Document:

Exhibit 10.14

  

 

 

	
  NORDEA

  437 Madison Avenue

  New York, New York 10022

  	
  DNB NOR BANK ASA

  200 Park Avenue

  New York, New York 10166

  
	
  CITIBANK, N.A.

  CITIGROUP GLOBAL MARKETS LIMITED

  388 Greenwich Street

  New York, New York 10013

  

 

 

	
   

  	
  July
  5, 2005

  

 

Genco Shipping & Trading
Limited

35 West 56th Street 

New York, NY 10019 

Attention:  John C. Wobensmith

 

Re  Revolving Credit
Facility - Commitment Letter

Ladies
and Gentlemen:

You
have informed Nordea, acting through Nordea Bank Finland Plc, New York Branch
(“Nordea”), DnB NOR Bank ASA, acting through its New York branch (“DnB”),
Citigroup Global Markets Limited (“CGML”) and Citibank, N.A. (“Citibank”
and, together with CGML, “Citigroup”) that Genco Shipping & Trading
Limited (the “Company”), a corporation organized under the laws of the
Marshall Islands intends to sell into the public market pursuant to an
effective registration statement shares of its common Stock (the “IPO”)
and, in connection with the IPO, refinance (the “Refinancing”) all of
the outstanding indebtedness under the existing credit agreement dated as of
December 3, 2004, among Fleet Acquisition LLC, the Company, various lenders and
Nordea Bank Finland Plc, New York Branch as Administrative Agent (as amended,
restated, modified or supplemented to, the “Existing Credit Agreement”).  It is our understanding that the Company
shall receive at least $230 million in net cash proceeds from the IPO.

In
order to finance the Refinancing, the ongoing working capital and general
corporate purposes of the Company and its subsidiaries following the
consummation of the Refinancing, and to finance the acquisition of additional
dry bulk carriers that are (w) between 25,000 and 180,000 dwt, (x) no greater
than 10 years in age upon acquisition and (y) in compliance with the
requirements of the Term Sheet referred to below (such vessels, the “Additional
Vessels”), the Company shall obtain the Credit Facility referred to
below.  In addition, the Additional
Vessels should be no greater than 18 years of age upon maturity of the Credit
Facility.  As used herein, the term “Transaction”
shall mean, collectively, the Refinancing, the IPO and the incurrence of all
indebtedness to fund the Refinancing under the Credit Facility and payment of
fees and expenses in connection with the foregoing.

It
is understood further that the Credit Facility shall consist of a (x) if the
net cash proceeds of the IPO are equal to or greater than $300 million, $550
million or (y) if the net cash proceeds of the IPO are less than $300 million,
$450 million revolving credit facility (the “Credit Facility”).  A summary of certain terms of the Credit
Facility is set forth in Exhibit A attached

 

 

hereto (the “Term Sheet”).  Please note that those matters that are not
covered or made clear herein, in the Term Sheet or the related fee letter of
even date herewith (the “Fee Letter”) are subject to mutual agreement of
the parties hereto and shall be consistent with this letter and the Term
Sheet.  The terms and conditions of this
commitment letter may be modified only in writing signed by each of the parties
hereto.

Subject
to the terms and conditions set forth herein and in the Term Sheet, each of
Nordea, DnB and Citibank is pleased to confirm that it hereby commits to
provide up to one third of a $550 million Credit Facility. In addition, (x) DnB
will act as sole Administrative Agent and Security Trustee for the Credit
Facility (in such capacity, the “Administrative Agent” and “Security
Trustee”, respectively and, together with Nordea and Citibank, the “Lenders”)
and Nordea and CGML will act as Joint Book Runners for a syndicate of
lenders who will participate in the Credit Facility and (y) Nordea, DnB and
CGML will act as Joint Lead Arrangers for the Credit Facility (in such
capacity, the “Lead Arrangers”). 
Nordea’s, DnB’s and Citibank’s
commitments hereunder are subject to (A) the accuracy and completeness of all
representations that the Company makes thereto and all information that the
Company furnishes to Nordea, DnB and/or Citigroup and (B) the Company’s compliance
with the terms of this letter, including, without limitation, the payment in
full of all fees, expenses and other amounts payable under this letter.  Notwithstanding anything to the
contrary contained above in this paragraph, in connection with the syndication
of the Credit Facility, the Lead Arrangers shall have the right to award one or
more of the roles or titles described above, or such other titles as may be
determined by the Lead Arrangers, to one or more other Lenders, in each case as
determined by the Lead Arrangers in consultation with you.  You agree that, except as contemplated by the
immediately preceding sentence, no other agents, co-agents or arrangers will be
appointed, no other titles will be awarded and no compensation (other than that
expressly contemplated by the Term Sheet and the Fee Letter) will be paid in
connection with the Credit Facility unless you and each Lead Arranger shall so
agree.

Nordea,
DnB and Citibank reserve the right, prior to or after execution of the
definitive credit documentation, to syndicate all or part of their commitments
hereunder to one or more other Lenders that will (i) be selected by the Joint
Book Runners in consultation with you and (ii) become party to such definitive
credit documentation pursuant to a syndication to be managed by the Joint Book
Runners in consultation with you.  You
agree that, upon delivery to Nordea, DnB or Citibank by another Lender of a
commitment letter in writing for the benefit of the Company for all or a
portion of the Credit Facility containing terms no less favorable to the
Company than the terms hereof, Nordea, DnB and/or Citibank, as the case may be,
shall be fully relieved of their obligations hereunder to the extent of the
commitments set forth in such commitment letter.  All aspects of the syndication, including,
without limitation, timing, prospective Lenders to be approached, titles,
allocations and division of fees, shall be determined by the Joint Book Runners
in consultation with you.  You agree to
actively assist the Joint Book Runners in such syndication, including by using
your commercially reasonable efforts to ensure that the syndication efforts
benefit materially from your existing lending relationships and to provide the
Joint Book Runners and the Lenders, promptly upon request, with all information
reasonably deemed necessary by the Joint Book Runners to complete successfully
the syndication, including, but not limited to, an information package for
delivery to prospective Lenders and participants in form and substance
reasonably satisfactory to the Joint Book Runners.  You also agree to make available your
representatives, and to cause the senior officers and representatives of the
Company to be available, in each case from time to time and to attend and make presentations
regarding the business and prospects of the Company and its subsidiaries

 

2

at a meeting or meetings of Lenders or
prospective Lenders at such times and places as the Joint Book Runners may reasonably
request.  Until such time as the Credit
Facility has been successfully syndicated, you and your subsidiaries shall each
agree not to, syndicate or issue, attempt to syndicate or issue, announce or
authorize the announcement of the syndication or issuance of, or engage in
discussions concerning the syndication or issuance of, any other debt
financings (including refinancings and renewals of debt) during the syndication
process unless otherwise agreed to by the Joint Book Runners.

You
represent, warrant and covenant that (i) no information which has been or is
hereafter furnished by you or on your behalf in connection with the Company or
the transactions contemplated hereby and (ii) no other information given at
information meetings for prospective Lenders and supplied or approved by you
(collectively, the “Information”) taken as a whole contained (or, in the
case of Information furnished after the date hereof, will contain), as of the
time it was (or hereafter is) furnished, any material misstatement of fact or
omitted (or will omit) as of such time to state any material fact necessary to
make the statements therein taken as a whole not misleading, in the light of
the circumstances under which they were (or hereafter are) made.  You agree to supplement the Information and
the Projections from time to time until the date of the initial borrowing under
the Credit Facility, as appropriate, so that the repre­sen­tations and warran­ties
in the preceding sentence remain correct. 
You under­stand that, in syndicating the Credit Facility, the Lead
Arrangers will use and rely on the Information without independent verifica­tion
thereof.

As
you are aware, Citibank and the Lead Arrangers have not yet had the opportunity
to complete their business and legal due diligence analysis.  Accordingly, Citibank’s and the Lead
Arrangers’ commitments and agreements hereunder are subject to the completion
of such business and legal due diligence analysis, and to each Lead Arranger’s
satisfaction with the results thereof. 
Furthermore, each of Nordea’s, DnB’s, CGML’s and Citibank’s commitments
and agreements hereunder are subject to (a) there not occurring or becoming
known to any Lead Arranger any condition or circumstance which any Lead
Arranger or the Required Lenders (as defined in the Term Sheet) shall determine
has had, or could reasonably be expected to have, a material adverse effect on
the Transaction or on the business, property, assets, condition (financial or
otherwise), operations or prospects of (x) the Company and the Guarantors (as
defined in the Term Sheet) taken as a whole (each, a “Material Adverse
Effect”), or (y) the rights or remedies of the Lenders or the ability of
the Company and its subsidiaries to perform their obligations to the Lenders
under the Credit Facility, (b) none of the Lead Arrangers becoming aware
(whether as a result of its due diligence analyses and review or otherwise)
after the date hereof of any information not previously known to either Lead
Arranger which such Lead Arranger believes has had, or could reasonably be
expected to have, a Material Adverse Effect, (c) the Lead Arrangers’ reasonable
satisfaction that prior to and during the syndication of the Credit Facility
and the consummation of the Transaction (the “Closing Date”) there shall
be no offering, placement or arrangement of any debt securities or bank
financing (including refinancings and renewals of debt) by or on behalf of the
Company or any of its subsidiaries, and (d) the other conditions set forth or
referred to herein or in the Term Sheet.

You
hereby agree that all reasonable fees and expenses (including the reasonable
fees and expenses of counsel and insurance consultants) of the Agents (as
defined below) and their respective affiliates arising in connection with this
letter (together with the Term Sheet, this “Commitment Letter”) and the
enforcement of their rights and remedies hereunder and in connection with the
Transaction and other transactions described herein (including in connection

 

3

with
our due diligence and syndication efforts) shall be for your account (and that
you shall from time to time upon request from the Agents reimburse it and its
affiliates for all such fees and expenses paid by them), whether or not the Credit
Facility are made available or definitive credit documents are executed; provided, however,
that other than reasonable expenses incurred in connection with a bank meeting,
none of the Agents shall incur any travel or lodging expenses in connection with
the negotiation, documentation and syndication of the Credit Facility without
your express prior approval.  You further
agree to indemnify and hold harmless each Agent (defined, for purpose of this
Commitment Letter, to include the Lead Arrangers and each other agent or
co-agent (if any) designated by the Lead Arrangers with respect to the Credit
Facility (each, an “Agent”), each Lender (including in any event Nordea,
DnB and Citibank) and their respective affiliates and each director, officer,
employee, representative and agent thereof (each, an “indemnified person”)
from and against any and all actions, suits, proceedings (including any
investigations or inquiries), claims, losses, damages, liabilities or expenses
of any kind or nature whatsoever which may be incurred by or asserted or
awarded against or involve any Agent, any Lender or any other such indemnified
person as a result of or arising out of or in any way related to or resulting
from this Commitment Letter (including, without limitation, in connection with
any investigation, litigation or proceeding or the preparation of a defense in
connection therewith) or the definitive documentation for the Credit Facility
or the transactions contemplated hereby or thereby or any actual or proposed
use of the proceeds of the Credit Facility and, upon demand, to pay and
reimburse each Agent, each Lender and each other indemnified person for any
legal or other out-of-pocket expenses incurred in connection with
investigating, defending or preparing to defend any such action, suit,
proceeding (including any inquiry or investigation) or claim (whether or not
any Agent, any Lender or any other such indemnified person is a party to any
action or proceeding out of which any such expenses arise and whether or not such
action or proceeding is brought by any Investor, the Company, any of their
respective directors, security holders or creditors, an indemnified person or
any other person); provided, however, that you shall not have to
indemnify any indemnified person against any loss, claim, damage, expense or
liability to the extent same resulted from the gross negligence or willful
misconduct of the respective indemnified person (as determined by a court of
competent jurisdiction in a final and non-appealable judgment).  This Commitment Letter is issued for your
benefit only and no other person or entity may rely hereon (except indemnified
persons to the extent set forth herein). 
Neither the Agents nor any other indemnified person shall be responsible
or liable to you or any other person or entity for (x) any determination made
by it pursuant to this Commitment Letter in the absence of gross negligence or
willful misconduct on the part of such person (as determined by a court of
competent jurisdiction in a final and non-appealable judgment) or (y) any
consequential, indirect, special or punitive damages which may be alleged as a
result of this Commitment Letter or the financing contemplated hereby.

Each
of us reserves the right to employ the services of its affiliates in providing
services contemplated by this Commitment Letter and to allocate, in whole or in
part, to its affiliates certain fees payable to us in
such manner as we and our affiliates may agree in our sole discretion.  You also agree that we may at any time and
from time to time assign all or any portion of our commitments hereunder to one
or more of our affiliates.  You further
acknowledge that the Lead Arrangers, for the purposes of the two preceding
sentences, may share with any of their affiliates, and such affiliates may
share with us, any information related to the Transaction, the Company (and
your and their respective subsidiaries and affiliates), or any of the matters
contemplated hereby.  Each of us agrees
to treat, and cause any such affiliate to treat, all non-public information
provided to it by the Company and its subsidiaries as confidential information
in accordance with customary banking industry practices (it being understood
and agreed that we

 

4

may provide
potential Lenders and their respective affiliates with the Information provided
by the Company and its subsidiaries in connection with the syndication of the
Credit Facility).

You
agree that this Commitment Letter is for your confidential use only and that,
unless the Lead Arrangers have otherwise consented, neither its existence nor
the terms hereof will be disclosed by you to any person or entity other than
the Investors and your and their respective officers, directors, employees,
accountants, attorneys and other advisors, and then only on a “need to know”
basis in connection with the transactions contemplated hereby and on a
confidential basis. Notwithstanding the foregoing, following your acceptance of
the provisions hereof and your return of an executed counterpart of this
Commitment Letter and the Fee Letter to us as provided below (i) you may make
public disclosure of the existence and amount of the commitments hereunder and
of the identity of the Lead Arrangers, (ii) you may file a copy of this
Commitment Letter (but not the Fee Letter) in any public record in which it is
required by law to be filed and (iii) you may make such other public disclosure
of the terms and conditions hereof as, and to the extent, you are required by
law, in the opinion of your counsel, to make. 
If this Commitment Letter is not accepted by you as provided below,
please immediately return this Commitment Letter (and any copies hereof) to the
undersigned.  Notwithstanding any other
provision in this letter, each Lead Arranger hereby confirms that the Company
and its directors, employees, officers, representatives and agents shall not be
limited from disclosing the U.S. tax treatment or U.S. tax structure of the
Credit Facility.

The
provisions of the three immediately preceding paragraphs shall survive any
termination of this Commitment Letter regardless of whether any definitive form
of documentation shall be executed and delivered, provided that, your
obligations under this Commitment Letter relating to indemnification shall
automatically terminate and be superseded by the provisions of the definitive
documentation relating to the Credit Facility upon the initial funding
thereunder, and you shall automatically be released from all indemnification
obligations under this Commitment Letter.

This
Commitment Letter and the Fee Letter (and your rights and obligations hereunder
and thereunder) shall not be assignable by you to any person or entity without
the prior written consent of each party hereto (and any purported assignment
without such consent shall be null and void). 
This Commitment Letter and the Fee Letter may not be amended or waived
except by an instrument in writing signed by you and us.  Each of this Commitment Letter and the Fee
Letter may be executed in any number of counterparts, each of which shall be an
original and all of which, when taken together, shall constitute one
agreement.  Delivery of an executed
signature page of this Commitment Letter or the Fee Letter by facsimile
transmission shall be effective as delivery of a manually executed counterpart
hereof or thereof, as the case may be.  The Company acknowledges that information and
documents relating to the Credit Facility may be transmitted through
Intralinks, the internet or similar electronic transmission systems.  This Commitment Letter and the Fee Letter
shall be governed by, and construed in accordance with, the laws of the State
of New York.  This Commitment Letter and
the Fee Letter set forth the entire agreement between the parties hereto as to
the matters set forth herein and supersede all prior communications, written or
oral, with respect to the matters herein.

EACH
OF THE PARTIES HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO
ANY CLAIM, ACTION, SUIT OR PROCEEDING ARISING OUT OF OR CONTEMPLATED BY THIS
COMMITMENT LETTER OR THE FEE LETTER.  YOU
HEREBY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE

 

5

FEDERAL
AND NEW YORK STATE COURTS LOCATED IN THE COUNTY OF NEW YORK IN CONNECTION WITH
ANY DISPUTE RELATED TO THIS COMMITMENT LETTER, THE FEE LETTER OR ANY MATTERS
CONTEMPLATED HEREBY OR THEREBY.

This
Commitment Letter, together with the Term Sheet and the Fee Letter, embodies
the entire agreement and understanding among the Agents, you and your
affiliates with respect to the Credit Facility and supersedes all prior
agreements and understandings relating to the subject matter hereof.

Our
willingness, and commitments, with respect to the Credit Facility as set forth
above will terminate on September 30, 2005, unless on or prior to such date a
definitive credit agreement evidencing the Credit Facility (together with
related financing and security documentation, the “Credit Documentation”),
in form and substance reasonably satisfactory to us and consistent with this
Commitment Letter and Term Sheet shall have been entered into and the initial
borrowing thereunder shall have taken place. 
Before such date, each of Nordea,
Citibank and DnB may terminate its respective commitment hereunder if any event
occurs or information becomes available that, in its judgment, results or is
likely to result in the failure to satisfy any of the conditions or
requirements with which the Company must comply, contained in this letter.

*  *  *

 

6

If
you are in agreement with the foregoing, please sign and return to Nordea the
enclosed copy of this Commitment Letter, together with a copy of the enclosed
Fee Letter, no later than 5:00 p.m., New York time, on July 5 2005.  Unless this Commitment Letter and the related
Fee Letter are signed and returned by the time and date provided in the
immediately preceding sentence, this Commitment Letter shall terminate at such
time and date.

 

	
   

  	
  Very truly yours,

  
	
   

  	
  NORDEA, acting through
  Nordea Bank Finland

  Plc, New York Branch

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Hans Chr. Kjelsrud

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Hans Chr. Kjelsrud

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  

 

	
   

  	
  By

  	
  /s/ Alison B. Barber

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Alison B. Barber

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  

 

	
   

  	
  DnB
  NOR BANK ASA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Nikolai A. Nachamkin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nikolai A. Nachamkin

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  By

  	
  /s/ Alfred C. Jones III

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Alfred C. Jones III

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  CITIBANK,
  N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pareejat Singhal

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  CITIGROUP GLOBAL MARKETS
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pareejat Singhal

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

7

Agreed to and Accepted this

5th day of July, 2005:

 

 

	
  GENCO SHIPPING &
  TRADING LIMITED

  
	
   

  
	
   

  
	
  By

  	
  /s/ John C. Wobensmith

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

8

EXHIBIT A

SUMMARY OF CERTAIN TERMS

OF THE CREDIT FACILITY

Unless
otherwise defined herein, capitalized terms used herein and defined in the
letter to which this Exhibit A is attached (the “Commitment Letter”) are
used herein as therein defined.

I.              Description of Credit Facility

	
  Total
  Credit Facility:

  	
  A
  revolving credit facility (the “Credit Facility”) in an aggregate
  principal amount of up to (x) if the net cash proceeds of the IPO are equal
  to or greater than $300 million, $550 million, or (y) if the net cash
  proceeds of the IPO are less than $300 million, $450 million, (such amount,
  as it may be reduced from time to time by the terms hereof, the “Total
  Commitment”).

  
	
  Use
  of Proceeds:

  	
  The
  loans made pursuant to the Credit Facility (the “Loans”) and the
  proceeds thereof shall be utilized to (w) refinance the Existing Credit
  Agreement, (x) fund up to 100% of the acquisition costs of the Additional
  Vessels and (y) fund working capital requirements of the Borrower and its
  subsidiaries in a maximum aggregate amount of up to $20 million in Loans and
  Letters of Credit at any time outstanding and (z) issue letters of credit as
  described below.

  
	
  Letters
  of Credit:

  	
  $50
  million of the Credit Facility will be available for the issuance of stand-by
  letters of credit (“Letters of Credit”) to support obligations of the
  Borrower and its subsidiaries under freight derivatives contracts
  satisfactory to the Administrative Agent (as defined below). Maturities for
  Letters of Credit will not exceed twelve months, renewable annually
  thereafter and, in any event, shall not extend beyond the tenth business day
  prior to the Revolving Loan Maturity Date.

  
	
  Availability:

  	
  Loans
  may be borrowed, repaid and reborrowed on and after the Closing Date and
  prior to the Maturity Date in accordance with the terms of the definitive
  credit documentation governing the Credit Facility; provided that (x)
  if the Credit Facility is in an aggregate principal amount of $550 million,
  the initial Loans incurred on the Closing Date may not exceed $37 million and
  (y) if the Credit Facility is in an aggregate principal amount of $450
  million, the initial Loans incurred on the Closing Date may not exceed $107 million;
  provided further that the

  

 

 

 

	
   

  	
  aggregate
  amount of all Loans and Letters of Credit outstanding (determined on a pro
  forma basis giving effect to such Loans being made and/or Letters of
  Credit being issued) may not exceed an amount equal to 65% of the fair market
  value of all Collateral Vessels (as defined herein).

  
	
  Maturity:

  	
  The
  Credit Facility will mature on the tenth anniversary of the Closing Date (the
  “Maturity Date”).

  
	
  Scheduled Commitment Reductions:

  	
  The Total Commitment
  shall be reduced in eight consecutive semi-annual installments, commencing on
  the sixth anniversary of the Closing Date in an amount equal to 8.125% of the
  then Total Commitment on the sixth anniversary of the Credit Facility. The
  Total Commitment shall terminate in its entirety on the Maturity Date.

  
	
  Guaranties:

  	
  Each
  subsidiary of the Borrower (as defined below) which owns or obtains an
  ownership interest in any vessel listed on Annex I hereto (the “Vessels”)
  and any Additional Vessels (together with the Vessels, the “Collateral
  Vessels”) (such subsidiaries, the “Guarantors”) shall be required
  to provide unconditional guaranties of all amounts owing under the Credit
  Facility (the “Guaranties”). The Guaranties shall contain terms and
  conditions reasonably satisfactory to the Lead Arrangers and customary for
  transactions of this type and shall, to the extent requested by the Lead
  Arrangers, also guarantee on a subordinated basis the Borrower’s obligations
  under interest rate swaps/foreign currency swaps or similar agreements (to the
  extent such obligations are related to the Borrower’s obligations under the
  Credit Facility) with a Lender under the Credit Facility (or its affiliates).
  Guaranties shall be a guarantee of payment and not of collection.

  
	
  Security:

  	
  (i)
  All amounts owing under the Credit Facility, (ii) all obligations under the
  Guaranties and (iii) on a subordinated basis, the Borrower’s obligations
  under any interest rate swaps/foreign currency swaps or similar agreements
  (to the extent related to the Borrower’s obligations under the Credit
  Facility) with a Lender under the Credit Facility (or its affiliates) will,
  in each case, be secured by (x) a first priority perfected security interest
  in all equity interests of the Guarantors, (y) a first priority perfected
  security interest in all Collateral Vessels and (z) a first priority security
  interest in all earnings and proceeds of insurance (including, without
  limitation, the Required Insurance (as defined below)) related to such
  Collateral Vessels (together

  

 

 

2

 

	
   

  	
  with all deposit
  accounts into which such earnings and proceeds of insurance are deposited
  (which deposit accounts shall be maintained at Nordea and shall include,
  without limitation, the Operating Account (as defined below)).

  
	
   

  	
  All
  documentation (collectively referred to herein as the “Security Agreements”)
  evidencing the security required pursuant to the immediately preceding
  paragraph shall be in form and substance reasonably satisfactory to the Lead
  Arrangers and customary for transactions of this type, and shall effectively
  create first priority security interests in the property purported to be
  covered thereby, with such exceptions as are acceptable to the Lead Arrangers
  in their reasonable discretion.

  
	
  Operating
  Account:

  	
  All
  charter revenues and proceeds received by the Borrower and each Guarantor in
  respect of the Collateral Vessels shall be required to be deposited in an
  account of the Borrower maintained with Nordea (the “Operating Account”).
  The Borrower shall be permitted to apply amounts in the Operating Account to
  the payment of the operating expenses, other expenditures and dividends
  permitted under the terms and conditions of the Credit Facility of the
  Borrower and its subsidiaries.

  

 

II.            Other Terms Applicable to Credit
Facility

	
  Borrower:

  	
  Genco
  Shipping & Trading Limited (the “Borrower”), a corporation
  organized under the laws of the Marshall Islands.

  
	
  Joint
  Lead Arrangers:

  	
  Nordea,
  DnB and CGML (the “Lead Arrangers”)

  
	
  Administrative
  Agent,

  	
   

  
	
  Security
  Trustee:

  	
  DnB
  (the “Administrative Agent”).

  
	
  Joint
  Book Runners:

  	
  Nordea
  and CGML.

  
	
  Lenders:

  	
  Nordea,
  DnB, Citibank and a syndicate of financial institutions arranged by and
  reasonably acceptable to the Sole Book Runner (in consultation with the
  Borrower) (collectively, the “Lenders”).

  
	
  Required
  Lenders:

  	
  Lenders
  having aggregate commitments and/or outstandings (as appropriate) pertaining
  to all tranches (taken in the aggregate) in excess of 50% (the “Required
  Lenders”).

  

 

 

3

 

	
  Voluntary Commitment Reductions:

  	
  The unutilized portion of the Credit Facility may,
  upon three business days’ notice to the Administrative Agent, be permanently
  reduced or terminated by the Borrower at any time without penalty, in
  integral multiples of $5.0 million in the case of partial reductions.

  
	
  Voluntary Prepayments:

  	
  Voluntary
  prepayments may be made at any time on three business days’ written notice,
  without premium or penalty, subject to minimum notice, provided that
  voluntary prepayments made on a date other than the last day of an interest
  period applicable thereto shall be subject to payment of customary breakage
  costs and funding loss costs.

  
	
  Mandatory
  Repayments:

  	
  Upon
  the sale or loss by the Borrower or any of its subsidiaries of any Collateral
  Vessel, outstanding Loans shall be required to be repaid and/or Letters of
  Credit shall be cash collateralized in an amount equal to the sum of the
  aggregate amount of all outstanding Loans and Letters of Credit multiplied by
  a fraction, the numerator of which is the appraised value (determined on the
  basis of the most recently obtained appraisals) of such Collateral Vessel
  subject to such sale or loss and the denominator of which is the aggregate of
  the appraised value (determined on the basis of the most recently obtained
  appraisals) of all Collateral Vessels owned by the Borrower and its
  subsidiaries at such time. In addition, (i) if at any time the outstandings
  pursuant to the Credit Facility (including Letter of Credit outstandings)
  exceed the Total Commitment, prepayments of Loans (and/or the cash
  collateralization of Letters of Credit) shall be required in an amount equal
  to such excess and (ii) upon the occurrence of a change of control (to be
  defined), all commitments under the Credit Facility shall terminate and all
  outstanding Loans shall become due and payable.

  
	
  Interest
  Rates:

  	
  Loans
  shall be maintained as US Dollar LIBOR-based loans which shall bear interest
  at the LIBOR Rate (adjusted for maximum reserves) as determined by the Administrative
  Agent for the respective interest period plus the Applicable Margin (as
  defined below). Interest periods of 3 and 6 months shall be available.

  

 

4

 

	
   

  	
  “Applicable
  Margin” shall mean 0.95% per annum until the fifth anniversary of the
  Closing Date and 1.00% per annum thereafter.

  
	
   

  	
  The
  Credit Facility shall include customary protective provisions for such
  matters as defaulting banks, capital adequacy, increased costs, reserves,
  funding losses, illegality and withholding taxes. The Borrower shall have the
  right, in the absence of a default or event of default, to replace any Lender
  (i) that charges a material amount in excess of that being charged by the
  other Lenders with respect to contingencies described in the immediately
  preceding sentence or (ii) refuses to consent to certain amendments or
  waivers of the Credit Facility which expressly require the consent of such
  Lender and which have been approved by the Required Lenders.

  
	
   

  	
  Interest
  in respect of Loans shall be payable in arrears at the end of the applicable
  interest period and every three months in the case of interest periods in
  excess of three months. Interest will also be pay­able at the time of
  repayment of any Loans and at maturity. All calculations of interest,
  commitment fees and other fees shall be based on a 360-day year and actual
  days elapsed.

  
	
  Default
  Interest:

  	
  Overdue
  principal, interest and other amounts shall bear interest at a rate per
  annum equal to the rate which is 2% in excess of the rate borne by Loans
  (or, if such overdue amount is not interest or principal in respect of a
  Loan, 2.50% per annum in excess of the Prime Rate as in effect from
  time to time). Such interest shall be payable on demand.

  
	
  Commitment
  Commission:

  	
  A
  commitment fee, at a per annum rate of 0.375%, on the daily undrawn
  portion of the commitments of each Lender (with outstanding Loans and Letters
  of Credit being utilizations of the commit­ments) will commence accruing on
  the Closing Date and will be payable quarterly in arrears.

  
	
  Letter of Credit Fees:

  	
  A letter of credit fee
  equal to the Applicable Margin for Loans maintained as LIBOR Rate Loans on
  the outstanding stated amount of Letters of Credit (the “Letter of Credit
  Fee”) to be shared proportionately by the Lenders under the Credit
  Facility in accordance with their participation in the respective Letter of
  Credit, and a facing fee of 1/8 of 1% per annum (but in no event less than
  $500 per annum for

  

 

 

5

 

	
   

  	
  each Letter of Credit)
  (the “Facing Fee”) to be paid to the issuer of each Letter of Credit
  for its own account, in each case calculated on the aggregate stated amount
  of all Letters of Credit for the stated duration thereof. Letter of Credit
  Fees and Facing Fees shall be payable quarterly in arrears. In addition, the
  issuer of a Letter of Credit will be paid its customary administrative
  charges in connection with Letters of Credit issued by it.

  
	
  Lead
  Arrangers/Lender Fees:

  	
  The
  Lead Arrangers and the Lenders shall receive such fees as have been
  separately agreed upon.

  
	
  Assignments
  and Participations:

  	
  The
  Borrower may not assign its rights or obligations under the Credit Facility
  without the prior written consent of all of the Lenders. Any Lender may
  assign and may sell participations in, its rights and obligations under the
  Credit Facility, subject (x) in the case of participations, to customary
  restrictions on the voting rights of the participants and (y) in the case of
  assignments, to such limitations as may be established in the definitive
  credit documentation, including, without limitation, (i) the consent of the
  Administrative Agent and so long as no default or event of default then
  exists under the Credit Facility, the consent of the Borrower (which consent
  of the Borrower shall not be unreasonably withheld or delayed), (ii) a
  minimum assignment amount of $5.0 million and (iii) payment by the relevant
  Lender to the Administrative Agent of a $3,500 assignment fee. The Credit
  Facility shall provide for a mechanism which will allow for each assignee to
  become a direct signatory to the Credit Facility and will relieve the
  assigning Lender of its rights and obligations with respect to the assigned
  portion of its loans and commitments.

  
	
  Documentation/Governing
  Law:

  	
  The
  Lenders’ commitments will be subject to the negotiation, execution and
  delivery of reasonably satisfactory definitive financing agreements (and
  related security documentation, guaranties, etc.) consistent with the terms
  of this Term Sheet, in each case prepared by White & Case LLP, special
  maritime counsel to be determined and/or local counsel satisfactory to the
  Lead Arrangers and the Lenders (including without limitation as to the terms,
  conditions, representations, covenants and events of default contained
  therein). All documentation (except security

  

 

 

6

	
   

  	
  documentation that the
  Lead Arrangers determine should be governed by local law) shall be governed
  by New York law.

  
	
  Conditions Precedent:

  	
  Those conditions precedent that are usual
  and customary for these types of facilities, and such additional conditions
  precedent as are appropriate under the circumstances. Without limiting the
  foregoing, the following conditions shall apply:

  

 

A.            o
the Initial Loans

 

	
   

  	
  (i)

  	
  On
  or prior to the Closing Date (x) the IPO shall have been consummated, (y) the
  Borrower shall have received net cash proceeds of at least $230 million and
  (z) shares of the Borrower’s common equity shall be traded on the NASDAQ
  National Market.

  
	
   

  	
  (ii)

  	
  The scope, terms and
  conditions of any management and service agreements entered into by the
  Borrower or its subsidiaries shall be reasonably satisfactory to the Lead
  Arrangers.

  
	
   

  	
  (iii)

  	
  The
  Borrower and its subsidiaries shall have no outstanding indebtedness or
  contingent liabilities, except for indebtedness incurred pursuant to the
  Credit Facility and such other existing indebtedness and disclosed contingent
  liabilities of the Borrower and its subsidiaries, if any, as shall be
  permitted by the Lead Arrangers, and all equity interests of the Borrower’s
  subsidiaries shall be owned directly or indirectly by the Borrower, in each
  case free and clear of liens (other than those securing the obligations under
  the Credit Facility).

  
	
   

  	
  (iv)

  	
  All
  necessary governmental (domestic and foreign) and third party approvals
  and/or consents in connection with the transactions contemplated by the
  Credit Facility and otherwise referred to herein shall have been obtained and
  remain in effect, and all applicable waiting periods shall have expired
  without any action being taken by any competent authority which restrains,
  prevents, or imposes materially adverse conditions upon, the transactions
  contemplated by the Credit Facility or otherwise referred to herein.
  Additionally, there shall not

  

 

7

 

	
   

  	
   

  	
  exist any
  judgment, order, injunction or other restraint prohibiting or imposing
  materially adverse conditions upon the transactions contemplated by the
  Credit Facility.

  
	
   

  	
  (v)

  	
  Nothing
  shall have occurred (and neither the Lead Arrangers nor any of the Lenders
  shall have become aware of facts or conditions not previously known to them)
  which any Agent or the Required Lenders shall determine has had, or could
  reasonably be expected to have, a Material Adverse Effect.

  
	
   

  	
  (vi)

  	
  No
  litigation by any entity (private or governmental) shall be pending or, to
  the Borrower’s knowledge, threatened with respect to the Credit Facility or
  any documentation executed in connection therewith, or with respect to the Transaction,
  or which any Agent or the Required Lenders shall determine has had, or could
  reasonably be expected to have, a Material Adverse Effect.

  
	
   

  	
  (vii)

  	
  The
  Lenders shall have received legal opinions from counsel, and covering matters
  (including without limitation compliance with the margin regulations and
  no-conflict opinions), reasonably acceptable to the Lead Arrangers.

  
	
   

  	
  (viii)

  	
  All
  Loans and other financing to be made pursuant to the Transaction shall be in
  full compliance with all applicable requirements (including without
  limitation the collateral valuation requirements) of law, including, without
  limitation, Regulations T, U and X of the Federal Reserve Bank (the “Margin
  Regulations”) and the collateral valuation requirements, and each Lender
  in good faith shall be able to complete the relevant forms establishing
  compliance with the Margin Regulations.

  
	
   

  	
  (ix)

  	
  All
  costs, fees, expenses (including, without limitation, reasonable legal fees
  and expenses) and other compensation contemplated hereby, payable to the
  Lenders and the Lead Arrangers or payable in respect of

  

 

8

 

	
   

  	
   

  	
  the Transaction,
  shall have been paid to the extent due.

  
	
   

  	
  (x)

  	
  On
  or prior to the Closing Date, (i) the Lenders shall have received updated
  appraisals in respect of the Collateral Vessel from two independent valuation
  consultants reasonably satisfactory to the Lead Arrangers, and (ii) the Lead
  Arrangers shall have received a solvency certificate from the senior
  financial officer of the Borrower, in form and substance satisfactory to the
  Lead Arrangers, setting forth the conclusions that, after giving effect to
  the Transaction (including the incurrence of all the financing contemplated
  herein), each of the Borrower, individually, and the Borrower and its
  subsidiaries, taken as a whole, are not insolvent and will not be rendered
  insolvent by the indebtedness incurred in connection therewith, and will not
  be left with unreasonably small capital with which to engage in their
  businesses and will not have incurred debts beyond their ability to pay such
  debts as they mature.

  
	
   

  	
  (xi)

  	
  The
  Lenders shall have received (w) certificates of ownership from the
  appropriate authorities showing the registered ownership of the related
  Collateral Vessel, (x) results of maritime registry searches with respect to
  the related Collateral Vessel which results shall be acceptable to the Lead
  Arrangers, (y) class certificates from a classification society acceptable to
  the Lead Arrangers with respect to the related Collateral Vessel, which class
  certificates shall be acceptable to the Lead Arrangers, and (z) a report, in
  form and scope reasonably acceptable to the Lead Arrangers, from a firm of
  independent marine insurance brokers reasonably acceptable to the Lead Arrangers
  with respect to the insurance maintained (or to be maintained) in respect of
  the related Collateral Vessel together with a certificate from such broker
  certifying that such insurances (I) are placed with such insurance companies
  and/or underwriters and/or clubs, in such amounts, against such risks, and in
  such form, are customarily insured against by similarly situated insurers,
  (II) conform with requirements of the mortgage taken (or to be taken) for the
  benefit of the Lenders in each of the Collateral Vessels and (III) include
  without limitation (the following, the “Required Insurance”), hull and
  machinery, war risks, loss of hire (with respect to vessels on charter) and
  protection and indemnity.

  

 

9

 

	
   

  	
  (xii)

  	
  In
  connection with the Transaction, there shall be no conflict with, or default
  under, any material agreement of the Borrower or any of its subsidiaries.

  
	
   

  	
  (xiii)

  	
  The
  Guaranties and the Security Agreements executed by the Borrower (to the
  extent applicable) and each subsidiary of the Borrower that owns a Collateral
  Vessel shall have been executed and delivered in form, scope and substance
  reasonably satisfactory to the Lead Arrangers and the Required Lenders, and
  the Lenders shall have security interests in assets of the Borrower and such
  subsidiaries as and to the extent required above.

  
	
   

  	
  (xiv)

  	
  No
  condition or occurrence on or arising from any Collateral Vessel or any other
  property owned or operated or occupied by the Borrower or any of its
  subsidiaries exists that (x) could result in noncompliance by the Borrower or
  such subsidiary with any applicable environmental law that has had, or could
  reasonably be expected to have, a Material Adverse Effect or (y) could
  reasonably be expected to form the basis of an Environmental Claim against
  the Borrower or any of its subsidiaries or any property of the Borrower or
  any of its subsidiaries (including, without limitation, any Collateral
  Vessel) and such Environmental Claim could reasonably be expected to have, a
  Material Adverse Effect.

  
	
   

  	
  (xv)

  	
  On
  or prior to the Initial Borrowing Date, the Lead Arrangers shall have
  received and be reasonably satisfied with the organizational and charter
  documents of the Borrower and its subsidiaries, together with resolutions authorizing
  the consummation of the Transaction.

  

 

 

B.            To All Loans

	
   

  	
  (i)

  	
  All
  representations and warranties shall be true and correct in all material
  respects on and as of the date of the borrowing (although any representations
  and warranties which expressly relate to a given date or period shall be
  required to be true and correct in all material respects as of the respective
  date or for the respective period, as the case may be), before and

  

 

10

 

 

	
   

  	
   

  	
  ater giving effect
  to such borrowing and to the application of the proceeds therefrom, as though
  made on and as of such date.

  
	
   

  	
  (ii)

  	
  No
  event of default under the Credit Facilities or event which with the giving
  of notice or lapse of time or both would be an event of default under the
  Credit Facilities, shall have occurred and be continuing, or would result
  from such borrowing.

  
	
   

  	
  (iii)

  	
  The
  aggregate amount of all Loans and Letters of Credit outstanding (determined
  at the time of the making of each Loan or Letter of Credit issuance on a pro
  forma basis giving effect to such Loan being made and/or Letter of Credit
  being issued) shall not exceed an amount equal to 65% of the fair market
  value of all Collateral Vessels based on the most recent appraisals delivered
  to or obtained by the Administrative Agent.

  

 

C.            To All Vessel Acquisition Loans

	
   

  	
  (i)

  	
  On
  the date of each Loan used to acquire an Additional Vessel (such Loan, a “Vessel
  Acquisition Loan”), the Lenders shall have received legal opinions from
  counsel, and covering matters , reasonably acceptable to the Lead Arrangers.

  
	
   

  	
  (ii)

  	
  At
  the time of acquisition of each Additional Vessel (a “Vessel Acquisition”),
  (i) no condition or occurrence on or arising from the related Additional
  Vessel or any other property owned by the subsidiary which owns the related
  Additional Vessel exists that could (x) result in noncompliance by such
  subsidiary with any applicable environmental law that has had, or could
  reasonably be expected to have, a Material Adverse Effect or (y) reasonably be
  expected to form the basis of an Environmental Claim against the Borrower or
  any of its subsidiaries or any property of the Borrower or any of its
  subsidiaries (including, without limitation, the related Additional Vessel)
  and such Environmental Claim could reasonably be expected to have, a Material
  Adverse Effect and (ii) the Lenders shall have received (v) a Guaranty and
  Security Agreement executed by each subsidiary of the Borrower that owns the
  related Additional Vessel executed and delivered in form, scope and

   

  

 

11

 

	
   

  	
   

  	
  substance
  reasonably satisfactory to the Lead Arrangers and the Required Lenders, and
  the Lenders shall have security interests in assets of such subsidiary as to
  the extent required above, (w) certificates of ownership from the appropriate
  authorities showing the registered ownership of the related Additional
  Vessel, (x) results of maritime registry searches with respect to the related
  Additional Vessel which results shall be acceptable to the Lead Arrangers,
  (y) a class certificate from a Pre-Approved Classification Society (as
  defined on Annex II hereto) with respect to the related Additional Vessel and
  evidence that the related Additional Vessel has a Pre-Approved Flag (as
  defined on Annex II hereto), which class certificate and evidence shall be
  acceptable to the Lead Arrangers, and (z) a report, in form and scope
  reasonably acceptable to the Lead Arrangers, from a firm of independent
  marine insurance brokers reasonably acceptable to the Lead Arrangers with
  respect to the insurance maintained (or to be maintained) in respect of the
  related Additional Vessel together with a certificate from such broker
  certifying that such insurances (I) are (or will be at the time of the
  respective Vessel Acquisition) placed with such insurance companies and/or
  underwriters and/or clubs, in such amounts, against such risks, and in such
  form, are customarily insured against by similarly situated insurers, (II)
  conform with requirements of the mortgage taken (or to be taken) for the
  benefit of the Lenders in each of the Additional Vessels and (III) include
  the Required Insurance.

  
	
  Representations
  and Warranties:

  	
  Substantially
  the same as the representations and warranties contained in Existing Credit
  Agreement with appro­priate changes thereto and any additional
  representations and warranties as are necessary in the context of the
  Refinancing and the Credit Facility, in each case as determined to the
  satisfaction of the Lead Arrangers.

  
	
  Affirmative
  Covenants:

  	
  Substantially
  the same as the covenants contained in the Existing Credit Agreement
  including, without limitation, appropriate changes thereto and any additional
  covenants as are necessary in the context of the Refinancing.

  

 

 

12

 

	
  Negative
  Covenants (other than Financial Covenants):

  	
  Those
  covenants that are usual and customary for facilities of this type shall
  apply to the Borrower and its subsidiaries, including, without limitation:

  
	
   

  	
  (i)

  	
  Limitations
  on indebtedness (including any guarantees) (other than under the Credit
  Facility) incurred by the Borrower or any of its subsidiaries, provided
  that so long as no default or event of default is then continuing,
  Indebtedness may be incurred by the Borrower and its subsidiaries (other than
  any subsidiary owning a Collateral Vessel) provided that after giving effect
  to such incurrence the Borrower will be in pro forma compliance with
  the Financial Covenants described below.

  
	
   

  	
  (ii)

  	
  Limitations
  on liens on collateral securing the Credit Facility (other than pursuant to
  the Credit Facility).

  
	
   

  	
  (iii)

  	
  Limitations
  on investments.

  
	
   

  	
  (iv)

  	
  Limitations
  on dividends except that the Borrower may pay or declare dividends in
  accordance with the “Dividend Policy” section of the Form S-1 filed by the
  Borrower with the Securities Exchange Commission on May 6, 2005; provided
  that no default or event of default has occurred and is continuing or would
  result therefrom.

  
	
   

  	
  (v)

  	
  Limitations on mergers,
  acquisitions, joint ventures, partnerships and acquisitions and dispositions
  of assets.

  
	
   

  	
  (vi)

  	
  Limitations amendments
  to organizational documents and certain material contracts to the extent
  adverse to the Lenders.

  
	
   

  	
  (vii)

  	
  Limitations on
  transactions with affiliates.

  
	
   

  	
  (viii)

  	
  Limitations on changes in
  the registry, class or management of the Collateral Vessels.

  
	
   

  	
  (ix)

  	
  Limitations on changes
  in nature of business.

  
	
   

  	
  (in each case set forth in the preceding clauses (i)
  through (ix) above, subject to certain customary exceptions acceptable to the
  Lead Arrangers and the Lenders).

  

 

13

 

	
  Financial
  Covenants:

  	
  The
  following shall be the financial covenants (which shall apply to the Borrower
  and its subsidiaries on a consolidated basis and be measured on the last day
  of each fiscal quarter of the Borrower):

  
	
   

  	
  1.

  	
  Leverage.  The ratio of Total Debt to Total
  Capitalization shall be no greater than (x) 0.70:1.00 during the first five
  years after the Closing Date, and (y) 0.60:1.00 at any time thereafter.

  
	
   

  	
  2.

  	
  Minimum
  Liquidity Balance.  The
  Borrower shall have cash, cash equivalents and undrawn available credit
  facilities with maturities in excess of twelve months on such date on hand of
  no less than $500,000 for each Collateral Vessel on the last day of each
  fiscal quarter.

  
	
   

  	
  3.

  	
  Interest
  Coverage.  The ratio
  of EBITDA to Interest Expense, on a trailing four quarter basis, shall be no
  less than 2.00 to 1.00.

  
	
   

  	
  4.

  	
  Collateral
  Maintenance.  The
  aggregate fair market value of the Collateral Vessels shall at all times be
  (x) at least 130% of the aggregate outstanding principal amount under the
  Loans plus all Letters of Credit outstanding; provided that the
  Borrower shall have a 30 day remedy period during which time the Borrower may
  post additional collateral satisfactory to the Required Lenders or reduce the
  amount of Loans and/or Letters of Credit outstanding.

  
	
   

  	
  5.

  	
  Consolidated
  Net Worth.  The
  Consolidated Net Worth of the Borrower and its subsidiaries shall be no less
  than 80% of the stockholder’s equity at the end of the last fiscal quarter
  preceding the Closing Date, which figure shall be calculated pro forma
  for the IPO.

  
	
  Collateral
  Substitution:

  	
  The
  Borrower or any Guarantor may dispose of any Collateral Vessel and offer a
  substitution for such Collateral Vessel so long as no default or event of
  default has occurred and is continuing or would result therefrom. Such
  replacement vessel shall be of substantially similar value, type and age as
  the Collateral Vessel it replaces and shall be acceptable to the
  Administrative Agent.

  
	
  Events
  of Default:

  	
  Those
  events of default usual and customary for this type of facility, including,
  without limitation, non payment of principal, non payment of interest (3 day
  grace period), breach of affirmative covenants (30 day grace period),

  

 

14

 

	
  .

  	
  breach
  of negative covenants, material inaccuracy of representations and warranties,
  cross default to other material indebtedness (giving effect to any applicable
  grace periods), ERISA event, failure of effectiveness of security documents
  or guaranty, unsatisfied uninsured material judgment following final appeal,
  bankruptcy or insolvency event, or change of control of the Borrower

  
	
  Indemnification:

  	
  The
  documentation for the Credit Facility will contain customary indemnities for
  the Lenders and the Lead Arranger (other than as a result of such indemnified
  party’s gross negligence or willful misconduct).

  
	
  Swap Transaction:

  	
  An
  interest rate swap, using the standard ISDA documentation, will be made
  available to the Borrower to convert the interest rate under the Credit
  Facility from a floating rate to a fixed rate.

  

 

 

15

ANNEX I

COLLATERAL
VESSELS

 

 

	
  Vessel Name

  	
   

  	
  Type

  	
   

  	
  Built

  	
   

  	
  Dwt

  	
   

  	
  Flag

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beauty

  	
   

  	
  Panamax

  	
   

  	
  1999

  	
   

  	
  73,941

  	
   

  	
  Hong Kong

  	
   

  
	
  Knight

  	
   

  	
  Panamax

  	
   

  	
  1999

  	
   

  	
  73,941

  	
   

  	
  Hong Kong

  	
   

  
	
  Leader

  	
   

  	
  Panamax

  	
   

  	
  1999

  	
   

  	
  73,941

  	
   

  	
  Hong Kong

  	
   

  
	
  Vigour

  	
   

  	
  Panamax

  	
   

  	
  1999

  	
   

  	
  73,941

  	
   

  	
  Hong Kong

  	
   

  
	
  Trader

  	
   

  	
  Panamax

  	
   

  	
  1990

  	
   

  	
  69,338

  	
   

  	
  Hong Kong

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carrier

  	
   

  	
  Handymax

  	
   

  	
  1998

  	
   

  	
  47,000

  	
   

  	
  Hong Kong

  	
   

  
	
  Prosperity

  	
   

  	
  Handymax

  	
   

  	
  1997

  	
   

  	
  47,180

  	
   

  	
  Hong Kong

  	
   

  
	
  Success

  	
   

  	
  Handymax

  	
   

  	
  1997

  	
   

  	
  47,180

  	
   

  	
  Hong Kong

  	
   

  
	
  Wisdom

  	
   

  	
  Handymax

  	
   

  	
  1997

  	
   

  	
  46,800

  	
   

  	
  Hong Kong

  	
   

  
	
  Lucky Marine

  	
   

  	
  Handymax

  	
   

  	
  1996

  	
   

  	
  46,000

  	
   

  	
  Hong Kong

  	
   

  
	
  Glory

  	
   

  	
  Handymax

  	
   

  	
  1984

  	
   

  	
  41,062

  	
   

  	
  Hong Kong

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Explorer

  	
   

  	
  Handysize

  	
   

  	
  1999

  	
   

  	
  29,952

  	
   

  	
  Hong Kong

  	
   

  
	
  Pioneer

  	
   

  	
  Handysize

  	
   

  	
  1999

  	
   

  	
  29,952

  	
   

  	
  Hong Kong

  	
   

  
	
  Progress

  	
   

  	
  Handysize

  	
   

  	
  1999

  	
   

  	
  29,952

  	
   

  	
  Hong Kong

  	
   

  
	
  Reliance

  	
   

  	
  Handysize

  	
   

  	
  1999

  	
   

  	
  29,952

  	
   

  	
  Hong Kong

  	
   

  
	
  Sugar

  	
   

  	
  Handysize

  	
   

  	
  1998

  	
   

  	
  29,952

  	
   

  	
  Hong Kong

  	
   

  

 

ANNEX II

 

Definitions

 

“Pre-Approved
Classification Society” shall mean any of Det norske Veritas, Lloyds
Register, American Bureau of Shipping (ABS), Germanischer Lloyd, Bureau Veritas or, with respect to Genco Glory only, China
Classification Society.

 

“Pre-Approved
Flag” shall mean Hong Kong, Marshall Islands, Norwegian International Ship
Registry, Liberia, Panama, Isle of Man, Cayman Islands, Bermuda, Bahamas or
Singapore.Exhibit 4.1

 

	
  COMMON STOCK

  	
  COMMON STOCK

  
	
  NO PAR VALUE

  	
  TRANSFERABLE IN NEW
  YORK, NY OR

  DENVER, CO

  
	
   

  	
   

  
	
  Certificate Number

  	
  Shares

  
	
  *****

  	
  *****

  
	
   

  	
   

  
	
   

  	
  CUSIP 44930M 20 3

  
	
   

  	
  SEE REVERSE FOR CERTAIN
  DEFINITIONS

  

 

ICOP DIGITAL, INC.

 

INCORPORATED UNDER
THE LAWS OF THE STATE OF COLORADO

 

THIS CERTIFIES THAT                         
is the owner of                       
fully-paid and non-assessable shares of the common stock of ICOP Digital, Inc.
(hereinafter called the “Company”), transferable on the books of the Company in
person or by duly authorized attorney, upon surrender of this Certificate
properly endorsed.  This Certificate and
the shares represented hereby, are issued and shall be held subject to all of
the provisions of the Articles of Incorporation, as amended, and the By-Laws,
as amended, of the Company (copies of which are on file with the Company and
with the Transfer Agent), to all of which each holder, by acceptance hereof,
assents.  This Certificate is not valid unless
countersigned and registered by the Transfer Agent and Registrar.

 

Witness the facsimile
seal of the Company and the facsimile signatures of its duly authorized
officers.

 

 

	
  /s/ David C. Owen

  	
   

  
	
  President/CEO

  
	
   

  
	
  /s/ Laura E. Owen

  	
   

  
	
  Corporate Secretary

  
	
   

  
	
   

  
	
  DATED <<Month
  Day, Year>>

  
	
   

  
	
  COUNTERSIGNED AND
  REGISTERED

  
	
  COMPUTERSHARE TRUST CO., INC.

  
	
  (DENVER)

  
	
  TRANSFER AGENT AND
  REGISTRAR,

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Authorized
  Signature

  	
   

  

 

 

The following abbreviations, when used in the
inscription on the face of this certificate, shall be construed as though they
were written out in full according to applicable laws or regulations:

 

	
  TEN COM –

  	
  as tenants in common

  	
  UNIF GIFT MIN ACT – 

  	
   

  	
  Custodian

  	
   

  
	
  TEN ENT –

  	
  as tenants by the entireties

  	
   

  	
   (Cust)

  	
     (Minor)

  
	
  JT TEN –

  	
  as joint tenants with rights of

  	
   

  	
  under Uniform Gifts to Minors

  
	
   

  	
  survivorship and not as tenants

  	
   

  	
  Act

  	
   

  
	
   

  	
  in common

  	
   

  	
   

  	
  (State)

  
	
   

  	
   

  	
  UNIF TRF MIN ACT – 

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   (Cust)

  	
      (Minor)

  
	
   

  	
   

  	
   

  	
   under Uniform Transfers to

  
	
   

  	
   

  	
   

  	
   Minors Act

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
      (State)

  
									

 

Additional abbreviations may also be used though not in
the above list.

 

	
  FOR VALUE RECEIVED,

  	
   

  

 

hereby sell(s), assign(s), and transfer(s) unto

 

(PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

OF ASSIGNEE)

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
   

  
	
   

  
	
  (PLEASE PRINT NAME AND
  ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

  

 

_________________________________________________________________________________________________
Shares

of the Common Stock represented by the within Certificate, and do(es) hereby
irrevocably constitute and appoint _______________________________________________
Attorney to transfer the said stock on the books of the within named
Corporation with full power of substitution in the premises.

 

	
      Dated:

  	
   

  	
  , 20

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  
							

 

	
   

  	
   

  	
   

  
	
  Notice: The signature to this assignment must
  correspond with the name as written upon the face of the certificate, in
  every particular, without alteration or enlargement, or any change whatever.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature(s) Guaranteed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The signatures should be guaranteed by an eligible
  institution (banks, stockbrokers, savings and loan association and credit
  unions) with membership in an approved signature guarantee medallion program,
  pursuant to S.E.C. Rule 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]