Document:

<PAGE>

                                   $95,000,000

                              AMENDED AND RESTATED
                                CREDIT AGREEMENT

                          Dated as of February 9, 1999

                                      Among

                           GENMAR CONSTANTINE LIMITED,
                            GENMAR AGAMEMNON LIMITED,
                          GENMAR MINOTAUR LIMITED, and
                               GENMAR AJAX LIMITED

                         AS BORROWERS AND AS GUARANTORS

                                       and

                            AJAX LIMITED PARTNERSHIP

                                 AS A GUARANTOR

                                       and

                        THE INITIAL LENDERS NAMED HEREIN

                               AS INITIAL LENDERS

                                       and

              CHRISTIANIA BANK OG KREDITKASSE ASA, NEW YORK BRANCH

                   AS COLLATERAL AGENT AND AS SECURITY TRUSTEE

                                       and

              CHRISTIANIA BANK OG KREDITKASSE ASA, NEW YORK BRANCH

                             AS ADMINISTRATIVE AGENT

<PAGE>

                                                                   EXHIBIT 10.24

                      AMENDED AND RESTATED CREDIT AGREEMENT

         AMENDED AND RESTATED CREDIT AGREEMENT dated as of February 9, 1999
among GENMAR CONSTANTINE LIMITED ("CONSTANTINE"), a company organized under the
laws of the Cayman Islands, GENMAR AGAMEMNON LIMITED ("AGAMEMNON"), a company
organized under the laws of the Cayman Islands, GENMAR MINOTAUR LIMITED
("MINOTAUR"), a company organized under the laws of the Cayman Islands, and
GENMAR AJAX LIMITED ("AJAX"), a company organized under the laws of the Cayman
Islands (each a "BORROWER" and together the "BORROWERS"), Ajax Limited
Partnership (the "PARENT", and together with the Borrowers, the "GUARANTORS"), a
limited partnership organized under the laws of the Cayman Islands, the banks,
financial institutions and other institutional lenders listed on the signature
pages hereof as the Initial Lenders (the "INITIAL LENDERS"), and CHRISTIANIA
BANK OG KREDITKASSE ASA, New York Branch ("CBNY"), as collateral agent (together
with any successor collateral agent appointed pursuant to Article VIII, the
"COLLATERAL AGENT") for the Lenders (as hereinafter defined), as security
trustee (together with any successor trustee appointed pursuant to Article XI of
the Master Vessel Trust Agreement, the "SECURITY Trustee") and as administrative
agent (together with any successor administrative agent appointed pursuant to
Article VII, the "ADMINISTRATIVE AGENT") for the Lenders.

PRELIMINARY STATEMENTS:

         (1) The Borrowers are parties to the Floating Rate Bridge Loan Facility
Agreement dated May 15, 1998 (the "EXISTING BRIDGE AGREEMENT") with Christiania
Bank og Kreditkasse ASA, Skandinaviska Enskilda Banken AB (publ), Union Bank of
Norway and De Nationale Investeringsbank N.V., as banks, and Christiania Bank og
Kreditkasse ASA, as Agent and as Security Trustee for said banks.

         (2) The Parent entered into a Guaranty dated May 15, 1998 (the
"EXISTING GUARANTY") in favor of Christiania Bank og Kreditkasse ASA, as Agent,
whereby the Parent agreed to guarantee the obligations of each of the Borrowers
under the Existing Bridge Agreement.

         (3) The Equity Investors (as hereinafter defined) will contribute
certain funds to the Parent (the "CONTRIBUTION"), which in turn will downstream
such funds as a capital contribution to the Borrowers which together with cash
on hand of the Borrowers in excess of $2,000,000 will equal an aggregate amount
of at least $24,025,000. The Borrowers will use the proceeds of such capital
contribution and such cash on hand together with additional cash on hand in
excess of $1,000,000 in aggregate (after payment of certain fees and expenses)
to repay in part the indebtedness outstanding under the Existing Bridge
Agreement (the "REPAYMENT").

         (4) The Parent will amend and restate its limited partnership agreement
to provide for the Contribution and for a restructuring of the partnership
interests among the limited partners of the Parent (the "AMENDMENT" and,
together with the Contribution, the Repayment and the other transactions
contemplated hereby, the "TRANSACTION").

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         (5) The Borrowers have requested that the Lenders restructure the
outstanding principal amount owed by the Borrowers to the Lenders under the
Existing Bridge Agreement remaining after the Repayment (the "EXISTING DEBT")
and the Lenders have indicated their willingness to extend the maturity of such
Existing Debt upon the terms and conditions stated herein.

         (6) The Borrowers have requested that the Lenders enter into this
Agreement to amend and restate the Existing Bridge Agreement in order to permit
the extension of the maturity of the Existing Debt, it being understood that all
prior claims, rights and remedies of the Lenders and the Agents under the
Existing Bridge Agreement and documents and agreements executed in connection
therewith shall not be extinguished by this amended and restated Agreement
unless consented to in writing by all of the Lenders and the Agents. The Lenders
have indicated their willingness to so amend and restate the Existing Bridge
Agreement upon the terms and conditions stated herein.

         (7) The Existing Guaranty is hereby amended and restated by the
guaranty contained in Article VII of this Agreement.

         (8) The Guarantors will receive substantial direct and indirect benefit
from this Agreement.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto hereby agree as
follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

         SECTION 1.01. CERTAIN DEFINED TERMS. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

         "ADMINISTRATIVE AGENT" has the meaning specified in the recital of
     parties to this Agreement.

         "ADMINISTRATIVE AGENT'S ACCOUNT" means the account of the
     Administrative Agent maintained by the Administrative Agent with The
     Bank of New York, located in New York, New York, Account No.
     8026120277, ABA No. 021000018 or SWIFT address IRVTUS3N for account:
     Christiania Bank New York Branch, or such other account as the
     Administrative Agent shall specify in writing to the Lenders.

         "ADVANCE" has the meaning specified in Section 2.01.

         "AFFILIATE" means, as to any Person, any other Person that, directly or
     indirectly, controls, is controlled by or is under common control with such
     Person or is a director or officer of such Person. For purposes of this
     definition, the term "control" (including the terms "controlling",
     "controlled by" and "under common control with") of a Person means the
     possession, direct or indirect, of the power to vote 5% or more of the
     Voting Interests of such Person or to direct or

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     cause the direction of the management and policies of such Person, whether
     through the ownership of Voting Interests, by contract or otherwise.

         "AGAMEMNON" has the meaning specified in the recital of parties to this
     Agreement.

         "AGENTS" means, collectively, the Collateral Agent, the Administrative
     Agent and the Security Trustee.

         "AGREEMENT VALUE" means, for each Hedge Agreement, on any date of
     determination, an amount determined by the Administrative Agent equal to:
     (a) in the case of a Hedge Agreement documented pursuant to the Master
     Agreement (Multicurrency-Cross Border) published by the International Swap
     and Derivatives Association, Inc. (the "MASTER AGREEMENT"), the amount, if
     any, that would be payable by any Loan Party or any of its Subsidiaries to
     its counterparty to such Hedge Agreement, as if (i) such Hedge Agreement
     was being terminated early on such date of determination, (ii) such Loan
     Party or Subsidiary was the sole "Affected Party", and (iii) the
     Administrative Agent was the sole party determining such payment amount
     (with the Administrative Agent making such determination pursuant to the
     provisions of the form of Master Agreement); or (b) in the case of a Hedge
     Agreement traded on an exchange, the mark-to-market value of such Hedge
     Agreement, which will be the unrealized loss on such Hedge Agreement to the
     Loan Party or Subsidiary of a Loan Party party to such Hedge Agreement
     determined by the Administrative Agent based on the settlement price of
     such Hedge Agreement on such date of determination, or (c) in all other
     cases, the mark-to-market value of such Hedge Agreement, which will be the
     unrealized loss on such Hedge Agreement to the Loan Party or Subsidiary of
     a Loan Party party to such Hedge Agreement determined by the Administrative
     Agent as the amount, if any, by which (i) the present value of the future
     cash flows to be paid by such Loan Party or Subsidiary exceeds (ii) the
     present value of the future cash flows to be received by such Loan Party or
     Subsidiary pursuant to such Hedge Agreement; capitalized terms used and not
     otherwise defined in this definition shall have the respective meanings set
     forth in the above described Master Agreement.

         "AJAX" has the meaning specified in the recital of parties to this
     Agreement.

         "AMENDMENT" has the meaning specified in the Preliminary Statements.

         "APPLICABLE MARGIN" means, with respect to each Advance during the
     Initial Period, 2 1/2% per annum, and thereafter, 2% per annum.

         "ASSIGNMENT AND ACCEPTANCE" means an assignment and acceptance entered
     into by a Lender and an Eligible Assignee, and accepted by the
     Administrative Agent, in accordance with Section 9.07 and in substantially
     the form of Exhibit C hereto.

         "ASSIGNMENT OF ACCOUNTS" has the meaning specified in Section
     3.01(a)(vi).

         "ASSIGNMENT OF CHARTERPARTIES" has the meaning specified in Section
     3.01(a)(iv)(I).

         "ASSIGNMENT OF EARNINGS" has the meaning specified in Section
     3.01(a)(v).

         "ASSIGNMENT OF INSURANCES" has the meaning specified in Section
     3.01(a)(vii).

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<PAGE>

         "BORROWER" and "BORROWERS" each has the meaning specified in the
     recital of parties to this Agreement.

         "BORROWER SUBLIMIT" means, with respect to each Borrower, the amount
     set forth opposite the name of such Borrower on Schedule 1.01(b) hereto.

         "BORROWER'S ACCOUNT" means, in respect of any Borrower, the deposit
     account of such Borrower maintained by such Borrower with CBNY at 11 West
     42nd Street, New York, New York 10036, having the account number set
     opposite such Borrower below:

             BORROWER                           ACCOUNT NO.
             --------                           -----------

             Constantine                        406-09-39-601
             Agamemnon                          406-09-27-101
             Minotaur                           406-09-38-801
             Ajax                               406-09-28-901

         "BORROWING" means a borrowing consisting of simultaneous Advances made
     by the Lenders.

         "BUSINESS DAY" means a day of the year on which banks are not required
     or authorized by law to close in New York, New York, Oslo, Norway and The
     Hague, The Netherlands and, if the applicable Business Day relates to any
     Advances, on which dealings are carried on in the London interbank market.

         "CAPITAL EXPENDITURES" means, for any Person for any period, the sum
     of, without duplication, (a) all expenditures made, directly or indirectly,
     by such Person or any of its Subsidiaries during such period for equipment,
     fixed assets, real property or improvements, or for replacements or
     substitutions therefor or additions thereto, that have been or should be,
     in accordance with GAAP, reflected as additions to property, plant or
     equipment on a Consolidated balance sheet of such Person or have a useful
     life of more than one year plus (b) the aggregate principal amount of all
     Debt (including Obligations under Capitalized Leases) assumed or incurred
     in connection with any such expenditures.

         "CAPITALIZED LEASES" means all leases that have been or should be, in
     accordance with GAAP, recorded as capitalized leases.

         "CASH EQUIVALENTS" means time deposits or other similar deposit
     accounts with the Administrative Agent, to the extent owned by any Borrower
     free and clear of all Liens other than Liens created under the Collateral
     Documents and having a maturity of not greater than 180 days from the date
     of acquisition thereof.

         "CBNY" has the meaning specified in the recital of parties to this
     Agreement.

         "CERCLA" means the Comprehensive Environmental Response, Compensation
     and Liability Act of 1980, as amended from time to time.

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<PAGE>

         "CERCLIS" means the Comprehensive Environmental Response, Compensation
     and Liability Information System maintained by the U.S. Environmental
     Protection Agency.

         "CHANGE OF CONTROL" means the occurrence of any of the following: (a)
     Peter C. Georgiopoulos shall at any time for any reason cease to be active
     in the management of any of the Borrowers or the Parent or cease to own
     100% of the Equity Interests in the Parent held by him on the Effective
     Date as set forth on Schedule 4.01(a) hereto, or (b) Genmar Ajax Ltd. shall
     cease to be a general partner of the Parent, or (c) the Parent shall at any
     time for any reason cease to be the record and beneficial owner of 100% of
     the ownership interests of any Borrower or the beneficial owner of 100% of
     the ownership interests of any entity that controls any Borrower, or (d)
     any Person or two or more Persons acting in concert other than the Equity
     Investors shall have acquired by contract or otherwise, or shall have
     entered into a contract or arrangement that, upon consummation, will result
     in its or their acquisition of control over Voting Interests of the Parent
     (or other securities convertible into such Voting Interests) representing
     20% or more of the combined voting power of all Voting Interests of the
     Parent.

         "CHARTERPARTIES" means:

               (a) a Tanker Time Charter Party dated January 16, 1998 between
         Shikako S.A., as owner, and Amoco Oil Company, as charterer, with
         respect to the motor tanker EMILIE (since renamed GENMAR AGAMEMNON), as
         amended pursuant to an Addendum dated May 1998 by and between Shikako
         S.A., Amoco Oil Company and Agamemnon; and

              (b) any other tanker time charter party entered into by any
         Borrower from time to time;

     in each case, as amended, to the extent permitted under the Loan Documents.

         "COLLATERAL" means all collateral referred to in the Collateral
     Documents and all other property that is or is intended to be subject to
     any Lien in favor of the Collateral Agent for the benefit of the Secured
     Parties.

         "COLLATERAL AGENT" has the meaning specified in the recital of parties
     to this Agreement.

         "COLLATERAL DOCUMENTS" means the Mortgages, the Security Agreement, the
     Share Mortgage, the Assignments of Earnings, the Assignments of Accounts,
     the Assignment of Insurances, the Assignment of Charterparties and any
     other agreement that creates or purports to create a Lien in favor of the
     Collateral Agent for the benefit of the Secured Parties.

         "COMMERCIAL MANAGEMENT AGREEMENTS" has the meaning specified in Section
     3.01(a)(iv)(B).

         "COMMITMENT" means, with respect to any Lender at any time, the amount
     set forth opposite such Lender's name on Schedule I hereto or, if such
     Lender has entered into one or more Assignment and Acceptances, set forth
     for such Lender in the Register maintained by the Administrative Agent
     pursuant to Section 9.07(d) as such Lender's "Commitment", as such amount
     may be reduced at or prior to such time pursuant to Section 2.04.

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<PAGE>

         "CONFIDENTIAL INFORMATION" means information that any Loan Party
     furnishes to any Agent or any Lender in a writing designated as
     confidential, but does not include any such information that is or becomes
     generally available to the public or that is or becomes available to such
     Agent or such Lender from a source other than the Loan Parties.

         "CONSOLIDATED" refers to the consolidation of accounts in accordance
     with GAAP.

         "CONSTANTINE" has the meaning specified in the recital of parties to
     this Agreement.

         "CONSTITUTIVE DOCUMENTS" means, with respect to any Person, the
     certificate of incorporation or registration (including, if applicable,
     certificate of change of name), articles of incorporation or association,
     memorandum of association, charter, bylaws, partnership agreement, trust
     agreement, joint venture agreement, limited liability company operating or
     members agreement, joint venture agreement or one or more similar
     agreements, instruments or documents constituting the organization or
     formation of such Person.

         "CONTINGENT OBLIGATION" means, with respect to any Person, any
     Obligation or arrangement of such Person to guarantee or intended to
     guarantee any Debt, leases, dividends or other payment Obligations
     ("PRIMARY OBLIGATIONS") of any other Person (the "PRIMARY OBLIGOR") in any
     manner, whether directly or indirectly, including, without limitation, (a)
     the direct or indirect guarantee, endorsement (other than for collection or
     deposit in the ordinary course of business), co-making, discounting with
     recourse or sale with recourse by such Person of the Obligation of a
     primary obligor, (b) the Obligation to make take-or-pay or similar
     payments, if required, regardless of nonperformance by any other party or
     parties to an agreement or (c) any Obligation of such Person, whether or
     not contingent, (i) to purchase any such primary obligation or any property
     constituting direct or indirect security therefor, (ii) to advance or
     supply funds (A) for the purchase or payment of any such primary obligation
     or (B) to maintain working capital or equity capital of the primary obligor
     or otherwise to maintain the net worth or solvency of the primary obligor,
     (iii) to purchase property, assets, securities or services primarily for
     the purpose of assuring the owner of any such primary obligation of the
     ability of the primary obligor to make payment of such primary obligation
     or (iv) otherwise to assure or hold harmless the holder of such primary
     obligation against loss in respect thereof. The amount of any Contingent
     Obligation shall be deemed to be an amount equal to the stated or
     determinable amount of the primary obligation in respect of which such
     Contingent Obligation is made (or, if less, the maximum amount of such
     primary obligation for which such Person may be liable pursuant to the
     terms of the instrument evidencing such Contingent Obligation) or, if not
     stated or determinable, the maximum reasonably anticipated liability in
     respect thereof (assuming such Person is required to perform thereunder),
     as determined by such Person in good faith.

         "CONTRIBUTION" has the meaning specified in the Preliminary Statements.

         "CURRENT ASSETS" of any Person means all assets of such Person that
     would, in accordance with GAAP, be classified as current assets of a
     company conducting a business the same as or similar to that of such
     Person, after deducting adequate reserves in each case in which a reserve
     is proper in accordance with GAAP.

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<PAGE>

         "CURRENT LIABILITIES" of any Person means (a) all Debt of such Person
     that by its terms is payable on demand or matures within one year after the
     date of determination (excluding (i) any Debt renewable or extendible, at
     the option of such Person, to a date more than one year from such date or
     arising under a revolving credit or similar agreement that obligates the
     lender or lenders to extend credit during a period of more than one year
     from such date and (ii) all amounts of Funded Debt of such Person required
     to be paid or prepaid within one year after the date of determination) and
     (b) all other items (including taxes accrued as estimated) that in
     accordance with GAAP would be classified as current liabilities of such
     Person.

         "DEBT" of any Person means, without duplication for purposes of
     calculating financial ratios, (a) all indebtedness of such Person for
     borrowed money, (b) all Obligations of such Person for the deferred
     purchase price of property or services (other than trade payables not
     overdue by more than 60 days incurred in the ordinary course of such
     Person's business), (c) all Obligations of such Person evidenced by notes,
     bonds, debentures or other similar instruments, (d) all Obligations of such
     Person created or arising under any conditional sale or other title
     retention agreement with respect to property acquired by such Person (even
     though the rights and remedies of the seller or lender under such agreement
     in the event of default are limited to repossession or sale of such
     property), (e) all Obligations of such Person as lessee under Capitalized
     Leases, (f) all Obligations of such Person under acceptance, letter of
     credit or similar facilities, (g) all Obligations of such Person to
     purchase, redeem, retire, defease or otherwise make any payment in respect
     of any Equity Interests in such Person or any other Person or any warrants,
     rights or options to acquire such capital stock, valued, in the case of
     Redeemable Preferred Interests, at the greater of its voluntary or
     involuntary liquidation preference PLUS accrued and unpaid dividends, (h)
     all Obligations of such Person in respect of Hedge Agreements, valued at
     the Agreement Value thereof, (i) all Contingent Obligations of such Person
     and (j) all indebtedness and other payment Obligations referred to in
     clauses (a) through (i) above of another Person secured by (or for which
     the holder of such Debt has an existing right, contingent or otherwise, to
     be secured by) any Lien on property (including, without limitation,
     accounts and contract rights) owned by such Person, even though such Person
     has not assumed or become liable for the payment of such indebtedness or
     other payment Obligations.

         "DEBT FOR BORROWED MONEY" of any Person means all items that, in
     accordance with GAAP, would be classified as indebtedness on a Consolidated
     balance sheet of such Person.

         "DEFAULT" means any Event of Default or any event that would constitute
     an Event of Default but for the requirement that notice be given or time
     elapse or both.

         "DOLLARS" and "$" each means lawful money of the United States of
     America.

         "EBITDA" means, for any period, the sum, determined on a Consolidated
     basis, of (a) net income (or net loss), (b) interest expense, (c) income
     tax expense, (d) depreciation expense and (e) amortization expense, in each
     case of the Parent and its Subsidiaries, determined in accordance with GAAP
     for such period.

         "EFFECTIVE DATE" means the first date on which the conditions set forth
     in Article III shall have satisfied.

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<PAGE>

         "ELIGIBLE ASSIGNEE" means (a) a Lender; (b) an Affiliate of a Lender;
     (c) a commercial bank organized under the laws of the United States, or any
     State thereof, and having a combined capital and surplus of at least
     $500,000,000; (d) a savings and loan association or savings bank organized
     under the laws of the United States, or any State thereof, and having a
     combined capital and surplus of at least $500,000,000; (e) a commercial
     bank organized under the laws of any other country that is a member of the
     OECD or has concluded special lending arrangements with the International
     Monetary Fund associated with its General Arrangements to Borrow or a
     political subdivision of any such country, and having a combined capital
     and surplus of at least $500,000,000, so long as such bank is acting
     through a branch or agency located in the country in which it is organized
     or another country that is described in this clause (e); (f) the central
     bank of any country that is a member of the OECD; (g) a finance company,
     insurance company or other financial institution or fund (whether a
     corporation, partnership, trust or other entity) that is engaged in making,
     purchasing or otherwise investing in commercial loans in the ordinary
     course of its business and having a combined capital and surplus of at
     least $500,000,000; and (h) any other Person approved by the Administrative
     Agent and, unless a Default has occurred and is continuing at the time any
     assignment is effected pursuant to Section 9.07, the Borrower, such
     approval not to be unreasonably withheld or delayed; PROVIDED, HOWEVER,
     that neither any Loan Party nor any Affiliate of a Loan Party shall qualify
     as an Eligible Assignee under this definition.

         "ENVIRONMENTAL ACTION" means any action, suit, demand, demand letter,
     claim, notice of non-compliance or violation, notice of liability or
     potential liability, investigation, proceeding, consent order or consent
     agreement relating in any way to any Environmental Law, any Environmental
     Permit or Hazardous Material or arising from alleged injury or threat to
     health, safety or the environment, including, without limitation, (a) by
     any governmental or regulatory authority for enforcement, cleanup, removal,
     response, remedial or other actions or damages and (b) by any governmental
     or regulatory authority or third party for damages, contribution,
     indemnification, cost recovery, compensation or injunctive relief.

         "ENVIRONMENTAL LAW" means any Federal, state, local or foreign statute,
     law, ordinance, rule, regulation, treaty, international convention,
     protocol, code, order, writ, judgment, injunction, decree or judicial or
     agency interpretation, policy or guidance relating to pollution or
     protection of the environment, health, safety or natural resources,
     including, without limitation, those relating to the use, handling,
     transportation, treatment, storage, disposal, release or discharge of
     Hazardous Materials.

         "ENVIRONMENTAL PERMIT" means any permit, approval, identification
     number, license or other authorization required under any Environmental
     Law.

         "EQUITY INTERESTS" means, with respect to any Person, shares of capital
     stock of (or other ownership or profit interests in) such Person, warrants,
     options or other rights for the purchase or other acquisition from such
     Person of shares of capital stock of (or other ownership or profit
     interests in) such Person, securities convertible into or exchangeable for
     shares of capital stock of (or other ownership or profit interests in) such
     Person or warrants, rights or options for the purchase or other acquisition
     from such Person of such shares (or such other interests), and other
     ownership or profit interests in such Person (including, without
     limitation, partnership, member or trust interests therein), whether voting
     or nonvoting, and whether or not such shares, warrants, options, rights or
     other interests are authorized or otherwise existing on any date of
     determination.

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<PAGE>

         "EQUITY INVESTORS" means the Persons set forth on Schedule 4.01(x)
     hereto.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

         "ERISA AFFILIATE" means any Person that for purposes of Title IV of
     ERISA is a member of the controlled group of any Loan Party, or under
     common control with any Loan Party, within the meaning of Section 414 of
     the Internal Revenue Code.

         "EUROCURRENCY LIABILITIES" has the meaning specified in Regulation D of
     the Board of Governors of the Federal Reserve System, as in effect from
     time to time.

         "EURODOLLAR LENDING OFFICE" means, with respect to any Lender, the
     office of such Lender specified as its "Eurodollar Lending Office" opposite
     its name on Schedule I hereto or in the Assignment and Acceptance pursuant
     to which it became a Lender, or such other office of such Lender as such
     Lender may from time to time specify to the Borrowers and the
     Administrative Agent.

         "EURODOLLAR RATE" means, for any Interest Period for all Advances
     comprising part of the same Borrowing, an interest rate per annum equal to
     the rate per annum obtained by dividing (a) the rate per annum (rounded
     upwards, if necessary, to the nearest 1/100 of 1%) appearing on Telerate
     Page 3750 (or any successor page) as the London interbank offered rate for
     deposits in U.S. dollars at 11:00 A.M. (London time) two Business Days
     before the first day of such Interest Period for a period equal to such
     Interest Period (PROVIDED that, if for any reason such rate is not
     available, the term "Eurodollar Rate" shall mean, for any Interest Period
     for all Advances comprising part of the same Borrowing, the rate per annum
     (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on
     Reuters Screen LIBO Page as the London interbank offered rate for deposits
     in Dollars at approximately 11:00 A.M. (London time) two Business Days
     prior to the first day of such Interest Period for a term comparable to
     such Interest Period; PROVIDED, HOWEVER, if more than one rate is specified
     on Reuters Screen LIBO Page, the applicable rate shall be the arithmetic
     mean of all such rates) by (b) a percentage equal to 100% minus the
     Eurodollar Rate Reserve Percentage for such Interest Period.

         "EURODOLLAR RATE RESERVE PERCENTAGE" for any Interest Period for all
     Advances comprising part of the same Borrowing means the reserve percentage
     applicable two Business Days before the first day of such Interest Period
     under regulations issued from time to time by the Board of Governors of the
     Federal Reserve System (or any successor) for determining the maximum
     reserve requirement (including, without limitation, any emergency,
     supplemental or other marginal reserve requirement) for a member bank of
     the Federal Reserve System in New York City with respect to liabilities or
     assets consisting of or including Eurocurrency Liabilities (or with respect
     to any other category of liabilities that includes deposits by reference to
     which the interest rate on Advances is determined) having a term equal to
     such Interest Period.

         "EVENTS OF DEFAULT" has the meaning specified in Section 6.01.

         "EXCESS AMOUNT" means, on any Business Day, an amount equal to the
     amount by which (a) the aggregate amount of the Borrowers' cash on hand
     (including, without limitation, amounts

                                       9
<PAGE>

     on deposit in any deposit account of any Borrower) exceeds (b) the sum
     of (i) $3,000,000 and (ii) the next scheduled payment of principal and
     interest payable by the Borrowers.

         "EXISTING BRIDGE AGREEMENT" has the meaning specified in the
     Preliminary Statements.

         "EXISTING DEBT" has the meaning specified in the Preliminary
     Statements.

         "EXISTING GUARANTY" has the meaning specified in the Preliminary
     Statements.

         "EXTRAORDINARY RECEIPT" means any cash received by or paid to or for
     the account of any Person not in the ordinary course of business,
     including, without limitation, tax refunds, pension plan reversions,
     proceeds of insurance (other than proceeds of business interruption
     insurance to the extent such proceeds constitute compensation for lost
     earnings), condemnation awards (and payments in lieu thereof), indemnity
     payments, amounts released from the Oaktree Account upon termination of the
     Oaktree Escrow Agreement and any purchase price adjustment received in
     connection with any purchase agreement; PROVIDED, HOWEVER, that an
     Extraordinary Receipt shall not include cash receipts received from
     proceeds of insurance, condemnation awards (or payments in lieu thereof) or
     indemnity payments to the extent that such proceeds, awards or payments in
     respect of loss or damage to equipment, fixed assets or real property are
     applied (or in respect of which expenditures were previously incurred) to
     replace or repair the equipment, fixed assets or real property in respect
     of which such proceeds were received in accordance with the terms of the
     Loan Documents, including, without limitation, the loss payable clauses set
     forth in the Assignments of Insurances, so long as such application is made
     within 6 months after the occurrence of such damage or loss or such longer
     period approved by the Administrative Agent.

         "FACILITY" means, at any time, the aggregate amount of the Lenders'
     Commitments at such time.

         "FEDERAL FUNDS RATE" means, for any period, a fluctuating interest rate
     per annum equal for each day during such period to the weighted average of
     the rates on overnight federal funds transactions with members of the
     Federal Reserve System arranged by federal funds brokers, as published for
     such day (or, if such day is not a Business Day, for the next preceding
     Business Day) by the Federal Reserve Bank of New York, or, if such rate is
     not so published for any day that is a Business Day, the average of the
     quotations for such day for such transactions received by the
     Administrative Agent from three federal funds brokers of recognized
     standing selected by it.

         "FISCAL YEAR" means a fiscal year of the Parent and its Consolidated
     Subsidiaries ending on December 31 in any calendar year.

         "FUNDED DEBT" of any Person means Debt in respect of the Advances, in
     the case of the Borrowers, and all other Debt of such Person that by its
     terms matures more than one year after the date of determination or matures
     within one year from such date but is renewable or extendible, at the
     option of such Person, to a date more than one year after such date or
     arises under a revolving credit or similar agreement that obligates the
     lender or lenders to extend credit during a period of more than one year
     after such date, including, without limitation, all amounts of Funded Debt
     of such Person required to be paid or prepaid within one year after the
     date of determination.

                                       10
<PAGE>

         "GAAP" has the meaning specified in Section 1.03.

         "GENMAR AGAMEMNON" means M/T "Genmar Agamemnon" (ex. "Emilie"), an
     aframax crude tanker built in 1995 at Samsung yard of approximately 96,213
     dwt registered in the name of Agamemnon as owner in the Liberian Ship
     Registry.

         "GENMAR AJAX" means M/T "Genmar Ajax" (ex. "Julie"), an aframax crude
     tanker built in 1996 at Samsung yard of approximately 96,213 dwt registered
     in the name of Ajax as owner in the Liberian Ship Registry.

         "GENMAR AJAX LTD." means Genmar Ajax Ltd., a New York corporation and
     managing general partner of the Parent.

         "GENMAR CONSTANTINE" means M/T "Genmar Constantine" (ex. "Artois"), an
     aframax crude tanker built in 1992 at Kurushima yard of approximately
     106,000 dwt registered in the name of Constantine as owner in the Liberian
     Ship Registry.

         "GENMAR MINOTAUR" means M/T "Genmar Minotaur" (ex. "Stephanie"), an
     aframax crude tanker built in 1995 at Samsung yard of approximately 96,213
     dwt registered in the name of Minotaur as owner in the Liberian Ship
     Registry.

         "GMC" means General Maritime Corporation, a New York corporation.

         "GUARANTEED OBLIGATIONS" has the meaning specified in Section 7.01(a)
     hereof.

         "GUARANTORS" has the meaning specified in the recital of parties to
     this Agreement.

         "GUARANTY" means the guaranty of the Guarantors contained in Article
     VII hereof.

         "HAZARDOUS MATERIALS" means (a) petroleum or petroleum products,
     by-products or breakdown products, radioactive materials,
     asbestos-containing materials, polychlorinated biphenyls and radon gas and
     (b) any other chemicals, materials or substances designated, classified or
     regulated as hazardous or toxic or as a pollutant or contaminant under any
     Environmental Law.

         "HEDGE AGREEMENTS" means interest rate swap, cap or collar agreements,
     interest rate future or option contracts, currency swap agreements,
     currency future or option contracts and other hedging agreements.

         "INDEMNIFIED PARTY" has the meaning specified in Section 9.04(b).

         "INITIAL LENDERS" has the meaning specified in the recital of parties
     to this Agreement.

         "INITIAL PERIOD" means the period from the Effective Date until the
     18-month anniversary of the Effective Date.

         "INTEREST COVERAGE RATIO" means, at any date of determination, the
     ratio of (a) Consolidated EBITDA to (b) interest payable on all Debt for
     Borrowed Money, in each case, of

                                       11
<PAGE>

     or by the Parent and its Subsidiaries during the most recent Measurement
     Period for which financial statements are required to be delivered to the
     Lenders pursuant to Section 5.03(b) or (c), as the case may be.

         "INTEREST PERIOD" means, for each Advance comprising part of the same
     Borrowing, the period commencing on the date of such Advance and ending on
     the last day of the period selected by such Borrower pursuant to the
     provisions below and, thereafter, each subsequent period commencing on the
     last day of the immediately preceding Interest Period and ending on the
     last day of the period selected by such Borrower pursuant to the provisions
     below. The duration of each such Interest Period shall be one or three
     months, as such Borrower may, upon notice received by the Administrative
     Agent not later than 11:00 A.M. (New York City time) on the third Business
     Day prior to the first day of such Interest Period, select; PROVIDED,
     HOWEVER, that:

              (a) no Borrower may select any Interest Period with respect to any
         Advance that ends after any principal repayment installment date
         hereunder unless, after giving effect to such selection, the aggregate
         principal amount of Advances having Interest Periods that end on or
         prior to such principal repayment installment date shall be at least
         equal to the aggregate principal amount of Advances hereunder due and
         payable on or prior to such date;

              (b) Interest Periods commencing on the same date for Advances
         comprising part of the same Borrowing shall be of the same duration;

              (c) whenever the last day of any Interest Period would otherwise
         occur on a day other than a Business Day, the last day of such Interest
         Period shall be extended to occur on the next succeeding Business Day,
         PROVIDED, HOWEVER, that, if such extension would cause the last day of
         such Interest Period to occur in the next following calendar month, the
         last day of such Interest Period shall occur on the next preceding
         Business Day; and

              (d) whenever the first day of any Interest Period occurs on a
         day of an initial calendar month for which there is no numerically
         corresponding day in the calendar month that succeeds such initial
         calendar month by the number of months equal to the number of months in
         such Interest Period, such Interest Period shall end on the last
         Business Day of such succeeding calendar month.

         "INTERNAL REVENUE CODE" means the Internal Revenue Code of 1986, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

         "INVESTMENT" in any Person means any loan or advance to such Person,
     any purchase or other acquisition of any Equity Interests or Debt or the
     assets comprising a division or business unit or a substantial part or all
     of the business of such Person, any capital contribution to such Person or
     any other direct or indirect investment in such Person, including, without
     limitation, any acquisition by way of a merger or consolidation and any
     arrangement pursuant to which the investor incurs Debt of the types
     referred to in clause (i) or (j) of the definition of "DEBT" (other than
     the Loan Parties' Obligations with respect to the Oaktree Claim) in respect
     of such Person.

                                       12
<PAGE>

         "LENDERS" means the Initial Lenders and each Person that shall become a
     Lender hereunder pursuant to Section 9.07 for so long as such Initial
     Lender or Person, as the case may be, shall be a party to this Agreement.

         "LIBERIAN SHIP REGISTRY" means the Office of the Deputy Commissioner of
     Maritime Affairs of the Republic of Liberia at the port of New York.

         "LIEN" means any lien, security interest or other charge or encumbrance
     of any kind, or any other type of preferential arrangement, including,
     without limitation, the lien or retained security title of a conditional
     vendor and any easement, right of way or other encumbrance on title to real
     property.

         "LOAN DOCUMENTS" means (a) this Agreement, (b) the Notes, (c) the
     Guaranty, (d) the Master Vessel Trust Agreement and (e) the Collateral
     Documents, in each case as amended.

         "LOAN PARTIES" means the Borrowers and the Guarantors.

         "MARGIN STOCK" has the meaning specified in Regulation U.

         "MARKET VALUE" means, at any date of determination, (a) in the case of
     any Vessel, the arithmetic mean of valuations, made by any three
     shipbrokers appointed by the Borrower from among (i) Fearnleys, Oslo,
     Norway, (ii) R.S. Platou Shipbrokers a.s., Oslo, Norway, (iii) Braemar
     Valuations Ltd., London, England, (iv) Lorentzen & Stemoco Shipbrokers,
     Oslo, Norway, and (v) H. Clarkson & Company Ltd., London, England, of a
     Vessel on the basis of a voluntary cash sale between a willing buyer and a
     willing seller, free of any charter, employment contract or pool agreement
     as set forth in the appraisals most recently delivered to the
     Administrative Agent pursuant to Section 5.01 prior to such date, and (b)
     in the case of other assets, the market value of such assets calculated in
     a manner determined by the Lenders, in their reasonable discretion, as of
     such date.

         "MASTER VESSEL TRUST AGREEMENT" has the meaning specified in Section
     3.01(a)(iv)(H).

         "MATERIAL ADVERSE CHANGE" means any material adverse change in the
     business, condition (financial or otherwise), operations, performance,
     properties or prospects of any Loan Party or any of its Subsidiaries (it
     being understood and agreed by the parties hereto that the diminution in
     Market Value of the Vessels during the period from May 15, 1998 through
     October 20, 1998 shall not, in and of itself, constitute a Material Adverse
     Change).

         "MATERIAL ADVERSE EFFECT" means a material adverse effect on (a) the
     business, condition (financial or otherwise), operations, performance,
     properties or prospects of any Loan Party or any of its Subsidiaries (it
     being understood and agreed by the parties hereto that the diminution in
     Market Value of the Vessels during the period from May 15, 1998 through
     October 20, 1998 shall not, in and of itself, constitute a Material Adverse
     Effect), (b) the rights and remedies of any Agent or any Lender under any
     Transaction Document or (c) the ability of any Loan Party to perform its
     Obligations under any Transaction Document to which it is or is to be a
     party.

         "MEASUREMENT PERIOD" means, at any date of determination, the period of
     the four consecutive fiscal quarters of the Parent then most recently
     ended; PROVIDED that, for the first

                                       13
<PAGE>

     three fiscal quarters of the Fiscal Year ending December 31, 1999,
     "MEASUREMENT PERIOD" means the period commencing on the first day of such
     Fiscal Year and ending on the last day of such fiscal quarter.

         "MINOTAUR" has the meaning specified in the recital of parties to this
     Agreement.

         "MORTGAGES" has the meaning specified in Section 3.01(a)(iv).

         "MULTIEMPLOYER PLAN" means a multiemployer plan, as defined in Section
     4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is
     making or accruing an obligation to make contributions, or has within any
     of the preceding five plan years made or accrued an obligation to make
     contributions.

         "MULTIPLE EMPLOYER PLAN" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
     Loan Party or any ERISA Affiliate and at least one Person other than the
     Loan Parties and the ERISA Affiliates or (b) was so maintained and in
     respect of which any Loan Party or any ERISA Affiliate could have liability
     under Section 4064 or 4069 of ERISA in the event such plan has been or were
     to be terminated.

         "NET CASH PROCEEDS" means, with respect to any sale, lease, transfer or
     other disposition of any asset or the incurrence or issuance of any Debt or
     the sale or issuance of any Equity Interests (including, without
     limitation, any capital contribution) by any Person, or any Extraordinary
     Receipt received by or paid to or for the account of any Person, the
     aggregate amount of cash received from time to time (whether as initial
     consideration or through payment or disposition of deferred consideration)
     by or on behalf of such Person in connection with such transaction after
     deducting therefrom only (without duplication) (a) reasonable and customary
     brokerage commissions, underwriting fees and discounts, legal fees,
     finder's fees and other similar fees and commissions, and (b) the amount of
     taxes payable in connection with or as a result of such transaction, and
     (c) the amount of any Debt secured by a Lien on such asset that, by the
     terms of the agreement or instrument governing such Debt, is required to be
     repaid upon such disposition, in each case to the extent, but only to the
     extent, that the amounts so deducted are, at the time of receipt of such
     cash, actually paid to a Person that is not an Affiliate of such Person or
     any Loan Party or any Affiliate of any Loan Party and are properly
     attributable to such transaction or to the asset that is the subject
     thereof.

         "NOTE" means a promissory note of any Borrower payable to the order of
     any Lender, in substantially the form of Exhibit A hereto, evidencing the
     indebtedness of such Borrower to such Lender resulting from the Advance
     made by such Lender, as amended.

         "NOTICE OF BORROWING" has the meaning specified in Section 2.02(a).

         "NPL" means the National Priorities List under CERCLA.

         "OAKTREE" means OCM Ajax Investments, Inc., a Delaware corporation.

         "OAKTREE ACCOUNT" means the escrow account maintained pursuant to the
     Oaktree Escrow Agreement.

                                       14
<PAGE>

         "OAKTREE CLAIM" means all claims by Oaktree or its Affiliates for
     indemnification by the Parent pursuant to Article VI of the Subscription
     Agreement.

         "OAKTREE ESCROW AGREEMENT" means the escrow agreement dated February 9,
     1999 between Oaktree, the Parent, the Administrative Agent and Wilmington
     Trust of Pennsylvania, as escrow agent.

         "OBLIGATION" means, with respect to any Person, any payment,
     performance or other obligation of such Person of any kind, including,
     without limitation, any liability of such Person on any claim, whether or
     not the right of any creditor to payment in respect of such claim is
     reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
     disputed, undisputed, legal, equitable, secured or unsecured, and whether
     or not such claim is discharged, stayed or otherwise affected by any
     proceeding referred to in Section 6.01(f). Without limiting the generality
     of the foregoing, the Obligations of any Loan Party under the Loan
     Documents include (a) the obligation to pay principal, interest, charges,
     expenses, fees, attorneys' fees and disbursements, indemnities and other
     amounts payable by such Loan Party under any Loan Document and (b) the
     obligation of such Loan Party to reimburse any amount in respect of any of
     the foregoing that any Lender, in its sole discretion, may elect to pay or
     advance on behalf of such Loan Party.

         "OECD" means the Organization for Economic Cooperation and Development.

         "OTHER TAXES" has the meaning specified in Section 2.10(b).

         "PARENT" has the meaning specified in the recital of parties to this
     Agreement.

         "PARTNERSHIP AGREEMENT" means, pursuant to the Amendment, the second
     amended and restated limited partnership agreement of the Parent dated as
     of February 9, 1999, as further amended, to the extent permitted under the
     Loan Documents.

         "PERMITTED LIENS" means such of the following as to which no
     enforcement, collection, execution, levy or foreclosure proceeding shall
     have been commenced: (a) Liens for taxes, assessments and governmental
     charges or levies to the extent not required to be paid under Section
     5.01(b); (b) Liens imposed by law, such as materialmen's, mechanics',
     carriers', workmen's and repairmen's Liens and other similar Liens arising
     in the ordinary course of business securing obligations that are not
     overdue for a period of more than 30 days; (c) Liens imposed by law, such
     as Liens in respect of seamen's wages and other maritime Liens arising in
     the ordinary course of business securing obligations that are not overdue
     for a period of more than 30 days; (d) pledges or deposits to secure
     obligations under workers' compensation laws or similar legislation or to
     secure public or statutory obligations; and (e) easements, rights of way
     and other encumbrances on title to real property that do not render title
     to the property encumbered thereby unmarketable or materially adversely
     affect the use of such property for its present purposes.

         "PERSON" means an individual, partnership, corporation (including a
     business trust), limited liability company, joint stock company, trust,
     unincorporated association, joint venture or other entity, or a government
     or any political subdivision or agency thereof.

                                       15
<PAGE>

         "PLAN" means a Single Employer Plan or a Multiple Employer Plan.

         "PLEDGED DEBT" has the meaning specified in the Security Agreement.

         "PREFERRED INTERESTS" means, with respect to any Person, Equity
     Interests issued by such Person that are entitled to a preference or
     priority over any other Equity Interests issued by such Person upon any
     distribution of such Person's property and assets, whether by dividend or
     upon liquidation.

         "PRO RATA PERCENTAGE" means, with respect to any Borrower at any time,
     a percentage equal to (a) the aggregate principal amount of the Advances
     owing by such Borrower at such time DIVIDED BY (b) the aggregate principal
     amount of the Advances owing by all of the Borrowers at such time.

         "PRO RATA SHARE" of any amount means, with respect to any Lender at any
     time, the product of such amount TIMES a fraction the numerator of which is
     the amount of such Lender's Commitment at such time (or, if the Commitments
     shall have been terminated pursuant to Section 2.04 or 6.01, such Lender's
     Commitment as in effect immediately prior to such termination) and the
     denominator of which is the Facility at such time (or, if the Commitments
     shall have been terminated pursuant to Section 2.04 or 6.01, the Facility
     as in effect immediately prior to such termination).

         "REDEEMABLE" means, with respect to any Equity Interest, any Debt or
     any other right or Obligation, any such Equity Interest, Debt, right or
     Obligation that (a) the issuer has undertaken to redeem at a fixed or
     determinable date or dates, whether by operation of a sinking fund or
     otherwise, or upon the occurrence of a condition not solely within the
     control of the issuer or (b) is redeemable at the option of the holder.

         "REGISTER" has the meaning specified in Section 9.07(d).

         "REGULATION U" means Regulation U of the Board of Governors of the
     Federal Reserve System, as in effect from time to time.

         "RELATED DOCUMENTS" means the Partnership Agreement, the Subscription
     Agreement, the Oaktree Escrow Agreement, the Technical Management
     Agreements, the Commercial Management Agreements, the Charterparties and
     the other documents effecting the Transaction, in each case as amended, to
     the extent permitted under the Loan Documents.

         "REPAYMENT" has the meaning specified in the Preliminary Statements.

         "REQUIRED LENDERS" means, at any time, Lenders owed or holding at least
     seventy percent (70%) of the aggregate principal amount of the Advances
     outstanding at such time.

         "RESPONSIBLE OFFICER" means any officer of any Loan Party or any of its
     Subsidiaries.

         "SECURED OBLIGATIONS" has the meaning specified in the Security
     Agreement.

                                       16
<PAGE>

         "SECURED PARTIES" means the Agents and the Lenders.

         "SECURITY AGREEMENT" has the meaning specified in Section 3.01(a)(ii).

         "SECURITY TRUSTEE" has the meaning specified in the recital of parties
     to this Agreement.

         "SHARE MORTGAGE" has the meaning specified in Section 3.01(a)(iii).

         "SINGLE EMPLOYER PLAN" means a single employer plan, as defined in
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
     Loan Party or any ERISA Affiliate and no Person other than the Loan Parties
     and the ERISA Affiliates or (b) was so maintained and in respect of which
     any Loan Party or any ERISA Affiliate could have liability under Section
     4069 of ERISA in the event such plan has been or were to be terminated.

         "SOLVENT" and "SOLVENCY" mean, with respect to any Person on a
     particular date, that on such date (a) the fair value of the property of
     such Person is greater than the total amount of liabilities, including,
     without limitation, contingent liabilities, of such Person, (b) the present
     fair salable value of the assets of such Person is not less than the amount
     that will be required to pay the probable liability of such Person on its
     debts as they become absolute and matured, (c) such Person does not intend
     to, and does not believe that it will, incur debts or liabilities beyond
     such Person's ability to pay such debts and liabilities as they mature and
     (d) such Person is not engaged in business or a transaction, and is not
     about to engage in business or a transaction, for which such Person's
     property would constitute an unreasonably small capital. The amount of
     contingent liabilities at any time shall be computed as the amount that, in
     the light of all the facts and circumstances existing at such time,
     represents the amount that can reasonably be expected to become an actual
     or matured liability.

         "SUBORDINATED DEBT" means any Debt of any of the Borrowers that is
     subordinated to the Obligations of the Borrowers under the Loan Documents
     on, and that otherwise contains, terms and conditions satisfactory to the
     Required Lenders.

         "SUBSCRIPTION AGREEMENT" means the subscription agreement dated as of
     February 9, 1999 between Oaktree, the Borrowers and the Parent.

         "SUBSIDIARY" of any Person means any corporation, partnership, joint
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of (a) the issued and outstanding capital stock having
     ordinary voting power to elect a majority of the Board of Directors of such
     corporation (irrespective of whether at the time capital stock of any other
     class or classes of such corporation shall or might have voting power upon
     the occurrence of any contingency), (b) the interest in the capital or
     profits of such partnership, joint venture or limited liability company or
     (c) the beneficial interest in such trust or estate is at the time directly
     or indirectly owned or controlled by such Person, by such Person and one or
     more of its other Subsidiaries or by one or more of such Person's other
     Subsidiaries.

         "TAX CERTIFICATE" has the meaning specified in Section 5.03(j).

         "TAXES" has the meaning specified in Section 2.10(a).

                                       17
<PAGE>

         "TECHNICAL MANAGEMENT AGREEMENTS" has the meaning specified in Section
     3.01(a)(iv)(C).

         "TERMINATION DATE" means the earlier of February 9, 2002 and the date
     of termination in whole of the Commitments pursuant to Section 2.04 or
     6.01.

         "TRANSACTION" has the meaning set forth in the Preliminary Statements.

         "TRANSACTION DOCUMENTS" means, collectively, the Loan Documents and the
     Related Documents.

         "VESSELS" means, collectively, Genmar Constantine, Genmar Agamemnon,
     Genmar Minotaur and Genmar Ajax.

         "VOTING INTERESTS" means shares of capital stock issued by a
     corporation, or equivalent Equity Interests in any other Person, the
     holders of which are ordinarily, in the absence of contingencies, entitled
     to vote for the election of directors (or persons performing similar
     functions) of such Person, even if the right so to vote has been suspended
     by the happening of such a contingency.

         SECTION 1.02. COMPUTATION OF TIME PERIODS; OTHER DEFINITIONAL
PROVISIONS. In this Agreement and the other Loan Documents in the computation of
periods of time from a specified date to a later specified date, the word "FROM"
means "from and including" and the words "TO" and "UNTIL" each mean "to but
excluding". References in the Loan Documents to any agreement or contract "AS
AMENDED" shall mean and be a reference to such agreement or contract as amended,
amended and restated, supplemented or otherwise modified from time to time in
accordance with its terms.

         SECTION 1.03. ACCOUNTING TERMS. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles in effect from time to time in the United States
of America consistent with those applied in the preparation of the financial
statements referred to in Section 4.01(g) ("GAAP").

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

         SECTION 2.01. THE ADVANCES. Each Initial Lender severally agrees to, on
the Effective Date, contribute to the Administrative Agent for the account of
each Borrower such Initial Lender's right to receive payment of the principal
amount outstanding of the Existing Debt owed to it by such Borrower (each such
contribution being an "ADVANCE"). Under no circumstances shall any Lender make
an Advance to any Borrower, to the extent that, after giving effect to the
making of such Advance and all other Advances to be made concurrently to such
Borrower, (i) the aggregate principal amount of all then outstanding Advances
owing by such Borrower would exceed such Borrower's Borrower Sublimit or (ii)
the aggregate principal amount of all outstanding Advances to all Borrowers
would exceed the aggregate Commitments of the Lenders. Notwithstanding anything
to the contrary set forth herein above or elsewhere in this Agreement, this
Agreement is an amendment and restatement of the Existing Bridge Agreement, no
funds are being repaid or readvanced hereunder, and any reference to an Advance

                                       18
<PAGE>

hereunder is made solely for the purpose of effectuating the amendment and
restatement of the Existing Bridge Agreement upon the terms and conditions set
forth herein. Amounts borrowed under this Section 2.01 and repaid or prepaid may
not be reborrowed.

         SECTION 2.02. MAKING THE ADVANCES. (a) The Advances shall be made on
notice, given not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the date of the Borrowing, by the Borrowers to the
Administrative Agent, which shall give to each Lender prompt notice thereof by
telecopier. The notice of Borrowing (the "NOTICE OF BORROWING") shall be by
telephone, confirmed immediately in writing or telecopier, in substantially the
form of Exhibit B hereto, specifying therein the requested (i) date of such
Borrowing, (ii) aggregate amount of such Borrowing, (iii) amount of such
Borrowing requested by each Borrower and (iv) initial Interest Period for each
such Advance. Upon fulfillment of the applicable conditions set forth in Article
III, the Notes referred to in Section 3.01 shall be issued in consideration of
the contribution by the Lenders of their respective rights to receive payment of
the principal amount outstanding of the Existing Debt.

         (b) The Advances may not be outstanding as part of more than eight
separate Borrowings.

         (c) The Notice of Borrowing shall be irrevocable and binding on the
Borrowers. Each Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or
before the date specified in the Notice of Borrowing the applicable conditions
set forth in Article III, including, without limitation, any loss (including
loss of anticipated profits), cost or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such Lender
to fund the Advance to be made by such Lender as part of such Borrowing when
such Advance, as a result of such failure, is not made on such date.

         SECTION 2.03. REPAYMENT OF ADVANCES. Each Borrower shall repay to the
Administrative Agent for the ratable account of the Lenders the aggregate
outstanding principal amount of the Advances owing by such Borrower on the last
Business Day of each calendar month in an amount equal to (a) during the Initial
Period, $37,500 and (b) thereafter, $125,000 (which amounts shall be reduced as
a result of the application of prepayments in accordance with the order of
priority set forth in the applicable subsection of Section 2.05); PROVIDED,
HOWEVER, that the final principal installment shall be repaid by the Borrower on
the Termination Date and in any event shall be in an amount equal to the
aggregate principal amount of the Advances owing by such Borrower and
outstanding on such date.

                  SECTION 2.04. TERMINATION OR REDUCTION OF THE COMMITMENTS. On
the date of the Borrowing, after giving effect to such Borrowing, and from time
to time thereafter upon each repayment or prepayment of the Advances, the
aggregate Commitments of the Lenders shall be automatically and permanently
reduced, on a pro rata basis, by an amount equal to the amount by which the
aggregate Commitments immediately prior to such reduction exceed the aggregate
unpaid principal amount of the Advances then outstanding.

                  SECTION 2.05. PREPAYMENTS. (a) OPTIONAL. The Borrowers may,
upon at least five Business Days' notice to the Administrative Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such
notice is given each Borrower shall, prepay the outstanding aggregate principal
amount of the Advances comprising part of the same Borrowings owing by such
Borrower comprising part of the same Borrowing in whole or ratably in part,
together with accrued interest to the date of such prepayment on the aggregate
principal amount prepaid; PROVIDED, HOWEVER,

                                       19
<PAGE>

that (x) each partial prepayment by a Borrower shall be in an aggregate
principal amount of $500,000 or an integral multiple of $500,000 in excess
thereof and (y) no such prepayment shall be made other than on the last day of
an Interest Period therefor. Each such prepayment shall be applied to the
installments thereof in inverse order of maturity.

         (b) MANDATORY. (i) Each Borrower shall, on each Business Day, prepay an
aggregate principal amount of the Advances comprising part of the same
Borrowings owing by it in an amount equal to such Borrower's Pro Rata Percentage
of the Excess Amount for such Business Day; PROVIDED, HOWEVER, that, if any
Borrower's Advances shall have been paid in full, such Borrower's prepayment
received hereunder shall be applied to such other Advances owing by the other
Borrowers as determined by the Administrative Agent in the Administrative
Agent's discretion, in consultation with the Parent. Each such prepayment by a
Borrower shall be applied ratably to the Advances comprising part of the same
Borrowings owing by such Borrower and to the installments thereof in inverse
order of maturity.

         (ii) Each Borrower shall, on the date of receipt of the Net Cash
Proceeds by such Borrower or any of its Subsidiaries from (A) the sale, lease,
transfer or other disposition of any assets of such Borrower or any of its
Subsidiaries, (B) the incurrence or issuance by such Borrower or any of its
Subsidiaries of any Debt (other than Debt incurred or issued pursuant to Section
5.02(b)), (C) the sale or issuance by such Borrower or any of its Subsidiaries
of any Equity Interests (including, without limitation, receipt of any capital
contribution) and (D) any Extraordinary Receipt received by or paid to or for
the account of such Borrower or any of its Subsidiaries and not otherwise
included in clause (A), (B) or (C) above, prepay an aggregate principal amount
of the Advances comprising part of the same Borrowings owing by such Borrower in
an amount equal to the amount of such Net Cash Proceeds. Each such prepayment by
a Borrower shall be applied to the Advances comprising part of the same
Borrowings owing by such Borrower and to the installments thereof in inverse
order of maturity; PROVIDED, HOWEVER, that, if such Borrower's Advances shall
have been paid in full, such Borrower's prepayment received hereunder shall be
applied to such other Advances owing by the other Borrowers as determined by the
Administrative Agent in the Administrative Agent's discretion, in consultation
with the Parent.

         (iii) The Parent shall, on the date of receipt of the Net Cash Proceeds
by the Parent from (A) the sale, lease, transfer or other disposition of any
assets of the Parent, (B) the incurrence or issuance by the Parent of any Debt
(other than Debt incurred or issued pursuant to Section 5.02(b)), (C) the sale
or issuance by the Parent of any Equity Interests (including, without
limitation, receipt of any capital contribution) and (D) any Extraordinary
Receipt received by or paid to or for the account of the Parent and not
otherwise included in clause (A), (B) or (C) above, prepay an aggregate
principal amount of the Advances comprising part of the same Borrowings in an
amount equal to the amount of such Net Cash Proceeds. Each such prepayment by
the Parent shall be applied to the Advances comprising part of the same
Borrowings owing by one or more Borrowers, as determined by the Administrative
Agent in the Administrative Agent's discretion, in consultation with the Parent,
and to the installments thereof in inverse order of maturity.

         (iv) Each Borrower shall, on each Business Day for which the
calculation set forth in this subsection (iv) requires a prepayment to be made,
prepay the aggregate principal amount of the Advances comprising part of the
same Borrowings owing by such Borrower to the extent that (A) the aggregate
principal amount of all such Advances owing by the Borrowers exceeds (B) an
amount equal to (x) the aggregate Market Value of the Vessels DIVIDED BY (y)
during the Initial Period, 1.10, and

                                       20
<PAGE>

thereafter, 1.25, which prepayment shall be made by each Borrower ratably in
accordance with the principal amount of the Advances owing by such Borrower and
shall be applied to the Advances comprising part of the same Borrowings owing by
such Borrower and the installments thereof in the inverse order of maturity. .

         (v) Each Borrower shall prepay, on the 18-month anniversary of the
Effective Date, the aggregate principal amount of the Advances comprising part
of the same Borrowings owing by such Borrower to the extent that the aggregate
principal amount of all such Advances owing by the Borrowers exceeds $90,000,000
at such time, which prepayment shall be made by each Borrower ratably in
accordance with the principal amount of the Advances owing by such Borrower and
shall be applied to the Advances comprising part of the same Borrowings owing by
such Borrower and the installments thereof in the inverse order of maturity.

         (vi) All prepayments under this subsection (b) shall be made together
with accrued interest to the date of such prepayment on the principal amount
prepaid.

         SECTION 2.06. INTEREST. (a) SCHEDULED INTEREST. Each Borrower shall pay
interest on the unpaid principal amount of each Advance owing by such Borrower
to each Lender from the date of such Advance until such principal amount shall
be paid in full, at a rate per annum equal at all times during each Interest
Period for such Advance to the sum of (A) the Eurodollar Rate for such Interest
Period for such Advance PLUS (B) the Applicable Margin in effect on the first
day of such Interest Period, payable in arrears on the last day of such Interest
Period and on the date such Advance shall be paid in full.

         (b) DEFAULT INTEREST. Upon the occurrence and during the continuance of
a Default, each Borrower shall pay interest on (i) the unpaid principal amount
of such Borrower's Advance owing to each Lender, payable in arrears on the dates
referred to in clause (a) above and on demand, at a rate per annum equal at all
times to 3% per annum above the rate per annum required to be paid on such
Advance pursuant to clause (a) above and (ii) to the fullest extent permitted by
law, the amount of any interest, fee or other amount payable under the Loan
Documents that is not paid when due, from the date such amount shall be due
until such amount shall be paid in full, payable in arrears on the date such
amount shall be paid in full and on demand, at a rate per annum equal at all
times to 3% per annum above the rate per annum required to be paid on the
Advance pursuant to clause (a) of this Section 2.06.

         (c) NOTICE OF INTEREST PERIOD AND INTEREST RATE. Promptly after receipt
of a Notice of Borrowing pursuant to Section 2.02(a) or a notice of selection of
an Interest Period pursuant to the terms of the definition of "Interest Period",
the Administrative Agent shall give notice to each Borrower and each Lender of
the applicable Interest Period and the applicable interest rate determined by
the Administrative Agent for purposes of clause (a) above.

         (d) DETERMINATION OF INTEREST RATE. If for any reason the
Administrative Agent shall be unable to establish the Eurodollar Rate for the
relevant Interest Period, the Borrowers shall pay interest to each Lender at a
rate which equals the cost to such Lender of making, funding or maintaining its
participation in the Advances plus the Applicable Margin for such Interest
Period.

         SECTION 2.07. FEES. (a) FINANCING FEES. Each Borrower agrees jointly
and severally to pay to the Administrative Agent for the account of the Lenders
a financing fee, payable in three equal installments of $166,667 on (i) the
Effective Date, (ii) the earlier of the one-year anniversary of the

                                       21
<PAGE>

Effective Date and the payment in full of the Advances and (iii) the earlier of
the 18-month anniversary of the Effective Date and the payment in full of the
Advances.

         (b) AGENTS' FEES. Each Borrower agrees jointly and severally to pay to
the Administrative Agent for its own account (in its capacity as any of the
Agents) $25,000 per annum payable annually, in advance, commencing on the
Effective Date.

         SECTION 2.08. INCREASED COSTS, ETC. (a) If, due to either (i) the
introduction of or any change in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any central
bank or other governmental authority (whether or not having the force of law),
there shall be any increase in the cost to any Lender of agreeing to make or of
making, funding or maintaining Advances to or with any Borrower, then such
Borrower shall from time to time, upon demand by such Lender (with a copy of
such demand to the Administrative Agent), pay to the Administrative Agent for
the account of such Lender additional amounts sufficient to compensate such
Lender for such increased cost. A certificate as to the amount of such increased
cost, submitted to the applicable Borrower by such Lender, shall be conclusive
and binding for all purposes, absent manifest error.

         (b) If any Lender determines that compliance with any law or regulation
or any guideline or request from any central bank or other governmental
authority (whether or not having the force of law) affects or would affect the
amount of capital required or expected to be maintained by such Lender or any
corporation controlling such Lender and that the amount of such capital is
increased by or based upon the existence of such Lender's commitment to lend to
any Borrower, then, upon demand by such Lender or such corporation (with a copy
of such demand to the Administrative Agent), such Borrower shall pay to the
Administrative Agent for the account of such Lender, from time to time as
specified by such Lender, additional amounts sufficient to compensate such
Lender in the light of such circumstances, to the extent that such Lender
reasonably determines such increase in capital to be allocable to the existence
of such Lender's commitment to lend. A certificate as to such amounts submitted
to the applicable Borrower by such Lender shall be conclusive and binding for
all purposes, absent manifest error.

         (c) Notwithstanding any other provision of this Agreement, if the
introduction of or any change in or in the interpretation of any law or
regulation shall make it unlawful, or any central bank or other governmental
authority shall assert that it is unlawful, for any Lender or its Eurodollar
Lending Office to perform its obligations hereunder to make Advances or to
continue to fund or maintain Advances hereunder, then, on notice thereof and
demand therefor by such Lender to the Borrowers through the Administrative
Agent, each Borrower shall immediately prepay in full the Advances owing by it
to such Lender, together with accrued interest thereon.

         SECTION 2.09. PAYMENTS AND COMPUTATIONS. (a) Each Borrower shall make
each payment hereunder and under the Notes, irrespective of any right of
counterclaim or set-off, not later than 11:00 A.M. (New York City time) on the
day when due in U.S. dollars to the Administrative Agent at the Administrative
Agent's Account in same day funds, with payments being received by the
Administrative Agent after such time being deemed to have been received on the
next succeeding Business Day. The Administrative Agent will promptly thereafter
cause like funds to be distributed (i) if such payment by a Borrower is in
respect of principal, interest, commitment fees or any other Obligation then
payable hereunder and under the Notes to more than one Lender, to such Lenders
for the account of their respective Eurodollar Lending Offices ratably in
accordance with the amounts of such respective

                                       22
<PAGE>

Obligations then payable to such Lender and (ii) if such payment by a Borrower
is in respect of any Obligation then payable hereunder to one Lender, to such
Lender for the account of its Eurodollar Lending Office, in each case to be
applied in accordance with the terms of this Agreement. Upon its acceptance of
an Assignment and Acceptance and recording of the information contained therein
in the Register pursuant to Section 9.07(d), from and after the effective date
of such Assignment and Acceptance, the Administrative Agent shall make all
payments hereunder and under the Notes in respect of the interest assigned
thereby to the Lender assignee thereunder, and the parties to such Assignment
and Acceptance shall make all appropriate adjustments in such payments for
periods prior to such effective date directly between themselves.

         (b) Each Borrower hereby authorizes each Lender, if and to the extent
payment owed by such Borrower to such Lender is not made when due hereunder or
under the Note held by such Lender, to charge from time to time against any or
all of such Borrower's accounts with such Lender any amount so due.

         (c) All computations of interest and fees shall be made by the
Administrative Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest, fees or commissions are
payable. Each determination by the Administrative Agent of an interest rate, fee
or commission hereunder shall be conclusive and binding for all purposes, absent
manifest error.

         (d) Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or commitment fee, as the
case may be; PROVIDED, HOWEVER, that, if such extension would cause payment of
interest on or principal of Advances to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day.

         (e) Unless the Administrative Agent shall have received notice from any
Borrower prior to the date on which any payment is due from such Borrower to any
Lender hereunder that such Borrower will not make such payment in full, the
Administrative Agent may assume that such Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each such Lender on
such due date an amount equal to the amount then due such Lender. If and to the
extent any Borrower shall not have so made such payment in full to the
Administrative Agent, each such Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at the Federal Funds Rate.

         (f) If the Administrative Agent receives funds for application to the
Obligations under the Loan Documents under circumstances for which the Loan
Documents do not specify the Advances to which, or the manner in which, such
funds are to be applied, the Administrative Agent may, but shall not be
obligated to, elect to distribute such funds to each Lender ratably in
accordance with such Lender's proportionate share of the principal amount of all
outstanding Advances then outstanding, in repayment or prepayment of such of the
outstanding Advances or other Obligations owed to such Lender, and for
application to such principal installments, as the Administrative Agent shall
direct.

                                       23
<PAGE>

         SECTION 2.10. TAXES. (a) Any and all payments by the Loan Parties
hereunder or under the Notes or other Loan Documents shall be made, in
accordance with Section 2.09, free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, EXCLUDING, in the case
of each Lender and each Agent, taxes that are imposed on its overall net income
by the state or jurisdiction under the laws of which such Lender or such Agent,
as the case may be, is organized or any political subdivision thereof and, in
the case of each Lender, taxes that are imposed on its overall net income (and
franchise taxes imposed in lieu thereof) by the state or jurisdiction of such
Lender's Eurodollar Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes or other Loan
Documents being hereinafter referred to as "TAXES"). If any Loan Party shall be
required by law to deduct any Taxes from or in respect of any sum payable
hereunder or under any Note or other Loan Document to any Lender or any Agent,
(i) the sum payable by such Loan Party shall be increased as may be necessary so
that after such Loan Party and the Administrative Agent have made all required
deductions (including deductions applicable to additional sums payable under
this Section 2.10) such Lender or such Agent, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) such Loan Party shall make all such deductions and (iii) such Loan Party
shall timely pay the full amount deducted to the relevant taxation authority or
other authority in accordance with applicable law.

         (b) In addition, each Loan Party shall pay any present or future stamp,
documentary, excise, property or similar taxes, charges or levies that arise
from any payment made by it hereunder or under the Notes or other Loan Documents
or from the execution, delivery or registration by such Loan Party of,
performance by such Loan Party under, or otherwise with respect to, this
Agreement or the Notes or other Loan Documents (hereinafter referred to as
"OTHER TAXES").

         (c) Each Loan Party shall indemnify each Lender and each Agent for and
hold them harmless against the full amount of Taxes and Other Taxes, and for the
full amount of taxes of any kind imposed by any jurisdiction on amounts payable
under this Section 2.10, imposed on or paid by such Lender or such Agent (as the
case may be) and any liability (including penalties, additions to tax, interest
and expenses) arising therefrom or with respect thereto. This indemnification
shall be joint and several among the Loan Parties and shall be paid within 30
days from the date such Lender or such Agent (as the case may be) makes written
demand therefor.

         (d) Within 30 days after the date of any payment by any Loan Party of
Taxes or Other Taxes, such Loan Party shall furnish to the Administrative Agent,
at its address referred to in Section 9.02, the original or a certified copy of
a receipt evidencing such payment. In the case of any payment hereunder or under
the Notes or other Loan Documents by or on behalf of any Loan Party through an
account or branch outside the Cayman Islands or by or on behalf of such Loan
Party by a payor that is not a Cayman Islands person, if such Loan Party
determines that no Taxes or Other Taxes are payable in respect thereof, such
Loan Party shall furnish, or shall cause such payor to furnish, to the
Administrative Agent, at such address, an opinion of counsel acceptable to the
Administrative Agent stating that such payment is exempt from Taxes or Other
Taxes.

         (e) Each Lender that is entitled to an exemption from or reduction of
withholding tax under the laws of the jurisdiction from where payments under the
Notes or other Loan Documents may be made, or under any treaty to which such
jurisdiction is a party, with respect to payments under the Notes or other Loan
Documents shall deliver to the Loan Parties, any documentation prescribed by
applicable

                                       24
<PAGE>

law that is necessary to permit such payments to be made without withholding or
at a reduced rate, PROVIDED that (i) at least 60 days prior to the first payment
date on which any such payment may be made free of any withholding or at a
reduced rate the applicable Loan Party shall have notified such Lender in
writing that it will be required to provide such necessary documentation and
shall have provided such Lender with the necessary form, if any, and (ii) the
terms of such documentary requirements are not more onerous than comparable
requirements under the applicable tax laws of the United States.

         (f) If any Lender fails to comply with the provisions of Section
2.10(e) (other than if such failure is due to a change in law occurring after
the date on which a form originally was required to be provided or if such form
otherwise is not required under Section 2.10(e)), then the Loan Parties shall
not be obligated to pay any additional amounts pursuant to Section 2.10(a) or
Section 2.10(c) in respect to Taxes or Other Taxes that would not have been
imposed but for the failure by such Lender to so comply; PROVIDED, HOWEVER, that
should a Lender become subject to Taxes or Other Taxes because of its failure to
deliver a form required hereunder, the Loan Parties shall take such steps as
such Lender shall reasonably request to assist such Lender to recover such Taxes
or Other Taxes.

         SECTION 2.11. SHARING OF PAYMENTS, ETC. If any Lender shall obtain at
any time any payment (whether voluntary, involuntary, through the exercise of
any right of set-off, or otherwise, other than as a result of an assignment
pursuant to Section 9.07) (a) on account of Obligations due and payable to such
Lender hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such Obligations due and
payable to such Lender at such time to (ii) the aggregate amount of the
Obligations due and payable to all Lender hereunder and under the Notes at such
time) of payments on account of the Obligations due and payable to all Lender
hereunder and under the Notes at such time obtained by all the Lender at such
time or (b) on account of Obligations owing (but not due and payable) to such
Lender hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such Obligations owing to such
Lender at such time to (ii) the aggregate amount of the Obligations owing (but
not due and payable) to all Lenders hereunder and under the Notes at such time)
of payments on account of the Obligations owing (but not due and payable) to all
Lenders hereunder and under the Notes at such time obtained by all of the
Lenders at such time, such Lender shall forthwith purchase from the other
Lenders such interests or participating interests in the Obligations due and
payable or owing to them, as the case may be, as shall be necessary to cause
such purchasing Lender to share the excess payment ratably with each of them;
PROVIDED, HOWEVER, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each other
Lender shall be rescinded and such other Lender shall repay to the purchasing
Lender the purchase price to the extent of such Lender's ratable share
(according to the proportion of (i) the purchase price paid to such Lender to
(ii) the aggregate purchase price paid to all Lenders) of such recovery together
with an amount equal to such Lender's ratable share (according to the proportion
of (i) the amount of such other Lender's required repayment to (ii) the total
amount so recovered from the purchasing Lender) of any interest or other amount
paid or payable by the purchasing Lender in respect of the total amount so
recovered. Each Borrower agrees that any Lender so purchasing an interest or
participating interest from another Lender pursuant to this Section 2.11 may, to
the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such interest or participating
interest, as the case may be, as fully as if such Lender were the direct
creditor of such Borrower in the amount of such interest or participating
interest, as the case may be.

                                   ARTICLE III

                                       25
<PAGE>

                           CONDITIONS OF EFFECTIVENESS

         SECTION 3.01. CONDITIONS PRECEDENT TO EFFECTIVENESS. The amendment and
restatement of the Existing Bridge Agreement pursuant hereto shall become
effective on and as of the first date (the "EFFECTIVE Date") on which all of the
following conditions precedent shall have been met:

         (a) The Administrative Agent shall have received on or before the
     Effective Date the following, each dated such day (unless otherwise
     specified), in form and substance satisfactory to the Administrative Agent
     (unless otherwise specified) and (except for the Notes) in sufficient
     copies for each Lender:

             (i)  The Notes payable to the order of the Lenders.

             (ii) A security agreement in substantially the form of Exhibit D
     hereto (as amended, the "SECURITY AGREEMENT"), duly executed by each
     Loan Party, together with:

                  (A) certificates representing the Pledged Shares referred to
             therein accompanied by undated stock powers executed in blank and
             instruments evidencing the Pledged Debt indorsed in blank,

                  (B) copies of proper financing statements or other documents
             executed by each Loan Party under the Uniform Commercial Code or
             other applicable law of all jurisdictions that the Administrative
             Agent may deem necessary or desirable in order to perfect and
             protect the first priority liens and security interests created
             under the Security Agreement,

                  (C) completed requests for information, dated on or before the
             Effective Date, listing all effective financing statements or other
             documents filed or recorded in the jurisdictions referred to in
             clause (B) above that name any Loan Party as debtor, together with
             copies of such other financing statements or other documents (none
             of which shall cover any Collateral under and as described in the
             Security Agreement or the other Collateral Documents),

                  (D) evidence of the completion of all other recordings and
             filings of or with respect to the Security Agreement that the
             Administrative Agent may deem necessary or desirable in order to
             perfect and protect the Liens created thereby,

                  (E) copies of the Assigned Agreements referred to in the
             Security Agreement, together with a consent to such assignment, in
             substantially the form of Exhibit B to the Security Agreement, duly
             executed by each party to such Assigned Agreements other than the
             Loan Parties, and

                  (F) evidence that all other action that the Administrative
             Agent may deem necessary or desirable in order to perfect and
             protect the first priority liens and security interests created
             under the Security Agreement has been taken.

                                       26
<PAGE>

             (iii) A share mortgage in form and substance satisfactory to the
     Lenders (as amended, the "Share Mortgage"), duly executed by the Parent,
     pursuant to which the Parent mortgages, under local law, the Pledged
     Shares referred to in the Security Agreement to the Collateral Agent for
     the ratable benefit of the Secured Parties, together with evidence that
     all other action that the Administrative Agent may deem necessary or
     desirable in order to perfect and protect the first priority liens and
     security interests created under the Share Mortgage has been taken.

             (iv) Amendment No. 1 to each of the first preferred mortgages
     covering each of the Vessels in substantially the form of Exhibit G
     hereto (such mortgages, as so amended and as amended further, the
     "MORTGAGES"), duly executed by the appropriate Loan Party, together with:

                  (A) evidence that counterparts of the Mortgages have been duly
             recorded on or before the Effective Date in the Liberian Ship
             Registry and all other filing or recording offices that the
             Administrative Agent may deem necessary or desirable in order to
             create a valid first preferred mortgage and Lien on the property
             described therein enforceable against the respective Borrowers and
             all third parties in accordance with the applicable laws of the
             United States of America and the Republic of Liberia in favor of
             the Security Trustee for the benefit of the Secured Parties and
             that all filing and recording taxes and fees have been paid,

                  (B) certified copies of each of the commercial management
             agreements made between GMC and each of the Borrowers, which shall
             be in form and substance satisfactory to the Lenders, for the
             commercial management of the Vessels (as amended, to the extent
             permitted under the Loan Documents, the "COMMERCIAL MANAGEMENT
             Agreements") duly executed by each of the parties thereto,

                  (C) certified copies of each of the agreements made between
             Universe Tankships (Delaware) Inc., a Delaware limited liability
             company, or any other ship manager and each of the Borrowers, which
             shall be in form and substance satisfactory to the Lenders, for the
             technical management of the Vessels (as amended, to the extent
             permitted under the Loan Documents, the "TECHNICAL MANAGEMENT
             AGREEMENTS") duly executed by each of the parties thereto,

                  (D) such consents and agreements of third parties, and such
             other confirmations, as the Administrative Agent may deem necessary
             or desirable,

                  (E) evidence of insurance from insurers acceptable to the
             Lenders, covering such risks (including, without limitation, hull
             and machinery, war risks, protection and indemnity, loss of hire
             and mortgagee's interest insurance) with endorsements and in
             amounts acceptable to the Lenders, in form and substance
             satisfactory to the Lenders and otherwise in accordance with the
             applicable Mortgage, and shall include, without limitation,
             appropriate brokers' letters of

                                       27
<PAGE>

             undertaking and cover notes and protection and indemnity
             association certificates of entry and letters of undertaking.

                  (F) confirmation of class certificate (without extensions or
             recommendations),

                  (G) a certificate of ownership and encumbrance in respect of
             each of the Vessels from the Liberian Ship Registry evidencing
             ownership by the relevant Borrower and due recording of such
             amendment to such Mortgage in favor of the Security Trustee and no
             other encumbrances,

                  (H) a master vessel trust agreement (as amended, the "MASTER
             VESSEL TRUST AGREEMENT"), in form and substance satisfactory to the
             Administrative Agent, duly executed by each party thereto,

                  (I) assignment of charter (together with any other assignments
             of charter required to be delivered under the Loan Documents, in
             each case as amended, the "ASSIGNMENT OF CHARTERPARTIES"), in form
             and substance satisfactory to the Administrative Agent, and, if
             available, the consent and agreement of assignment of Amoco Oil
             Company (and the Loan Parties shall have used their best efforts to
             obtain such consent and agreement), in form and substance
             satisfactory to the Administrative Agent, in each case duly
             executed by each party thereto, and

                  (J) evidence that all other action that the Administrative
             Agent may deem necessary or desirable in order to create valid
             first priority Liens on the property described in the Mortgages has
             been taken.

             (v) Amended and restated assignments of earnings (as amended, the
     "ASSIGNMENT OF EARNINGS"), in form and substance satisfactory to the
     Administrative Agent, together with notices and acknowledgments of notice
     of assignment of the Earnings referred to therein as requested by the
     Administrative Agent, in each case duly executed by each party thereto.

             (vi) An amendment to the assignments of accounts (as further
     amended, the "ASSIGNMENT OF ACCOUNTS"), in form and substance satisfactory
     to the Administrative Agent, duly executed by each Loan Party party
     thereto.

             (vii) Amended and restated assignments of insurances (as amended,
     the "ASSIGNMENT OF INSURANCES"), in form and substance satisfactory to the
     Administrative Agent, together with the notices and acknowledgments of
     notice of assignment of the Insurances referred to therein, in each case
     duly executed by each party thereto.

             (viii) A letter from Poles, Tublin, Patestides & Stratakis LLP,
     presently located at 46 Trinity Place, New York, New York 10006-2288,
     consenting to its appointment by the Loan Parties as their agent for
     service of process (the "PROCESS AGENT"), without reservation, until at
     least one year after the Termination Date, together with evidence of the
     payment in full of all fees thereof.

                                       28
<PAGE>

             (ix) Certified copies of the resolutions of the sole director or
     partnership consents, as the case may be, of each Loan Party approving the
     Transaction and the other transactions contemplated by the Transaction
     Documents and each Transaction Document to which it is or is to be a party,
     and of all documents evidencing other necessary corporate action and
     governmental and other third party approvals and consents, if any, with
     respect to the Transaction and the other transactions contemplated by the
     Transaction Documents and each Transaction Document to which it is or is to
     be a party.

             (x) A copy of a certificate of the appropriate governmental
     authority of the jurisdiction of organization of each Loan Party, dated
     reasonably near the Effective Date, certifying (A) as to a true and correct
     copy of the Constitutive Documents of such Loan Party and each amendment
     thereto on file in such governmental authority's office and (B) that (1)
     such amendments are the only amendments to such Loan Party's Constitutive
     Documents on file in such governmental authority's office, (2) such Loan
     Party has paid all franchise taxes (or the equivalent thereof) to the date
     of such certificate and (C) such Loan Party is duly organized and in good
     standing or presently subsisting under the laws of the jurisdiction of its
     organization.

             (xi) a certificate of the appropriate governmental authority of the
     Republic of Liberia dated reasonably near the Effective Date certifying the
     due registration of each Borrower as a foreign maritime entity under the
     laws of the Republic of Liberia.

             (xii) A certificate of each Loan Party, signed on behalf of such
     Loan Party by its President or a Vice President and its Secretary or any
     Assistant Secretary (or persons performing similar functions) or its
     general partner, as the case may be, dated the Effective Date (the
     statements made in which certificate shall be true on and as of the
     Effective Date), certifying as to (A) the absence of any amendments to the
     Constitutive Documents of such Loan Party since the date of the appropriate
     governmental authority's certificate referred to in Section 3.01(a)(x), (B)
     a true and correct copy of the bylaws or similar Constitutive Document of
     such Loan Party as in effect on the date on which the resolutions referred
     to in Section 3.01(a)(ix) were adopted and on the Effective Date, (C) the
     due organization and good standing or valid existence of such Loan Party as
     a corporation or partnership, as the case may be, organized under the laws
     of the jurisdiction of its organization, and the absence of any proceeding
     for the dissolution or liquidation of such Loan Party, (D) the truth of the
     representations and warranties contained in the Loan Documents as though
     made on and as of the Effective Date and (E) the absence of any event
     occurring and continuing, or resulting from the Borrowing on the Effective
     Date, that constitutes a Default.

             (xiii) A certificate of the Secretary or an Assistant Secretary (or
     persons performing similar functions) or the general partner, as the case
     may be, of each Loan Party certifying the names and true signatures of the
     officers of such Loan Party authorized to sign each Transaction Document to
     which it is or is to be a party and the other documents to be delivered
     hereunder and thereunder.

                                       29
<PAGE>

             (xiv) Certified copies of each of the Related Documents, duly
     executed by the parties thereto and in form and substance satisfactory to
     the Lenders, together with all agreements, instruments and other documents
     delivered in connection therewith as the Administrative Agent shall
     request.

             (xv) Certificates, in substantially the form of Exhibit I hereto,
     attesting to the Solvency of each Loan Party before and after giving effect
     to the Transaction and the other transactions contemplated by the
     Transaction Documents, from its Chief Financial Officer (or person
     performing similar functions).

             (xvi) Such financial, business and other information regarding each
     Loan Party and its Subsidiaries as the Lenders shall have requested,
     including, without limitation, information as to possible contingent
     liabilities, tax matters, environmental matters, collective bargaining
     agreements and other arrangements with employees, unaudited Consolidated
     financial statements of the Parent and the Borrowers dated June 30, 1998
     and September 30, 1998, pro forma Consolidated and consolidating balance
     sheets for the Loan Parties as of the Effective Date, forecasts of cash
     flows for each Borrower in substantially the form of Exhibit F hereto
     prepared for the 12 month period ending December 31, 1999, and forecasts of
     Consolidated and consolidating balance sheets of the Loan Parties as of
     December 31, 1999 and Consolidated and consolidating income statements of
     the Loan Parties as of December 31, 1999, each in form satisfactory to the
     Administrative Agent.

             (xvii) Certified copies of each employment agreement and other
     compensation arrangement with each executive officer of any Loan Party or
     any of its Subsidiaries as the Administrative Agent shall request.

             (xviii) A favorable opinion of Poles, Tublin, Patestides &
     Stratakis LLP, counsel for the Loan Parties, in substantially the form of
     Exhibit H hereto and as to such other matters as any Lender through the
     Administrative Agent may reasonably request.

             (xix) A favorable opinion of Hunter & Hunter, Cayman Islands
     counsel to the Lenders, in form and substance satisfactory to the Lenders.

             (xx) A favorable opinion of Watson, Farley & Williams, maritime and
     Liberian law counsel to the Lenders in form and substance satisfactory to
     the Lenders.

             (xxi) A favorable opinion of Shearman & Sterling, counsel to the
     Agents, in form and substance satisfactory to the Administrative Agent.

         (b) Before giving effect to the Transaction and the other transactions
     contemplated by the Transaction Documents, there shall have occurred no
     Material Adverse Change since May 15, 1998.

                                       30
<PAGE>

         (c) There shall exist no action, suit, investigation, litigation or
     proceeding affecting any Loan Party or any of its Subsidiaries pending or
     threatened before any court, governmental agency or arbitrator that (i)
     could be reasonably likely to have a Material Adverse Effect or (ii)
     purports to affect the legality, validity or enforceability of any
     Transaction Document or the consummation of the Transaction or the other
     transactions contemplated by the Transaction Documents.

         (d) All governmental and third party consents and approvals necessary
     in connection with the Transaction and the other transactions contemplated
     by the Transaction Documents shall have been obtained (without the
     imposition of any conditions that are not acceptable to the Lenders) and
     shall remain in effect; all applicable waiting periods in connection with
     the Transaction and the other transactions contemplated by the Transaction
     Documents shall have expired without any action being taken by any
     competent authority, and no law or regulation shall be applicable in the
     judgment of the Lenders, in each case that restrains, prevents or imposes
     materially adverse conditions upon the Transaction or the other
     transactions contemplated by the Transaction Documents or the rights of the
     Loan Parties or their Subsidiaries freely to transfer or otherwise dispose
     of, or to create any Lien on, any properties now owned or hereafter
     acquired by any of them.

         (e) The Lenders shall have completed a due diligence investigation of
     each Loan Party and its Subsidiaries in scope, and with results,
     satisfactory to the Lenders, and nothing shall have come to the attention
     of the Lenders during the course of such due diligence investigation to
     lead them to believe (i) any information provided by or on behalf on any
     Loan Party prior to the Effective Date was or has become misleading,
     incorrect or incomplete in any material respect, (ii) that, following the
     consummation of the Transaction and the other transactions contemplated
     hereby, each Loan Party would not have good and marketable title to the
     Collateral of such Loan Party and (iii) that the Transaction and the other
     transactions contemplated hereby will have a Material Adverse Effect;
     without limiting the generality of the foregoing, the Lenders shall have
     been given such access to the management, records, books of account,
     contracts and properties of each Loan Party and its Subsidiaries as they
     shall have requested.

         (f) The Lenders shall be satisfied with the corporate and legal
     structure and capitalization of the Parent and each other Loan Party,
     including the terms and conditions of the charter, bylaws (or other similar
     Constitutive Documents), Partnership Agreement and each class of Equity
     Interest in the Parent and each other Loan Party and of each agreement or
     instrument relating to such structure or capitalization; including without
     limitation the terms and conditions of, and all documentation relating to,
     the Transaction, and the identities of each of the general and limited
     partners of the Parent.

         (g) The Parent shall have received net cash proceeds in an aggregate
     amount of not less than $23,981,806.68 from the Contribution made by the
     Equity Investors.

         (h) The Amendment to the Partnership Agreement shall be in full force
     and effect.

         (i) The Borrowers shall have received a common equity capital
     contribution from the Parent from the proceeds of the Contribution which
     together with cash on hand of the

                                       31
<PAGE>

     Borrowers in excess of $2,000,000 shall equal at least $24,025,000 and
     shall have applied at least $24,025,000 in full to the repayment of the
     Existing Debt.

         (j) Each Borrower shall have cash on hand in an amount equal to at
     least $500,000 on the Effective Date (before giving effect to the
     prepayment of the Existing Debt and the payment of the accrued fees and
     expenses of the Lenders pursuant to clause (k) below).

         (k) The Borrowers shall have applied cash on hand in excess of
     $1,000,000 in aggregate for all Borrowers (i) first, to the payment of
     accrued fees and expenses of the Lenders (including the accrued fees and
     expenses of counsel to the Agents and special counsel to the Lenders) and
     (ii) second, to the repayment of the Existing Debt in an amount which,
     together with all amounts applied to the prepayment of the Existing Debt
     pursuant to Section 3.01(i), shall not exceed $25,000,000; PROVIDED that
     the payment under this subclause (ii) shall not be required to be paid to
     the extent that such payment would result in a violation of any of the
     financial covenants set forth in Section 5.04 hereof.

         (l) The Borrowers shall have paid all accrued fees of the Agents and
     the Lenders and all accrued expenses of the Agents (including the accrued
     fees and expenses of counsel to the Agents and special counsel to the
     Lenders).

         SECTION 3.02. DETERMINATIONS UNDER SECTION 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Administrative Agent responsible for the transactions contemplated by the
Loan Documents shall have received notice from such Lender prior to the
Effective Date specifying its objection thereto.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         SECTION 4.01. REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES. Each
Loan Party represents and warrants as follows:

         (a) Each Loan Party and each of its Subsidiaries (i) is a corporation
     or partnership duly organized and validly existing under the laws of the
     jurisdiction of its respective organization, (ii) is duly qualified and in
     good standing as a foreign corporation or partnership in each other
     jurisdiction in which the ownership, lease or operation of its property and
     assets or the conduct of its business requires it to so qualify or be
     licensed except where the failure to so qualify or be licensed could not be
     reasonably likely to have a Material Adverse Effect and (iii) has all
     requisite power and authority (including, without limitation, all
     governmental licenses, permits and other approvals) to own or lease and
     operate its properties and to carry on its business as now conducted and as
     proposed to be conducted. All of the outstanding Equity Interests in each
     of the Loan Parties have been validly issued, are fully paid and
     non-assessable and are owned by the Persons and in the amounts specified on
     Schedule 4.01(a) hereto free and clear of all Liens, except those created
     under the Collateral Documents.

                                       32
<PAGE>

         (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate
     list of all Subsidiaries of the Parent, showing as of the date hereof (as
     to each such Subsidiary) the jurisdiction of its organization, the number
     and type of each class of its Equity Interests authorized, and the number
     outstanding, on the date hereof and the percentage of each such class of
     its Equity Interests owned (directly or indirectly) by the Parent and the
     number of shares covered by all outstanding options, warrants, rights of
     conversion or purchase and similar rights at the date hereof. All of the
     outstanding Equity Interests in the Parent's Subsidiaries has been validly
     issued, are fully paid and non-assessable and are owned by the Parent or
     one or more of its Subsidiaries free and clear of all Liens, except those
     created under the Collateral Documents. None of the Borrowers has any
     Subsidiaries.

         (c) The execution, delivery and performance by each Loan Party of each
     Transaction Document to which it is or is to be a party, and the
     consummation of the Transaction and the other transactions contemplated by
     the Transaction Documents, are within such Loan Party's corporate powers,
     have been duly authorized by all necessary corporate action, and do not (i)
     contravene such Loan Party's Constitutive Documents, (ii) violate any law,
     rule, regulation (including, without limitation, Regulation X of the Board
     of Governors of the Federal Reserve System), order, writ, judgment,
     injunction, decree, determination or award, (iii) conflict with or result
     in the breach of, or constitute a default under, any contract, loan
     agreement, indenture, mortgage, deed of trust, lease or other instrument
     binding on or affecting any Loan Party, any of its Subsidiaries or any of
     their properties or (iv) except for the Liens created under the Loan
     Documents, result in or require the creation or imposition of any Lien upon
     or with respect to any of the properties of any Loan Party or any of its
     Subsidiaries. No Loan Party or any of its Subsidiaries is in violation of
     any such law, rule, regulation, order, writ, judgment, injunction, decree,
     determination or award or in breach of any such contract, loan agreement,
     indenture, mortgage, deed of trust, lease or other instrument, the
     violation or breach of which could be reasonably likely to have a Material
     Adverse Effect.

         (d) No authorization or approval or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or any other
     third party is required for (i) the due execution, delivery, recordation,
     filing or performance by any Loan Party of any Transaction Document to
     which it is or is to be a party, or for the consummation of the Transaction
     or the other transactions contemplated by the Transaction Documents, (ii)
     the grant by any Loan Party of the Liens granted by it pursuant to the
     Collateral Documents, (iii) the perfection or maintenance of the Liens
     created under the Collateral Documents (including the first priority nature
     thereof) or (iv) the exercise by any Agent or any Lender of its rights
     under the Loan Documents or the remedies in respect of the Collateral
     pursuant to the Collateral Documents. All applicable waiting periods in
     connection with the Transaction and the other transactions contemplated by
     the Transaction Documents have expired without any action having been taken
     by any competent authority restraining, preventing or imposing materially
     adverse conditions upon the Transaction or the rights of the Loan Parties
     or their Subsidiaries freely to transfer or otherwise dispose of, or to
     create any Lien on, any properties now owned or hereafter acquired by any
     of them.

         (e) This Agreement has been, and each other Transaction Document when
     delivered hereunder will have been, duly executed and delivered by each
     Loan Party party thereto. This Agreement is, and each other Transaction
     Document when delivered hereunder will be, the legal, valid and binding
     obligation of each Loan Party party thereto, enforceable against such Loan
     Party in accordance with its terms.

                                       33
<PAGE>

         (f) There is no action, suit, investigation, litigation or proceeding
     affecting any Loan Party or any of its Subsidiaries, including any
     Environmental Action, pending or threatened before any court, governmental
     agency or arbitrator that (i) could be reasonably likely to have a Material
     Adverse Effect or (ii) purports to affect the legality, validity or
     enforceability of any Transaction Document or the consummation of the
     Transaction or the other transactions contemplated by the Transaction
     Documents.

         (g) The Consolidated balance sheet of the Parent and the Borrowers as
     at June 30, 1998 and September 30, 1998, and the related statements of
     income and statements of cash flows of the Parent and the Borrowers for the
     three and six months, respectively, then ended, duly certified by the Chief
     Financial Officer of the Borrowers, copies of which have been furnished to
     each Lender, fairly present, subject, in the case of said balance sheets as
     at June 30, 1998 and September 30, 1998, and said statements of income and
     cash flows for the three and six months, respectively, then ended, to
     year-end audit adjustments, the financial condition of the Parent and the
     Borrowers as at such dates and the results of operations of the Parent and
     the Borrowers for the periods ended on such dates, all in accordance with
     GAAP. Since May 15, 1998, there has been no Material Adverse Change.

         (h) The Consolidated and consolidating pro forma balance sheets of the
     Parent and its Subsidiaries as at the Effective Date, and the related
     Consolidated and consolidating pro forma statements of income and cash
     flows of the Parent and its Subsidiaries for the seven months then ended,
     certified by the Chief Financial Officer of the Parent, copies of which
     have been furnished to each Lender, fairly present the Consolidated and
     consolidating pro forma financial condition of the Parent and its
     Subsidiaries as at such date and the Consolidated and consolidating pro
     forma results of operations of the Parent and its Subsidiaries for the
     period ended on such date, in each case giving effect to the Transaction
     and the other transactions contemplated by the Transaction Documents, all
     in accordance with GAAP.

         (i) The Consolidated and consolidating forecasted balance sheets,
     statements of income and statements of cash flows of the Parent and its
     Subsidiaries delivered to the Lenders pursuant to Section 3.01(a)(xv) or
     5.03 were prepared in good faith on the basis of the assumptions stated
     therein, which assumptions were fair in light of the conditions existing at
     the time of delivery of such forecasts, and represented, at the time of
     delivery, the Parent's and the Borrowers' best estimate of their future
     financial performance.

         (j) No information, exhibit or report furnished by or on behalf of any
     Loan Party to any Agent or any Lender prior to the Effective Date in
     connection with the negotiation of the Loan Documents or pursuant to the
     terms of the Loan Documents contained any untrue statement of a material
     fact or omitted to state a material fact necessary to make the statements
     made therein not misleading.

         (k) No Loan Party is engaged in the business of extending credit for
     the purpose of purchasing or carrying Margin Stock, and no proceeds of any
     Advance will be used or was used to purchase or carry any Margin Stock or
     to extend credit to others for the purpose of purchasing or carrying any
     Margin Stock.

                                       34
<PAGE>

         (l) Neither any Loan Party nor any of its Subsidiaries is an
     "investment company", or an "affiliated person" of, or "promoter" or
     "principal underwriter" for, an "investment company", as such terms are
     defined in the Investment Company Act of 1940, as amended. Neither the
     making of any Advances nor the application of the proceeds or repayment
     thereof by the Borrowers, nor the consummation of the other transactions
     contemplated by the Transaction Documents, will violate any provision of
     such Act or any rule, regulation or order of the Securities and Exchange
     Commission thereunder.

         (m) Neither any Loan Party nor any of its Subsidiaries is a party to
     any indenture, loan or credit agreement or any lease or other agreement or
     instrument or subject to any charter or corporate restriction that could be
     reasonably likely to have a Material Adverse Effect.

         (n) The Collateral Documents create a valid and, upon filing of the
     financing statements delivered pursuant to Section 3.01(a)(ii)(B) in the
     office of the Secretary of State of the State of New York and the New York
     City Register's Office for New York County, perfected first priority
     security interest in the Collateral, securing the payment of the Secured
     Obligations and the Outstanding Indebtedness (as defined in the Mortgages),
     and all filings and other actions necessary or desirable to perfect and
     protect such security interest have been duly taken or will be duly taken
     immediately following the Effective Date. The Loan Parties are the legal
     and beneficial owners of the Collateral free and clear of any Lien, except
     for the liens and security interests created or permitted under the Loan
     Documents.

         (o) Each Loan Party is, individually and together with its
     Subsidiaries, Solvent.

         (p) (i) Neither any Loan Party nor any ERISA Affiliate has any Plan or
     Multiemployer Plan.

             (ii) Neither any Loan Party nor any Subsidiary that is not subject
     to United States law maintains or contributes to, has any obligation to
     maintain or contribute to, or has any liability with respect to, any
     employee benefit plan or any scheme or arrangement mandated by a
     government other than the United States.

         (q) (i) Except as otherwise set forth on Part I of Schedule 4.01(q)
     hereto, the operations and properties (including, without limitation, the
     Vessels) of each Loan Party and each of its Subsidiaries comply in all
     material respects with all applicable Environmental Laws and Environmental
     Permits, all past non-compliance with such Environmental Laws and
     Environmental Permits, if any, has been resolved without ongoing
     obligations or costs, and no circumstances exist that could be reasonably
     likely to (A) form the basis of an Environmental Action against any Loan
     Party or any of its Subsidiaries or any of their properties (including,
     without limitation, the Vessels) that could have a Material Adverse Effect
     or (B) cause any such property (including, without limitation, the Vessels)
     to be subject to any restrictions on ownership, occupancy, use or
     transferability under any Environmental Law.

         (ii) To the best of its knowledge, none of the properties currently
     or formerly owned or operated by any Loan Party or any of its
     Subsidiaries is listed or proposed for listing on the NPL or on the
     CERCLIS or any analogous foreign, state or local list or is adjacent to
     any such property; there are no and never have been any underground or
     aboveground storage tanks or any surface impoundments, septic tanks,
     pits, sumps or lagoons in which Hazardous Materials are being or have
     been treated, stored or disposed on any property currently owned or
     operated by

                                       35
<PAGE>

     any Loan Party or any of its Subsidiaries or, to the best of its
     knowledge, on any property formerly owned or operated by any Loan Party
     or any of its Subsidiaries; there is no asbestos or asbestos-containing
     material on any property currently owned or operated by any Loan Party
     or any of its Subsidiaries; and Hazardous Materials have not been
     released, discharged or disposed of on any property currently or
     formerly owned or operated by any Loan Party or any of its Subsidiaries.

         (iii) Except as otherwise set forth on Part II of Schedule 4.01(q)
     hereto, neither any Loan Party nor any of its Subsidiaries is undertaking,
     and has not completed, either individually or together with other
     potentially responsible parties, any investigation or assessment or
     remedial or response action relating to any actual or threatened release,
     discharge or disposal of Hazardous Materials at any site (including,
     without limitation, the Vessels), location or operation, either voluntarily
     or pursuant to the order of any governmental or regulatory authority or the
     requirements of any Environmental Law; and all Hazardous Materials
     generated, used, treated, handled or stored at, or transported to or from,
     any property (including, without limitation, the Vessels) currently or
     formerly owned or operated by any Loan Party or any of its Subsidiaries
     have been disposed of in a manner not reasonably expected to result in
     material liability to any Loan Party or any of its Subsidiaries.

         (r) Each Loan Party and each of its Subsidiaries and Affiliates has
     timely filed, has caused to be timely filed or has been included in all tax
     returns (Federal, state, local and foreign) required to be filed (and such
     tax returns accurately reflect the actual tax liability of such party) and
     has timely paid all taxes shown thereon to be due or otherwise due,
     together with applicable interest and penalties.

         (s) Neither the business nor the properties of any Loan Party or any of
     its Subsidiaries are affected by any fire, explosion, accident, strike,
     lockout or other labor dispute, drought, storm, hail, earthquake, embargo,
     act of God or of the public enemy or other casualty (whether or not covered
     by insurance) that could be reasonably likely to have a Material Adverse
     Effect.

         (t) Set forth on Schedule 4.01(t) hereto is a complete and accurate
     list of all real property owned by any Loan Party or any of its
     Subsidiaries, showing as of the date hereof the street address, county or
     other relevant jurisdiction, state, record owner and book and fair value
     thereof. Each Loan Party or such Subsidiary has good, marketable and
     insurable fee simple title to such real property, free and clear of all
     Liens, other than Liens created or permitted by the Loan Documents.

         (u) Set forth on Schedule 4.01(u) hereto is a complete and accurate
     list of all leases of real property under which any Loan Party or any of
     its Subsidiaries is the lessee, showing as of the date hereof the street
     address, county or other relevant jurisdiction, state, lessor, lessee,
     expiration date and annual rental cost thereof. Each such lease is the
     legal, valid and binding obligation of the lessor thereof, enforceable in
     accordance with its terms.

         (v) Set forth on Schedule 4.01(v) hereto is a complete and accurate
     list of all Investments held by any Loan Party or any of its Subsidiaries
     on the date hereof, showing as of the date hereof the amount, obligor or
     issuer and maturity, if any, thereof.

                                       36
<PAGE>

         (w) No Loan Party has any contract or arrangement with any Affiliate of
     any Loan Party other than the Commercial Management Agreements and the
     Technical Management Agreements.

         (x) Set forth on Schedule 4.01(x) hereto is a complete and accurate
     list of the Equity Investors, showing as of the date hereof the contact
     name, telephone and facsimile number and address for notices for each
     Equity Investor and the portion of the Contribution contributed by each
     Equity Investor.

         (y) As of the Effective Date, the Loan Parties and their Subsidiaries
     have no Debt outstanding other than Debt under the Existing Bridge
     Agreement and the documents and agreements executed in connection
     therewith.

         (z) As of the Effective Date, the Loan Parties and their Subsidiaries
     have no Liens on any of their properties or assets other than Permitted
     Liens and the Liens created under the Existing Bridge Agreement and the
     documents and agreements executed in connection therewith.

         (aa) Each Loan Party has (i) initiated a review and assessment of all
     areas within its and each of its Subsidiaries' business and operations
     (including those affected by suppliers, vendors and customers) that could
     be adversely affected by the risk that computer applications used by such
     Loan Party or any of its Subsidiaries (or suppliers and vendors) may be
     unable to recognize and perform properly date-sensitive functions involving
     certain dates prior to and any date after December 31, 1999 (the "YEAR 2000
     PROBLEM"), (ii) developed a plan and timetable for addressing the Year 2000
     Problem on a timely basis and (iii) to date, implemented that plan in
     accordance with such timetable. Based on the foregoing with respect to
     itself, its Subsidiaries and its material suppliers and vendors and, to the
     best of its knowledge in the case of its customers, each Loan Party
     believes that all computer applications (including those of its material
     suppliers, vendors and customers) that are material to its or any of its
     Subsidiaries' business and operations are reasonably expected on a timely
     basis to be able to perform properly date-sensitive functions for all dates
     before and after January 1, 2000 ("YEAR 2000 COMPLIANT"), except to the
     extent that a failure to do so could not reasonably be expected to have a
     Material Adverse Effect.

                                    ARTICLE V

                          COVENANTS OF THE LOAN PARTIES

         SECTION 5.01. AFFIRMATIVE COVENANTS. So long as any Advance or any
other Obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, each of the Loan Parties
will:

         (a) COMPLIANCE WITH LAWS, ETC. Comply, and cause each of its
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules, regulations and orders.

         (b) PAYMENT OF TAXES, ETC. Pay and discharge, and cause each of its
     Subsidiaries to pay and discharge, before the same shall become delinquent,
     (i) all taxes, assessments and governmental charges or levies imposed upon
     it or upon its property and (ii) all lawful claims that, if unpaid, might
     by law become a Lien upon its property; PROVIDED, HOWEVER, that no Loan

                                       37
<PAGE>

     Party nor any of its Subsidiaries shall be required to pay or discharge any
     such tax, assessment, charge or claim that is being contested in good faith
     and by proper proceedings and as to which appropriate reserves are being
     maintained, unless and until any Lien resulting therefrom is initiated with
     respect to any of their property.

         (c) COMPLIANCE WITH ENVIRONMENTAL LAWS. Comply, and cause each of its
     Subsidiaries and all lessees and other Persons operating or occupying its
     properties to comply, in all material respects, with all applicable
     Environmental Laws and Environmental Permits; obtain and renew and cause
     each of its Subsidiaries to obtain and renew all Environmental Permits
     necessary for its operations and properties; and conduct, and cause each of
     its Subsidiaries to conduct, any investigation, study, sampling and
     testing, and undertake any cleanup, removal, remedial or other action
     necessary to remove and clean up all Hazardous Materials released as a
     result of its operations (including, without limitation, from any of its
     Vessels), in accordance with the requirements of all Environmental Laws;
     PROVIDED, HOWEVER, that neither the Loan Parties nor any of their
     Subsidiaries shall be required to undertake any such cleanup, removal,
     remedial or other action to the extent that its obligation to do so is
     being contested in good faith and by proper proceedings and appropriate
     reserves are being maintained with respect to such circumstances.

         (d) MAINTENANCE OF INSURANCE. Maintain, and cause each of its
     Subsidiaries to maintain, insurance with responsible and reputable
     insurance companies or associations in such amounts and covering such risks
     as is usually carried by companies engaged in similar businesses and owning
     similar properties in the same general areas in which such Loan Party or
     such Subsidiary operates.

         (e) PRESERVATION OF CORPORATE EXISTENCE, ETC. Preserve and maintain,
     and cause each of its Subsidiaries to preserve and maintain, its existence,
     legal structure, legal name, rights (charter and statutory), permits,
     licenses, approvals, privileges and franchises.

         (f) VISITATION RIGHTS. At any reasonable time and from time to time,
     permit any of the Agents or any of the Lenders, or any agents or
     representatives thereof, to examine and make copies of and abstracts from
     the records and books of account of, and visit the properties of, the Loan
     Parties and any of their Subsidiaries, and to discuss the affairs, finances
     and accounts of the Loan Parties and any of their Subsidiaries with any of
     their officers or directors and with their independent certified public
     accountants.

         (g) KEEPING OF BOOKS. Keep, and cause each of its Subsidiaries to keep,
     proper books of record and account, in which full and correct entries shall
     be made of all financial transactions and the assets and business of such
     Loan Party and each such Subsidiary in accordance with GAAP.

         (h) MAINTENANCE OF PROPERTIES, ETC. Maintain and preserve, and cause
     each of its Subsidiaries to maintain and preserve, all of its properties
     that are used or useful in the conduct of its business in good working
     order and condition, ordinary wear and tear excepted.

         (i) TRANSACTIONS WITH AFFILIATES. Conduct, and cause each of its
     Subsidiaries to conduct, all transactions otherwise permitted under the
     Loan Documents with any of their Affiliates on terms that are fair and
     reasonable and no less favorable to such Loan Party or such Subsidiary than
     it would obtain in a comparable arm's-length transaction with a Person not
     an Affiliate, except that (i) the Loan Parties may enter into and, subject
     to clause (ii) below, perform

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<PAGE>

     their obligations under the Commercial Management Agreements and the
     Technical Management Agreements, (ii) the Borrowers may, so long as no
     Default shall have occurred and be continuing, pay the management fees
     payable to GMC or any other Affiliate from time to time under the
     Commercial Management Agreements and the Technical Management Agreements in
     an aggregate amount not to exceed the aggregate amount of such fees so
     payable under such Agreements as in effect on the Effective Date and (iii)
     the Loan Parties may perform their obligations under, and to the extent
     required by, the Subscription Agreement.

         (j) COVENANT TO GUARANTEE OBLIGATIONS AND GIVE SECURITY. Upon (x) the
     request of the Collateral Agent following the occurrence and during the
     continuance of a Default, (y) the formation or acquisition of any new
     direct or indirect Subsidiaries by any Loan Party or (z) the acquisition of
     any property by any Loan Party, and such property, in the judgment of the
     Collateral Agent, shall not already be subject to a perfected first
     priority security interest in favor of the Collateral Agent for the benefit
     of the Secured Parties, then each Loan Party shall, in each case at such
     Loan Party's expense:

             (i) in connection with the formation or acquisition of a
     Subsidiary, within 10 days after such formation or acquisition, cause each
     such Subsidiary, and cause each direct and indirect parent of such
     Subsidiary (if it has not already done so), to duly execute and deliver to
     the Collateral Agent a guaranty or guaranty supplement, in form and
     substance satisfactory to the Collateral Agent, guaranteeing the other Loan
     Parties' obligations under the Loan Documents,

             (ii) within 10 days after such request, formation or acquisition,
     furnish to the Collateral Agent a description of the real and personal
     properties of the Loan Parties and their respective Subsidiaries in detail
     satisfactory to the Collateral Agent,

             (iii) within 15 days after such request, formation or acquisition,
     duly execute and deliver, and cause each such Subsidiary and each direct
     and indirect parent of such Subsidiary (if it has not already done so) to
     duly execute and deliver, to the Collateral Agent mortgages, pledges,
     assignments, security agreement supplements and other security agreements,
     as specified by and in form and substance satisfactory to the Collateral
     Agent, securing payment of all the Obligations of the applicable Loan
     Party, such Subsidiary or such parent, as the case may be, under the Loan
     Documents and constituting Liens on all such properties,

             (iv) within 30 days after such request, formation or acquisition,
     take, and cause such Subsidiary or such parent to take, whatever action
     (including, without limitation, the recording of mortgages, the filing or
     recording of Uniform Commercial Code financing statements or other
     appropriate documents, the giving of notices and the endorsement of notices
     on title documents) may be necessary or advisable in the opinion of the
     Collateral Agent to vest in the Collateral Agent (or in any representative
     of the Collateral Agent designated by it) valid and subsisting Liens on the
     properties purported to be subject to the mortgages, pledges, assignments,
     security agreement supplements and security agreements delivered pursuant
     to this Section 5.01(j), enforceable against all third parties in
     accordance with their terms,

                                       39
<PAGE>

             (v) within 60 days after such request, formation or acquisition,
     deliver to the Collateral Agent, upon the request of the Collateral Agent
     in its sole discretion, a signed copy of a favorable opinion, addressed to
     the Collateral Agent and the other Secured Parties, of counsel for the Loan
     Parties acceptable to the Collateral Agent as to the matters contained in
     clauses (i), (iii) and (iv) above, as to such guaranties, guaranty
     supplements, mortgages, pledges, assignments, security agreement
     supplements and security agreements being legal, valid and binding
     obligations of each Loan Party party thereto enforceable in accordance with
     their terms, as to the matters contained in clause (iv) above, as to such
     recordings, filings, notices, endorsements and other actions being
     sufficient to create valid perfected Liens on such properties, and as to
     such other matters as the Collateral Agent may reasonably request,

             (vi) as promptly as practicable after such request, formation or
     acquisition, deliver, upon the request of the Collateral Agent in its sole
     discretion, to the Collateral Agent with respect to each parcel of real
     property owned or held by the entity that is the subject of such request,
     formation or acquisition title reports, surveys and engineering, soils and
     other reports, and environmental assessment reports, each in scope, form
     and substance satisfactory to the Collateral Agent, PROVIDED, HOWEVER, that
     to the extent that any Loan Party or any of its Subsidiaries shall have
     otherwise received any of the foregoing items with respect to such real
     property, such items shall, promptly after the receipt thereof, be
     delivered to the Collateral Agent,

             (vii) upon the occurrence and during the continuance of a Default,
     promptly cause to be deposited any and all cash dividends paid or payable
     to it or any of its Subsidiaries from any of its Subsidiaries from time to
     time into a cash collateral account maintained with the Collateral Agent,
     and with respect to all other dividends paid or payable to it or any of its
     Subsidiaries from time to time, promptly execute and deliver, or cause such
     Subsidiary to promptly execute and deliver, as the case may be, any and all
     further instruments and take or cause such Subsidiary to take, as the case
     may be, all such other action as the Collateral Agent may deem necessary or
     desirable in order to obtain and maintain from and after the time such
     dividend is paid or payable a perfected, first priority lien on and
     security interest in such dividends, and

             (viii) at any time and from time to time, promptly execute and
     deliver any and all further instruments and documents and take all such
     other action as the Collateral Agent may deem necessary or desirable in
     obtaining the full benefits of, or in perfecting and preserving the Liens
     of, such guaranties, mortgages, pledges, assignments, security agreement
     supplements and security agreements.

         (k) FURTHER ASSURANCES. (i) Promptly upon request by any Agent, or any
     Lender through the Administrative Agent, correct, and cause each of its
     Subsidiaries promptly to correct, any material defect or error that may be
     discovered in any Loan Document or in the execution, acknowledgment, filing
     or recordation thereof, and

         (ii) Promptly upon request by any Agent, or any Lender through the
     Administrative Agent, do, execute, acknowledge, deliver, record, re-record,
     file, re-file, register and re-register any and all such further acts,
     deeds, conveyances, pledge agreements, mortgages, deeds of trust, trust
     deeds, assignments, financing statements and continuations thereof,
     termination statements,

                                       40
<PAGE>

     notices of assignment, transfers, certificates, assurances and other
     instruments as any Agent, or any Lender through the Administrative Agent,
     may reasonably require from time to time in order to (A) carry out more
     effectively the purposes of the Loan Documents, (B) to the fullest extent
     permitted by applicable law, subject any Loan Party's or any of its
     Subsidiaries' properties, assets, rights or interests to the Liens now or
     hereafter intended to be covered by any of the Collateral Documents, (C)
     perfect and maintain the validity, effectiveness and priority of any of the
     Collateral Documents and any of the Liens intended to be created thereunder
     and (D) assure, convey, grant, assign, transfer, preserve, protect and
     confirm more effectively unto the Secured Parties the rights granted or now
     or hereafter intended to be granted to the Secured Parties under any Loan
     Document or under any other instrument executed in connection with any Loan
     Document to which any Loan Party or any of its Subsidiaries is or is to be
     a party, and cause each of its Subsidiaries to do so.

         (l) PERFORMANCE OF RELATED DOCUMENTS. Perform and observe, and cause
     each of its Subsidiaries to perform and observe, all of the terms and
     provisions of each Related Document to be performed or observed by it,
     maintain each such Related Document in full force and effect, enforce such
     Related Document in accordance with its terms, take all such action to such
     end as may be from time to time requested by the Administrative Agent and,
     upon request of the Administrative Agent, make to each other party to each
     such Related Document such demands and requests for information and reports
     or for action as any Loan Party or any of its Subsidiaries is entitled to
     make under such Related Document.

         (m) PREPARATION OF ENVIRONMENTAL REPORTS. Promptly upon the occurrence
     of any of the following conditions, provide to the Administrative Agent a
     certificate of the chief executive officer thereof, specifying in detail
     the nature of such condition and the Loan Parties' proposed response or the
     proposed response of any Environmental Affiliate: (a) any Loan Party's
     receipt or the receipt by any Environmental Affiliate of any communication
     whatsoever that alleges, or knowledge by any Loan Party or any
     Environmental Affiliate, that such Person is not in compliance with any
     applicable Environmental Law or Environmental Permit, if such noncompliance
     could reasonably be expected to have a Material Adverse Effect, (b)
     knowledge by any Loan Party or any Environmental Affiliate that there
     exists any Environmental Action pending or threatened against any such
     Person which could reasonably be expected to have a Material Adverse
     Effect, or (c) any release, emission, discharge or disposal of any material
     that could form the basis of liability under any Environmental Law for any
     Loan Party or Environmental Affiliate if such liability could reasonably be
     expected to have a Material Adverse Effect. Upon the written request by the
     Administrative Agent, the Loan Parties shall submit to the Administrative
     Agent at reasonable intervals, a report providing an update of the status
     of any issue or claim identified in any certificate required pursuant to
     this Section 5.01(m). For the purposes of this Section 5.01(m),
     "Environmental Affiliate" shall mean any Person whose liability under
     Environmental Law any of the Loan Parties may have assumed by contract or
     operation of law.

         (n) COMPLIANCE WITH TERMS OF LEASEHOLDS. Make all payments and
     otherwise perform all obligations in respect of all leases of real property
     to which such Loan Party or any of its Subsidiaries is a party, keep such
     leases in full force and effect and not allow such leases to lapse or be
     terminated or any rights to renew such leases to be forfeited or canceled,
     notify the Administrative Agent of any default by any party with respect to
     such leases and cooperate with the Administrative Agent in all respects to
     cure any such default, and cause each of its

                                       41
<PAGE>

     Subsidiaries to do so, except, in any case, where the failure to do so,
     either individually or in the aggregate, could not be reasonably likely to
     have a Material Adverse Effect.

         (o) DEPOSIT ACCOUNTS. Maintain, and cause each of its Subsidiaries to
     maintain, all deposit accounts (other than the Oaktree Account) with CBNY
     or another bank acceptable to the Collateral Agent that has accepted the
     assignment of such accounts to the Collateral Agent for the benefit of the
     Secured Parties.

         (p) APPRAISALS OF VESSELS. Deliver to the Administrative Agent within
     45 days after the end of each fiscal quarter commencing with the fiscal
     quarter ending March 31, 1999, at the Borrowers' expense (or more often as
     the Administrative Agent may reasonably request, in such case, so long as
     no Default shall have occurred and be continuing, at the Administrative
     Agent's expense and otherwise at the Borrowers' expense), an appraisal of
     each Vessel in form and substance satisfactory to the Administrative Agent
     setting forth the Market Value of such Vessel.

         (q) CONDITIONS SUBSEQUENT TO EFFECTIVE DATE. Deliver to the
     Administrative Agent, in form and substance satisfactory to the
     Administrative Agent (i) within 30 days following the Effective Date, a
     certified copy of the Register of Mortgages maintained by each Loan Party
     at its registered office evidencing that the Collateral pledged by such
     Loan Party under the Collateral Documents has been duly recorded therein,
     and (ii) within 60 days following the Effective Date, executed notices of
     assignment and loss payable clauses in substantially the form attached to
     the Assignments of Insurances duly endorsed to each insurance policy issued
     by each insurer of each Vessel together with evidence that the Collateral
     Agent has been named as additional assured (without responsibility for
     payment of premiums or calls) on each such insurance policy.

         SECTION 5.02. NEGATIVE COVENANTS. So long as any Advance or any other
Obligation of any Loan Party under any Loan Document shall remain unpaid or any
Lender shall have any Commitment hereunder, each Loan Party will not, at any
time:

         (a) LIENS, ETC. Create, incur, assume or suffer to exist, or permit any
     of its Subsidiaries to create, incur, assume or suffer to exist, any Lien
     on or with respect to any of its properties of any character (including,
     without limitation, accounts) whether now owned or hereafter acquired, or
     sign or file or record or suffer to exist, or permit any of its
     Subsidiaries to sign or file or record or suffer to exist, under the
     Uniform Commercial Code or other applicable law of any jurisdiction, a
     financing statement or analogous document that names such Loan Party or any
     of its Subsidiaries as debtor, or sign or suffer to exist, or permit any of
     its Subsidiaries to sign or suffer to exist, any security agreement
     authorizing any secured party thereunder to file or record such financing
     statement or analogous document, or assign, or permit any of its
     Subsidiaries to assign, any accounts or other right to receive income,
     except:

             (i) Liens created under the Loan Documents,

             (ii) Permitted Liens, and

             (iii) Liens on amounts on deposit in the Oaktree Account of up to a
     principal amount of $500,000, plus interest thereon, of the Parent created
     under the Oaktree Escrow Agreement.

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<PAGE>

         (b) DEBT. Create, incur, assume or suffer to exist, or permit any of
     its Subsidiaries to create, incur, assume or suffer to exist, any Debt,
     except:

             (i) Debt under the Loan Documents,

             (ii) Debt owed to a Loan Party, which Debt (x) shall constitute
     Pledged Debt, (y) shall be on terms acceptable to the Administrative Agent
     and (z) shall be evidenced by promissory notes in form and substance
     satisfactory to the Administrative Agent and such promissory notes shall be
     pledged as security for the Obligations of the holder thereof under the
     Loan Documents to which such holder is a party and delivered to the
     Collateral Agent pursuant to the terms of the Security Agreement, and

             (iii) Debt consisting of the Oaktree Claim.

         (c) CHANGE IN NATURE OF BUSINESS. Make, or permit any of its
     Subsidiaries to make, any material change in the nature of its business as
     carried on at the date hereof; or engage in, or permit any of its
     Subsidiaries to engage in, any business other than shipping and other
     businesses directly related thereto as carried on at the date hereof.

         (d) MERGERS, ETC. Merge into or consolidate with any Person or permit
     any Person to merge into it, or permit any of its Subsidiaries to do so.

         (e) SALES, ETC., OF ASSETS. Sell, lease, transfer or otherwise dispose
     of, or permit any of its Subsidiaries to sell, lease, transfer or otherwise
     dispose of, any assets, or grant any option or other right to purchase,
     lease or otherwise acquire any assets other than sales of worn out or
     obsolete machinery, fixtures, equipment and materials (other than the
     Vessels), PROVIDED that with respect to any such assets that are material
     to the operation of the Vessels, such assets are promptly replaced by
     comparable machinery, fixture, equipment or materials.

         (f) INVESTMENTS IN OTHER PERSONS. Make or hold, or permit any of its
     Subsidiaries to make or hold, any Investment in any Person, except:

             (i) equity Investments by the Parent in the Borrowers;

             (ii) Investments by the Borrowers in Cash Equivalents; and

             (iii) Investments consisting of intercompany Debt permitted under
     Section 5.02(b)(ii).

         (g) RESTRICTED PAYMENTS. Declare or pay any dividends, purchase,
     redeem, retire, defease or otherwise acquire for value any of its Equity
     Interests now or hereafter outstanding, return any capital to its
     stockholders, partners or members (or the equivalent Persons thereof) as
     such, make any distribution of assets, Equity Interests, obligations or
     securities to its stockholders, partners or members (or the equivalent
     Persons thereof) as such or issue or sell any Equity Interests or accept
     any capital contributions, or permit any of its Subsidiaries to do any of
     the foregoing, or permit any of its Subsidiaries to purchase, redeem,
     retire, defease or otherwise acquire for value any Equity Interests in such
     Loan Party or to issue or sell any Equity Interests therein, except that,
     so long as no Default shall have occurred and be continuing at the time of
     any action described below or would result therefrom any Loan Party may
     accept capital

                                       43
<PAGE>

     contributions from its parent, its partners or the Equity Investors
     (including, without limitation, any recognition or reinstatement of any
     prior capital contributions from any of the Equity Investors arising in
     connection with the Amendment).

         (h) LEASE OBLIGATIONS. Create, incur, assume or suffer to exist, or
     permit any of its Subsidiaries to create, incur, assume or suffer to exist,
     any obligations as lessee (i) for the rental or hire of real or personal
     property in connection with any sale and leaseback transaction, or (ii) for
     the rental or hire of other real or personal property of any kind under
     leases or agreements to lease (including, without limitation, Capitalized
     Leases) having an original term of one year or more.

         (i) AMENDMENTS OF CONSTITUTIVE DOCUMENTS. Amend, or permit any of its
     Subsidiaries to amend, its Constitutive Documents except for amendments to
     the schedules to the Partnership Agreement to reflect any recognition or
     reinstatement of any prior capital contributions from any of the Equity
     Investors arising in connection with the Amendment.

         (j) ACCOUNTING CHANGES. Make or permit, or permit any of its
     Subsidiaries to make or permit, any change in (i) accounting policies or
     reporting practices, except as required by GAAP, or (ii) Fiscal Year.

         (k) PREPAYMENTS, ETC., OF DEBT. Prepay, redeem, purchase, defease or
     otherwise satisfy prior to the scheduled maturity thereof in any manner, or
     make any payment in violation of any subordination terms of, any Debt,
     except the prepayment of the Advances in accordance with the terms of this
     Agreement.

         (l) AMENDMENT, ETC., OF RELATED DOCUMENTS. Cancel or terminate any
     Related Document or consent to or accept any cancellation or termination
     thereof, amend, modify or change in any manner any term or condition of any
     Related Document or give any consent, waiver or approval thereunder, waive
     any default under or any breach of any term or condition of any Related
     Document, agree in any manner to any other amendment, modification or
     change of any term or condition of any Related Document or take any other
     action in connection with any Related Document that, in each case, would
     impair in any material respect the value of the interest or rights of any
     Loan Party thereunder or that would impair the rights or interests of any
     Agent or any Lender, or permit any of its Subsidiaries to do any of the
     foregoing.

         (m) NEGATIVE PLEDGE. Enter into or suffer to exist, or permit any of
     its Subsidiaries to enter into or suffer to exist, any agreement
     prohibiting or conditioning the creation or assumption of any Lien upon any
     of its property or assets except in favor of the Secured Parties.

         (n) PARTNERSHIPS, ETC. Become a general partner in any general or
     limited partnership or joint venture, or permit any of its Subsidiaries to
     do so.

         (o) SPECULATIVE TRANSACTIONS. Engage, or permit any of its Subsidiaries
     to engage, in any transaction involving commodity options or futures
     contracts or any similar speculative transactions.

         (p) CAPITAL EXPENDITURES. Make, or permit any of its Subsidiaries to
     make, any Capital Expenditures that would cause the aggregate of all such
     Capital Expenditures made by

                                       44
<PAGE>

     the Loan Parties in any Fiscal Year to exceed $1,000,000 without the prior
     written consent of the Administrative Agent which consent shall not be
     unreasonably withheld.

         (q) FORMATION OF SUBSIDIARIES. Organize or invest, or permit any
     Subsidiary to organize or invest, in any new Subsidiary.

         (r) PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES. Directly or
     indirectly, enter into or suffer to exist, or permit any of its
     Subsidiaries to enter into or suffer to exist, any agreement or arrangement
     limiting the ability of any of its Subsidiaries to declare or pay dividends
     or other distributions in respect of its Equity Interests or repay or
     prepay any Debt owed to, make loans or advances to, or otherwise transfer
     assets to or invest in, such Loan Party or any of its Subsidiaries (whether
     through a covenant restricting dividends, loans, asset transfers or
     investments, a financial covenant or otherwise), except the Loan Documents.

         (s) ERISA. Have, or permit any other Loan Party or any ERISA Affiliate
     to have, any Plan or Multiemployer Plan.

         SECTION 5.03. REPORTING REQUIREMENTS. So long as any Advance or any
other Obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, the Loan Parties will furnish
to the Agents and the Lenders:

         (a) DEFAULT NOTICE. As soon as possible and in any event within two
     days after the occurrence of each Default or any event, development or
     occurrence reasonably likely to have a Material Adverse Effect continuing
     on the date of such statement, a statement of the chief financial officer
     of such Loan Party setting forth details of such Default and the action
     that such Loan Party has taken and proposes to take with respect thereto.

         (b) ANNUAL FINANCIALS. As soon as available and in any event within 90
     days after the end of each Fiscal Year, a copy of the annual audit report
     for such year for the Parent and its Subsidiaries, including therein
     Consolidated and consolidating balance sheets of the Parent and its
     Subsidiaries as of the end of such Fiscal Year and Consolidated and
     consolidating statements of income and a Consolidated statement of cash
     flows of the Parent and its Subsidiaries for such Fiscal Year, in each case
     accompanied by an opinion acceptable to the Required Lenders of independent
     public accountants of recognized standing acceptable to the Required
     Lenders, together with (i) a certificate of such accounting firm to the
     Lenders stating that in the course of the regular audit of the business of
     the Parent and its Subsidiaries, which audit was conducted by such
     accounting firm in accordance with generally accepted auditing standards,
     such accounting firm has obtained no knowledge that a Default has occurred
     and is continuing, or if, in the opinion of such accounting firm, a Default
     has occurred and is continuing, a statement as to the nature thereof, (ii)
     a schedule in form satisfactory to the Administrative Agent of the
     computations used by such accountants in determining, as of the end of such
     Fiscal Year, compliance with the covenants contained in Section 5.04,
     PROVIDED that in the event of any change in GAAP used in the preparation of
     such financial statements, the Parent shall also provide, if necessary for
     the determination of compliance with Section 5.04, a statement of
     reconciliation conforming such financial statements to GAAP and (iii) a
     certificate of the Chief Financial Officer (or person performing similar
     functions) of the Parent stating that no Default has occurred and is
     continuing or, if a default has occurred and is continuing, a statement as
     to

                                       45
<PAGE>

     the nature thereof and the action that the Parent has taken and proposes to
     take with respect thereto.

         (c) QUARTERLY FINANCIALS. As soon as available and in any event within
     45 days after the end of each of the first three quarters of each Fiscal
     Year, Consolidated and consolidating balance sheets of the Parent and its
     Subsidiaries as of the end of such quarter and Consolidated and
     consolidating statements of income and a Consolidated statement of cash
     flows of the Parent and its Subsidiaries for the period commencing at the
     end of the previous fiscal quarter and ending with the end of such fiscal
     quarter and Consolidated and consolidating statements of income and a
     Consolidated statement of cash flows of the Parent and its Subsidiaries for
     the period commencing at the end of the previous Fiscal Year and ending
     with the end of such quarter, setting forth in each case in comparative
     form the corresponding figures for the corresponding date or period of the
     preceding Fiscal Year, all in reasonable detail and duly certified (subject
     to normal year-end audit adjustments) by the Chief Financial Officer (or
     person performing similar functions) of the Parent as having been prepared
     in accordance with GAAP, together with a certificate of said officer in
     substantially the form of Exhibit E hereto stating that no Default has
     occurred and is continuing or, if a Default has occurred and is continuing,
     a statement as to the nature thereof and the action that the Parent has
     taken and proposes to take with respect thereto and a schedule of the
     computations used by the Parent in determining compliance with the
     covenants contained in Section 5.04, PROVIDED that in the event of any
     change in GAAP used in the preparation of such financial statements, the
     Parent shall also provide, if necessary for the determination of compliance
     with Section 5.04, a statement of reconciliation conforming such financial
     statements to GAAP.

         (d) MONTHLY FINANCIALS AND FORECAST. As soon as available and in any
     event within 30 days after the end of each month, forecasts, prepared by
     management of the Parent in substantially the form of Exhibit F hereto, of
     cash flows for each Borrower together with a comparison of forecasted cash
     flow projections versus actual cash flow figures for the previous month, a
     summary of the number of days each Vessel was in operation for the previous
     month and the applicable time charter equivalent rate for such Vessel for
     such period.

         (e) ANNUAL FORECAST. As soon as available and in any event no later
     than 15 days before the end of each Fiscal Year, forecasts prepared by
     management of the Parent, in substantially the form of an annual report
     (without notes) prepared by the Parent in the normal course of business and
     satisfactory to the Administrative Agent, of Consolidated and consolidating
     balance sheets and Consolidated and consolidating income statements and
     statements of cash flows on an annual basis for each Fiscal Year until the
     Termination Date.

         (f) LITIGATION. Promptly after the commencement thereof, notice of all
     actions, suits, investigations, litigation and proceedings before any court
     or governmental department, commission, board, bureau, agency or
     instrumentality, domestic or foreign, affecting any Loan Party or any of
     its Subsidiaries of the type described in Section 4.01(f).

         (g) SECURITIES REPORTS. Promptly after the sending or filing thereof,
     copies of all proxy statements, financial statements, reports and
     correspondence that any Loan Party or any of its Subsidiaries sends to its
     stockholders, partners or other equity holders, and copies of all regular,
     periodic and special reports, and all registration statements, that any
     Loan Party or any of

                                       46
<PAGE>

     its Subsidiaries files with the Securities and Exchange Commission or other
     applicable governmental or regulatory agency, or with any national
     securities exchange.

         (h) AGREEMENT NOTICES. Promptly upon receipt thereof, (i) copies of all
     notices, requests and other documents received by any Loan Party or any of
     its Subsidiaries under or pursuant to the Partnership Agreement and (ii)
     with respect to any other Related Document or instrument, indenture, loan
     or credit or similar agreement, copies of all notices, requests and other
     documents received by any Loan Party or any of its Subsidiaries regarding
     or related to any breach or default by any party thereto or any other event
     that could materially impair the value of the interests or the rights of
     any Loan Party or otherwise have a Material Adverse Effect and copies of
     any amendment, modification or waiver of any provision of any Related
     Document (including the Partnership Agreement) or indenture, loan or credit
     or similar agreement and, from time to time upon request by the
     Administrative Agent, such information and reports regarding the Related
     Documents and such instruments, indentures and loan and credit and similar
     agreements as the Administrative Agent may reasonably request.

         (i) TAX AUTHORITY REPORTS. Within 10 days after receipt, copies of all
     reports issued by any taxing authority, or other written proposals of any
     taxing authority, that propose, determine or otherwise set forth
     adjustments to the income, franchise, property or any other similar tax
     liability of any Loan Party that, in the aggregate, would reasonably likely
     to have a Material Adverse Effect.

         (j) TAX CERTIFICATES. Promptly, and in any event within five Business
     Days after the due date (with extensions) for filing a tax return (or other
     similar tax forms) in respect of each taxable year, a certificate (a "TAX
     CERTIFICATE"), signed by the President or the Chief Financial Officer (or
     person performing similar functions) of the Parent, stating that the Parent
     and its Subsidiaries (i) have paid to the relevant taxing authority, the
     full amount that they are required to pay in respect of income, franchise,
     property and other similar taxes (as applicable) for such year, (ii) have
     received any amounts payable to them in respect of any tax refund, rebate
     or similar payments, and (iii) have not paid amounts in respect of taxes in
     excess of the amount they are required to pay in respect of such taxable
     year.

         (k) ENVIRONMENTAL CONDITIONS. Promptly after the assertion or
     occurrence thereof, notice of any Environmental Action against or of any
     noncompliance by any Loan Party or any of its Subsidiaries with any
     Environmental Law or Environmental Permit that could (i) reasonably be
     expected to have a Material Adverse Effect or (ii) cause any property
     described in the Mortgages to be subject to any restrictions on ownership,
     occupancy, use or transferability under any Environmental Law.

         (l) YEAR 2000 COMPLIANCE. Promptly after any Loan Party's discovery or
     determination thereof, notice (in reasonable detail) that any computer
     application (including those of its material suppliers, vendors and
     customers) that is material to its or any of its Subsidiaries' business and
     operations will not be Year 2000 Compliant (as defined in Section
     4.01(aa)), except to the extent that such failure could not reasonably be
     expected to have a Material Adverse Effect.

         (m) EQUITY INVESTORS. (i) Promptly upon any change in the Equity
     Investors or the Equity Interests of any Equity Investor in the Parent from
     the Equity Interests set forth on

                                       47
<PAGE>

     Schedule 4.01(a) hereto, notice of such change, including, without
     limitation, the name, contact person, address and telephone numbers of any
     new equity investor in the Parent and such other information as the
     Administrative Agent may reasonably request and (ii) within 10 Business
     Days after the end of each fiscal quarter of the Parent a certificate
     stating that there has been no other change in the Equity Interests of any
     Equity Investor in the Parent other than those, if any, specified in
     accordance with clause (i) above.

         (n) OTHER INFORMATION. Such other information respecting the business,
     condition (financial or otherwise), operations, performance, properties or
     prospects of any Loan Party or any of its Subsidiaries as any Agent, or any
     Lender through the Administrative Agent, may from time to time reasonably
     request.

         SECTION 5.04. FINANCIAL COVENANTS. So long as any Advance or any other
Obligation of any Loan Party under any Loan Document shall remain unpaid or any
Lender shall have any Commitment hereunder, the Loan Parties will:

         (a) INTEREST COVERAGE RATIO. Maintain at the end of each fiscal quarter
     of the Parent an Interest Coverage Ratio of not less than (i) during the
     Initial Period, 1.0:1.0, and (ii) thereafter, 1.5:1.0.

         (b) WORKING CAPITAL. Maintain at all times Current Assets in excess of
     Current Liabilities, in each case, of the Parent and its Subsidiaries on a
     Consolidated basis.

         (c) MINIMUM CASH ON HAND. Maintain at all times cash on hand of the
     Borrowers (including, without limitation, amounts on deposit in any deposit
     account of the Borrowers) (i) during the period from the Effective Date
     until the six month anniversary of the Effective Date, (x) $250,000 for
     each Borrower and (y) $1,000,000 for all Borrowers in the aggregate, and
     (ii) thereafter, (x) $500,000 for each Borrower and (y) $2,000,000 for all
     Borrowers in the aggregate.

         (d) MINIMUM COLLATERAL COVERAGE. Maintain at all times for each
     Borrower a ratio of (i) the Market Value of the Vessel registered in the
     name of such Borrower to (ii) the aggregate principal amount of the
     Advances owing by such Borrower, of not less than (x) during the Initial
     Period, 1.1:1.0, and (y) thereafter, 1.25:1.0.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

         SECTION 6.01. EVENTS OF DEFAULT. If any of the following events
("EVENTS OF DEFAULT") shall occur and be continuing:

         (a) any Borrower shall fail to pay any principal of any Advance or any
     interest on any Advance, or any Loan Party shall fail to make any other
     payment under any Loan Document, in each case when the same becomes due and
     payable; or

         (b) any representation or warranty made by any Loan Party (or any of
     its officers) under or in connection with any Loan Document shall prove to
     have been incorrect in any material respect when made; or

                                       48
<PAGE>

         (c) any Borrower shall fail to perform or observe any term, covenant or
     agreement contained in Section 5.01(e), (f), (i), (j), (o) or (p), 5.02,
     5.03 or 5.04; or

         (d) any Loan Party shall fail to perform or observe any other term,
     covenant or agreement contained in any Loan Document on its part to be
     performed or observed if such failure shall remain unremedied for 10 days
     after the earlier of the date on which (i) a Responsible Officer becomes
     aware of such failure or (ii) written notice thereof shall have been given
     to such Loan Party by any Agent or any Lender; or

         (e) any Loan Party or any of its Subsidiaries shall fail to pay any
     principal of, premium or interest on or any other amount payable in respect
     of any Debt that is outstanding in a principal amount (or, in the case of
     any Hedge Agreement, an Agreement Value) of at least $1,000,000 (or the
     equivalent thereof in the applicable currency of such Debt) either
     individually or in the aggregate (but excluding Debt outstanding hereunder)
     of such Loan Party or such Subsidiary (as the case may be), when the same
     becomes due and payable (whether by scheduled maturity, required
     prepayment, acceleration, demand or otherwise), and such failure shall
     continue after the applicable grace period, if any, specified in the
     agreement or instrument relating to such Debt; or any other event shall
     occur or condition shall exist under any agreement or instrument relating
     to any such Debt and shall continue after the applicable grace period, if
     any, specified in such agreement or instrument, if the effect of such event
     or condition is to accelerate, or to permit the acceleration of, the
     maturity of such Debt or otherwise to cause, or to permit the holder
     thereof to cause, such Debt to mature; or any such Debt shall be declared
     to be due and payable or required to be prepaid or redeemed (other than by
     a regularly scheduled required prepayment or redemption), purchased or
     defeased, or an offer to prepay, redeem, purchase or defease such Debt
     shall be required to be made, in each case prior to the stated maturity
     thereof; or

         (f) any Loan Party or any of its Subsidiaries shall generally not pay
     its debts as such debts become due, or shall admit in writing its inability
     to pay its debts generally, or shall make a general assignment for the
     benefit of creditors; or any proceeding shall be instituted by or against
     any Loan Party or any of its Subsidiaries seeking to adjudicate it a
     bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
     arrangement, adjustment, protection, relief, or composition of it or its
     debts under any law relating to bankruptcy, insolvency or reorganization or
     relief of debtors, or seeking the entry of an order for relief or the
     appointment of a receiver, trustee, or other similar official for it or for
     any substantial part of its property and, in the case of any such
     proceeding instituted against it (but not instituted by it) that is being
     diligently contested by it in good faith, either such proceeding shall
     remain undismissed or unstayed for a period of 30 days or any of the
     actions sought in such proceeding (including, without limitation, the entry
     of an order for relief against, or the appointment of a receiver, trustee,
     custodian or other similar official for, it or any substantial part of its
     property) shall occur; or any Loan Party or any of its Subsidiaries shall
     take any corporate action to authorize any of the actions set forth above
     in this subsection (f); or

         (g) any judgment or order for the payment of money in excess of
     $1,000,000 (or the equivalent thereof in the applicable currency of such
     judgment or order) shall be rendered against any Loan Party or any of its
     Subsidiaries and either (i) enforcement proceedings shall have been
     commenced by any creditor upon such judgment or order or (ii) there shall
     be any period of 10

                                       49
<PAGE>

     consecutive days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise, shall not be in effect;
     or

         (h) any non-monetary judgment or order shall be rendered against any
     Loan Party or any of its Subsidiaries that could be reasonably likely to
     have a Material Adverse Effect, and there shall be any period of 10
     consecutive days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise, shall not be in effect;
     or

         (i) any provision of any Loan Document after delivery thereof pursuant
     to Section 3.01 shall for any reason cease to be valid and binding on or
     enforceable against any Loan Party party to it, or any such Loan Party
     shall so state in writing; or

         (j) any Collateral Document after delivery thereof pursuant to Section
     3.01 shall for any reason (other than pursuant to the terms thereof) cease
     to create a valid and perfected first priority lien on and security
     interest in the Collateral purported to be covered thereby; or

         (k) a Change of Control shall occur; or

         (l) an "Event of Default" (as defined in any Mortgage) shall have
     occurred and be continuing; or

         (m) there shall occur any Material Adverse Change as determined in the
     sole judgment of the Lenders; or

         (n) a maritime or other lien, arrest, distress or similar charge is
     levied upon, or against any of the Vessels or any substantial part of the
     assets of any of the Loan Parties and such Vessel or assets are not
     released from such arrest, attachment or detention within ten days; or

         (o) a substantial part of any Loan Party's business or assets is
     destroyed, abandoned, seized, appropriated or forfeited for any reason.

then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Required Lenders, by notice to the Borrowers,
declare the Commitments of each Lender and the obligation of each Lender to make
Advances to be terminated, whereupon the same shall forthwith terminate, and
(ii) shall at the request, or may with the consent, of the Required Lenders, (A)
by notice to the Borrowers, declare the Notes, all interest thereon and all
other amounts payable under this Agreement and the other Loan Documents to be
forthwith due and payable, whereupon the Notes, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrowers; PROVIDED, HOWEVER, that in the event of an actual or
deemed entry of an order for relief with respect to any Borrower under the
Federal Bankruptcy Code, (x) the Commitments of each Lender and the obligation
of each Lender to make Advances shall automatically be terminated and (y) the
Notes, all such interest and all such amounts shall automatically become and be
due and payable, without presentment, demand, protest or any notice of any kind,
all of which are hereby expressly waived by the Borrowers.

                                   ARTICLE VII

                                       50
<PAGE>

                                    GUARANTY

         SECTION 7.01. GUARANTY; LIMITATION OF LIABILITY. (a) Each Guarantor,
jointly and severally, hereby absolutely, unconditionally and irrevocably
guarantees the punctual payment when due, whether at scheduled maturity or at a
date fixed for prepayment under the terms of the Loan Documents or by
acceleration, demand or otherwise under the terms of the Loan Documents, of all
Obligations of each other Loan Party now or hereafter existing under or in
respect of the Loan Documents (including, without limitation, any extensions,
modifications, substitutions, amendments or renewals of any or all of the
foregoing Obligations), whether direct or indirect, absolute or contingent, and
whether for principal, interest, premium, fees, indemnification payments,
contract causes of action, costs, expenses or otherwise (such Obligations being
the "GUARANTEED OBLIGATIONS"), and agrees to pay any and all expenses
(including, without limitation, reasonable fees and expenses of counsel)
incurred by the Administrative Agent or any other Secured Party in enforcing any
rights under this Guaranty and the other Loan Documents. Without limiting the
generality of the foregoing, each Guarantor's liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by
any Loan Party to the Administrative Agent or any other Secured Party under or
in respect of the Loan Documents but for the fact that they are unenforceable or
not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving such Loan Party.

         (b) Each Guarantor and the Administrative Agent and each other Secured
Party, hereby confirms that it is the intention of all such Persons that this
Guaranty and the Obligations of each Guarantor hereunder not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
foreign, federal or state law relating to the protection of creditors' rights or
the relief of debtors to the extent applicable to this Guaranty and the
Obligations of each Guarantor hereunder. To effectuate the foregoing intention,
the Administrative Agent, the other Secured Parties and the Guarantors hereby
irrevocably agree that the Guaranteed Obligations and all of the other
liabilities of each Guarantor (other than the Parent) under this Guaranty shall
be limited to the maximum amount as will, after giving effect to such maximum
amount and all other contingent and fixed liabilities of such Guarantor (other
than guaranties of such Guarantor in respect of Subordinated Debt) that are
relevant under such laws, and after giving effect to any collections from,
rights to receive contribution from or payments made by or on behalf of any
other guarantor in respect of the Obligations of such other guarantor under this
Guaranty or any other guaranty, result in the Guaranteed Obligations and all of
the other liabilities of each Guarantor under this Guaranty not constituting a
fraudulent transfer or conveyance. For purposes hereof, "BANKRUPTCY LAW" means
Title 11, U.S. Code, or any similar foreign, federal or state law for the relief
of debtors.

         (c) Each Guarantor hereby unconditionally and irrevocably agrees that
in the event any payment shall be required to be made to the Secured Parties
under this Guaranty or any other guaranty, such Guarantor will contribute, to
the maximum extent permitted by applicable law, such amounts to each other
Guarantor and each other guarantor so as to maximize the aggregate amount paid
to the Secured Parties under or in respect of the Loan Documents.

         SECTION 7.02. GUARANTY ABSOLUTE. (a) Each Guarantor guarantees that all
of the Guaranteed Obligations will be paid strictly in accordance with the terms
of the Loan Documents, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the
rights of the Administrative Agent or any other Secured Party with respect
thereto. The Obligations of each Guarantor under this Guaranty are independent
of the Guaranteed Obligations or any other Obligations of any other Loan Party
under or in respect of the Loan Documents, and a separate

                                       51
<PAGE>

action or actions may be brought and prosecuted against each Guarantor to
enforce this Guaranty, irrespective of whether any action is brought against any
other Loan Party or whether any other Loan Party is joined in any such action or
actions. The liability of each Guarantor under this Guaranty shall be
irrevocable, absolute and unconditional irrespective of, and each Guarantor
hereby irrevocably waives (to the maximum extent permitted by applicable law)
any defenses it may now have or may hereafter acquire in any way relating to,
any or all of the following:

             (i) any lack of validity or enforceability of any Loan Document or
     any agreement or instrument relating thereto;

             (ii) any change in the time, manner or place of payment of, or in
     any other term of, all or any of the Guaranteed Obligations or any other
     Obligations of any other Loan Party under or in respect of the Loan
     Documents, or any other amendment or waiver of or any consent to departure
     from any Loan Document, including, without limitation, any increase in the
     Guaranteed Obligations resulting from the extension of additional credit to
     any Loan Party or any of its Subsidiaries or otherwise;

             (iii) any taking, exchange, release or non-perfection of any
     Collateral or any other collateral, or any taking, release or amendment or
     waiver of, or consent to departure from, any other guaranty, for all or any
     of the Guaranteed Obligations;

             (iv) any manner of application of Collateral or any other
     collateral, or proceeds thereof, to all or any of the Guaranteed
     Obligations, or any manner of sale or other disposition of any Collateral
     or any other collateral for all or any of the Guaranteed Obligations or any
     other Obligations of any Loan Party under or in respect of the Loan
     Documents or any other property or assets of any Loan Party or any of its
     Subsidiaries;

             (v) any change, restructuring or termination of the corporate
     structure or existence of any Loan Party or any of its Subsidiaries;

             (vi) any failure of any Secured Party to disclose to any Loan Party
     any information relating to the business, condition (financial or
     otherwise), operations, performance, assets, nature of assets, liabilities
     (including, without limitation, tax and environmental liabilities) or
     prospects of any other Loan Party now or hereafter known to such Secured
     Party (each Guarantor waiving any duty on the part of the Secured Parties
     to disclose such information);

             (vii) the failure of any other Person to execute this Guaranty or
     any other guaranty or agreement or the release or reduction of liability of
     any Guarantor or other guarantor or surety with respect to the Guaranteed
     Obligations; or

             (viii) any other circumstance (including, without limitation, any
     statute of limitations) or any existence of or reliance on any
     representation by the Administrative Agent or any other Secured Party that
     might otherwise constitute a defense available to, or a discharge of, any
     Borrower, any Guarantor or any other guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by the Administrative Agent or any other Secured
Party or by any other Person upon the insolvency, bankruptcy

                                       52
<PAGE>

or reorganization of any Loan Party or otherwise, all as though such payment had
not been made, and each Guarantor hereby unconditionally and irrevocably agrees
that it will indemnify the Administrative Agent and each other Secured Party,
upon demand, for all costs and expenses (including, without limitation,
reasonable fees and expenses of counsel) incurred by the Administrative Agent or
such other Secured Party in connection with such rescission or restoration,
including any such costs and expenses incurred in defending against any claim
alleging that such payment constituted a preference, a fraudulent transfer or a
similar payment under any bankruptcy, insolvency or similar law, regulation or
order.

         (b) Each Guarantor hereby further agrees that (i) the Guaranteed
Obligations of such Guarantor may be declared to be forthwith due and payable as
provided in Section 6.01 (and shall be deemed to have become automatically due
and payable in the circumstances provided in Section 6.01) for all purposes of
this Guaranty, notwithstanding any stay, injunction or other prohibition
preventing such declaration in respect of the Obligations of any Loan Party
guaranteed hereunder (or preventing such Guaranteed Obligations from becoming
automatically due and payable) as against any other Person and (ii) in the event
of any declaration of acceleration of such Guaranteed Obligations (or such
Guaranteed Obligations being deemed to have become automatically due and
payable) as provided in Section 6.01, such Guaranteed Obligations (whether or
not due and payable by any other Person) shall forthwith become due and payable
by such Guarantor for all purposes of this Guaranty.

         SECTION 7.03. WAIVERS AND ACKNOWLEDGMENTS. (a) Each Guarantor hereby
unconditionally and irrevocably waives promptness, diligence, notice of
acceptance, presentment, demand for performance, notice of nonperformance,
default, acceleration, protest or dishonor and any other notice with respect to
any of the Guaranteed Obligations and this Guaranty and any requirement that the
Administrative Agent or any other Secured Party protect, secure, perfect or
insure any Lien or any property or assets subject thereto or exhaust any right
or take any action against any Loan Party or any other Person or any Collateral.

         (b) Each Guarantor hereby unconditionally and irrevocably waives any
right to revoke this Guaranty, and acknowledges that this Guaranty is continuing
in nature and applies to all Guaranteed Obligations, whether existing now or in
the future.

         (c) Each Guarantor hereby unconditionally and irrevocably waives (i)
any defense arising by reason of any claim or defense based upon an election of
remedies by the Administrative Agent or the other Secured Parties which in any
manner impairs, reduces, releases or otherwise adversely affects such
Guarantor's subrogation, reimbursement, exoneration, contribution or
indemnification rights or any other rights of such Guarantor to proceed against
any Borrower, any other Guarantor, any other guarantor or any other Person or
any Collateral, and (ii) any defense based on any right of setoff or
counterclaim against or in respect of such Guarantor's Obligations under this
Guaranty.

         (d) Each Guarantor hereby unconditionally and irrevocably waives any
duty on the part of the Administrative Agent or any other Secured Party to
disclose to such Guarantor any matter, fact or thing relating to the business,
condition (financial or otherwise), operations, performance, assets, nature of
assets, liabilities, (including, without limitation, tax and environmental
liabilities) or prospects of any other Loan Party or any of its Subsidiaries now
or hereafter known by the Administrative Agent or such other Secured Party.

                                       53
<PAGE>

         (e) Each Guarantor acknowledges that it will receive substantial direct
and indirect benefits from the financing arrangements contemplated by the Loan
Documents and that the waivers set forth in Section 7.02 and in this Section
7.03 are knowingly made in contemplation of such benefits.

         SECTION 7.04. SUBROGATION. Each Guarantor hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or may
hereafter acquire against any Borrower, any other Loan Party or any other
insider guarantor that arise from the existence, payment, performance or
enforcement of such Guarantor's Obligations under or in respect of this Guaranty
or any other Loan Document, including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution or indemnification and any
right to participate in any claim or remedy of the Administrative Agent or any
other Secured Party against such Borrower, such other Loan Party or any other
insider guarantor or any Collateral, whether or not such claim, remedy or right
arises in equity or under contract, statute or common law, including, without
limitation, the right to take or receive from such Borrower, such other Loan
Party or any other insider guarantor, directly or indirectly, in cash or other
property or by setoff or in any other manner, payment or security on account of
such claim, remedy or right, unless and until such time as all of the Guaranteed
Obligations and all other amounts payable under this Guaranty shall have been
paid in full in cash and the Commitments shall have expired or been terminated.
If any amount shall be paid to any Guarantor in violation of the immediately
preceding sentence at any time prior to the later of (a) the payment in full in
cash of all Guaranteed Obligations and all other amounts payable under this
Guaranty and (b) the Termination Date, such amount shall be received and held in
trust for the benefit of the Administrative Agent and the other Secured Parties,
shall be segregated from other property and funds of such Guarantor and shall
forthwith be delivered to the Administrative Agent in the same form as so
received (with any necessary endorsement or assignment) to be credited and
applied to the Guaranteed Obligations and all other amounts payable under this
Guaranty, whether matured or unmatured, in accordance with the terms of the Loan
Documents, or to be held as Collateral for any Guaranteed Obligations or the
other amounts payable under this Guaranty thereafter arising. If (i) any
Guarantor shall make payment to the Administrative Agent or any other Secured
Party of all or any part of the Guaranteed Obligations, (ii) all of the
Guaranteed Obligations and all other amounts payable under this Guaranty shall
have been paid in full in cash and (iii) the Termination Date shall have
occurred, the Administrative Agent and the other Secured Parties shall, at such
Guarantor's request and expense, execute and deliver to such Guarantor
appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to such Guarantor of an
interest in the Guaranteed Obligations resulting from such payment made by such
Guarantor under this Guaranty.

         SECTION 7.05. CONTINUING GUARANTY; ASSIGNMENTS. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
later of (i) the payment in full in cash of all Guaranteed Obligations and all
other amounts payable under this Guaranty and (ii) the Termination Date, (b) be
binding upon each Guarantor, its successors and assigns and (c) inure to the
benefit of and be enforceable by the Administrative Agent and the other Secured
Parties and their successors, transferees and assigns. Without limiting the
generality of clause (c) of the immediately preceding sentence, any Secured
Party may assign or otherwise transfer all or any portion of its rights and
obligations under this Agreement (including, without limitation, all or any
portion of its Commitments, the Advances owing to it and the Note or Notes held
by it) to any other Person, and such other Person shall thereupon become vested
with all the benefits in respect thereof granted to such Secured Party herein or
otherwise, in each case as and to the extent provided in Section 9.07.

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<PAGE>

                                  ARTICLE VIII

                                   THE AGENTS

         SECTION 8.01. AUTHORIZATION AND ACTION. Each Lender hereby appoints and
authorizes each Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement and the other Loan Documents as
are delegated to such Agent by the terms hereof and thereof, together with such
powers and discretion as are reasonably incidental thereto. As to any matters
not expressly provided for by the Loan Documents (including, without limitation,
enforcement or collection of the Notes), no Agent shall be required to exercise
any discretion or take any action, but shall be required to act or to refrain
from acting (and shall be fully protected in so acting or refraining from
acting) upon the instructions of the Required Lenders, and such instructions
shall be binding upon all Lenders and all holders of Notes; PROVIDED, HOWEVER,
that no Agent shall be required to take any action that exposes such Agent to
personal liability or that is contrary to this Agreement or applicable law. Each
Agent agrees to give to each Lender prompt notice of each notice given to it by
the Borrowers pursuant to the terms of this Agreement.

         SECTION 8.02. AGENTS' RELIANCE, ETC. Neither any Agent nor any of their
respective directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
the Loan Documents, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, each Agent:
(a) may treat the payee of any Note as the holder thereof until, in the case of
the Administrative Agent, the Administrative Agent receives and accepts an
Assignment and Acceptance entered into by the Lender that is the payee of such
Note, as assignor, and an Eligible Assignee, as assignee, or, in the case of any
other Agent, such Agent has received notice from the Administrative Agent that
it has received and accepted such Assignment and Acceptance, in each case as
provided in Section 9.07; (b) may consult with legal counsel (including counsel
for any Loan Party), independent public accountants and other experts selected
by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or
experts; (c) makes no warranty or representation to any Lender and shall not be
responsible to any Lender for any statements, warranties or representations
(whether written or oral) made in or in connection with the Loan Documents; (d)
shall not have any duty to ascertain or to inquire as to the performance or
observance of any of the terms, covenants or conditions of any Loan Document on
the part of any Loan Party or to inspect the property (including the books and
records) of any Loan Party; (e) shall not be responsible to any Lender for the
due execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created
or purported to be created under or in connection with, any Loan Document or any
other instrument or document furnished pursuant thereto; and (f) shall incur no
liability under or in respect of any Loan Document by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telegram or
telecopy) believed by it to be genuine and signed or sent by the proper party or
parties.

         SECTION 8.03. CBNY AND AFFILIATES. With respect to its Commitment, the
Advances made by it and the Notes issued to it, CBNY shall have the same rights
and powers under the Loan Documents as any other Lender and may exercise the
same as though it were not an Agent; and the term "Lender" or "Lenders" shall,
unless otherwise expressly indicated, include CBNY in its individual capacity.
CBNY and its affiliates may accept deposits from, lend money to, act as trustee
under indentures of, accept investment banking engagements from and generally
engage in any kind of business with, any Loan Party, any of its Subsidiaries and
any Person that may do business with or own securities

                                       55
<PAGE>

of any Loan Party or any such Subsidiary, all as if CBNY was not an Agent and
without any duty to account therefor to the Lenders.

         SECTION 8.04. LENDER CREDIT DECISION. Each Lender acknowledges that it
has, independently and without reliance upon any Agent or any other Lender and
based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon any Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.

         SECTION 8.05. INDEMNIFICATION. (a) Each Lender severally agrees to
indemnify each Agent (to the extent not promptly reimbursed by the Loan Parties)
from and against such Lender's ratable share (determined as provided below) of
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against such Agent
in any way relating to or arising out of the Loan Documents or any action taken
or omitted by such Agent under the Loan Documents; PROVIDED, HOWEVER, that no
Lender shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Agent's gross negligence or willful misconduct as found in a
final, non-appealable judgment by a court of competent jurisdiction. Without
limitation of the foregoing, each Lender agrees to reimburse each Agent promptly
upon demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by the Loan Parties under
Section 9.04, to the extent that such Agent is not promptly reimbursed for such
costs and expenses by the Loan Parties.

         (b) For purposes of this Section 8.05, the Lenders' respective ratable
shares of any amount shall be determined, at any time, according to the
aggregate principal amount of the Advances outstanding at such time and owing to
the respective Lenders. The failure of any Lender to reimburse any Agent
promptly upon demand for its ratable share of any amount required to be paid by
the Lenders to such Agent as provided herein shall not relieve any other Lender
of its obligation hereunder to reimburse such Agent for its ratable share of
such amount, but no Lender shall be responsible for the failure of any other
Lender to reimburse such Agent for such other Lender's ratable share of such
amount. Without prejudice to the survival of any other agreement of any Lender
hereunder, the agreement and obligations of each Lender contained in this
Section 8.05 shall survive the payment in full of principal, interest and all
other amounts payable hereunder and under the other Loan Documents.

         SECTION 8.06. SUCCESSOR AGENTS. Any Agent may resign at any time by
giving written notice thereof to the Lenders and the Borrowers and may be
removed at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after
the retiring Agent's giving of notice of resignation or the Required Lenders'
removal of the retiring Agent, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Agent, which shall be a commercial bank that is an
Eligible Assignee. Upon the acceptance of any appointment as Agent hereunder by
a successor Agent and, in the case of a successor Collateral Agent, upon the
execution and filing or recording of such financing statements, or amendments
thereto, and such amendments or supplements to the Mortgages, and such other
instruments or notices, as may be necessary or desirable or as the Required
Lenders may request, in order to continue the perfection of the Liens granted or
purported to be granted by the Collateral

                                       56
<PAGE>

Documents, such successor Agent shall succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations under the
Loan Documents. If within 45 days after written notice is given of the retiring
Agent's resignation or removal under this Section 8.06 no successor Agent shall
have been appointed and shall have accepted such appointment, then on such 45th
day (i) the retiring Agent's resignation or removal shall become effective, (ii)
the retiring Agent shall thereupon be discharged from its duties and obligations
under the Loan Documents and (iii) the Required Lenders shall thereafter perform
all duties of the retiring Agent under the Loan Documents until such time, if
any, as the Required Lenders appoint a successor Agent as provided above. After
any retiring Agent's resignation or removal hereunder as Agent shall have become
effective, the provisions of this Article VIII shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was Agent under this
Agreement.

                                   ARTICLE IX

                                  MISCELLANEOUS

         SECTION 9.01. AMENDMENTS, ETC. No amendment or waiver of any provision
of this Agreement or the Notes or any other Loan Document, nor consent to any
departure by any Loan Party therefrom, shall in any event be effective unless
the same shall be in writing and signed (or, in the case of the Collateral
Documents, consented to) by the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; PROVIDED, HOWEVER, that no amendment, waiver or consent
shall, unless in writing and signed by all of the Lenders, do any of the
following at any time: (a) waive any of the conditions specified in Section
3.01, (b) change the number of Lenders or the percentage of (i) the Commitments
or (ii) the aggregate unpaid principal amount of the Advances that, in each
case, shall be required for the Lenders or any of them to take any action
hereunder, (c) reduce or limit the obligations of any Guarantor under Section
7.01 of the Guaranty set forth in Article VII hereof or release such Guarantor
or otherwise limit such Guarantor's liability with respect to the Obligations
owing to the Agents and the Lenders, (d) release any portion of the Collateral
in any transaction or series of related transactions or permit the creation,
incurrence, assumption or existence of any Lien other than Permitted Liens on
any portion of the Collateral in any transaction or series of related
transactions to secure any Obligations other than Obligations owing to the
Secured Parties under the Loan Documents, (e) amend this Section 9.01, (f)
increase the Commitments of the Lenders or subject the Lenders to any additional
obligations, (g) reduce the principal of, or interest on, the Notes or any fees
or other amounts payable hereunder, (h) postpone any date fixed for any payment
of principal of, or interest on, the Notes or any fees or other amounts payable
hereunder, or (i) limit the liability of any Loan Party under any of the Loan
Documents; PROVIDED FURTHER that no amendment, waiver or consent shall, unless
in writing and signed by an Agent in addition to the Lenders required above to
take such action, affect the rights or duties of such Agent under this Agreement
or the other Loan Documents.

         SECTION 9.02. NOTICES, ETC. All notices and other communications
provided for hereunder shall be in writing (including telegraphic or telecopy
communication) and mailed, telegraphed, telecopied or delivered, if to the
Borrowers or the Parent, c/o General Maritime Corporation at its address at 730
Fifth Avenue, New York, New York 10019, Attention: Peter C. Georgiopoulos
(facsimile No.: (212) 698-9628); if to any Initial Lender, at its Eurodollar
Lending Office specified opposite its name on Schedule I hereto; if to any other
Lender, at its Eurodollar Lending Office specified in the Assignment and
Acceptance pursuant to which it became a Lender; if to CBNY, individually or as
an Agent, at its address at 11 West 42nd Street, 7th Floor, New York, New York
10036, Attention: Shipping

                                       57
<PAGE>

Department; or, as to any party, at such other address as shall be designated by
such party in a written notice to the other parties. All such notices and
communications shall, when mailed, telegraphed or telecopied, be effective when
deposited in the mails, delivered to the telegraph company or transmitted by
telecopier, respectively, except that notices and communications to any Agent
pursuant to Article II, III or VIII shall not be effective until received by
such Agent. Manual delivery by telecopier of an executed counterpart of any
amendment or waiver of any provision of this Agreement or the Notes or of any
Exhibit hereto to be executed and delivered hereunder shall be effective as
delivery of an original executed counterpart thereof.

         SECTION 9.03. NO WAIVER; REMEDIES. No failure on the part of any Lender
or any Agent to exercise, and no delay in exercising, any right hereunder or
under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

         SECTION 9.04. COSTS AND EXPENSES. (a) Each of the Loan Parties agrees
to pay on demand (i) all costs and expenses of each Agent and each Lender in
connection with the preparation, execution, delivery, administration,
modification and amendment of the Loan Documents (including, without limitation,
(A) all due diligence, collateral review, syndication, transportation, computer,
duplication, appraisal, audit, insurance, consultant, search, filing and
recording fees and expenses and (B) the reasonable fees and expenses of counsel
for each Agent with respect thereto, with respect to advising such Agent as to
its rights and responsibilities, or the perfection, protection or preservation
of rights or interests, under the Loan Documents, with respect to negotiations
with any Loan Party or with other creditors of any Loan Party or any of its
Subsidiaries arising out of any Default or any events or circumstances that may
give rise to a Default and with respect to presenting claims in or otherwise
participating in or monitoring any bankruptcy, insolvency or other similar
proceeding involving creditors' rights generally and any proceeding ancillary
thereto) and (ii) all costs and expenses of each Agent and each Lender in
connection with the enforcement of the Loan Documents, whether in any action,
suit or litigation, or any bankruptcy, insolvency or other similar proceeding
affecting creditors' rights generally (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent and each
Lender with respect thereto).

         (b) Each of the Loan Parties agrees to indemnify and hold harmless each
Agent, each Lender and each of their Affiliates and their respective officers,
directors, employees, agents and advisors (each, an "INDEMNIFIED PARTY") from
and against any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in each
case arising out of or in connection with or by reason of (including, without
limitation, in connection with any investigation, litigation or proceeding or
preparation of a defense in connection therewith) (i) the Facility, the actual
or proposed use of the proceeds of the Advances, the Transaction Documents or
any of the transactions contemplated thereby, including, without limitation, any
acquisition or proposed acquisition or similar business combination (including
the Transaction and any other transaction contemplated hereby) by any Loan Party
or any of its Subsidiaries or Affiliates of all or any portion of the Equity
Interests or substantially all of the assets of any other Person or (ii) the
actual or alleged presence of Hazardous Materials on, or in connection with, any
property (including, without limitation, the Vessels) of any Loan Party or any
of its Subsidiaries or any Environmental Action relating in any way to any Loan
Party or any of its Subsidiaries, except to the extent such claim, damage, loss,
liability or expense is found in a final, non-appealable judgment by a court of
competent jurisdiction to have resulted from such Indemnified

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<PAGE>

Party's gross negligence or willful misconduct. In the case of an investigation,
litigation or other proceeding to which the indemnity in this Section 9.04(b)
applies, such indemnity shall be effective whether or not such investigation,
litigation or proceeding is brought by any Loan Party, its directors,
shareholders or creditors or an Indemnified Party or any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated by
the Transaction Documents are consummated. Each Loan Party also agrees not to
assert any claim against any Agent, any Lender or any of their Affiliates, or
any of their respective officers, directors, employees, attorneys and agents, on
any theory of liability, for special, indirect, consequential or punitive
damages arising out of or otherwise relating to the Facility, the actual or
proposed use of the proceeds of the Advances, the Transaction Documents or any
of the transactions contemplated by the Transaction Documents.

         (c) If any payment of principal of any Advance is made by a Loan Party
to or for the account of a Lender other than on the last day of the Interest
Period for such Advance, as a result of a payment pursuant to Section 2.05 or
2.08(c), acceleration of the maturity of the Notes pursuant to Section 6.01 or
for any other reason, or if any Loan Party fails to make any payment or
prepayment of an Advance for which a notice of prepayment has been given or that
is otherwise required to be made, whether pursuant to Section 2.03, 2.05 or 6.01
or otherwise, such Loan Party shall, upon demand by such Lender (with a copy of
such demand to the Administrative Agent), pay to the Administrative Agent for
the account of such Lender any amounts required to compensate such Lender for
any additional losses, costs or expenses that it may reasonably incur as a
result of such payment or such failure to pay or prepay, as the case may be,
including, without limitation, any loss (including loss of anticipated profits),
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by any Lender to fund or maintain such Advance.

         (d) If any Loan Party fails to pay when due any costs, expenses or
other amounts payable by it under any Loan Document, including, without
limitation, fees and expenses of counsel and indemnities, such amount may be
paid on behalf of such Loan Party by the Administrative Agent or any Lender, in
its sole discretion.

         (e) Without prejudice to the survival of any other agreement of any
Loan Party hereunder or under any other Loan Document, the agreements and
obligations of the Loan Parties contained in Sections 2.08 and 2.10 and this
Section 9.04 shall survive the payment in full of principal, interest and all
other amounts payable hereunder and under any of the other Loan Documents.

         SECTION 9.05. RIGHT OF SET-OFF. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, each Agent and each Lender and each of their
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and otherwise apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Agent, such Lender or such
Affiliate to or for the credit or the account of the Loan Parties against any
and all of the Obligations of the Loan Parties now or hereafter existing under
the Loan Documents, irrespective of whether such Agent or such Lender shall have
made any demand under this Agreement or such Note or Notes and although such
obligations may be unmatured. Each Agent and each Lender agrees promptly to
notify such Loan Party after any such set-off and application; PROVIDED,
HOWEVER, that the failure to give such notice shall not affect the validity of
such set-off and application. The rights of each Agent and each Lender and their
respective Affiliates

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<PAGE>

under this Section are in addition to other rights and remedies (including,
without limitation, other rights of set-off) that such Agent, such Lender and
their respective Affiliates may have.

         SECTION 9.06. BINDING EFFECT. This Agreement shall become effective
when it shall have been executed by the Loan Parties and each Agent and the
Administrative Agent shall have been notified by each Initial Lender that such
Initial Lender has executed it and thereafter shall be binding upon and inure to
the benefit of the Loan Parties, each Agent and each Lender and their respective
successors and assigns, except that the Borrower shall not have the right to
assign its rights hereunder or any interest herein without the prior written
consent of the Lenders.

         SECTION 9.07. ASSIGNMENTS AND PARTICIPATIONS. (a) Each Lender may
assign to one or more Eligible Assignees all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Advances owing to it and the Note held by it);
PROVIDED, HOWEVER, that (i) except in the case of an assignment to a Person
that, immediately prior to such assignment, was a Lender or an Affiliate of any
Lender or an assignment of all of a Lender's rights and obligations under this
Agreement, the aggregate amount of the Commitment being assigned to such
Eligible Assignee pursuant to such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be
less than $5,000,000, (ii) each such assignment shall be to an Eligible
Assignee, and (iii) the parties to each such assignment shall execute and
deliver to the Administrative Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Note subject to such
assignment and a processing and recordation fee of $2,500.

         (b) Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in such Assignment and Acceptance, (i) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (ii) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Sections 2.08, 2.10 and 9.04
to the extent any claim thereunder relates to an event arising prior to such
assignment) and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all of the remaining portion
of an assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto).

         (c) By executing and delivering an Assignment and Acceptance, each
Lender assignor thereunder and each assignee thereunder confirm to and agree
with each other and the other parties thereto and hereto as follows: (i) other
than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with any Loan
Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, any
Loan Document or any other instrument or document furnished pursuant thereto;
(ii) such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations under any
Loan Document or any other instrument or document furnished pursuant thereto;
(iii) such assignee confirms that it has received a copy of this Agreement,
together with copies of the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into such Assignment and Acceptance;

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<PAGE>

(iv) such assignee will, independently and without reliance upon any Agent, such
assigning Lender or any other Lender and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under this Agreement; (v) such assignee
confirms that it is an Eligible Assignee; (vi) such assignee appoints and
authorizes each Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Loan Documents as are delegated to such
Agent by the terms hereof and thereof, together with such powers and discretion
as are reasonably incidental thereto; and (vii) such assignee agrees that it
will perform in accordance with their terms all of the obligations that by the
terms of this Agreement are required to be performed by it as a Lender.

         (d) The Administrative Agent shall maintain at its address referred to
in Section 9.02 a copy of each Assignment and Acceptance delivered to and
accepted by it and a register for the recordation of the names and addresses of
the Lenders and the Commitment of, and principal amount of the Advances owing
to, each Lender from time to time (the "REGISTER"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the
Borrowers, the Agents and the Lenders shall treat each Person whose name is
recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrowers or
any Agent or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

         (e) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee, together with any Note or Notes subject to
such assignment, the Administrative Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of Exhibit C
hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the
Borrowers and each other Agent. In the case of any assignment by a Lender,
within five Business Days after its receipt of such notice, the Borrowers, at
their own expense, shall execute and deliver to the Administrative Agent in
exchange for the surrendered Note a new Note to the order of such Eligible
Assignee in an amount equal to the Commitment assumed by it pursuant to such
Assignment and Acceptance and, if any assigning Lender has retained a Commitment
hereunder, a new Note to the order of such assigning Lender in an amount equal
to the Commitment retained by it hereunder. Such new Note or Notes shall be in
an aggregate principal amount equal to the aggregate principal amount of such
surrendered Note, shall be dated the effective date of such Assignment and
Acceptance and shall otherwise be in substantially the form of Exhibit A hereto.

         (f) Each Lender may sell participations to one or more Persons (other
than any Loan Party or any of its Affiliates) in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitment, the Advances owing to it and the Note (if any)
held by it); PROVIDED, HOWEVER, that (i) such Lender's obligations under this
Agreement (including, without limitation, its Commitment) shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) such Lender shall remain
the holder of any such Note for all purposes of this Agreement, (iv) the
Borrowers, the Agents and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any
provision of any Loan Document, or any consent to any departure by any Loan
Party therefrom, except to the extent that such amendment, waiver or consent
would reduce the principal of, or interest on, the Notes or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation, postpone any date fixed for any payment of principal of, or
interest on, the Notes or any fees or other amounts payable

                                       61
<PAGE>

hereunder, in each case to the extent subject to such participation, or release
all or substantially all of the Collateral.

         (g) Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 9.07, disclose
to the assignee or participant or proposed assignee or participant any
information relating to the Borrowers furnished to such Lender by or on behalf
of the Borrowers; PROVIDED, HOWEVER, that, prior to any such disclosure, the
assignee or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any Confidential Information received by it from
such Lender.

         (h) Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time create a security interest in all or any portion of
its rights under this Agreement (including, without limitation, the Advances
owing to it and the Note held by it) in favor of any Federal Reserve Bank in
accordance with Regulation A of the Board of Governors of the Federal Reserve
System.

         SECTION 9.08. EXECUTION IN COUNTERPARTS. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Manual delivery of an executed counterpart of a signature page to this Agreement
by telecopier shall be effective as delivery of an original executed counterpart
of this Agreement.

         SECTION 9.09. CONFIDENTIALITY. Neither any Agent nor any Lender shall
disclose any Confidential Information to any Person without the consent of the
Borrowers, other than (a) to such Agent's or such Lender's Affiliates and their
officers, directors, employees, agents and advisors and to actual or prospective
Eligible Assignees and participants, and then only on a confidential basis, (b)
as required by any law, rule or regulation or judicial process, (c) as requested
or required by any state, Federal or foreign authority or examiner regulating
such Lender and (d) to any rating agency when required by it, PROVIDED that,
prior to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Loan Parties
received by it from such Lender.

         SECTION 9.10. RELEASE OF COLLATERAL. Upon the sale, lease, transfer or
other disposition of any item of Collateral of any Loan Party in accordance with
the terms of the Loan Documents, the Collateral Agent will, at such Loan Party's
expense, execute and deliver to such Loan Party such documents as such Loan
Party may reasonably request to evidence the release of such item of Collateral
from the assignment and security interest granted under the Collateral Documents
in accordance with the terms of the Loan Documents.

         SECTION 9.11. RELEASE OF EQUITY INVESTORS' UNDERTAKINGS. Each Lender
hereby authorizes the Administrative Agent to act on behalf of such Lender in
executing such documents as may be required to release each Equity Investor from
its obligations under the Undertaking (as defined in the Existing Bridge
Agreement) to which it is a party in consideration of such Equity Investor's
paying its share of the Contribution as contemplated by Section 3.01(g).

         SECTION 9.12. JURISDICTION, ETC. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or any of

                                       62
<PAGE>

the other Loan Documents to which it is a party, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in any such New York State court or, to
the extent permitted by law, in such Federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement shall affect any
right that any party may otherwise have to bring any action or proceeding
relating to this Agreement or any of the other Loan Documents in the courts of
any jurisdiction.

         (b) Each of the parties hereto irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any of the other Loan
Documents to which it is a party in any New York State or Federal court. Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

         SECTION 9.13. GOVERNING LAW. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.

            [The remainder of this page is intentionally left blank]

                                       63
<PAGE>

         SECTION 9.14. WAIVER OF JURY TRIAL. Each of the Loan Parties, the
Agents and the Lenders irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to any of the Loan Documents, the Advances
or the actions of any Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as a Deed and delivered by their respective officers thereunto duly
authorized, as of the date first above written.

EXECUTED AS DEED by
GENMAR CONSTANTINE LIMITED                                    _________________
in the presence of:                                           Name
                                                              Title
__________________
Witness

EXECUTED AS DEED by
GENMAR AGAMEMNON LIMITED                                      _________________
in the presence of:                                           Name
                                                              Title
__________________
Witness

EXECUTED AS DEED by
GENMAR MINOTAUR LIMITED                                       _________________
in the presence of:                                           Name
                                                              Title
__________________
Witness

EXECUTED AS DEED by
GENMAR AJAX LIMITED                                           _________________
in the presence of:                                           Name
                                                              Title
__________________
Witness

EXECUTED AS DEED by
GENMAR AJAX LIMITED,as
Managing General Partner of                                   _________________
AJAX LIMITED PARTNERSHIP                                      Name
in the presence of:                                           Title

__________________
Witness

                                       64
<PAGE>

                                    CHRISTIANIA BANK OG KREDITKASSE ASA,
                                             NEW YORK BRANCH, as Administrative
                                             Agent and Collateral Agent

                                    By_____________________________________
                                             Title:

                                    By_____________________________________
                                             Title:

                                       65
<PAGE>

                                 INITIAL LENDERS

                                    CHRISTIANIA BANK OG KREDITKASSE ASA,
                                             NEW YORK BRANCH

                                    By_____________________________________
                                             Title:

                                    By_____________________________________
                                             Title:

                                       66
<PAGE>

                                    SKANDINAVISKA ENSKILDA BANKEN AB

                                    By_____________________________________
                                             Title:

                                    By_____________________________________
                                             Title:
<PAGE>

                                    UNION BANK OF NORWAY

                                    By_____________________________________
                                             Title:

                                    By_____________________________________
                                             Title:
<PAGE>

                                    DE NATIONAL INVESTERINGSBANK N.V.

                                    By_____________________________________
                                             Title:

                                    By_____________________________________
                                             Title:
<PAGE>

                                SCHEDULE 4.01(A)

                        EQUITY INTERESTS IN LOAN PARTIES

<TABLE>
<CAPTION>

         1) AJAX LIMITED PARTNERSHIP :

                                          EQUITY INTERESTS
EQUITY INVESTORS                          (IN UNITED STATES DOLLARS)           PERCENTAGE OWNERSHIP
----------------                          --------------------------           --------------------
<S>                                       <C>                                  <C>

GENMAR AJAX LTD.                          $ 257,155.68                         1%
MANAGING GENERAL PARTNER

GMC ADMINISTRATION LTD.                   $ 601.64                             0.002%
ADMINISTRATIVE GENERAL PARTNER

BELVEDERE MARITIME HOLDINGS, LLC          $ 3,080,003.20                       12%
(SUCCESSOR TO LOUIS M. BACON)             Class A Limited Partner

ALTA AJAX LTD.                            $ 3,616,097.96                       15.5%
                                          Class A Limited Partner

SPECIAL SITUATIONS HOLDINGS II, LTD. 4    $ 1,681,176.30                       6.6%
SHIPS  ( SUCCESSOR TO CSFB)               Class A Limited Partner

GMC AJAX LLC (SUCCESSOR TO VALMORA        $ 669,789.92                         2.6%
PARTNERS, L.P.)                           Class A Limited Partner

MERITAGE FUND LTD. (SUCCESSOR TO          $ 1,935,937.00                       7.7%
MARITIME VENTURES, LTD.)                  Class B Limited Partner

LJR TANKERS LLC                           $ 3,065,277.20                       12%
                                          Class B Limited Partner

OCM AJAX INVESTMENTS, INC.                $ 10,000,000                         40%
                                          Class C Limited Partner

GMC I (AJAX), L.L.C.                      $ 407,594.94                         1.6%
                                          Class A Limited Partner

ALTA PARTICIPANTS II LTD.                 $ 122, 059.00                        0.48%
                                          Class A Limited Partner

MARITIME ASSOCIATES LLC                   $ 122,059.00                         0.48 %
                                          Class A Limited Partner

STERN JOINT VENTURE, L.P.                 $ 10,988.69                          0.04 %
                                          Class A Limited Partner
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

     2) GENMAR AGAMEMNON LIMITED :
<S>                                                         <C>
Ajax Limited Partnership                                    100% of the Capital Stock of
                                                            Genmar Agamemnon Limited
<CAPTION>

     3) GENMAR AJAX LIMITED :
<S>                                                         <C>
Ajax Limited Partnership                                    100% of the Capital Stock of
                                                            Genmar Ajax Limited
<CAPTION>
     4) GENMAR CONSTANTINE LIMITED :
<S>                                                         <C>
Ajax Limited Partnership                                    100% of the Capital Stock of
                                                            Genmar Constantine Limited
<CAPTION>
     5) GENMAR MINOTAUR LIMITED :
<S>                                                         <C>
Ajax Limited Partnership                                    100% of the Capital Stock of
                                                            Genmar Minotaur Limited
</TABLE>
<PAGE>

                                SCHEDULE 4.01(b)

                                  SUBSIDIARIES

         AJAX LIMITED PARTNERSHIP :
                  a) Genmar Agamemnon Limited,
                  b) Genmar Ajax Limited,
                  c) Genmar Constantine Limited and
                  d) Genmar Minotaur Limited.

         GENMAR AGAMEMNON LIMITED :
                  None.

         GENMAR AJAX LIMITED :
                  None.

         GENMAR CONSTANTINE LIMITED :
                  None.

         GENMAR MINOTAUR LIMITED :
                  None.
<PAGE>

                                SCHEDULE 4.01(q)

                            ENVIRONMENTAL DISCLOSURES

                  None.
<PAGE>

                                SCHEDULE 4.01(t)

                               OWNED REAL PROPERTY

                  None.
<PAGE>

                                SCHEDULE 4.01(u)

                              LEASED REAL PROPERTY

                  None.
<PAGE>

                                SCHEDULE 4.01(v)

                                   INVESTMENTS

                  None.
<PAGE>

                                SCHEDULE 4.01(x)

                                EQUITY INVESTORS

<TABLE>
<CAPTION>

INVESTORS - PARTICIPATING PARTNERS                         PORTION OF CONTRIBUTION (IN UNITED STATES DOLLARS)
---------------------------------------------------------- --------------------------------------------------------
<S>                                                        <C>

ALTA AJAX LTD.                                             $ 3,616,097.96
Class A Limited Partner
Attn: Michael Garfinkle
Moore Capital Management
1251 Avenue of the Americas
New York, NY 10020
(212) 782-7431 Fax

BELVEDERE MARITIME HOLDINGS, LLC (Successor to Louis M.    $ 2,876,120.73
Bacon)
Class A Limited Partner
Att: Michael Garfinkle
Moore Capital Management
1251 Avenue of the Americas
New York, NY 10020
(212) 782-7430
(212) 782-7431 Fax

GMC AJAX, LLC (Successor to Valmora Partners L.P.)         $ 625,497.04
Class A Limited Partner
Att: Jim Crain
Marsh Operating Company
300 Crescent Court
Dallas, TX 75201
(214) 880-4400
(214) 880-4430 Fax

SPECIAL SITUATIONS HOLDINGS II, LTD. - 4 SHIPS             $ 1,569,091.79
(Successor to CSFB)
Class A Limited Partner
Att: Donna Alderman
CS First Boston
11 Madison Avenue, 4th Floor
New York, NY 10010
(212) 325-2315
(212) 325-8290 Fax

LJR TANKERS LLC                                            $ 2,863,592.52
Class B Limited Partner
Att: Mark Polzin
Moreland Management Company
28601 Chagrin Boulevard
Suite 550 at Cambridge Court
Cleveland, OH 44122-4531
(216) 831-6244
(216) 831-2915 Fax

</TABLE>
<PAGE>

<TABLE>
<CAPTION>

INVESTORS - PARTICIPATING PARTNERS                         PORTION OF CONTRIBUTION (IN UNITED STATES DOLLARS)
---------------------------------------------------------- --------------------------------------------------------
<S>                                                        <C>

MERITAGE FUND LTD (Successor to Maritime Ventures Ltd.)    $ 1,801,875.00
Class B Limited Partner
Att: Nat Simons / George Rudman
Renaissance Technologies Corporation
600 Route 25A
East Setauket, NY 11733
(516) 444-7029
(516) 689-4495 Fax
CC: DGM INVESTMENTS LTD
Att: Jim Moore
4 Woodline Avenue
Box 38
Greenwood Lake, NY 10925
(914) 477-0200
(914) 477-1295 Fax

OCM AJAX INVESTMENTS, LLC                                  $10,000,000.00
Class C Limited Partner
Att: Jim Ford
333 South Grand Avenue, 28th Floor
Los Angeles, CA 90071
(213) 830-6357
(213) 830-6395 Fax

GMC ADMINISTRATION LTD.                                    $ 561.64
Administrative General Partner
c/o General Maritime Corporation
730 Fifth Avenue
New York, NY 10019
(212) 698-9628 Fax

GENMAR AJAX LTD.                                           $ 240,250.00
Managing General Partner
c/o General Maritime Corporation
730 Fifth Avenue
New York, NY 10019
(212) 698-9628 Fax

</TABLE>
<PAGE>

<TABLE>
<CAPTION>

INVESTORS - NON PARTICIPATING PARTNERS                     PORTION OF CONTRIBUTION (IN UNITED STATES DOLLARS)
---------------------------------------------------------- --------------------------------------------------------
<S>                                                        <C>
GMC I (AJAX), L.L.C.                                       $ 0
Class A Limited Partner
c/o The Beacon Group
Att: Bob Semmens
(212) 339-0125
(212) 339-9109 Fax

ALTA PARTICIPANTS II LTD.                                  $ 0
Class A Limited Partner
Moore Capital Management
1251 Avenue of the Americas
New York, NY 10020
(212) 782-7431 Fax

MARITIME ASSOCIATES LLC                                    $ 0
Class A Limited Partner
c/o Perry Corporation
Att: Veronica Ho
(212) 583-4100
(212) 583-4140 Fax

STERN JOINT VENTURE, L.P.                                  $ 0
Class A Limited Partner
Att: Alan Martin
676 N. Michigan Avenue
Suite 3300
Chicago, Illinois 60611
(312) 787-2203
(312) 787-2208 Fax

</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                          T A B L E  O F  C O N T E N T S

SECTION                                                                                                       PAGE

                    ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
<S>                                                                                                           <C>

         1.01.  Certain Defined Terms............................................................................2
         1.02.  Computation of Time Periods; Other Definitional Provisions......................................18
         1.03.  Accounting Terms................................................................................18

<CAPTION>
                   ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES
<S>                                                                                                           <C>
         2.01.  The Advances....................................................................................19
         2.02.  Making the Advances.............................................................................19
         2.03.  Repayment of Advances...........................................................................19
         2.04.  Termination or Reduction of the Commitments.....................................................20
         2.05.  Prepayments.....................................................................................20
         2.06.  Interest........................................................................................21
         2.07.  Fees............................................................................................22
         2.08.  Increased Costs, Etc............................................................................22
         2.09.  Payments and Computations.......................................................................23
         2.10.  Taxes...........................................................................................24
         2.11.  Sharing of Payments, Etc........................................................................25
<CAPTION>
                     ARTICLE III CONDITIONS OF EFFECTIVENESS
<S>                                                                                                           <C>
         3.01.  Conditions Precedent to Effectiveness...........................................................26
         3.02.  Determinations Under Section 3.01...............................................................32
<CAPTION>
                    ARTICLE IV REPRESENTATIONS AND WARRANTIES
<S>                                                                                                           <C>
         4.01.  Representations and Warranties of the Loan Parties..............................................33
<CAPTION>
                     ARTICLE V COVENANTS OF THE LOAN PARTIES
<S>                                                                                                           <C>
         5.01.  Affirmative Covenants...........................................................................38
         5.02.  Negative Covenants..............................................................................43
         5.03.  Reporting Requirements..........................................................................46
         5.04.  Financial Covenants.............................................................................48
<CAPTION>
                           ARTICLE VI EVENTS OF DEFAULT
<S>                                                                                                           <C>
         6.01.  Events of Default...............................................................................49
<CAPTION>
                               ARTICLE VII GUARANTY
<S>                                                                                                           <C>
         7.01.  Guaranty; Limitation of Liability...............................................................51
         7.02.  Guaranty Absolute...............................................................................52
         7.03.  Waivers and Acknowledgments.....................................................................54
         7.04.  Subrogation.....................................................................................54
         7.05.  Continuing Guaranty; Assignments................................................................55
<CAPTION>
                             ARTICLE VIII THE AGENTS
<S>                                                                                                           <C>
         8.01.  Authorization and Action........................................................................55
         8.02.  Agents' Reliance, Etc...........................................................................56
         8.03.  CBNY and Affiliates.............................................................................56
         8.04.  Lender Credit Decision..........................................................................56
</TABLE>

<TABLE>
<S>                                                                                                           <C>
         8.05.  Indemnification.................................................................................56
         8.06.  Successor Agents................................................................................57
<CAPTION>
                             ARTICLE IX MISCELLANEOUS
<S>                                                                                                           <C>
         9.01.  Amendments, Etc.................................................................................58
         9.02.  Notices, Etc....................................................................................58
         9.03.  No Waiver; Remedies.............................................................................58
         9.04.  Costs and Expenses..............................................................................59
         9.05.  Right of Set-off................................................................................60
         9.06.  Binding Effect..................................................................................60
         9.07.  Assignments and Participations..................................................................61
         9.08.  Execution in Counterparts.......................................................................63
         9.09.  Confidentiality.................................................................................63
         9.10.  Release of Collateral...........................................................................63
         9.12.  Jurisdiction, Etc...............................................................................63
         9.13.  Governing Law...................................................................................64
         9.14.  Waiver of Jury Trial............................................................................65
</TABLE>
<PAGE>

                                       iii
<TABLE>
<CAPTION>

SECTION                                                                                                       PAGE

<S>                                                                                                           <C>

SCHEDULES

Schedule I        -        Commitments and Lending Offices
Schedule II       -        Borrower Sublimits
Schedule 4.01(a)  -        Equity Interests in Loan Parties
Schedule 4.01(b)  -        Subsidiaries
Schedule 4.01(q)  -        Environmental Disclosure
Schedule 4.01(t)  -        Owned Real Property
Schedule 4.01(u)  -        Leased Real Property
Schedule 4.01(v)  -        Investments
Schedule 4.01(x)  -        Equity Investors

EXHIBITS

Exhibit A         -        Form of Note
Exhibit B         -        Form of Notice of Borrowing
Exhibit C         -        Form of Assignment and Acceptance
Exhibit D         -        Form of Security Agreement
Exhibit E         -        Form of Compliance Certificate
Exhibit F         -        Form of Monthly Forecast
Exhibit G         -        Form of Mortgage
Exhibit H         -        Form of Opinion of Counsel to the Loan Parties
Exhibit I         -        Form of Solvency Certificate

</TABLE><PAGE>

                                                                   Exhibit 10.25

            THIS FIRST PREFERRED MORTGAGE is made and given this day of May,
1998 by Genmar Minotaur Limited, a company organized and existing under the laws
of the Cayman Islands, having its registered office in Grand Cayman, Cayman
Islands, British West Indies, and qualified as a foreign maritime entity under
the laws of the Republic of Liberia (the "Owner"), as mortgagor, in favor of
CHRISTIANIA BANK OG KREDITKASSE ASA, a banking corporation organized and
existing under the laws of the Kingdom of Norway, acting through its main office
in Oslo, Norway, in its capacity as security trustee (the "Mortgagee"), as
mortgagee.

                                W H E R E A S : -

            A. The Owner is the sole owner of the whole of the vessel GENMAR
MINOTAUR (the "Vessel"), Official No. 10948, of 53,829 gross registered tons and
27,269 net registered tons and registered and documented in the name of the
Owner under the laws and flag of the Republic of Liberia at the Port of
Monrovia.

            B. Pursuant to a floating rate bridge loan facility agreement dated
May , 1998 (the "Loan Facility Agreement"), made by and among, INTER ALIOS, the
Owner, Genmar Constantine Limited, Genmar Agamemnon Limited and Genmar Ajax
Limited, each a company organized and existing under the laws of the Cayman
Islands (collectively, the "Borrowers"), as borrowers, the Banks (as defined
therein) (the "Lenders"), as lenders, and Christiania Bank og Kreditkasse ASA,
as agent and security trustee for the Lenders (in its capacity as agent, the
"Agent" and in its capacity as security trustee, the "Security Trustee"), a copy
of which, without schedules other than Schedule 1 (list of banks and
participations), is attached hereto as Exhibit A, the Lenders, in accordance
with the terms of the Loan Facility Agreement, made available to the Borrowers a
loan in the principal amount of U.S. $29,925,000 and agreed to make available to
the Borrowers additional loans in an aggregrate principal amount not to exceed
U.S. $90,075,000 (collectively, the "Loans"), the Loans to be repaid by the
Borrowers on or before November , 1998.

            C. Pursuant to the terms of the Loan Facility Agreement the Loan
shall bear interest at the rate per annum equal to the aggregate of (i) LIBOR
(as defined in the Loan Facility Agreement) and (ii) one and three-eighths
percent (1 3/8%) (the "Interest Rate"), payable as provided therein; default
interest thereon shall be payable by the Borrowers at the rate per annum of
three percent (3%) above the Interest Rate (the Default Rate").

            D. The Owner, in order to secure the repayment of the Outstanding
Indebtedness (as that term is defined in sub-clause 1.1 hereof) and to secure
the performance and observance of and compliance with all the covenants, terms
and conditions in the Loan Facility Agreement and this Mortgage contained,
expressed or implied, to be performed, observed and complied with by and on the
part of the Owner, has duly authorized the execution and delivery of this First
Preferred Mortgage under and pursuant to Chapter 3 of Title 22 of the Liberian
Code of Laws of 1956, as amended.
<PAGE>

NOW, THEREFORE, THIS MORTGAGE WITNESSETH:

1.    DEFINITIONS

      In this Mortgage, unless the context otherwise requires:

        1.1   "Outstanding Indebtedness" means the Loan, interest thereon and
              all other sums of money owing to the Lenders by the Borrowers from
              time to time under or in connection with the Loan Facility
              Agreements and this Mortgage;

        1.2   "the Vessel" means the whole of the vessel described in Recital
              (A) hereof and includes all her engines, machinery, boats,
              boilers, masts, rigging, anchors, chains, cables, apparel, tackle,
              outfit, spare gear, fuel, consumable or other stores, belongings,
              freights and appurtenances, whether on board or ashore, whether
              now owned or hereafter acquired, and all additions, improvements
              and replacements hereafter made in or to the said Vessel, or any
              part thereof, except such equipment or stores which, when placed
              aboard the Vessel, do not become the property of the Owner and
              except that it is not intended that this Mortgage shall include
              property other than the Vessel and it shall not include property
              other than the Vessel as that term is used in subdivision 2 of
              Section 106 of Chapter 3 of Title 22 of the Liberian Code of Laws
              of 1956, as amended; and

2.      SECURITY

        In consideration of the premises and of other good and valuable
        consideration, the receipt and adequacy whereof are hereby acknowledged,
        and in order to secure the payment of the Outstanding Indebtedness in
        the specific manner set forth in this Mortgage and in the Loan Facility
        Agreement, the Owner has granted, conveyed and mortgaged and does by
        these presents grant, convey and mortgage to and in favor of the
        Mortgagee, its successors and assigns, the whole of the Vessel TO HAVE
        AND TO HOLD the same unto the Mortgagee, its successors and assigns,
        forever, upon the terms set forth in this Mortgage for the enforcement
        of the payment of the Outstanding Indebtedness and to secure the
        performance and observance of and compliance with the covenants, terms
        and conditions in this Mortgage and the Loan Facility Agreement
        contained, PROVIDED, HOWEVER, and the terms of this Mortgage are such
        that, this Mortgage shall be discharged, canceled and have no further
        effect when there shall be no further amounts payable to the Lenders in
        respect of the Outstanding Indebtedness and the Borrowers shall have
        complied with all of the covenants, terms and conditions in this
        Mortgage and the Loan Facility Agreement contained.

3.      DECLARATION OF INDEBTEDNESS

        The Owner hereby covenants and agrees to pay the Outstanding
        Indebtedness to the Mortgagee and/or the Lenders or their successors and
        assigns.

                                        2
<PAGE>

4.      CONTINUING SECURITY

        It is declared and agreed that the security created by this Mortgage
        shall be held by the Mortgagee as a continuing security for the payment
        of the Outstanding Indebtedness and that the security so created shall
        not be satisfied by any intermediate payment or satisfaction of any part
        of the amount hereby secured.

5.      INSURANCE AND MAINTENANCE OF THE VESSEL

        The Owner covenants and agrees, unless the Mortgagee has given its prior
        written consent to the contrary:

       (i)    to insure and keep the Vessel insured or procure that the
              Vessel is kept insured at no expense to the Mortgagee or the
              Lenders at all times and for as long as the Vessel is subject
              to this Mortgage, against such risks, including, but not
              limited to, Hull and Machinery, Hull Interest, Loss of Hire,
              Freight Interest, Protection & Indemnity (including
              satisfactory (in the sole opinion of the Mortgagee) cover for
              pollution liability) and War Risk insurances, in such
              amounts, on such terms and with such insurers as the
              Mortgagee may reasonably require, and to register and
              maintain the registration of the Mortgagee's interest in all
              insurance policies with such insurers;

      (ii)    to ensure that the insurance value of the Vessel covers the
              actual risks to which the Vessel is from time to time exposed,
              but, except with respect to P&I and Loss of Hire insurance,
              such insurance shall at all times be in an amount at least
              equal to the higher of the Market Value (as such term is
              defined in the Loan Facility Agreement) of the Vessel and one
              hundred twenty percent (120%) of the then outstanding amount
              of the Outstanding Indebtedness upon such terms and with such
              deductibles as shall from time to time be approved by the
              Mortgagee;

     (iii)    to deliver an annual certificate to the Mortgagee from the
              insurance broker(s) through whom the insurances relevant to the
              Vessel have been placed evidencing that the insurances referred to
              in sub-clause (i) above have been taken out in respect of the
              Vessel and that such insurances are in full force and effect;

      (iv)    at the request of the Mortgagee, to obtain (at the Owner's
              expense) Mortgagee Interest Insurance and, if so requested by
              the Mortgagee, Extended Mortgagee Interest - Additional Perils
              (Pollution Cover) Insurance relevant to the Vessel in the form
              and substance satisfactory to the Mortgagee;

       (v)    to reimburse the Mortgagee, from time to time, for all costs and
              expenses incurred by the Mortgagee in its procurement of a
              Mortgagee's Interest Policy in

                                       3
<PAGE>

              respect of its interest in the Vessel (including Additional
              Perils (Pollution) coverage);

      (vi)    to keep and to cause to be kept the Vessel in a good and
              efficient state of repair so that the Vessel is classed and
              maintained in the highest class with American Bureau of Shipping
              or another classification society acceptable to the Mortgagee,
              and to comply with the provisions of all laws, regulations and
              requirements (statutory or otherwise) from time to time
              applicable to vessels registered under the flag of the Republic
              of Liberia, and at all times to maintain the approval of the
              Vessel by all oil company majors, and to procure that all
              repairs to or replacements of any damaged, worn or lost parts or
              equipment be effected in such manner (both as regards
              workmanship and quality of materials) as not to diminish the
              value of the Vessel and to permit the Mortgagee, at the cost of
              the Mortgagee, by surveyors or other persons appointed by it in
              its behalf to board the Vessel at all reasonable times for the
              purpose of inspecting her condition or for the purpose of
              satisfying itself in regard to proposed or executed repairs and
              to afford all proper facilities for such inspections, provided
              that such inspections will cause no undue delay to the Vessel;

     (vii)    not to employ the Vessel or suffer her employment in any
              trade or business which is forbidden by the laws of the Republic
              of Liberia or is otherwise illicit or in carrying illicit or
              prohibited goods or in any manner whatsoever which may render
              her liable to condemnation in a Prize Court or to destruction,
              seizure or confiscation of the Vessel and, in the event of
              hostilities in any part of the world (whether war be declared or
              not), not to employ the Vessel or suffer her employment in
              carrying any contraband goods or to enter or trade to any zone
              which is declared a war zone by any government or by the
              Vessel's War Risks insurers, unless necessary extra War Risks
              insurance cover has been obtained for the Vessel;

    (viii)    not to change the registration of the Vessel from the laws and
              flag of the Republic of Liberia without the prior written
              consent of the Mortgagee;

      (ix)    to maintain its qualification in good standing as a foreign
              maritime entity in the Republic of Liberia;

       (x)    not to sell, agree to sell, abandon or otherwise dispose of the
              Vessel or any interest therein or to suffer the disposition of any
              thereof;

      (xi)    to pay to the Mortgagee and/or the Lenders on demand, all
              moneys (including reasonable fees of counsel) whatsoever which the
              Mortgagee and/or the Lenders shall or may expend, be put to or
              become liable for, in or about the protection, maintenance or
              enforcement of the security created by

                                       4
<PAGE>

              this Mortgage or in or about the exercise by the Mortgagee and/or
              the Lenders of any of the powers vested in it hereunder and under
              the Loan Facility Agreement and to pay interest thereon at the
              applicable Default Rate from the date such demand for payment is
              made;

     (xii)    to immediately notify the Mortgagee of:

              (a)   any accident to the Vessel involving repairs the cost
                    whereof will or is likely to exceed the sum of U.S. $500,000
                    (or the equivalent in any other currency);

              (b)   any occurrence in consequence whereof the Vessel has become
                    or is likely to become a total loss;

              (c)   any arrest of the Vessel or the exercise or purported
                    exercise of any lien on the Vessel or the earnings of the
                    Vessel;

              (d)   any requisition for title or other compulsory acquisition of
                    the Vessel otherwise than by requisition for hire;

              (e)   any capture, seizure, arrest, detention or confiscation of
                    the Vessel by any government or by persons acting or
                    purporting to act on behalf of any government; and

              (f)   any material interruption in the operation of the Vessel,
                    including, but not limited to an Off-Hire period of five
                    days or more, and the financial implications of such
                    interruption;

    (xiii)    not bring the Vessel in any yard for repairs (other than for the
              purpose of ordinary drydockings at regular intervals), the costs
              of which might exceed U.S. $500,000 (or the equivalent thereof in
              any other currency), in addition to normal drydocking expenses, or
              permit any major change or structural alteration to be made to the
              Vessel;

     (xiv)    not to create, incur or permit to be placed or imposed or
              continued upon the Vessel any lien whatsoever other than for
              Master's and crew's wages, salvage compensation and disbursements
              arising by operation of law and the lien of this Mortgage;

      (xv)    to comply with all declaration and reporting requirements imposed
              by the Protection and Indemnity club or insurers including,
              without limitation, the quarterly declarations required by the
              U.S. Oil Pollution Clause 20/2/91, and to insure payment of all
              premiums required to maintain in force the maximum U.S. Oil
              Pollution Cover;

                                       5
<PAGE>

     (xvi)    not in any material way change, amend, negotiate, cancel or
              terminate the existing Charterparty (as such term is defined in
              the Loan Facility Agreement) without the prior written consent of
              the Mortgagee;

    (xvii)    to permit a valuation of the Vessel pursuant to the terms of the
              Loan Facility Agreement; and

   (xviii)    to place or to cause to be placed and at all times and places to
              retain or to cause to be retained a properly certified copy of
              this Mortgage on board the Vessel with her papers and cause this
              Mortgage to be exhibited to any and all persons having business
              with the Vessel which might give rise to any lien thereon, other
              than liens permitted under the preceding Clause 5(xiv) hereof, and
              to any representative of the Mortgagee on demand; and to place and
              keep or to cause to be placed and kept prominently displayed in
              the chart room and in the Master's cabin of the Vessel a framed
              printed notice in plain type in English of such size that the
              paragraph of reading matter shall cover a space not less than six
              (6) inches wide by nine (9) inches high, reading as follows:

              "NOTICE OF MORTGAGE

              This Vessel is covered by a First Preferred Mortgage to
              Christiania Bank og Kreditkasse ASA, as security trustee, under
              the authority of Title 22 of the Liberian Code of Laws of 1956, as
              amended. Under the terms of the said First Preferred Mortgage,
              neither the Owner nor any charterer nor the Master nor any officer
              or agent of this Vessel nor any other person has any right, power
              or authority to create, incur or permit to be imposed upon this
              Vessel any lien whatsoever other than for crew's wages or
              salvage."

6.      AUTHORITY OF THE MORTGAGEE

        Without prejudice to any other rights of the Mortgagee hereunder:

         (i) in the event that the provisions of Clause 5(i) hereof or any of
        them shall not be complied with, the Mortgagee shall be at liberty to
        effect and thereafter to replace, maintain and renew all such insurances
        relating to the Vessel as in its sole discretion it may think fit;

        (ii) in the event that the provisions of Clause 5(vi) hereof shall not
        be complied with, the Mortgagee shall be at liberty to arrange for the
        carrying out of such repairs and/or surveys as it deems expedient or
        necessary; and

       (iii) any and all expenses incurred by the Mortgagee (including
       reasonable fees of counsel) in respect of its performance under the
       foregoing sub-clauses (i) and (ii) shall be paid by the Owner on demand,
       with interest thereon at the Default Rate from the date when such
       expenses were paid by the Mortgagee.

                                       6
<PAGE>

7.      EVENTS OF DEFAULT

         (A) Each of the following events shall constitute an Event of Default:

         (i) an Event of Default (as such term is defined in the Loan Facility
        Agreement) stipulated in Clause 10 of the Loan Facility Agreement shall
        occur and be continuing;

     (ii)     failure to pay when due the Outstanding Indebtedness or any
              portion thereof; and

    (iii)     a default by the Owner in the due and punctual observance of any
              of the covenants in this Mortgage and such default if capable of
              remedy is not remedied within ten (10) business days after notice
              from the Mortgagee to the Owner requesting action to remedy such
              default. The remedy period of ten (10) business days shall not
              apply to the Owner's obligations according to Clauses 5(i), (ii),
              (iv) and (xv) hereof.

         (B) If any Event of Default shall happen, the Mortgagee, shall be
        entitled:

         (i) to demand payment by written notice to the Owner of the Outstanding
        Indebtedness, whereupon such payment by the Owner to the Mortgagee
        and/or the Lenders shall be immediately due and payable, anything
        contained in the Loan Facility Agreement or this Mortgage to the
        contrary notwithstanding and without prejudice to any other rights and
        remedies of the Mortgagee or the Lenders under the Loan Facility
        Agreement or this Mortgage;

        (ii) to exercise all the rights and remedies in foreclosure and
        otherwise given to mortgagees by any applicable law, including those
        under the provisions of Chapter 3 of Title 22 of the Liberian Code of
        Laws of 1956, as amended;

        (iii) to take possession of the Vessel, wherever the same may be,
        without prior demand and without legal process (when permissible under
        applicable law);

        (iv) to require that all policies, contracts, and other records in
        respect of the insurances relating to the Vessel (including details of
        and correspondence concerning outstanding claims) be forthwith delivered
        to such adjusters, brokers or other insurers as the Mortgagee may
        nominate;

         (v) to collect, recover, compromise and give a good discharge for all
        claims then outstanding or thereafter arising under the insurances
        relating to the Vessel or any of them and to take over or institute (if
        necessary using the name of the Owner) all such proceedings in
        connection therewith as the Mortgagee in its absolute discretion thinks
        fit and to permit the brokers through whom collection or recovery is
        effected to charge the usual brokerage therefor;

                                       7
<PAGE>

        (vi) to discharge, compound, release or compromise claims against the
        Owner in respect of the Vessel which have given or may give rise to any
        charge or lien on the Vessel or which are or may be enforceable by
        proceedings against the Vessel;

        (vii) to take appropriate judicial proceedings for the foreclosure of
        this Mortgage and/or for the enforcement of the Mortgagee's and Lenders'
        rights under the Loan Facility Agreement, this Mortgage or otherwise;
        and to recover judgment for any amount due by the Owner under this
        Mortgage; and

        (viii) to sell the Vessel or any interest therein with or without the
        benefit of any charterparty by public auction at home or abroad, or by
        private sale upon at least ten (10) business days prior written notice
        to the Owner and upon such terms as the Mortgagee in its absolute
        discretion may determine, with power to postpone any such sale and in
        the absence of negligence or willful neglect without being answerable
        for any loss occasioned by such sale or resulting from postponement
        thereof.

8.      APPLICATION OF PROCEEDS

        The proceeds of any sale made either under the power of sale hereby
        granted to the Mortgagee or under a judgment or decree in any judicial
        proceedings for the foreclosure of this Mortgage or for the enforcement
        of any remedy granted to the Mortgagee hereunder, or any net earnings
        arising from the management, charter or other use of the Vessel by the
        Mortgagee under any of the powers herein contained or by law provided,
        or the proceeds of any and all insurances relating to the Vessel and any
        claims for damages on account of the Vessel or the Owner of any nature
        whatsoever or any requisition compensation, shall be applied as follows:

        FIRST: To the payment of all costs and expenses (together with interest
        thereon at the Default Rate) of the Mortgagee and the Lenders, including
        the reasonable compensation of their agents and attorneys, by reason of
        any sale, retaking, management or operation of the Vessel and all other
        sums payable to the Mortgagee and the Lenders hereunder by reason of any
        expenses or liabilities incurred or advances made by them for the
        protection, maintenance and enforcement of the security or of any of
        their rights hereunder or in the pursuit of any remedy hereby conferred;
        and at the option of the Mortgagee and/or the Lenders to the payment of
        all taxes, assessments or liens claiming priority over the lien of this
        Mortgage;

        SECOND:  To the payment in full of the Outstanding Indebtedness if
        then due and payable; and

        THIRD:  Any surplus thereafter remaining, to the Owner or the
        Owner's successors in interest and assigns or to whomsoever may be
        entitled thereto.

                                       8
<PAGE>

        In the event that the proceeds are insufficient to pay the amounts
        specified in paragraphs "First" and "Second" above, the Mortgagee and/or
        the Lenders shall be entitled to collect the balance from the Owner or
        any other person liable therefor.

 9.     DELEGATION

        The Mortgagee and the Lenders shall be entitled at any time and as often
        as may be expedient to delegate all or any of the powers and discretions
        vested in them by this Mortgage (including the power vested in the
        Mortgagee by virtue of Clause 10 hereof) in such manner and upon such
        terms and to such persons as the Mortgagee and the Lenders in their
        absolute discretion may think fit.

10.     POWER OF ATTORNEY

        The Owner hereby irrevocably appoints the Mortgagee as its
        attorney-in-fact to do in its name or in the name of the Owner all acts
        which the Owner, or its successors or assigns, could do in relation to
        the Vessel, including without limitation, to execute and deliver
        charters and a bill of sale with respect to the Vessel,

        PROVIDED, HOWEVER, that such power shall not be exercisable by or on
        behalf of the Mortgagee unless and until any Event of Default stipulated
        in Clause 7(A) hereof shall occur.

11.     RECORDATION

        For the purpose of recording this First Preferred Mortgage as required
        by Chapter 3 of Title 22 of the Liberian Code of Laws of 1956, as
        amended, the total amount is U.S. $120,000,000 and interest and
        performance of mortgage covenants, the date of maturity with respect to
        the Loans is November , 1998 and the discharge amount is the same as the
        total amount. For property other than the Vessel if any should be
        determined to be covered by this Mortgage, the discharge amount is 0.01%
        of the total amount.

12.     NOTICES

        Notices and other communications required or permitted by this Mortgage
        shall, until further notice in writing of a change therein, be in
        writing delivered personally or mailed (airmailed, if international) by
        registered or certified mail, with proof of delivery requested, telexed
        or telefaxed as follows:

                                       9
<PAGE>

        If to the Owner:  Genmar Minotaur Limited
                                  c/o General Maritime III Corporation
                                  730 Fifth Avenue
                                  New York, N.Y.  10019

                                  Attn.: Peter C. Georgiopoulos, Director
                                  Telefax No.:  +(212) 698-9628

        If to the Mortgagee:      Christiania Bank of Kreditkasse ASA
                                  P.O. Box 1166 Sentrum
                                  0107 Oslo 1,
                                  Norway

                                  Attn: Shipping/Offshore/Aviation
                                  Telefax No.:  +011-47-22-48-66-68

        Every notice or demand shall, except so far as otherwise expressly
        provided by this Mortgage, be deemed to have been received, in the case
        of letter, on the date of delivery to the recipient thereof, and in the
        case of a telefax transmission, on the date and at the time of dispatch
        thereof (provided that if the date of dispatch is not a business day in
        the locality of the party to whom such notice or demand is sent it shall
        be deemed to have been received on the next following business day in
        such locality).

            IN WITNESS WHEREOF, the Owner has executed this Mortgage by its duly
        authorized representative on the day and year first above written.

                              Signed, sealed and delivered as a Deed by
                              Genmar Minotaur Limited

                              By:
                                  Name:   Peter C. Georgiopoulos
                                  Title:  Director

                                       10
<PAGE>

                           ACKNOWLEDGMENT OF MORTGAGE

STATE OF NEW YORK )
                  : ss.
COUNTY OF NEW YORK)

            On this day of May, 1998 before me personally appeared Peter C.
Georgiopoulos, to me known who being by me duly sworn did depose and say that he
resides at 26 E. 81st Street, New York, New York, that he is a directoe of
Genmar Minotaur Limited, the company described in and which executed the
foregoing instrument; and that he signed his name thereto pursuant to authority
granted to him by the Board of Directors of said company.

                                            Notary Public
<PAGE>

                               m/t GENMAR MINOTAUR

                 AMENDMENT NO.1 TO FIRST PREFERRED MORTGAGE

            AMENDMENT NO. 1 made the ____ day of February, 1999 by GENMAR
MINOTAUR LIMITED, a Cayman Islands company duly registered as a Liberian foreign
maritime entity (hereinafter called the "OWNER"), in favor of CHRISTIANIA BANK
OG KREDITKASSE ASA, a Norwegian corporation, not in its individual capacity, but
solely as Security Trustee (hereinafter called the "MORTGAGEE").

            WHEREAS:

            (A) The Owner is the sole owner of the whole of the motor tanker
GENMAR MINOTAUR (hereinafter called the "VESSEL"), duly documented in the name
of the Owner under the laws and flag of the Republic of Liberia, Official Number
10948, with a gross tonnage of approximately 53,829, and a net tonnage of
approximately 27,269.

            (B) Pursuant to a Floating Rate Bridge Loan Facility Agreement dated
May 15, 1998 (hereinafter called the "EXISTING BRIDGE AGREEMENT"), among (i)
Genmar Constantine Limited, Genmar Agamemnon Limited, Genmar Ajax Limited and
the Owner as borrowers (collectively, the "BORROWERS"), (ii) Christiania Bank og
Kreditkasse ASA, Skandinaviska Enskilda Banken AB (publ), Union Bank of Norway
and De Nationale Investeringsbank N.V. as banks (collectively, the "LENDERS"),
(iii) the Mortgagee, and (iv) Christiania Bank og Kreditkasse ASA as agent, the
Owner made a First Preferred Mortgage dated May 15, 1998 (the "ORIGINAL
MORTGAGE") in favor of the Mortgagee on the whole of the Vessel, which Original
Mortgage was recorded on May 15, 1998 at the Office of the Deputy Commissioner
of Maritime Affairs at the port of New York in Book PM 50 at Page 272.

            (D) The Borrowers have entered into an Amended and Restated Credit
Agreement dated as of February ___, 1999 (hereinafter called (the "CREDIT
AGREEMENT") with Ajax Limited Partnership, the Lenders, and Christiania Bank og
Kreditkasse ASA as Collateral Agent, Security Trustee and Administrative Agent,
upon the terms and subject to the conditions of which the parties thereto agreed
to amend and restate the Existing Bridge Agreement. A copy of the form of the
Credit Agreement (without Exhibits E through I) is annexed as SCHEDULE 1 hereto
and made apart hereof.

            (E) The aggregate principal amount of the Existing Debt (as defined
under the Credit Agreement) under the Credit Agreement is U.S.$95,000,000.00 on
the date hereof.

            (F) Pursuant to the Credit Agreement and in order to secure the
performance of the continuing obligations of the Owner under the Existing Bridge
Agreement as amended and restated by the Credit Agreement, the Owner has duly
authorized the execution

                                       2
<PAGE>

and delivery of this Amendment No. 1 under and pursuant to Chapter 3 of Title 22
of the Liberian Code of Laws of 1956, as amended.

            NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt whereof is hereby acknowledged, the parties
hereto agree as follows:

      SECTION 1.  DEFINITIONS.  Except as otherwise expressly provided
herein, capitalized terms used herein have the respective meanings given
those term in the Credit Agreement.

      SECTION 2.  AMENDMENTS. The Original Mortgage is hereby amended as
follows:

(a)         Each reference in the Original Mortgage to "Loan Facility Agreement"
            shall mean the Existing Bridge Agreement as amended and restated by
            the Credit Agreement.

(b)         Each reference in the Original Mortgage to "Loans" shall mean the
            Advances as evidenced by the Notes of the Borrowers dated the date
            hereof in like aggregate principal amount.

(c)         Each reference in the Original Mortgage to "Interest Rate" shall
            mean the sum of the Eurodollar Rate and the Applicable Margin
            applicable at any relevant time under Section 2.06 of the Credit
            Agreement.

(d)         Each reference in the Original Mortgage to "Lenders" shall have the
            meaning given that term in the Credit Agreement.

(e)         Clause 1.1 of the Original Mortgage is amended and restated in its
            entirety as follows:

            "Outstanding Indebtedness" means, collectively, the obligations of
            the Owner under its Notes and interest thereon, the Guaranty and all
            other sums of money owing to the Lenders or the Agents by the Owner
            from time to time under or in connection with the Credit Agreement
            and the other Loan Documents to which the Owner is a party; and".

(f)         Clause 5(ii) of the Original Mortgage is amended and restated in its
            entirety as follows:

            "to ensure that the insurance value of the Vessel covers the actual
            risks to which the Vessel is from time to time exposed, but, except
            with respect to P&I and Loss of Hire insurance, such insurance shall
            at all times be in an amount at least equal to the higher of (i) the
            Market Value (as such term is defined in the Loan Facility
            Agreement) of the Vessel, and (ii) the amount which, together with
            the insured value of all other vessels mortgaged to the Mortgagee as
            security

                                       3
<PAGE>

            for the Loans equals one hundred twenty percent (120%) of the then
            outstanding amount of the Outstanding Indebtedness, upon such terms
            and with such deductibles as shall from time to time be approved by
            the Mortgagee;".

(g)         Clause 7(A)(i) of the Original Mortgage is amended and restated in
            its entirety as follows:

            "(i) an `Event of Default' as such term is defined in the Credit
            Agreement shall occur and be continuing;".

(h)         Clause 12 is amended to substitute the following address for the
            Mortgagee:

                  Christiania Bank og Kreditkasse ASA, New York Branch, as
                  Trustee
                  11 West 42nd Street, 7th Floor
                  New York, New York  10036

                  Attention:  Head of Shipping

                  Telefacsimile:  212-827-4888

(i)         Each reference in the Original Mortgage to "this Mortgage",
            "hereunder", "hereof", "herein" or words of like import shall mean
            and refer to the Original Mortgage as amended hereby.

      SECTION 3. CONTINUING EFFECT. Except as expressly provided herein, the
provisions of the Original Mortgage are and shall remain in full force and
effect in accordance with their terms, all of which as amended hereby are
ratified and confirmed.

      SECTION 4. RECORDING. For purposes of recording this Amendment No. 1 as
required by Chapter 3 of Title 22 of the Liberian Code of Laws of 1956, as
amended, the total amount is reduced to U.S.$95,000,000.00 and interest, fees
and performance of mortgage covenants. The date of maturity is extended to
February ___, 2002 and the discharge amount is the same as the total amount. For
property other than the Vessel if any should be determined to be covered by the
Original Mortgage as amended hereby, the discharge amount is 0.01% of the total
amount.

      IN WITNESS WHEREOF, this Amendment No. 1 to First Preferred Mortgage has
been executed as a deed for and on behalf of Genmar Minotaur Limited on the day
and year first above written.

EXECUTED AS DEED
by GENMAR MINOTAUR LIMITED
in the presence of:
                                          By:
                                                Peter C. Georgiopoulos
                                                Director

                                       4
<PAGE>

-------------------------------
Witness

EXECUTED AS DEED
by CHRISTIANIA BANK OG KREDITKASSE
ASA, NEW YORK BRANCH
as Security Trustee
in the presence of:
                                          By:
                                             ---------------------------
                                                Alexander Abyholm
                                                Attorney-in-Fact

--------------------------------
Witness

                                       5
<PAGE>

                                 ACKNOWLEDGMENT

STATE OF NEW YORK      )
                       ss.:
COUNTY OF NEW YORK     )

      On this ____ day of February, 1999, before me personally appeared Peter C.
Georgiopoulos, to me known, who being by me duly sworn did depose and say that
he resides at 26 East 81st Street, New York, New York; that he is a Director of
GENMAR MINOTAUR LIMITED, the corporation described in and which executed the
foregoing Amendment No. 1 to First Preferred Mortgage; and that he signed his
name thereto pursuant to authority granted to him by the Board of Directors of
said corporation.

                                       --------------------------
                                          Notary Public

                                 ACKNOWLEDGMENT

STATE OF NEW YORK      )
                       ss.:
COUNTY OF NEW YORK     )

      On this ____ day of February, 1999, before me personally appeared
Alexander Abyholm, to me known, who being by me duly sworn did depose and say
that he resides at 235 East 40th Street, Apt. 35H, New York, New York 10016;
that he is an Attorney-in-Fact of CHRISTIANIA BANK OG KREDITKASSE ASA, the
corporation described in and which executed the foregoing Amendment No. 1 to
First Preferred Mortgage; and that he signed his name thereto pursuant to
authority granted to him by the Board of Directors of said corporation.

                                       --------------------------
                                          Notary Public

                                       6

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