Document:

gnk_Ex10_9

		
			Exhibit 10.9
		

		
			 
		

		
			To:         GENCO SHIPPING & TRADING LIMITED, a borrower organised and existing under the laws of the Republic of the Marshall Islands (the “Borrower”) for itself and as agent for each of the other Obligors party to the Facility Agreement (as defined below)
		

		
			 
		

		
			For the attention of: 
		

		
			 
		

		
			3 June 2016
		

		
			 
		

		
			Dear Sirs
		

		
			 
		

		
			Facility agreement dated 12 August 2010 made between (i) the Borrower, (ii) the banks and financial institutions listed in Schedule I thereto as Lenders (iii) the Guarantors listed in Schedule 2 thereto and (iv) Crédit Agricole Corporate and Investment Bank in its capacity both as Agent and Security Trustee (as amended and restated on 9 July 2014 and amended and/or restated from time to time) (the "Facility Agreement").
		

		
			 
		

		
			1.BACKGROUND
		

		
			 
		

		
			(a)          We refer to the letter dated 29 March 2016 from the Agent to the Borrower regarding a waiver of clause 16.1 of the Facility Agreement which was amended and extended pursuant to (i) a letter from the Agent to the Borrower dated 11 April 2016 and (ii) a letter from the Agent to the Borrower dated 31 May 2016 (the "Waiver Letter").
		

		
			 
		

		
			(b)          In accordance with the instructions of the Majority Lenders, the purpose of this letter (the "letter") is to extend the waiver granted pursuant to the Waiver Letter.
		

		
			 
		

		
			2.Interpretation
		

		
			 
		

		
			2.1         Capitalised terms defined in the Facility Agreement and the Waiver Letter have the same meaning when used in this letter unless expressly defined in this letter, and:
		

		
			 
		

		
			"Effective Date" means the date on which we confirm to the Borrower that we have received an acknowledgement and agreement to the terms of this letter signed by each Obligor.
		

		
			 
		

		
			2.2         The provisions of clause 1.2 (Construction of certain terms) of the Facility Agreement apply to this letter as though they were set out in full in this letter with all necessary consequential changes and with references in that clause to the Facility Agreement being construed as references to this letter.
		

		
			 
		

		
			3.Capacity
		

		
			 
		

		
			This letter is provided by us in our capacity as Agent under the Facility Agreement, acting (where required) on the instructions of the Majority Lenders pursuant to clause 26 (Variations and Waivers) of the Facility Agreement.
		

		
			
		

		
			

		 

		

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			4.EXTENSION
		

		
			 
		

		
			4.1With effect from the Effective Date the Security Cover Waiver Period referred to in the Waiver Letter shall be extended until the earlier of:
		

		
			 
		

		
			(a)          8 June 2016 at 23:59 (New York time);
		

		
			 
		

		
			(b)          the Security Cover Waiver being automatically terminated in accordance with paragraph 7 (Termination of Security Cover Waiver) of the Waiver Letter; and
		

		
			 
		

		
			(c)          during the Security Cover Waiver Period, the date on which, any Group Member:
		

		
			 
		

		
			(i)makes a payment, repayment or prepayment of any principal of a loan to any of its lenders or other creditors other than:
		

		
			 
		

		
			(A)         any indebtedness owed to the lenders as and when they fall due under the Hornet Credit Facility or the Wasp Credit Facility;
		

		
			 
		

		
			(B)         the approximately $1.65 million amortisation payment on 31 May 2016 under the $150 million Secured Loan Agreement dated as of April 7, 2015 between (amongst others) certain subsidiaries of the Borrower and ABN AMRO Capital USA LLC;
		

		
			 
		

		
			(C)         the $375,000 amortisation payment on 6 June 2016 under the $22 million secured loan agreement dated 30 August 2013 between (amongst others) Baltic Hare Limited and Baltic Fox Limited (as borrowers), DVB Bank SE (as lender, agent and security agent); and
		

		
			 
		

		
			(D)         any inter-company indebtedness by and among Group Members in the ordinary course of business; or
		

		
			 
		

		
			(ii)creates any security or gives any guarantee or other commitment or credit support (or procures or allows any of its Affiliates to do so) in favour of any lender or other creditor of any Group Member (other than cross collateralisation of facilities to the same lender for security maintenance purposes).
		

		
			 
		

		
			For the purposes of this letter:
		

		
			 
		

		
			"Affiliate" means in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company;
		

		
			 
		

		
			"Holding Company" means, in relation to a person, any other person in respect of which it is a Subsidiary;
		

		
			 
		

		
			"Hornet Credit Facility" means the secured loan agreement dated 8 October 2014 (as amended and supplemented from time to time) made between Baltic
		

		
			
		

		
			

		 

		

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Hornet Limited as borrower, the banks listed in schedule 1 thereto as lenders, AMRO Capital USA LLC, as MLA, agent and security agent, ABN AMRO Bank N.V. Singapore Branch, as Sinosure Agent and ABN AMRO Bank N.V., as swap provider;
		

		
			 
		

		
			"Wasp Credit Facility" means the secured loan agreement dated 8 October 2014 (as amended and supplemented from time to time) made between Baltic Wasp Limited as borrower, the banks listed in schedule 1 thereto as lenders, ABN AMRO Capital USA LLC, as MLA, agent and security agent, ABN AMRO Bank N.V. Singapore Branch, as Sinosure Agent and ABN AMRO Bank N.V., as swap provider.
		

		
			 
		

		
			4.2All other terms of the Waiver Letter continue to apply and remain in full force and effect.
		

		
			 
		

		
			5.Reservation of Rights
		

		
			 
		

		
			Save as expressly set out in this letter, this letter does not (and shall not be deemed to) constitute a waiver in respect of the provisions of any Finance Document or any breach thereof. Each Creditor Party reserves any right or remedy it has now or in the future in respect of any Default which arises from any circumstances and which is continuing as at the expiry of the Security Cover Waiver Period.
		

		
			 
		

		
			6.Confirmations
		

		
			 
		

		
			Without prejudice to the rights of any Creditor Party which have arisen on or before the Effective Date:
		

		
			 
		

		
			(a)          each Creditor Party and each Obligor confirms that the Facility Agreement and Waiver Letter, as amended by this letter, remains in full force and effect on and after the Effective Date; and
		

		
			 
		

		
			(b)          each Guarantor confirms that its guarantee and indemnity under clause 9 (Guarantee and Indemnity) of the Facility Agreement and its liabilities under the Security Documents to which it is a party shall have effect on and after the Effective Date in relation to the liabilities of each Obligor under the Facility Agreement as amended and restated under this letter.
		

		
			 
		

		
			7.Representations and Warranties
		

		
			 
		

		
			As at the Effective Date, each Obligor represents and warrants to each Creditor Party that the repeating representations contained in clause 11.1 and 11.2 (Representations) of the Facility Agreement are true and correct.
		

		
			 
		

		
			8.Designation and effect
		

		
			 
		

		
			This letter is a Finance Document and any breach of this letter shall constitute an Event of Default.
		

		
			
		

		
			

		 

		

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9.Third Party Rights
		

		
			 
		

		
			This letter does not confer any rights on any person or party (other than the signatories to this letter) under the Contracts (Rights of Third Parties) Act 1999.
		

		
			 
		

		
			10.Counterparts
		

		
			 
		

		
			This letter may be executed in counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of this letter.
		

		
			 
		

		
			11.Governing Law and Jurisdiction
		

		
			 
		

		
			This letter and any dispute or claim arising out of or in connection with it or its subject matter, whether of a contractual or non-contractual nature, shall be governed by and construed in accordance with the law of England and Wales.  The courts of England and Wales shall have exclusive jurisdiction to settle any dispute arising out of or in connection with this letter.
		

		
			 
		

		
			
		

		
			

		 

		

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			SIGNATORIES
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by 

					
					
						)

					
					
						/s/ Yannick Le Gourieres

				
	
					
						for and on behalf of CRÉDIT AGRICOLE 

					
					
						)

					
					
						Yannick Le Gourieres

				
	
					
						CORPORATE AND INVESTMENT BANK 

					
					
						)

					
					
						Director

				
	
					
						as Agent and Security Agent and for and 

					
					
						)

					
					
						/s/Irina Benimovich

				
	
					
						on behalf of the Majority Lenders as 

					
					
						)

					
					
						Irina Benimovich

				
	
					
						defined in the Facility Agreement

					
					
						)

					
					
						Senior Associate

				

		
			 
		

		
			
		

		
			

		 

		

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[On counterpart]
		

		
			June 3, 2016
		

		
			We agree with the terms of this letter.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						BORROWER

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by

					
					
						)

					
					
						 

				
	
					
						for and on behalf of GENCO SHIPPING &

					
					
						)

					
					
						/s/ Apostolos Zafolias

				
	
					
						TRADING LIMITED

					
					
						)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						GUARANTORS

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by

					
					
						)

					
					
						 

				
	
					
						for and on behalf of GENCO BAY

					
					
						)

					
					
						/s/ Apostolos Zafolias

				
	
					
						LIMITED

					
					
						)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by

					
					
						)

					
					
						 

				
	
					
						for and on behalf of GENCO OCEAN

					
					
						)

					
					
						/s/ Apostolos Zafolias

				
	
					
						LIMITED

					
					
						)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by

					
					
						)

					
					
						 

				
	
					
						for and on behalf of GENCO AVRA

					
					
						)

					
					
						/s/ Apostolos Zafolias

				
	
					
						LIMITED

					
					
						)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by

					
					
						)

					
					
						 

				
	
					
						for and on behalf of GENCO MARE

					
					
						)

					
					
						/s/ Apostolos Zafolias

				
	
					
						LIMITED

					
					
						)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by

					
					
						)

					
					
						 

				
	
					
						for and on behalf of GENCO SPIRIT

					
					
						)

					
					
						/s/ Apostolos Zafolias

				
	
					
						LIMITED

					
					
						)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by

					
					
						)

					
					
						 

				
	
					
						for and on behalf of GENCO SUGAR

					
					
						)

					
					
						/s/ Apostolos Zafolias

				
	
					
						LIMITED

					
					
						)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SIGNED by

					
					
						)

					
					
						 

				
	
					
						for and on behalf of GENCO PROSPERITY

					
					
						)

					
					
						/s/ Apostolos Zafolias

				
	
					
						LIMITED

					
					
						)

					
					
						 

				

		
			 
		

		 

		

			6Exhibit

Exhibit 10.1

AMENDMENT TO
FEDERAL HOME LOAN BANK OF DALLAS
INCENTIVE PLANS

Effective August 3, 2016, the incentive compensation plans of the Federal Home Loan Bank of Dallas are amended as described in the following sections.

1.    Amended Plans.  The amendments described in Sections 2 and 3 below shall apply to the following Federal Home Loan Bank of Dallas (“Bank”) incentive plans (individually, a “Plan,” and collectively, the “Plans”):

a.    2014 Long Term Incentive Plan;
b.    2015 Long Term Incentive Plan;
c.    2016 Long Term Incentive Plan; and
d.      2016 Variable Pay Program.

The Plans listed in a, b and c above are referred to in this Amendment as the “Long Term Incentive Plans,” or individually as a “Long Term Incentive Plan.”  

2.    Amendments.

All of the Plans are amended by the addition of the new provision in Section 3.a. below and all of the Long Term Plans are amended by the addition of the new provision in Section 3.b. below.

3.    New Provisions.

a.    Clawback Provision.  

If, within 3 years after an incentive has been paid or calculated as owed to a participant under a Plan who is a voting member of the Bank’s Executive Management Committee, it is discovered that such amount was based on the achievement of financial or operational goals within the Plan that subsequently are deemed by the Bank to be inaccurate, misstated or misleading, the Bank’s Board of Directors (“Board”) shall review such incentive amounts paid or owed.  Inaccurate, misstated and/or misleading achievement of financial or operational goals shall be understood to include, but not be limited to, overstatements of revenue, income, capital, return measures and/or understatements of credit risk market risk, operational risk or expenses.

If the Board determines that an incentive amount paid or considered owed to a participant (the “Awarded Amount”) would have been a lower amount when calculated in the absence of the inaccurate, misstated and/or misleading achievement of financial or operational goals (the “Adjusted Amount”), the Board may, except as provided below, seek to recover to the fullest extent possible the difference between the Awarded Amount and the Adjusted Amount (the “Undue Incentive Amount”).

1

The Board may decide not to seek recovery of the Undue Incentive Amount if the Board determines that to do so would be unreasonable or contrary to the interests of the Bank.  In making such determination, the Board may take into account such considerations as it deems appropriate including, but not limited to, (i) whether the Undue Incentive Amount has an immaterial impact on the Bank; (ii) whether the participant engaged in any intentional or unlawful misconduct that contributed to the inaccurate, misstated and/or misleading information; (iii) whether the change in the applicable achievement level was a result of circumstances beyond the control of management; (iv) the likelihood of success in recovering the claimed Undue Incentive Amount under governing law and the cost and effort likely in the recovery efforts; and (v) whether seeking recovery could prejudice the interests of the Bank.  The decision by the Board to seek recovery of an Undue Incentive Amount need not be uniform among all participants.   The authority of the Board under this provision may be delegated to the Compensation and Human Resources Committee of the Board.

If the Board determines to seek recovery from a participant of any or all of the Undue Incentive Amount (the “Recovery Amount”) pursuant to this paragraph, it will make a written demand to the participant for repayment of the Recovery Amount.  If the participant does not provide repayment of the Recovery Amount within a reasonable period after receiving the written demand, and the Board determines that the participant is unlikely to do so, the Board may seek a court order requiring payment of the Recovery Amount by the participant.

b.    Participation in Plans.  

When an officer becomes a voting member of the Bank’s Executive Management Committee (through promotion or hiring) during the course of a performance period under a Long Term Incentive Plan, the officer will participate in the Plan on a pro rata basis based on the portion of the performance period that remains after the officer became a voting member of the Executive Management Committee.

*   *   *   *   *   *   *

If any provisions of the Plans are inconsistent with the above amendments, the above amendments will control.  In all other respects, the Plans are hereby confirmed and ratified.

Approved by the Board of Directors on 
July 21, 2016

2

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