Document:

Exhibit 10.115

 

Execution Copy

 

AMENDMENT NO. 2 TO

 

INVESTMENT AGREEMENT

 

This AMENDMENT NO. 2 (this “Amendment”) to the Investment Agreement dated as of March 29, 2011, as amended by Amendment No. 1 to Investment Agreement dated as of May 6, 2011 (as so amended, the “Original Agreement”), is entered into as of August 30, 2011 by and between OCM Marine Investments CTB, Ltd., a Cayman Islands exempt company (“Investor”), and General Maritime Corporation, a Marshall Islands corporation (the “Company”).  Each of the above referenced parties is sometimes herein referred to individually as a “Party” and collectively as the “Parties.”

 

WHEREAS, the Parties desire to amend the Original Agreement in accordance with the terms of this Amendment (the Original Agreement, as so amended by this Amendment, the “Agreement”); and

 

WHEREAS, Section 5.07 of the Original Agreement provides that no amendment of any provision of the Original Agreement shall be valid unless the same shall be in writing and signed by the Company and Investor.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein made, and in consideration of the representations, warranties, covenants and agreements herein contained, the Parties agree as follows:

 

1.             Section 4.05(b) of the Original Agreement.  The third sentence of  Section 4.05(b) of the Original Agreement is hereby amended and restated in its entirety as follows:

 

Except as provided in Section 4.05(f), the sale of the New Securities to each Eligible Holder shall be no later than concurrent with the sale of such New Securities to the other proposed purchaser(s) of such New Securities, and the purchase price therefor shall be payable by such Eligible Holder at the same time and in the same manner as payable by the other proposed purchaser(s) of such New Securities; provided that, if the Company accepts payment for any such New Securities in any form other than cash (U.S. dollars), each Eligible Holder shall have the option to make such payment in cash (U.S. dollars) (equal to the fair market value, at the time of the consummation of such sale, of the non-cash consideration being paid by the other proposed purchaser(s) of such New Securities) by wire transfer of immediately available funds to an account designated by the Company or in the form of such other consideration paid by the other purchaser(s); provided, further, that the sale of New Securities to any Eligible Holder may be delayed as reasonable necessary to obtain any required clearance, consent or approval of any Governmental Authority, including the passage or termination of any waiting period under the HSR Act or any comparable applicable non-U.S. competition or antitrust Law, it being understood that, with respect to any such required clearance, consent or approval, the Company shall cooperate with the Eligible Holder in accordance with Section 4.01.

 

 

2.             Section 4.05(e) of the Original Agreement.  The proviso contained in  Section 4.05(e) of the Original Agreement is hereby amended and restated in its entirety as follows:

 

“provided that, New Securities shall not include any such securities or other interests issued (i) as consideration in a bona fide business combination or acquisition (whether structured as a merger, consolidation or otherwise) (including in connection with acquisitions of vessels or other assets) by the Company or its Subsidiaries (and not to any Affiliates of the Company or any of its Subsidiaries or any members of the “immediate family” (as such term is defined in Rule 16a-1(e) under the Exchange Act) thereof or to any Affiliates of any of the foregoing), (ii) as “kickers” to lenders pursuant to bona fide third-party debt financings (and not to any Affiliates of the Company or any of its Subsidiaries or any members of the “immediate family” (as such term is defined in Rule 16a-1(e) under the Exchange Act) thereof or to any Affiliates of any of the foregoing), (iii) to any director, officer, employee or consultant of the Company or any of its Subsidiaries or joint ventures pursuant to the General Maritime Corporation 2001 Stock Incentive Plan as in effect on March 25, 2011, or any other compensatory plan or arrangement of the Company or any of its Subsidiaries approved by the Company Board or the Compensation Committee, (iv) pursuant to any stock splits, stock combinations, stock dividends, dividends of purchase rights or other securities and similar transactions, (v) upon conversion, exchange or exercise of any securities previously issued in compliance with this Section 4.05; provided that the express terms of such previously issued securities, as such terms existed on the date of issuance of such securities, provided for the conversion, exchange or exercise of such securities, as applicable (but regardless of whether or not such previously issued securities were actually convertible, exchangeable or exercisable as of their date of issuance), (vi) upon conversion, exchange or exercise of any securities previously issued and in respect of which the Eligible Holders were not entitled to participate under this Section 4.05 because such securities were excluded from the definition of “New Securities” by any of clauses (i), (ii), (iii) or (iv) of this paragraph; provided that the express terms of such previously issued securities, as such terms existed on the date of issuance of such securities, provided for the conversion, exchange or exercise of such securities, as applicable (but regardless of whether or not such previously issued securities were actually convertible, exchangeable or exercisable as of their date of issuance), (vii) upon conversion, exchange or exercise of any securities outstanding on the date of this Agreement or on the Closing Date; provided that the express terms of such previously issued securities, as such terms existed on the date of issuance of such securities, provided for the conversion, exchange or exercise of such securities, as applicable (but regardless of whether or not such previously issued securities were actually convertible, exchangeable or exercisable as of their date of issuance), (viii) to the extent such securities or other interests constitute Public Offering Securities (it being understood that, with respect to any Public Offering Securities, the provisions of Section 4.05(g) shall govern), or (ix) to any Registered Holder (as defined in the Warrants) pursuant to Section 2A or 2B of the Warrants.”

 

3.             Section 2B(i) of the Form of Warrant attached as Exhibit B to the Original Agreement.  Section 2B(i) of the Form of Warrant attached as Exhibit B to the Original Agreement is hereby amended and restated by inserting the words “the consummation of” in the sixth line thereof immediately following the words “then immediately upon” and immediately

 

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preceding the words “such issuance or sale or deemed issuance or sale” (so that such amended and restated provision shall provide as follows:  “then immediately upon the consummation of such issuance or sale or deemed issuance or sale”).

 

4.             Section 2C of the Form of Warrant attached as Exhibit B to the Original Agreement.  Section 2C of the Form of Warrant attached as Exhibit B to the Original Agreement is hereby amended and restated in its entirety as follows:

 

“2C.        Notwithstanding anything contained herein to the contrary, there shall be no adjustment to the number of shares of Common Stock obtainable upon exercise of any Warrant with respect to (i) the granting of shares of restricted or unrestricted Common Stock, stock options, stock appreciation rights, dividend equivalent rights or performance shares (or, as applicable, the exercise thereof) to any director, officer, employee or consultant of the Company or any of its Subsidiaries or joint ventures pursuant to the General Maritime Corporation 2001 Stock Incentive Plan as in effect on March 25, 2011, or any other compensatory plan or arrangement of the Company or any of its Subsidiaries approved by the Company Board or the Compensation Committee of the Company Board (the “Compensation Committee”), (ii) Common Stock issued or issuable upon exercise of the Warrants or in respect of any Purchase Rights granted, issued or sold to the holder of this Warrant pursuant to Section 4, (iii) the issuance of any Common Stock or other securities upon conversion, exchange or exercise of any securities outstanding on the date hereof; provided that the express terms of such previously issued securities, as such terms existed on the date of issuance of such securities, provided for the conversion, exchange or exercise of such securities, as applicable (but regardless of whether or not such previously issued securities were actually convertible, exchangeable or exercisable as of their date of issuance), or (iv) the issuance of any additional Warrants pursuant to Section 2A or 2B.”

 

5.             Section 5 of the Form of Warrant attached as Exhibit B to the Original Agreement.  Section 5 of the Form of Warrant attached as Exhibit B to the Original Agreement is hereby amended and restated in its entirety as follows:

 

“Section 5.            No Duplication.  Notwithstanding anything contained herein to the contrary, if the provisions of more than one sub-section of Section 2 (including Sections 2A, 2B, 2C and 2D), Section 3 or Section 4 could require, in connection with a single transaction or issuance, an adjustment to the number of shares of Common Stock obtainable upon exercise of this Warrant and/or issuance of additional Warrants, rights or securities to the Registered Holder under this Warrant, only one such provision shall apply, without duplication, and only one adjustment or issuance shall be made in connection therewith (it being understood, for the avoidance of doubt, that with respect to any single transaction, the holder of this Warrant may be entitled either to such an adjustment or to the issuance of additional rights or securities, as is more favorable to the holder, as determined by the Requisite Holders, but not both), and there shall be no adjustment or issuance of rights or other securities to the Registered Holder pursuant to this Warrant with respect to (i) the granting of shares of restricted or unrestricted Common Stock, stock options, stock appreciation rights, dividend equivalent rights or performance shares (or, as applicable, the exercise thereof) to any director, officer,

 

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employee or consultant of the Company or any of its Subsidiaries or joint ventures pursuant to the General Maritime Corporation 2001 Stock Incentive Plan as in effect on March 25, 2011, or any other compensatory plan or arrangement of the Company or any of its Subsidiaries approved by the Company Board or the Compensation Committee, (ii) Common Stock issued or issuable upon exercise of the Warrants or in respect of any Purchase Rights granted, issued or sold to the holder of this Warrant pursuant to Section 4, (iii) the issuance of any Common Stock or other securities upon conversion, exchange or exercise of any securities outstanding on the date hereof; provided that the express terms of such previously issued securities, as such terms existed on the date of issuance of such securities, provided for the conversion, exchange or exercise of such securities, as applicable (but regardless of whether or not such previously issued securities were actually convertible, exchangeable or exercisable as of their date of issuance), or (iv) the issuance of any additional Warrants pursuant to Section 2A or 2B.”

 

6.             Miscellaneous.

 

(a)           Construction.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.  The language used in this Amendment shall be deemed to be the language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against either Party.  If either Party has breached any covenant or agreement contained in this Amendment in any respect, the fact that there exists another covenant or agreement relating to the same subject matter (regardless of the relative levels of specificity) which such Party has not breached shall not detract from or mitigate the fact that such Party is in breach of the first covenant or agreement.

 

(b)           Interpretation.  Unless the context of this Amendment otherwise requires, (i) words of any gender include each other gender, (ii) words using the singular or plural number also include the plural or singular number, respectively, (iii) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Amendment; (iv) the terms “Article” or “Section” refer to the specified Article or Section of the Agreement and (v) the word “including” means “including without limitation.”

 

(c)           Governing Law.  This Amendment shall be governed by and construed and enforced in accordance with the internal laws of the State of New York applicable to agreements made and to be performed entirely within such state, including Section 5-1401 of the New York General Obligations Law.

 

(d)           WAIVER OF JURY TRIAL.  THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  THE PARTIES AGREE THAT EITHER OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT BETWEEN THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY

 

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AND THAT ANY ACTION OR PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AMENDMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

(e)           Jurisdiction and Venue.  Each Party consents to the jurisdiction and venue of the United States federal and state courts in the Borough of Manhattan, City of New York, for any action, suit or proceeding arising from or in connection with the interpretation or enforcement of this Amendment.

 

(f)            Counterparts.  This Amendment may be executed in counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument.  This Amendment and any amendments hereto, to the extent signed and delivered by means of digital imaging and electronic mail or a facsimile machine, shall be treated in all manner and respects as an original contract and shall be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person.

 

(g)           Effect of this Amendment.  Except as expressly set forth in this Amendment, all of the provisions of the Original Agreement shall remain in full force and effect in accordance with their terms, and this Amendment shall reaffirm the Original Agreement in all respects.  This Amendment shall be deemed to have effect as of, and from and after, the date of the Original Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first above written.

 

	
 
    	
GENERAL   MARITIME CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey D. Pribor
    
	
 
    	
 
    	
Name:
    	
Jeffrey   D. Pribor
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President, Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
OCM   MARINE INVESTMENTS CTB, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Oaktree   Capital Management, L.P.
    
	
 
    	
Its:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   B. James Ford
    
	
 
    	
 
    	
Name:   B. James Ford
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Adam C. Pierce
    
	
 
    	
 
    	
Name:   Adam C. Pierce
    
	
 
    	
 
    	
Title:   Senior Vice President
    

 

 

[Signature Page — Amendment No. 2 to GMR Investment Agreement]EXHIBIT 10.34

 

Summary of Executive Bonus Plans

(adopted March 14, 2012)

 

On March 14, 2012, our Board of Directors approved and adopted a new executive incentive bonus plan and certain additional separate individual bonus plans for our executive officers to be effective for the fiscal year ending December 31, 2012. The new executive bonus plans were approved and recommended to the Board of Directors by the Compensation Committee after consideration by the Committee of our compensation philosophies, principles and processes as described in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2010 filed with the Securities and Exchange Commission on April 29, 2011. These philosophies, principles and processes provide for periodic review by the Committee of the performance of our executive officers, the components of their compensation and the effectiveness of our compensation programs in rewarding the contributions of our executive officers towards enhancing our specific business goals while retaining and motivating high quality individuals. In adopting the new executive bonus plans for the fiscal year ending December 31, 2012, the Committee considered a 2010 report from an independent third party compensation consultant, Towers Watson, together with other recent competitive market data.

 

The general executive bonus plans cover the following executive officers, with applicable incentive targets under the plans indicated as a percentage of base salary for each as follows:

 

	
Name
    	
 
    	
Title
    	
 
    	
Total Target
    	
 
    	
Executive
   Quantitative Plan
   % of Target
    	
 
    	
Executive
   Qualitative Plans
   % of Target
    	
 
    
	
Frank Khulusi
    	
 
    	
Chairman and Chief Executive Officer
    	
 
    	
50% of base salary
    	
 
    	
100
    	
%
    	
0
    	
%
    
	
Mark McGrath
    	
 
    	
President
    	
 
    	
50% of base salary
    	
 
    	
100
    	
%
    	
0
    	
%
    
	
Brandon LaVerne
    	
 
    	
Chief Financial Officer
    	
 
    	
40% of base salary
    	
 
    	
100
    	
%
    	
0
    	
%
    
	
Kristin Rogers
    	
 
    	
EVP, Sales and Marketing
    	
 
    	
40% of base salary
    	
 
    	
67
    	
%
    	
33
    	
%
    
	
Rob Newton
    	
 
    	
EVP, General Counsel
    	
 
    	
40% of base salary
    	
 
    	
0
    	
%
    	
100
    	
%(1)
    
	
Joseph Hayek
    	
 
    	
EVP, Corporate Development and Investor Relations
    	
 
    	
40% of base salary
    	
 
    	
100
    	
%(2)
    	
0
    	
%
    

 

(1)          Mr. Newton does not participate in the executive quantitative plan based on an agreement between the company and Mr. Newton, which was originally entered into in June of 2004 in an effort to avoid any conflict of interest in the outcome of his legal advice to the company.

(2)          Mr. Hayek’s plan calls for a minimum annual payment under his bonus plan of 20% of his base salary, regardless of quantitative achievement.

 

Executive Quantitative Plan

 

The executive quantitative plan will be funded at the above amounts if the company achieves 100% of a target of EBITDA for the 2012 calendar year. EBITDA is defined under the plan as earnings before interest, taxes, depreciation and amortization, and adjusted for non-recurring special charges, if any, to be excluded from the calculation of EBITDA in the discretion of the Compensation Committee, including, but not limited to non-cash adjustments such as goodwill and intangible asset adjustments, material unforeseen litigation and restructuring and related severance costs.

 

The plan also has a minimum EBITDA for any quantitative incentive bonuses to be paid under the plan and contains incentive bonus decelerators based on performance below the performance target. If the company’s performance falls below the performance target, but is at least 90% of the performance target, the incentive bonuses may be reduced by a percentage of the incentive bonus target equal to two times the percentage points by which EBITDA falls below the performance target. For example, if the company achieves 90% of the performance target, incentive bonuses under the plan may be funded at 80% of the target incentive bonus amounts described above.

 

Additional decelerators will apply if the company’s performance is between 80% and 90% of the performance target.  In such event, in addition to the first decelerator described above for performance between 90% and 100% of the performance target, the incentive bonus amounts may be further decreased by an additional eight times the percentage points by which EBITDA falls below 90% of the performance target.  For example, if the company achieves 85% of the performance target, incentive bonuses under the plan may be funded at 40% of the incentive bonus amounts described above.  If the company achieves less than 80% of the performance target, the plan will not be funded, and no incentive bonuses will be paid under the plan.

 

 

The plan also contains accelerators under which the incentive bonus amounts can exceed the above described target incentive bonus amounts. If the company’s performance is between 100% and 110% of the performance target, the incentive bonuses may be increased at a rate of two times the percentage points by which EBITDA exceeds 100% of the performance target.  For example, if the company achieves 110% of the performance target, the incentive bonuses may be paid at 120% of the above described incentive bonus target amounts.

 

Additional accelerators are available if the company’s performance is between 111% and 120% of the performance target. In such event, in addition to the first accelerator described above for performance between 100% and 110% of the performance target, the incentive bonus amounts may be further increased by an additional four times the percentage points by which the performance target exceeds 110%. For example, if the company achieves 120% of the performance target, the plan may be funded and incentive bonuses paid at 160% of the above described incentive bonus target amounts.

 

Further accelerators are available if the company’s performance is between 121% and 127% of the performance target.  In such event, in addition to the two accelerators described above for performance between 100% and 120% of the performance target, the incentive bonus amounts may be further increased by an additional six times the percentage points by which the performance target exceeds 120%.  For example, if the company achieves 125% of the performance target, the plan may be funded and incentive bonuses paid at 190% of the above described incentive bonus target amounts, with a maximum funding of 202% of the incentive bonus targets. If the company achieves 127% or more of the performance target, the plan may be funded and incentive bonuses paid at 202% of the above described incentive bonus target amounts.

 

Individual Qualitative Plans

 

In addition to any incentive earned under the executive quantitative plan above, Ms. Rogers and Mr. Newton each have certain individual qualitative targets that are tailored for their respective responsibilities to the company based on recommendations made by the CEO and approved by the Compensation Committee and shall be paid quarterly or annually in the discretion of the Compensation Committee.

 

General Terms

 

All amounts funded under the any of the above plans may be increased or reduced for each executive officer at the sole discretion of the Compensation Committee based upon qualitative or quantitative factors which the Compensation Committee may deem appropriate from time to time. In addition to participation in the above described plans, all of our executive officers are eligible for additional discretionary bonuses as determined from time to time by our Compensation Committee.  No bonus is earned until it is paid under any of these plans. Therefore, in the event the employment of an executive eligible under these plans is terminated (either by the company or by the eligible executive, whether voluntarily or involuntarily) before a bonus is paid, the executive will not be deemed to have earned that bonus and will not be entitled to any portion of that bonus.

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