	
  Gerhart-Hauptmann-Platz 40

  D-20095 Hamberg, Germany

  Attn: Uta Urbaniak

  Telephone: 0011 49 40 3333-10713

  Facsimile: 0011 49 40 3333-34307

  e-mail: uta.urbaniak@hsh-nordbank.com

  
	
   

  	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND PLC

  	
   

  	
  5-10 Great Tower Street

  London EC3P 3HX

  Attn: Colin Manchester

  Telephone: 020 7615 4633

  Facsimile: 020 7615 0112

  e-mail: colin.manchester@rbs.co.uk

  
	
   

  	
   

  	
   

  
	
  DANISH SHIP FINANCE (DANMARKS
  SKIBSKREDITFOND)

  	
   

  	
  Sankt Annae Plads 3

  DK – 1250 Copenhagen K, Denmark

  Attn: Ole Staergaard

  Telephone: 45 33 33 93 33

  Facsimile: 45 33 33 996 66

  e-mail: ols@shipfinance.dk

  
	
   

  	
   

  	
   

  
	
  DNB NOR BANK ASA, NEW YORK BRANCH

  	
   

  	
  200 Park Avenue, 31st Floor

  New York, NY 10166

  Attn: Nikolai Nachamkin/Tor Ivar Hansen

  Telephone: 212-681-3863/3856

  Facsimile: 212-681-3900

  email: nikolai.nachamkin@dnbnor.no

  tor.ivar.hansen@dnbnor.no

  
	
   

  	
   

  	
   

  
	
  DVB BANK AKTIENGESELLSCHAFT

  	
   

  	
  609 Fifth Avenue

  New York, NY 10017

  Attn: Camila F. Policarpio/Sybren

  Hoekstra

  Telephone: 212-572-3042/3040

  Facsimile: 212-588-0424

  email: camila.policarpio@dvbbank.com

  sybren.hoekstra@dvbbank.com

  
	
   

  	
   

  	
   

  
	
  FORTIS CAPITAL CORP.

  	
   

  	
  30 Stamford Plaza

  301 Tresser Blvd., 9th Floor

  Stamford, CT 06901

  Attn: Svein Engh

  Telephone: 203-705-5743

  Facsimile: 203-705-5896

  e-mail: svein.engh@fortiscapitalusa.com

  

 

2

 

	
  LLOYDS TSB BANK PLC

  	
   

  	
  25 Gresham Street

  London, EC2V 7HN

  Attn: Dimitris Gennadios

  Telephone: 44 20 7356 3539

  Facsimile: 44 20 7356 2398

  e-mail: dimitris.gennadios@lloydstsb.co.uk

  
	
   

  	
   

  	
   

  
	
  SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

  	
   

  	
  2 Cannon Street

  London EC4M 6XX

  Attn: Jonathan Pratt

  Telephone: 44 20 7246 4303

  Facsimile: 44 20 7236 5144

  e-mail: jonathan.pratt@seb.co.uk

  
	
   

  	
   

  	
   

  
	
  VEREINS- UND WESTBANK AG

  	
   

  	
  Alter Wall 22

  D-20457 Hamburg, Germany

  Attn: Silvana Nicolini

  Telephone: 49 40 3692 1725

  Facsimile: 49-40 3692 3696

  e-mail: silvana.nicolini@vuw.de

  
	
   

  	
   

  	
   

  
	
  ALLIED IRISH BANKS, P.L.C.

  	
   

  	
  St. Helens, 1 Undershaft

  London EC3A 8AB

  Attn: Murtaza Hameer
 Fred Kelly

  Telephone: 44 20 7090 7194

  Facsimile: 44 20 7090 7180

  e-mail: murtaza.g.hameer@aib.ie

  fred.j.kelly@aib.ie

  
	
   

  	
   

  	
   

  
	
  THE GOVERNOR AND COMPANY OF THE BANK OF
  IRELAND

  	
   

  	
  Lower Baggot Street

  Dublin 2, Ireland

  Attn: John Hartigan

  Telephone: 353 1 604 4269

  Facsimile: 353 1 604 4025

  e-mail: John.hartigan@boimail.com

  
	
   

  	
   

  	
   

  
	
  NATEXIS BANQUES POPULAIRES (PARIS)

  	
   

  	
  45, rue Saint-Dominique

  75007 Paris France - BP 4

  Attn: Michel Degermann/Antoine Saint-Olive

  Telephone: 01 58 19 29 27/01 58 19 38 07

  Facsimile: 33 1 58 19 36 60

  e-mail: michel.degermann@nxbp.fr

  antoine.saintolive@nxbp.fr

  

 

3

 

	
  CREDIT INDUSTRIEL ET COMMERCIAL, NEW YORK
  BRANCH

  	
   

  	
  520 Madison Avenue, 37th Floor

  New York, NY 10022

  Attn: Alex Aupoix

  Telephone: 212-715-4410

  Facsimile: 212-715-4535

  e-mail: aaupoix@cicny.com

  

 

4

 

SCHEDULE III

 

MORTGAGED VESSELS

 

	
  Vessel Name

  	
   

  	
  Vessel Owner

  	
   

  	
  Official Vessel

  ID Number

  	
   

  	
  Registry

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suezmax Tankers - DH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genmar Orion

  	
   

  	
  GMR Orion LLC

  	
   

  	
  1641

  	
   

  	
  Marshall Islands

  
	
  Genmar Spyridon

  	
   

  	
  GMR Spyridon LLC

  	
   

  	
  1404

  	
   

  	
  Marshall Islands

  
	
  Genmar Argus

  	
   

  	
  GMR Argus LLC

  	
   

  	
  1826

  	
   

  	
  Marshall Islands

  
	
  Genmar Horn

  	
   

  	
  GMR Horn LLC

  	
   

  	
  1255

  	
   

  	
  Marshall Islands

  
	
  Genmar Hope

  	
   

  	
  GMR Hope LLC

  	
   

  	
  1343

  	
   

  	
  Marshall Islands

  
	
  Genmar Phoenix

  	
   

  	
  GMR Phoenix LLC

  	
   

  	
  1882

  	
   

  	
  Marshall Islands

  
	
  Genmar Gulf

  	
   

  	
  GMR Gulf LLC

  	
   

  	
  1219

  	
   

  	
  Marshall Islands

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suezmax Tankers - DS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genmar Conqueror

  	
   

  	
  GMR Conqueror LLC

  	
   

  	
  10539

  	
   

  	
  Liberia

  
	
  Genmar Honour

  	
   

  	
  GMR Honour LLC

  	
   

  	
  10178

  	
   

  	
  Liberia

  
	
  Genmar Kestrel

  	
   

  	
  GMR Kestrel LLC

  	
   

  	
  1521

  	
   

  	
  Marshall Islands

  
	
  Genmar Ariston

  	
   

  	
  GMR Ariston LLC

  	
   

  	
  1344

  	
   

  	
  Marshall Islands

  
	
  Genmar Sky

  	
   

  	
  GMR Sky LLC

  	
   

  	
  1053

  	
   

  	
  Marshall Islands

  
	
  Genmar Prometheus

  	
   

  	
  GMR Prometheus LLC

  	
   

  	
  1525

  	
   

  	
  Marshall Islands

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suezmax Tankers - SH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genmar Spartiate

  	
   

  	
  GMR Spartiate LLC

  	
   

  	
  1457

  	
   

  	
  Marshall Islands

  
	
  Genmar Zoe

  	
   

  	
  GMR Zoe LLC

  	
   

  	
  1250

  	
   

  	
  Marshall Islands

  
	
  Genmar Macedon

  	
   

  	
  GMR Macedon LLC

  	
   

  	
  1308

  	
   

  	
  Marshall Islands

  
	
  Genmar Alta

  	
   

  	
  GMR Alta LLC

  	
   

  	
  9320

  	
   

  	
  Liberia

  
	
  Genmar Traveller

  	
   

  	
  GMR Traveller LLC

  	
   

  	
  1202

  	
   

  	
  Marshall Islands

  
	
  Genmar Centaur

  	
   

  	
  GMR Centaur LLC

  	
   

  	
  1446

  	
   

  	
  Marshall Islands

  
	
  Genmar Harriet

  	
   

  	
  GMR Harriet LLC

  	
   

  	
  10845

  	
   

  	
  Liberia

  
	
  Genmar Transporter

  	
   

  	
  GMR Transporter LLC

  	
   

  	
  1824

  	
   

  	
  Marshall Islands

  

 

 

	
  Vessel Name

  	
   

  	
  Vessel Owner

  	
   

  	
  Official Vessel

  ID Number

  	
   

  	
  Registry

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aframax OBOs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genmar Hector

  	
   

  	
  GMR Hector LLC

  	
   

  	
  1482

  	
   

  	
  Marshall Islands

  
	
  Genmar Pericles

  	
   

  	
  GMR Pericles LLC

  	
   

  	
  1504

  	
   

  	
  Marshall Islands

  
	
  Genmar Champ

  	
   

  	
  GMR Champ LLC

  	
   

  	
  9521

  	
   

  	
  Liberia

  
	
  Genmar Spirit

  	
   

  	
  GMR Spirit LLC

  	
   

  	
  9516

  	
   

  	
  Liberia

  
	
  Genmar Star

  	
   

  	
  GMR Star LLC

  	
   

  	
  9520

  	
   

  	
  Liberia

  
	
  Genmar Trust

  	
   

  	
  GMR Trust LLC

  	
   

  	
  9515

  	
   

  	
  Liberia

  
	
  Genmar Challenger

  	
   

  	
  GMR Challenger LLC

  	
   

  	
  9477

  	
   

  	
  Liberia

  
	
  Genmar Endurance

  	
   

  	
  GMR Endurance LLC

  	
   

  	
  9507

  	
   

  	
  Liberia

  
	
  Genmar Trader

  	
   

  	
  Genmar Trader Ltd.

  	
   

  	
  7452

  	
   

  	
  Malta

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aframax Tankers - DH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genmar Strength

  	
   

  	
  GMR Strength LLC

  	
   

  	
  11846

  	
   

  	
  Liberia

  
	
  Genmar Defiance

  	
   

  	
  GMR Defiance LLC

  	
   

  	
  11678

  	
   

  	
  Liberia

  
	
  Genmar Ajax

  	
   

  	
  GMR Ajax LLC

  	
   

  	
  10259

  	
   

  	
  Liberia

  
	
  Genmar Minotaur

  	
   

  	
  GMR Minotaur LLC

  	
   

  	
  10948

  	
   

  	
  Liberia

  
	
  Genmar Revenge

  	
   

  	
  GMR Revenge LLC

  	
   

  	
  11253

  	
   

  	
  Liberia

  
	
  Genmar Agamemnon

  	
   

  	
  GMR Agamemnon LLC

  	
   

  	
  10257

  	
   

  	
  Liberia

  
	
  Genmar Constantine

  	
   

  	
  GMR Constantine LLC

  	
   

  	
  10737

  	
   

  	
  Liberia

  
	
  Genmar Alexandra

  	
   

  	
  GMR Alexandra LLC

  	
   

  	
  1441

  	
   

  	
  Marshall Islands

  
	
  Genmar Progress

  	
   

  	
  GMR Progress LLC

  	
   

  	
  11352

  	
   

  	
  Liberia

  
	
  Genmar Princess

  	
   

  	
  GMR Princess LLC

  	
   

  	
  11358

  	
   

  	
  Liberia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aframax Tankers - DS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genmar Leonidas

  	
   

  	
  GMR Leonidas LLC

  	
   

  	
  1618

  	
   

  	
  Marshall Islands

  
	
  Genmar Nestor

  	
   

  	
  GMR Nestor LLC

  	
   

  	
  1619

  	
   

  	
  Marshall Islands

  
	
  Genmar Gabriel

  	
   

  	
  GMR Gabriel LLC

  	
   

  	
  1536

  	
   

  	
  Marshall Islands

  
	
  Genmar George

  	
   

  	
  GMR George LLC

  	
   

  	
  10768

  	
   

  	
  Liberia

  
	
  Genmar Sun

  	
   

  	
  GMR Sun LLC

  	
   

  	
  1439

  	
   

  	
  Marshall Islands

  
	
  Genmar Boss

  	
   

  	
  GMR Boss LLC

  	
   

  	
  1432

  	
   

  	
  Marshall Islands

  

 

2

 

	
  Vessel Name

  	
   

  	
  Vessel Owner

  	
   

  	
  Official Vessel

  ID Number

  	
   

  	
  Registry

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aframax Tankers - SH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genmar Commander

  	
   

  	
  GMR Commander LLC

  	
   

  	
  10829

  	
   

  	
  Liberia

  

 

DH = Double Hull

DS = Double Sides

SH = Single Hull

OBO = Ore-Bulk-Ore Carrier

DS = Double Sides

 

3

 

SCHEDULE IV

 

EXISTING
LIENS

 

	
  Debtor

  	
   

  	
  Secured Party

  	
   

  	
  File Number

  	
   

  	
  File Date

  	
   

  	
  Form

  	
   

  	
  Jurisdiction

  	
   

  	
  Collateral

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

None.

 

 

SCHEDULE V

 

INDEBTEDNESS

 

	
  Borrower(s)

  	
   

  	
  Lender(s)

  	
   

  	
  Governing Agreement

  	
   

  	
  Aggregate Principal

  Amount

  	
   

  	
  Guarantor(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General
  Maritime Corporation

  	
   

  	
   

  	
   

  	
  Indenture – 10% Senior Notes due 2013 dated 20 March 2003

  	
   

  	
  $

  	
  250,000,000

  	
   

  	
  Subsidiary
  Guarantors (as defined in the Indenture)

  
										

 

 

SCHEDULE VI

 

INSURANCE

 

See Attached.

 

 

SCHEDULE VII

 

ERISA

 

None.

 

 

SCHEDULE VIII

 

SUBSIDIARIES

 

	
  Name of Subsidiary

  	
   

  	
  Direct Owner(s)

  	
   

  	
  Percent(%)

  Ownership

  	
   

  	
  Jurisdiction of Organization

  
	
  General
  Maritime Management LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  General
  Maritime Management (Hellas) Ltd.

  	
   

  	
  General Maritime Management LLC

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  General
  Maritime Management (Portugal) Ltd.

  	
   

  	
  General Maritime Management LLC

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  Genmar
  Trader Ltd.

  	
   

  	
  General Maritime Corporation

  GMR Trader (Liberia) LLC

  	
   

  	
  99.8%

  0.2%

  	
   

  	
  Republic
  of Malta

  
	
  GMR
  Administration Corp.

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Agamemnon LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Ajax LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Alexandra LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Alta LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Argus LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Ariston LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Boss LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Centaur LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Challenger LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Champ LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Commander LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Conqueror LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Constantine LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Defiance LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  

 

 

	
  Name of Subsidiary

  	
   

  	
  Direct Owner(s)

  	
   

  	
  Percent(%)

  Ownership

  	
   

  	
  Jurisdiction of Organization

  
	
  GMR
  Endurance LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Gabriel LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  George LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Gulf LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Harriet LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Hector LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Honour LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Hope LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Horn LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Kestrel LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Leonidas LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Macedon LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Malta LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Minotaur LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Nestor LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Orion LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Pericles LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Phoenix LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Princess LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Progress LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  

 

2

 

	
  Name of Subsidiary

  	
   

  	
  Direct Owner(s)

  	
   

  	
  Percent(%)

  Ownership

  	
   

  	
  Jurisdiction of Organization

  
	
  GMR
  Prometheus LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Revenge LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Sky LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Spartiate LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Spirit LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Spyridon LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Star LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Strength LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Sun LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Trader (Liberia) LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Transporter LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Traveller LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  
	
  GMR
  Trust LLC

  	
   

  	
  General Maritime Corporation

  	
   

  	
  100%

  	
   

  	
  Republic
  of Liberia

  
	
  GMR
  Zoe LLC

  	
   

  	
  GMR Administration Corp.

  	
   

  	
  100%

  	
   

  	
  Republic
  of the Marshall Islands

  

 

3

 

SCHEDULE IX

 

CAPITALIZATION

 

None.

 

 

SCHEDULE X

 

APPROVED
CLASSIFICATION SOCIETIES

 

American Bureau of Shipping

Nippon Kaiji Kyokai

Germanischer Lloyd

Lloyd’s Register of Shipping

Bureau Veritas

Det Norske Veritas

 

 

SCHEDULE XI

 

EXISTING
INVESTMENTS

 

During the fourth quarter of 2000, General Maritime Corporation loaned
$485,467 to Peter C. Georgiopoulos.  This loan does not bear interest
and is due and payable on demand.  The full amount of this loan was
outstanding as of July 1, 2004.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]