Document:

Exhibit 10.2

 

FIRST AMENDMENT TO THE
CREDIT AGREEMENT

 

FIRST AMENDMENT TO THE
CREDIT AGREEMENT (this “First Amendment”), dated as of August 31, 2004,
among GENERAL MARITIME CORPORATION, a Marshall Islands corporation (the “Borrower”),
the Lenders party hereto from time to time to the Credit Agreement referred to
below, and NORDEA BANK FINLAND PLC, NEW YORK BRANCH, as Sole Lead Arranger,
Sole Bookrunner and Administrative Agent (in such capacity, the “Administrative
Agent”).  Unless otherwise defined
herein, capitalized terms used herein and defined in the Credit Agreement are
used herein as therein defined.

 

W I  T  N  E  S
S  E  T  H :

 

WHEREAS, the Borrower,
the Lenders and the Administrative Agent have entered into a Credit Agreement,
dated as of July 1, 2004 (the “Credit Agreement”);

 

WHEREAS, the Borrower
agreed to sell the Excluded Vessels (as defined below) for a total aggregate
value of approximately $85.9 million;

 

WHEREAS, pursuant to
Section 4.02(c) of the Credit Agreement, following any Collateral Disposition
involving a Mortgaged Vessel (other than a Collateral Disposition constituting
an Event of Loss), the Borrower is required to repay the Term Loans and reduce
the Total Revolving Loan Commitment ; and

 

WHEREAS, subject to the
terms and conditions set forth below, the parties hereto wish to amend certain
provisions of the Credit Agreement as provided herein;

 

NOW, THEREFORE, it is
agreed;

 

A.                                   Amendments to the Credit Agreement

 

1.                                       Section
1.01(b) of the Credit Agreement is hereby amended by inserting the word “Available”
immediately prior to the words “Revolving Loan Commitment” each time such term
appears therein.

 

2.                                       Section
1 of the Credit Agreement is hereby amended by inserting the following Section
1.13 at the end thereof:

 

“1.13 Excluded Vessels.
 Upon the completion of a Vessel Exchange
in respect of an Excluded Vessel pursuant to Section 9.02(i)(y)(B), (i) the
Administrative Agent shall pay to the Borrower an amount equal to the funds
deposited in the Cash Collateral Account related to such Excluded Vessel
pursuant to Section 4.02(c)(l)(x) and (ii) the Blocked Revolving Commitment
Amount shall be decreased by an amount equal to the amount by

 

 

which the Blocked
Revolving Commitment Amount was increased in respect of such Excluded Vessel
pursuant to Section 4.02(c)(l)(y).”

 

3.                                       Section
4.02(a) of the Credit Agreement is hereby amended by deleting the word “Total”
appearing therein and inserting “Available” in lieu thereof.

 

4.                                       Section
4.02(c) of the Credit Agreement is hereby amended by inserting the following
sub-clause (l) immediately following the text “provided that” appearing
therein:

 

“(l) the Borrower, at its
option, shall not be required to reduce the Total Revolving Loan Commitment or
repay Terms Loans upon a Collateral Disposition in respect of an Excluded
Vessel (other than a Collateral Disposition constituting an Event of Loss)
provided that (x) an amount equal to the principal amount of Term Loans
otherwise required to be repaid by reason of such Collateral Disposition shall
be deposited in the Cash Collateral Account, (y) the Blocked Revolving Loan
Commitment is increased by an amount equal to the amount by which the Total
Revolving Loan Commitments otherwise required to be reduced by reason of such
Collateral Disposition and (z) no later than 365 days after the First Amendment
Effective Date, such Excluded Vessel is replaced by an Acceptable Replacement
Vessel pursuant to a Vessel Exchange, provided further that, if such Vessel
Exchange does not occur within 365 days of the First Amendment Effective Date,
(A) the Term Loans shall be repaid in an amount equal to the deposit made to
the Cash Collateral Account pursuant to clause (x) above in respect of such
Excluded Vessel and (B) the Total Revolving Loan Commitment shall be
permanently reduced by an amount equal to the amount by which the Blocked
Revolving Loan Commitment was increased pursuant to clause (y) above in respect
of such Excluded Vessel,”.

 

5.                                       Section
9.02(i)(y) of the Credit Agreement is hereby amended by (i) inserting the text “(A)”
immediately following the text “after any such exchange,” appearing therein and
(ii) inserting the following text “or (B) if such Mortgaged Vessel is an
Excluded Vessel, such Excluded Vessel is exchanged for an Acceptable
Replacement Vessel pursuant to a Vessel Exchange within 365 days of the First
Amendment Effective Date” immediately following the text “Acceptable
Replacement Vessel pursuant to a Vessel Exchange” appearing therein.

 

6.                                       Section
11 of the Credit Agreement is hereby amended by inserting in the appropriate
alphabetical order the following new definitions:

 

“Available Revolving
Loan Commitment” shall mean, for each Lender, the Revolving Loan Commitment
less such Lender’s pro  rata share of the Blocked Revolving Loan
Commitment.

 

“Blocked Revolving
Loan Commitment” shall mean an amount which may be increased pursuant to
Section 4.02(c)(l) and decreased pursuant to Section 1.13.

 

“Cash Collateral
Account” shall mean the Account as defined in the Cash Collateral Account
Agreement.

 

2

 

“Cash Collateral
Account Agreement” shall mean the Cash Collateral Account Agreement
substantially in the form of Exhibit O hereto which has been duly executed and
delivered by the Borrower and the Collateral Agent.

 

“First Amendment”
shall mean that certain First Amendment to the Credit Agreement, dated as of
August     , 2004, among the Borrower, the Lenders party
thereto and the Administrative Agent.

 

“First Amendment
Effective Date” shall have the meaning assigned thereto in the First
Amendment.

 

“Excluded Vessels”
shall mean Genmar Harriet, Genmar Transporter, Genmar Traveller and Genmar
Centaur.

 

7.                                       The
definition of “Security Documents” is hereby amended by inserting the text “,
each Cash Collateral Account Agreement” immediately following the text “each
Assignment of Insurances” therein.

 

8.                                       The
Credit Agreement is hereby amended by inserting Exhibit O attached hereto
thereto.

 

B.                                     Miscellaneous
Provisions

 

1.                                       In
order to induce the Lenders to enter into this First Amendment, the Borrower
hereby represents and warrants to each of the Lenders that immediately after
giving effect to this First Amendment (i) all of the representations and
warranties contained in the Credit Agreement and in the other Credit Documents
are true and correct in all material respects on and as of the First Amendment
Effective Date (unless such representations and warranties relate to a specific
earlier date, in which case such representations and warranties shall be true
and correct in all material respects as of such earlier date) and (ii) there
exists no Default or Event of Default on the First Amendment Effective Date.

 

2.                                       This
First Amendment is limited as specified and shall not constitute a
modification, acceptance or waiver of any other provision of the Credit
Agreement or any other Credit Document.

 

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

 

4.                                       THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK.

 

3

 

5.                                       This
First Amendment shall become effective on the date (the “First Amendment
Effective Date”) when the following has occurred:

 

(i)                                     the
Borrower and the Required Lenders shall have signed a counterpart hereof
(whether the same or different counterparts) and shall have delivered
(including by way of facsimile transmission) the same to the Administrative
Agent; and

 

(ii)                                  the
Administrative Agent shall have received from Constantine P. Georgiopoulos, New
York counsel to the Borrower, an opinion addressed to the Administrative Agent,
the Collateral Agent and each of the Lenders and dated the First Amendment
Effective Date in form and substance satisfactory to the Administrative Agent,
and covering such matters incident to this Amendment as the Administrative
Agent may reasonably request.

 

6.                                       From
and after the First Amendment Effective Date, all references in the Credit
Agreement and in the other Credit Documents to the Credit Agreement shall be
deemed to be referenced to the Credit Agreement as modified hereby.

 

*                                         *                                         *

 

[SIGNATURE PAGES TO
FOLLOW]

 

4

 

SCHEDULE XI

 

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

 

	
   

  	
  GENERAL MARITIME
  CORPORATION,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ John C. Georgiopoulos

  	
   

  
	
   

  	
   

  	
  Title: Chief
  Administrative Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NORDEA
  BANK FINLAND PLC, NEW YORK BRANCH, as Administrative Agent and as Collateral
  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christer Svardh

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Gerald E. Chelius, Jr.

  	
   

  
	
   

  	
   

  	
  Title: SVP Credit

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NORDEA BANK NORGE ASA,
  GRAND CAYMAN BRANCH, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christer Svardh

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Gerald E. Chelius,
  Jr.

  	
   

  
	
   

  	
   

  	
   Title: SVP Credit

  

 

 

	
   

  	
  SIGNATURE PAGE TO THE
  FIRST AMENDMENT, DATED AS AUGUST 31, 2004, TO THE CREDIT AGREEMENT, DATED AS
  OF JULY 1, 2004, AMONG GENERAL MARITIME CORPORATION, VARIOUS LENDERS AND
  NORDEA BANK FINLAND PLC, NEW YORK BRANCH AS ADMINISTRATIVE AGENT

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  Citibank, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Charles R. Delamater

  	
   

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  CREDIT INDUSTRIEL ET COMMERCIAL

  NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Adrienne Molloy

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Dora Deblasi Hyduk

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  DANISH SHIP FINANCE

  (DANSMARKS
  SKIBSKREDITFOND)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Erik I. Lassen

  	
   

  
	
   

  	
   

  	
  Title: SVP

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Ole Staergaard

  	
   

  
	
   

  	
   

  	
  Title: VP

  

 

 

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  DnB NOR Bank ASA, New
  York Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Barbara Gronquist

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Nikolai Nachamkin

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  DRESDNER BANK AG IN
  HAMBURG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Barbara Sorge

  	
   

  
	
   

  	
   

  	
  Title: Assitant
  Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Darning Qian

  	
   

  
	
   

  	
   

  	
  Title: Assistant
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  DVB BANK AG

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Sybren Hoesktra

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Camila F. Policarpio

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  THE GOVERNOR AND
  COMPANY OF THE BANK

  OF IRELAND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Paul Packard

  	
   

  
	
   

  	
   

  	
  Title: Head of Maritime
  Industries

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Mariam Horan

  	
   

  
	
   

  	
   

  	
  Title: Deputy Manager -
  Maritime Industries

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  	
   

  
	
   

  	
   

  
	
   

  	
  The Governor and
  Company of the Bank of Scotland

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Russell Parker

  	
   

  
	
   

  	
   

  	
  Title: Director, Marine
  Finance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  HSH Nordbank AG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Uta Urbaniak

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thorsten Lundius

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  
						

 

 

 

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lloyds TSB Bank plc

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David Sumner

  	
   

  
	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Steven

  	
   

  
	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  NATEXIS BANQUES
  POPULAIRES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Antoine Saint Olive

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michel Degermann 

  	
   

  
	
   

  	
   

  	
  Title: Head of Shipping
  and Land Transportation Ficance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  The Royal Bank of
  Scotland plc

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Hooker

  	
   

  
	
   

  	
   

  	
  Title: Director, Ship
  Finance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Scott Lewallen 

  	
   

  
	
   

  	
   

  	
  Title: Head of Shipping

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jonathan Pratt 

  	
   

  
	
   

  	
   

  	
  Title: ExecutiveExhibit 10.3

 

EXHIBIT F

[CONFORMED AS EXECUTED]

 

SUBSIDIARIES
GUARANTY

 

SUBSIDIARIES
GUARANTY, dated as of July 1, 2004 (as amended, modified, restated and/or
supplemented from time to time, this “Guaranty”), made by each of the
undersigned guarantors (each a “Guarantor” and, together with any other entity
that becomes a guarantor hereunder pursuant to Section 25 hereof, the “Guarantors”).  Except as otherwise defined herein,
capitalized terms used herein and defined in the Credit Agreement (as defined
below) shall be used herein as therein defined. 

 

W
I  T  N  E  S  S  E  T  H
:

 

WHEREAS,
General Maritime Corporation (the “Borrower”), the lenders from time to time
party thereto (the “Lenders”), Nordea Bank Finland plc, New York Branch, as
Administrative Agent and as Collateral Agent (in such capacity, together with
any successor Administrative Agent, the “Administrative Agent”), have entered
into a Credit Agreement, dated as of July 1, 2004 (as amended, modified,
restated and/or supplemented from time to time, the “Credit Agreement”),
providing for the making of Loans to the Borrower as contemplated therein (the
Lenders, the Collateral Agent and the Administrative Agent are herein called
the “Lender Creditors”);

 

WHEREAS,
the Borrower may at any time and from time to time enter into, or guaranty the
obligations of one or more other Guarantors or any of their respective
Subsidiaries under, one or more Interest Rate Protection Agreements or Other
Hedging Agreements with respect to the Borrower’s obligations under the Credit
Agreement with respect to the outstanding Loans and/or Commitment from time to
time with one or more Lenders or any affiliate thereof (each such Lender or
affiliate, even if the respective Lender subsequently ceases to be a Lender
under the Credit Agreement for any reason, together with such Lender’s or
affiliate’s successors and assigns, if any, collectively, the “Other Creditors”
and, together with the Lender Creditors, the “Secured Creditors”);

 

WHEREAS,
each Guarantor is a direct or indirect Subsidiary of the Borrower;

 

WHEREAS,
it is a condition to the making of Loans to the Borrower under the Credit
Agreement that each Guarantor shall have executed and delivered this Guaranty;
and

 

WHEREAS,
each Guarantor will obtain benefits from the incurrence of Loans to the
Borrower under the Credit Agreement and the entering into by the Borrower of
Interest Rate Protection Agreements or Other Hedging Agreements and,
accordingly, desires to execute this Guaranty in order to satisfy the
conditions described in the preceding paragraph;

 

NOW,
THEREFORE, in consideration of the foregoing and other benefits accruing to
each Guarantor, the receipt and sufficiency of which are hereby acknowledged,
each

 

 

Guarantor hereby
makes the following representations and warranties to the Secured Creditors and
hereby covenants and agrees with each Secured Creditor as follows:

 

1.  Each
Guarantor, jointly and severally, irrevocably, absolutely and unconditionally
guarantees:  (i) to the Lender Creditors
the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of (x) the principal of, premium, if any, and
interest on the Term Notes issued by, and the Term Loans made to, the Borrower
under the Credit Agreement, (y) the principal of, premium, if any, and interest
on the Revolving Notes issued by, and the Revolving Loans made to, the Borrower
under the Credit Agreement, and (z) all other obligations (including
obligations which, but for the automatic stay under Section 362(a) of the
Bankruptcy Code, would become due), liabilities and indebtedness owing by the
Borrower to the Lender Creditors (in the capacities referred to in the
definition of Lender Creditors) under the Credit Agreement and each other
Credit Document to which the Borrower is a party (including, without
limitation, indemnities, fees and interest thereon (including any interest
accruing after the commencement of any bankruptcy, insolvency, receivership or
similar proceeding at the rate provided for in the Credit Agreement, whether or
not such interest is an allowed claim in any such proceeding)), whether now
existing or hereafter incurred under, arising out of or in connection with the
Credit Agreement and any such other Credit Document and the due performance and
compliance by the Borrower with all of the terms, conditions and agreements
contained in all such Credit Documents (all such principal, premium, interest,
liabilities, indebtedness and obligations being herein collectively called the “Credit
Document Obligations”); and (ii) to each Other Creditor the full and prompt
payment when due (whether at the stated maturity, by acceleration or otherwise)
of all obligations (including obligations which, but for the automatic stay
under Section 362(a) of the Bankruptcy Code, would become due), liabilities and
indebtedness (including any interest accruing after the commencement of any
bankruptcy, insolvency, receivership or similar proceeding at the rate provided
for in the respective Interest Rate Protection Agreements or Other Hedging
Agreements, whether or not such interest is an allowed claim in any such
proceeding) owing by the Borrower under any Interest Rate Protection Agreement
or Other Hedging Agreement entered into in respect of the Borrower’s
obligations with respect to the outstanding Loans and/or Commitments from time
to time, whether now in existence or hereafter arising, and the due performance
and compliance by the Borrower with all of the terms, conditions and agreements
contained in each such Interest Rate Protection Agreement and Other Hedging
Agreement to which it is a party (all such obligations, liabilities and
indebtedness being herein collectively called the “Other Obligations” and,
together with the Credit Document Obligations, the “Guaranteed Obligations”).  As used herein, the term “Guaranteed Party”
shall mean the Borrower party to or as guarantor of any Guarantor or its
Subsidiaries party to any Interest Rate Protection Agreement or Other Hedging
Agreement with an Other Creditor.  Each
Guarantor understands, agrees and confirms that the Secured Creditors may
enforce this Guaranty up to the full amount of the Guaranteed Obligations
against such Guarantor without proceeding against any other Guarantor, the
Borrower, any other Guaranteed Party, against any security for the Guaranteed
Obligations, or under any other guaranty covering all or a portion of the
Guaranteed Obligations.

 

2.  Additionally,
each Guarantor, jointly and severally, unconditionally, absolutely and
irrevocably, guarantees the payment of any and all Guaranteed Obligations
whether or not due or payable by the Borrower or any other Guaranteed Party
upon the occurrence in respect of

 

2

 

the Borrower or
any such other Guaranteed Party of any of the events specified in Section 10.05
of the Credit Agreement, and unconditionally and irrevocably, jointly and
severally, promises to pay such Guaranteed Obligations to the Secured
Creditors, or order, on demand.  This Guaranty
shall constitute a guaranty of payment, and not of collection.

 

3.  The
liability of each Guarantor hereunder is primary, absolute, joint and several,
and unconditional and is exclusive and independent of any security for or other
guaranty of the indebtedness of the Borrower or any other Guaranteed Party
whether executed by such Guarantor, any other Guarantor, any other guarantor or
by any other party, and the liability of each Guarantor hereunder shall not be
affected or impaired by any circumstance or occurrence whatsoever, including, without
limitation:  (a) any direction as to
application of payment by the Borrower or any other Guaranteed Party or by any
other party, (b) any other continuing or other guaranty, undertaking or maximum
liability of a guarantor or of any other party as to the Guaranteed
Obligations, (c) any payment on or in reduction of any such other guaranty or
undertaking, (d) any dissolution, termination or increase, decrease or change
in personnel by the Borrower or any other Guaranteed Party, (e) to the extent
permitted by applicable law, any payment made to any Secured Creditor on the
indebtedness which any Secured Creditor repays the Borrower or any other
Guaranteed Party pursuant to court order in any bankruptcy, reorganization,
arrangement, moratorium or other debtor relief proceeding, and each Guarantor
waives any right to the deferral or modification of its obligations hereunder
by reason of any such proceeding, (f) any action or inaction by the
Secured Creditors as contemplated in Section 6 hereof or (g) any invalidity,
irregularity or unenforceability of all or any part of the Guaranteed
Obligations or of any security therefor.

 

4.  The
obligations of each Guarantor hereunder are independent of the obligations of
any other Guarantor, any other guarantor, the Borrower or any other Guaranteed
Party, and a separate action or actions may be brought and prosecuted against
each Guarantor whether or not action is brought against any other Guarantor,
any other guarantor, the Borrower or any other Guaranteed Party and whether or
not any other Guarantor, any other guarantor, the Borrower or any other
Guaranteed Party be joined in any such action or actions.  Each Guarantor waives, to the fullest extent
permitted by law, the benefits of any statute of limitations affecting its liability
hereunder or the enforcement thereof. 
Any payment by the Borrower or any other Guaranteed Party or other
circumstance which operates to toll any statute of limitations as to the
Borrower or any other Guaranteed Party shall operate to toll the statute of
limitations as to each Guarantor.

 

5.  Any
Secured Creditor may at any time and from time to time without the consent of,
or notice to, any Guarantor, without incurring responsibility to such
Guarantor, without impairing or releasing the obligations of such Guarantor
hereunder, upon or without any terms or conditions and in whole or in part:

 

(a)  change the manner, place or terms of payment
of, and/or change, increase or extend the time of payment of, renew or alter,
any of the Guaranteed Obligations (including any increase or decrease in the
rate of interest thereon or the principal amount thereof), any security
therefor, or any liability incurred directly or indirectly in respect thereof,
and the guaranty herein made shall apply to the Guaranteed Obligations as so
changed, extended, renewed or altered;

 

3

 

(b)  take and hold security for the payment of the
Guaranteed Obligations and sell, exchange, release, surrender, impair, realize
upon or otherwise deal with in any manner and in any order any property by
whomsoever at any time pledged or mortgaged to secure, or howsoever securing,
the Guaranteed Obligations or any liabilities (including any of those
hereunder) incurred directly or indirectly in respect thereof or hereof, and/or
any offset there against;

 

(c)  exercise or refrain from exercising any
rights against the Borrower, any other Guaranteed Party, any other Credit
Party, any Subsidiary thereof or otherwise act or refrain from acting;

 

(d)  release or substitute any one or more
endorsers, Guarantors, other guarantors, the Borrower, any other Guaranteed
Party, or other obligors; 

 

(e)  settle or compromise any of the Guaranteed
Obligations, any security therefor or any liability (including any of those
hereunder) incurred directly or indirectly in respect thereof or hereof, and
may subordinate the payment of all or any part thereof to the payment of any
liability (whether due or not) of the Borrower or any other Guaranteed Party to
creditors of the Borrower or such other Guaranteed Party other than the Secured
Creditors;

 

(f)  apply any sums by whomsoever paid or
howsoever realized to any liability or liabilities of the Borrower or any other
Guaranteed Party to the Secured Creditors regardless of what liabilities of the
Borrower or such other Guaranteed Party remain unpaid;

 

(g)  consent to or waive any breach of, or any
act, omission or default under, any of the Interest Rate Protection Agreements
or Other Hedging Agreements, the Credit Documents or any of the instruments or
agreements referred to therein, or otherwise amend, modify or supplement (in
accordance with their terms) any of the Interest Rate Protection Agreements or
Other Hedging Agreements, the Credit Documents or any of such other instruments
or agreements;

 

(h)  act or fail to act in any manner which may
deprive such Guarantor of its right to subrogation against the Borrower or any
other Guaranteed Party to recover full indemnity for any payments made pursuant
to this Guaranty; and/or

 

(i)  take any other action which would, under
otherwise applicable principles of common law, give rise to a legal or
equitable discharge of such Guarantor from its liabilities under this Guaranty.

 

6.  This
Guaranty is a continuing one and all liabilities to which it applies or may
apply under the terms hereof shall be conclusively presumed to have been
created in reliance hereon.  No failure
or delay on the part of any Secured Creditor in exercising any right, power or
privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, power or
privilege hereunder.  The rights and
remedies herein expressly specified are cumulative and not exclusive of any
rights or remedies which any Secured Creditor would otherwise have
hereunder.  No notice to or demand on any
Guarantor in any case

 

4

 

shall entitle such
Guarantor to any other further notice or demand in similar or other
circumstances or constitute a waiver of the rights of any Secured Creditor to
any other or further action in any circumstances without notice or demand.  It is not necessary for any Secured Creditor
to inquire into the capacity or powers of the Borrower or any other Guaranteed
Party or the officers, directors, partners or agents acting or purporting to
act on its or their behalf, and any indebtedness made or created in reliance
upon the professed exercise of such powers shall be guaranteed hereunder.

 

7.  Any
indebtedness of the Borrower or any other Guaranteed Party now or hereafter
held by any Guarantor is hereby subordinated to the indebtedness of the
Borrower or such other Guaranteed Party to the Secured Creditors, and such
indebtedness of the Borrower or such other Guaranteed Party to any Guarantor,
if the Administrative Agent or the Collateral Agent, after the occurrence and
during the continuance of an Event of Default, so requests, shall be collected,
enforced and received by such Guarantor as trustee for the Secured Creditors
and be paid over to the Secured Creditors on account of the indebtedness of the
Borrower or the other Guaranteed Parties to the Secured Creditors, but without
affecting or impairing in any manner the liability of such Guarantor under the
other provisions of this Guaranty. 
Without limiting the generality of the foregoing, each Guarantor hereby
agrees with the Secured Creditors that it will not exercise any right of
subrogation which it may at any time otherwise have as a result of this
Guaranty (whether contractual, under Section 509 of the Bankruptcy Code or
otherwise) until all Guaranteed Obligations have been irrevocably paid in full
in cash.

 

8.  (a)  Each Guarantor waives any right (except as
shall be required by applicable law and cannot be waived) to require the
Secured Creditors to:  (i) proceed
against the Borrower, any other Guaranteed Party, any other Guarantor, any other
guarantor of the Guaranteed Obligations or any other party; (ii) proceed
against or exhaust any security held from the Borrower, any other Guaranteed
Party, any other Guarantor, any other guarantor of the Guaranteed Obligations
or any other party; or (iii) pursue any other remedy in the Secured Creditors’
power whatsoever. Each Guarantor waives any defense based on or arising out of
any defense of the Borrower, any other Guaranteed Party, any other Guarantor,
any other guarantor of the Guaranteed Obligations or any other party other than
payment in full of the Guaranteed Obligations, including, without limitation,
any defense based on or arising out of the disability of the Borrower, any
other Guaranteed Party, any other Guarantor, any other guarantor of the
Guaranteed Obligations or any other party, or the unenforceability of the
Guaranteed Obligations or any part thereof from any cause, or the cessation
from any cause of the liability of the Borrower or any other Guaranteed Party
other than payment in full of the Guaranteed Obligations.  The Secured Creditors may, at their election,
foreclose on any security held by the Administrative Agent, the Collateral
Agent or the other Secured Creditors by one or more judicial or nonjudicial
sales, whether or not every aspect of any such sale is commercially reasonable,
or exercise any other right or remedy the Secured Creditors may have against
the Borrower, any other Guaranteed Party or any other party, or any security,
without affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Guaranteed Obligations have been paid in
full in cash.  Each Guarantor waives any
defense arising out of any such election by the Secured Creditors, even though
such election operates to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of such Guarantor against the Borrower,
any other Guaranteed Party or any other party or any security.

 

5

 

(b)  Each
Guarantor waives all presentments, promptness, diligence, demands for
performance, protests and notices, including, without limitation, notices of
nonperformance, notices of protest, notices of dishonor, notices of acceptance
of this Guaranty, and notices of the existence, creation or incurring of new or
additional indebtedness.  Each Guarantor
assumes all responsibility for being and keeping itself informed of the
Borrower’s and each other Guaranteed Party’s financial condition and assets,
and of all other circumstances bearing upon the risk of nonpayment of the
Guaranteed Obligations and the nature, scope and extent of the risks which such
Guarantor assumes and incurs hereunder, and agrees that the Secured Creditors
shall have no duty to advise any Guarantor of information known to them
regarding such circumstances or risks.

 

Each
Guarantor warrants and agrees that each of the waivers set forth above in this
Section 8 is made with full knowledge of its significance and consequences and
that if any of such waivers are determined to be contrary to any applicable law
or public policy, such waivers shall be effective only to the maximum extent
permitted by law. 

 

9.  (a)                   The Secured Creditors agree that this
Guaranty may be enforced only by the action of the Administrative Agent or the
Collateral Agent, in each case acting upon the instructions of the Lenders (or,
after the date on which all Credit Document Obligations have been paid in full,
the holders of at least a majority of the outstanding Other Obligations) and
that no other Secured Creditors shall have any right individually to seek to
enforce or to enforce this Guaranty, it being understood and agreed that such
rights and remedies may be exercised by the Administrative Agent or the
Collateral Agent or, after all the Credit Document Obligations have been paid
in full, by the holders of at least a majority of the outstanding Other
Obligations, as the case may be, for the benefit of the Secured Creditors upon
the terms of this Guaranty.  The Secured
Creditors further agree that this Guaranty may not be enforced against any
director, officer, employee, partner, member or stockholder of any Guarantor
(except to the extent such partner, member or stockholder is also a Guarantor
hereunder).

 

(b)                                 The Administrative Agent and Collateral
Agent will hold in accordance with this Guaranty all collateral at any time
received under this Guaranty. It is expressly understood and agreed by each
Secured Creditor that by accepting the benefits of this Guaranty each such
Secured Creditor acknowledges and agrees that the obligations of the
Administrative Agent and Collateral Agent as enforcer of this Guaranty and
interests herein are only those expressly set forth in this Guaranty and in
Section 12 of the Credit Agreement.  The
Administrative Agent and the Collateral Agent shall act hereunder on the terms
and conditions set forth herein and in Section 13 of the Credit Agreement.

 

10.  In
order to induce the Lenders to make Loans to the Borrower pursuant to the
Credit Agreement, and in order to induce the Other Creditors to execute,
deliver and perform the Interest Rate Protection Agreements and Other Hedging
Agreements, each Guarantor represents, warrants and covenants that:

 

(a)  Such
Guarantor (i) is a duly organized and validly existing corporation, limited
partnership or limited liability company, 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

 

6

 

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

 

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

 

(c)  Neither
the execution, delivery or performance by such Guarantor of this Guaranty or
any other Credit Document to which it is a party, nor compliance by it with the
terms and provisions hereof and thereof, will (i) contravene any provision of
any applicable law, statute, rule or regulation or any applicable order, writ,
injunction or decree of any court or governmental instrumentality, (ii)
conflict with or result in any breach of any of the terms, covenants,
conditions or provisions of, or constitute a default under, or result in the
creation or imposition of (or the obligation to create or impose) any Lien
(except pursuant to the Security Documents) upon any of the material properties
or assets of such Guarantor or any of its Subsidiaries pursuant to the terms of
any indenture, mortgage, deed of trust, loan agreement or credit agreement, or
any other material agreement, contract or instrument, to which such Guarantor
or any of its Subsidiaries is a party or by which it or any of its material
property or assets is bound or to which it may be subject or (iii) violate any
provision of the Certificate of Incorporation or By-Laws (or equivalent
organizational documents) of such Guarantor or any of its Subsidiaries.

 

(d)  No
order, consent, approval, license, authorization or validation of, or filing, recording
or registration with (except as have been obtained or made or, in the case of
any filings or recordings of the Security Documents (other than the Vessel
Mortgages) executed on or before the Initial Borrowing Date, will be made
within 10 days of the Initial Borrowing Date), or exemption by, any
governmental or public body or authority, or any subdivision thereof, is
required to authorize, or is required in connection with, (i) the execution,
delivery and performance of this Guaranty by such Guarantor or any other Credit
Document to which such Guarantor is a party or (ii) the legality, validity,
binding effect or enforceability of this Guaranty or any other Credit Document
to which such Guarantor is a party.

 

(e)  There
are no actions, suits or proceedings pending or, to such Guarantor’s knowledge,
threatened (i) with respect to this Guaranty or any other Credit Document to
which

 

7

 

such Guarantor is
a party or (ii) with respect to such Guarantor or any of its Subsidiaries that,
either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

 

11.  Each
Guarantor covenants and agrees that on and after the Effective Date and until
the termination of the Commitments and all Interest Rate Protection Agreements
and Other Hedging Agreements entered into with respect to the Loans and until
such time as no Term Notes and no Revolving Notes remain outstanding and all
Guaranteed Obligations have been paid in full, such Guarantor will comply, and
will cause each of its Subsidiaries to comply, with all of the applicable
provisions, covenants and agreements contained in Sections 8 and 9 of the
Credit Agreement, and will take, or will refrain from taking, as the case may
be, all actions that are necessary to be taken or not taken so that it is not
in violation of any provision, covenant or agreement contained in Section 8 or
9 of the Credit Agreement, and so that no Default or Event of Default is caused
by the actions of such Guarantor or any of its Subsidiaries.

 

12.  The
Guarantors hereby jointly and severally agree to pay all reasonable
out-of-pocket costs and expenses of (i) each Secured Creditor in connection
with the enforcement of this Guaranty (including, without limitation, the
reasonable fees and disbursements of counsel employed by each Secured Creditor)
and (ii) the Administrative Agent in connection with any amendment, waiver or
consent relating hereto (including, without limitation, the reasonable fees and
disbursements of counsel employed by the Administrative Agent).

 

13.  This
Guaranty shall be binding upon each Guarantor and its successors and assigns
and shall inure to the benefit of the Secured Creditors and their successors
and assigns.

 

14.  Neither
this Guaranty nor any provision hereof may be changed, waived, discharged or
terminated except with the written consent of each Guarantor directly affected
thereby and with the written consent of (x) the Administrative Agent (or, to
the extent required by Section 13.12 of the Credit Agreement, with the written
consent of the Required Lenders) at all times prior to the time on which all
Credit Document Obligations have been paid in full or (y) the holders of at
least a majority of the outstanding Other Obligations at all times after the
time on which all Credit Document Obligations have been paid in full; provided,
that any change, waiver, modification or variance affecting the rights and
benefits of a single Class (as defined below) of Secured Creditors (and not all
Secured Creditors in a like or similar manner) shall also require the written
consent of the Requisite Creditors (as defined below) of such Class of Secured
Creditors (it being understood that the addition or release of any Guarantor
hereunder shall not constitute a change, waiver, discharge or termination
affecting any Guarantor other than the Guarantor so added or released).  For the purpose of this Guaranty, the term “Class”
shall mean each class of Secured Creditors, i.e., whether (x) the Lender
Creditors as holders of the Credit Document Obligations or (y) the Other
Creditors as the holders of the Other Obligations.  For the purpose of this Guaranty, the term “Requisite
Creditors” of any Class shall mean (x) with respect to the Credit Document
Obligations, the Required Lenders (or, to the extent required by Section 13.12
of the Credit Agreement, each Lender) and (y) with respect to the Other
Obligations, the holders of at least a majority of all obligations outstanding
from time to time under the Interest Rate Protection Agreements and Other
Hedging Agreements entered into with respect to the Loans (and/or the
Commitments).

 

8

 

15.  Each
Guarantor acknowledges that an executed (or conformed) copy of each of the Credit
Documents and each existing Interest Rate Protection Agreements or Other
Hedging Agreements has been made available to a senior officer of such
Guarantor and such officer is familiar with the contents thereof.

 

16.  In
addition to any rights now or hereafter granted under applicable law
(including, without limitation, Section 151 of the New York Debtor and Secured
Creditor Law) and not by way of limitation of any such rights, upon the
occurrence and during the continuance of an Event of Default (such term to mean
and include any “Event of Default” as defined in the Credit Agreement and any
payment default under any Interest Rate Protection Agreement or Other Hedging
Agreement continuing after any applicable grace period), each Secured Creditor
is hereby authorized, at any time or from time to time, without notice to any
Guarantor or to any other Person, any such notice being expressly waived, to
set off and to appropriate and apply any and all deposits (general or special)
and any other indebtedness at any time held or owing by such Secured Creditor
to or for the credit or the account of such Guarantor, against and on account
of the obligations and liabilities of such Guarantor to such Secured Creditor
under this Guaranty, irrespective of whether or not such Secured Creditor shall
have made any demand hereunder and although said obligations, liabilities,
deposits or claims, or any of them, shall be contingent or unmatured.

 

17.  Except
as otherwise expressly provided herein, all notices and other communications
provided for hereunder shall be in writing (including telexed, telegraphic or
telecopier communication) and mailed, telexed, telecopied or delivered:  if to any Guarantor, at c/o General Maritime
Corporation, as agent, 35 West 56th Street, New York, New York,
10019, with copies to Kramer Levin Naftalis & Frankel LLP, 919 Third
Avenue, New York, New York 10022, Attention Thomas E. Molner, Esq., Telephone
No.: (212) 715-9100, Telecopier No.: (212) 715-8028; if to any Secured
Creditor, at its address specified opposite its name on Schedule II to the
Credit Agreement; and if to the Administrative Agent, at its address specified
opposite its name on Schedule II to the Credit Agreement; or, as to any other
Credit Party, at such other address as shall be designated by such party in a
written notice to the other parties hereto and, as to each Secured Creditor, at
such other address as shall be designated by such Secured Creditor in a written
notice to the Borrower and the Administrative Agent.  All such notices and communications shall,
(i) when mailed, be effective three Business Days after being deposited in the
mails, prepaid and properly addressed for delivery, (ii) when sent by overnight
courier, be effective one Business Day after delivery to the overnight courier
prepaid and properly addressed for delivery on such next Business Day, or (iii)
when sent by telex or telecopier, be effective when sent by telex or
telecopier, except that notices and communications to the Administrative Agent
or any Guarantor shall not be effective until received by the Administrative
Agent or such Guarantor, as the case may be.

 

18.  If
claim is ever made upon any Secured Creditor for repayment or recovery of any
amount or amounts received in payment or on account of any of the Guaranteed
Obligations and any of the aforesaid payees repays all or part of said amount
by reason of (i) any judgment, decree or order of any court or administrative
body having jurisdiction over such payee or any of its property or (ii) any
settlement or compromise of any such claim effected by such payee with any such
claimant (including the Borrower or any other Guaranteed Party) then and in
such event

 

9

 

each Guarantor
agrees that any such judgment, decree, order, settlement or compromise shall be
binding upon such Guarantor, notwithstanding any revocation hereof or other
instrument evidencing any liability of the Borrower or any other Guaranteed
Party, and such Guarantor shall be and remain liable to the aforesaid payees
hereunder for the amount so repaid or recovered to the same extent as if such
amount had never originally been received by any such payee.

 

19.  (a)  THIS SUBSIDIARIES GUARANTY
AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER AND THEREUNDER SHALL, EXCEPT AS OTHERWISE PROVIDED IN CERTAIN OF THE
EXISTING VESSEL MORTGAGES, BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY
THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS RULES (OTHER
THAN TITLE 14 OF ARTICLE 5 OF THE GENERAL OBLIGATIONS LAW).  Any legal action or proceeding
with respect to this Guaranty or any other Credit Document to which any
Guarantor is a party may be brought in the courts of the State of New York or
of the United States of America for the Southern District of New York in each
case which are located in the City of New York, and, by execution and delivery
of this Guaranty, each Guarantor hereby irrevocably accepts for itself and in
respect of its property, generally and unconditionally, the jurisdiction of the
aforesaid courts.  Each Guarantor hereby
further irrevocably waives (to the fullest extent permitted by applicable law)
any claim that any such court lacks personal jurisdiction over such Guarantor,
and agrees not to plead or claim in any legal action or proceeding with respect
to this Guaranty or any other Credit Document to which such Guarantor is a
party brought in any of the aforesaid courts that any such court lacks personal
jurisdiction over such Guarantor.  Each
Guarantor further irrevocably consents to the service of process out of any of
the aforementioned courts in any such action or proceeding by the mailing of
copies thereof by registered or certified mail, postage prepaid, to such
Guarantor at its address set forth in Section 17 hereof, such service to become
effective 30 days after such mailing. 
Each Guarantor hereby irrevocably waives (to the fullest extent
permitted by applicable law) any objection to such service of process and
further irrevocably waives and agrees not to plead or claim in any action or
proceeding commenced hereunder or under any other Credit Document to which such
Guarantor is a party that such service of process was in any way invalid or
ineffective. Nothing herein shall affect the right of any of the Secured
Creditors to serve process in any other manner permitted by law or to commence
legal proceedings or otherwise proceed against each Guarantor in any other
jurisdiction.

 

(b)  Each
Guarantor hereby irrevocably waives (to the fullest extent permitted by
applicable law) any objection which it may now or hereafter have to the laying
of venue of any of the aforesaid actions or proceedings arising out of or in
connection with this Guaranty or any other Credit Document to which such
Guarantor is a party brought in the courts referred to in clause (a) above and
hereby further irrevocably waives (to the fullest extent permitted by
applicable law) and agrees not to plead or claim in any such court that such
action or proceeding brought in any such court has been brought in an
inconvenient forum.

 

(c)  EACH
GUARANTOR AND EACH SECURED CREDITOR (BY ITS ACCEPTANCE OF THE BENEFITS OF THIS
GUARANTY) HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR

 

10

 

COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS GUARANTY, THE OTHER CREDIT DOCUMENTS TO
WHICH SUCH GUARANTOR IS A PARTY OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

 

20.  In
the event that all of the capital stock or other equity interests of one or
more Guarantors is sold or otherwise disposed of or liquidated in compliance
with the requirements of Section 9.02 of the Credit Agreement (or such sale or
other disposition has been approved in writing by the Required Lenders (or all
the Lenders if required by Section 13.12 of the Credit Agreement)) and the
proceeds of such sale, disposition or liquidation are applied in accordance
with the provisions of the Credit Agreement, to the extent applicable, such Guarantor
shall upon consummation of such sale or other disposition (except to the extent
that such sale or disposition is to the Borrower or another Subsidiary thereof)
be released from this Guaranty automatically and without further action and
this Guaranty shall, as to each such Guarantor or Guarantors, terminate, and
have no further force or effect (it being understood and agreed that the sale
of one or more Persons that own, directly or indirectly, all of the capital
stock or other equity interests of any Guarantor shall be deemed to be a sale
of such Guarantor for the purposes of this Section 20).

 

21.  At
any time a payment in respect of the Guaranteed Obligations is made under this
Guaranty, the right of contribution of each Guarantor against each other Guarantor
shall be determined as provided in the immediately following sentence, with the
right of contribution of each Guarantor to be revised and restated as of each
date on which a payment (a “Relevant Payment”) is made on the Guaranteed
Obligations under this Guaranty.  At any
time that a Relevant Payment is made by a Guarantor that results in the
aggregate payments made by such Guarantor in respect of the Guaranteed
Obligations to and including the date of the Relevant Payment exceeding such
Guarantor’s Contribution Percentage (as defined below) of the aggregate
payments made by all Guarantors in respect of the Guaranteed Obligations to and
including the date of the Relevant Payment (such excess, the “Aggregate Excess
Amount”), each such Guarantor shall have a right of contribution against each
other Guarantor who has made payments in respect of the Guaranteed Obligations
to and including the date of the Relevant Payment in an aggregate amount less
than such other Guarantor’s Contribution Percentage of the aggregate payments
made to and including the date of the Relevant Payment by all Guarantors in
respect of the Guaranteed Obligations (the aggregate amount of such deficit,
the “Aggregate Deficit Amount”) in an amount equal to (x) a fraction the
numerator of which is the Aggregate Excess Amount of such Guarantor and the
denominator of which is the Aggregate Excess Amount of all Guarantors
multiplied by (y) the Aggregate Deficit Amount of such other Guarantor.  A Guarantor’s right of contribution pursuant to
the preceding sentences shall arise at the time of each computation, subject to
adjustment to the time of each computation; provided that no Guarantor
may take any action to enforce such right until the Guaranteed Obligations have
been paid in full in cash, it being expressly recognized and agreed by all
parties hereto that any Guarantor’s right of contribution arising pursuant to
this Section 21 against any other Guarantor shall be expressly junior and
subordinate to such other Guarantor’s obligations and liabilities in respect of
the Guaranteed Obligations and any other obligations owing under this
Guaranty.  As used in this Section
21:  (i) each Guarantor’s “Contribution
Percentage” shall mean the percentage obtained by dividing (x) the Adjusted Net
Worth (as defined below) of such Guarantor by (y) the aggregate Adjusted Net
Worth of all Guarantors; (ii) the “Adjusted Net

 

11

 

Worth” of each
Guarantor shall mean the greater of (x) the Net Worth (as defined below) of
such Guarantor and (y) zero; and (iii) the “Net Worth” of each Guarantor shall
mean the amount by which the fair saleable value of such Guarantor’s assets on
the date of any Relevant Payment exceeds its existing debts and other
liabilities (including contingent liabilities, but without giving effect to any
Guaranteed Obligations arising under this Guaranty or any guaranteed
obligations arising under any guaranty of the Senior Notes) on such date.  All parties hereto recognize and agree that,
except for any right of contribution arising pursuant to this Section 21, each
Guarantor who makes any payment in respect of the Guaranteed Obligations shall
have no right of contribution or subrogation against any other Guarantor in
respect of such payment until all of the Guaranteed Obligations have been
irrevocably paid in full in cash.  Each
of the Guarantors recognizes and acknowledges that the rights to contribution
arising hereunder shall constitute an asset in favor of the party entitled to
such contribution.  In this connection,
each Guarantor has the right to waive its contribution right against any
Guarantor to the extent that after giving effect to such waiver such Guarantor
would remain solvent, in the determination of the Required Lenders.

 

22.  Each
Guarantor and each Secured Creditor (by its acceptance of the benefits of this
Guaranty) hereby confirms that it is its intention that this Guaranty not
constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy
Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer
Act or any similar Federal or state law. 
To effectuate the foregoing intention, each Guarantor and each Secured
Creditor (by its acceptance of the benefits of this Guaranty) hereby
irrevocably agrees that the Guaranteed Obligations guaranteed by such Guarantor
shall be limited to such amount as will, after giving effect to such maximum
amount and all other (contingent or otherwise) liabilities of such Guarantor
that are relevant under such laws and after giving effect to any rights to
contribution pursuant to any agreement providing for an equitable contribution
among such Guarantor and the other Guarantors, result in the Guaranteed
Obligations of such Guarantor in respect of such maximum amount not constituting
a fraudulent transfer or conveyance.    

 

23.  This
Guaranty may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original (including if delivered by facsimile
transmission), but all of which shall together constitute one and the same
instrument.  A set of counterparts
executed by all the parties hereto shall be lodged with the Guarantors and the
Administrative Agent.

 

24.  (a)
All payments made by any Guarantor hereunder will be made without setoff,
counterclaim or other defense, will be made in the currency or currencies in
which the respective Guaranteed Obligations are then due and payable and will
be made on the same basis as payments are made by the Borrower under Sections
4.03 and 4.04 of the Credit Agreement.

 

(b)
The Guarantors’ obligations hereunder to make payments in the respective
currency or currencies in which the respective Guaranteed Obligations are
required to be paid (such currency being herein called the “Obligation Currency”)
shall not be discharged or satisfied by any tender or recovery pursuant to any
judgment expressed in or converted into any currency other than the Obligation
Currency, except to the extent that such tender or recovery results in the
effective receipt by the Administrative Agent, the Collateral Agent or the
respective other

 

12

 

Secured Creditor
of the full amount of the Obligation Currency expressed to be payable to the
Administrative Agent, the Collateral Agent or such other Secured Creditor under
this Guaranty or the other Credit Documents or any Interest Rate Protection
Agreement or Other Hedging Agreement, as applicable.  If for the purpose of obtaining or enforcing
judgment against any Guarantor in any court or in any jurisdiction, it becomes
necessary to convert into or from any currency other than the Obligation
Currency (such other currency being hereinafter referred to as the “Judgment
Currency”) an amount due in the Obligation Currency, the conversion shall be
made, at the rate of exchange (quoted by the Administrative Agent, determined,
in each case, as of the date immediately preceding the day on which the
judgment is given (such Business Day being hereinafter referred to as the “Judgment
Currency Conversion Date”).

 

(c)  If there is a change in the rate of exchange
prevailing between the Judgment Currency Conversion Date and the date of actual
payment of the amount due, the Guarantors jointly and severally covenant and
agree to pay, or cause to be paid, such additional amounts, if any (but in any
event not a lesser amount), as may be necessary to ensure that the amount paid
in the Judgment Currency, when converted at the rate of exchange prevailing on
the date of payment, will produce the amount of the Obligation Currency which
could have been purchased with the amount of Judgment Currency stipulated in
the judgment or judicial award at the rate or exchange prevailing on the
Judgment Currency Conversion Date. 

 

(d)  For purposes of determining the Relevant
Currency Equivalent or any other rate of exchange for this Section 24, such
amounts shall include any premium and costs payable in connection with the
purchase of the Obligation Currency.

 

25.  It
is understood and agreed that any Subsidiary of the Borrower that is required
to execute a counterpart of this Guaranty after the date hereof pursuant to the
Credit Agreement shall automatically become a Guarantor hereunder by executing
a counterpart hereof and/or a Subsidiary assumption agreement, in each case in
form and substance satisfactory to the Administrative Agent, and delivering the
same to the Administrative Agent.

 

* 
*  *

 

13

 

IN WITNESS WHEREOF, each
Guarantor has caused this Guaranty to be executed and delivered as of the date
first above written.

 

	
   

  	
  GMR TRADER (LIBERIA)
  LLC,

  
	
   

  	
  GMR ADMINISTRATION
  CORP.,

  
	
   

  	
  as
  Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John C.
  Georgiopoulos

  	
   

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GMR AGAMEMNON LLC,

  
	
   

  	
  GMR AJAX LLC,

  
	
   

  	
  GMR ALEXANDRA LLC,

  
	
   

  	
  GMR ALTA LLC,

  
	
   

  	
  GMR ARGUS LLC,

  
	
   

  	
  GMR ARISTON LLC,

  
	
   

  	
  GMR BOSS LLC,

  
	
   

  	
  GMR CENTAUR LLC,

  
	
   

  	
  GMR CHALLENGER LLC,

  
	
   

  	
  GMR CHAMP LLC,

  
	
   

  	
  GMR COMMANDER LLC,

  
	
   

  	
  GMR CONQUEROR LLC,

  
	
   

  	
  GMR CONSTANTINE LLC,

  
	
   

  	
  GMR DEFIANCE LLC,

  
	
   

  	
  GMR ENDURANCE LLC,

  
	
   

  	
  GMR GABRIEL LLC,

  
	
   

  	
  GMR GEORGE LLC,

  
	
   

  	
  GMR GULF LLC,

  
	
   

  	
  GMR HARRIET LLC,

  
	
   

  	
  GMR HECTOR LLC,

  
	
   

  	
  GMR HONOUR LLC,

  
	
   

  	
  GMR HOPE LLC,

  
	
   

  	
  GMR HORN LLC,

  
	
   

  	
  GMR KESTREL LLC,

  
	
   

  	
  GMR LEONIDAS LLC,

  
	
   

  	
  GMR MACEDON LLC,

  
	
   

  	
  as
  Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John C.
  Georgiopoulos

  	
   

  
	
   

  	
   

  	
  Title:   Vice President

  

 

14

 

	
   

  	
  GMR MINOTAUR LLC,

  
	
   

  	
  GMR NESTOR LLC,

  
	
   

  	
  GMR ORION LLC,

  
	
   

  	
  GMR PERICLES LLC,

  
	
   

  	
  GMR PHOENIX LLC,

  
	
   

  	
  GMR PRINCESS LLC,

  
	
   

  	
  GMR PROGRESS LLC,

  
	
   

  	
  GMR PROMETHEUS LLC,

  
	
   

  	
  GMR REVENGE LLC,

  
	
   

  	
  GMR SKY LLC,

  
	
   

  	
  GMR SPARTIATE LLC,

  
	
   

  	
  GMR SPIRIT LLC,

  
	
   

  	
  GMR SPYRIDON LLC,

  
	
   

  	
  GMR STAR LLC,

  
	
   

  	
  GMR STRENGTH LLC,

  
	
   

  	
  GMR SUN LLC,

  
	
   

  	
  GMR TRADER LTD,

  
	
   

  	
  GMR TRANSPORTER LLC,

  
	
   

  	
  GMR TRAVELLER LLC,

  
	
   

  	
  GMR TRUST LLC,

  
	
   

  	
  GMR ZOE LLC,

  
	
   

  	
  as Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John C.
  Georgiopoulos

  	
   

  
	
   

  	
   

  	
  Title:   Vice President

  

 

15

 

	
  Accepted and Agreed to:

  
	
   

  
	
  NORDEA BANK FINLAND, NEW YORK BRANCH,

  
	
  as Administrative Agent

  
	
   

  
	
   

  
	
  By: 

  	
  /s/ Hans Chr. Kjelsrud

  	
   

  
	
  Title:
  Senior Vice President

  
	
   

  
	
   

  
	
  By: 

  	
  /s/ Alison B. Barber

  	
   

  
	
  Title: Vice President

  

 

16

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