Document:

Exhibit 10.1

 

Baltic Trading Limited

Restricted Stock Grant Agreement

 

THIS AGREEMENT,
made as of March 15, 2010, between BALTIC TRADING LIMITED (the “Company”)
and Peter  C.
Georgiopoulos (the “Participant”).

 

WHEREAS, the
Company has adopted and maintains the Baltic Trading Limited 2010 Equity
Incentive Plan (the “Plan”) to provide certain key persons, on whose initiative
and efforts the successful conduct of the business of the Company depends, with
incentives to: (a) enter into and remain in the service of the Company, (b) acquire
a proprietary interest in the success of the Company, (c) maximize their
performance and (d) enhance the long-term performance of the Company;

 

WHEREAS, the Plan
provides that the Board of Directors of the Company (the “Board of Directors”)
shall administer the Plan and determine the key persons to whom awards shall be
granted and the amount and type of such awards; and

 

WHEREAS, the Board
of Directors has determined that the purposes of the Plan would be furthered by
granting the Participant an award under the Plan as set forth in this
Agreement;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants hereinafter set forth,
the parties hereto hereby agree as follows:

 

1.                                       Grant of Restricted Stock.  Pursuant to, and subject to,
the terms and conditions set forth herein (including without limitation Section 17
hereof) and in the Plan, the Board of Directors hereby grants to the
Participant three hundred fifty-eight thousand (358,000)
restricted shares (the “Restricted Stock”) of common stock of the Company, par
value $0.01 per share (“Common Stock”).

 

2.                                       Grant Date.  The Grant Date of the Restricted Stock is
March 15, 2010.

 

3.                                       Incorporation of Plan.  All terms, conditions and
restrictions of the Plan are incorporated herein and made part hereof as if
stated herein.  If there is any conflict between the terms and
conditions of the Plan and this Agreement, the terms and conditions of the
Plan, as interpreted by the Board of Directors, shall govern.  Except
as otherwise provided herein, all capitalized terms used herein shall have the
meaning given to such terms in the Plan.

 

4.                                       Vesting.

 

(a)                                  Subject to Section 4(b) hereof
and the further provisions of this Agreement, a number of whole shares of
Restricted Stock as close as possible to 25% of the total number of shares
granted hereunder shall vest on each of the first four anniversaries of March 15,
2010 (each such date, a “Vesting Date”).

 

 

(b)                                 In the event of the occurrence of a
Change in Control, as defined in Section 3.8(a) of the Plan, as in
effect on the date of such occurrence, the Restricted Stock shall become vested
in full on the date of such Change in Control.

 

5.                                       Restrictions on Transferability. 
Until a share of Restricted Stock vests, the Participant shall not
transfer the Participant’s rights to such share of Restricted Stock or to any
rights related thereto.  Any attempt to
transfer unvested shares of Restricted Stock or any rights related thereto,
whether by transfer, pledge, hypothecation or otherwise and whether voluntary
or involuntary, by operation of law or otherwise, shall not vest the transferee
with any interest or right in or with respect to such shares of Restricted
Stock or such related rights.

 

6.                                       Termination of Service.

 

(a)                                  In the event that the Participant’s
Service with the Company and Genco Shipping & Trading Limited (“Genco”)
terminates before all
the shares of Restricted Stock are vested for any reason (including without limitation the
Participant’s death or disability as defined in the Plan) other than (i) removal
as a Director for cause (as defined in Article III, Section 4 of the
Amended and Restated By-Laws of the Company) or (ii) due to the Participant’s
voluntary termination of his Service, all shares of Restricted Stock shall become
vested immediately prior to such termination of Service.  For purposes hereof, “Service” means a continuous time
period during which the Participant is at least one of the following:  an employee or a director of, or a consultant
to, the Company or Genco.

 

(b)                                 In the event that the Participant’s
Service with the Company and Genco terminates before all the shares of Restricted Stock are vested (i) due
to removal as a Director for cause (as defined in Article III, Section 4 of the
Amended and Restated By-laws of the Company) or (ii) due to the
Participant’s voluntary termination of his Service, all unvested shares of
Restricted Stock, together with any property received in respect of such
shares, subject to and as set forth in Section 9 hereof, shall be forfeited
as of the date such Service terminates, and the Participant promptly shall
return to the Company any certificates evidencing such shares, together with
any cash dividends or other property received in respect of such shares.

 

7.                                       Issuance of Shares.

 

(a)                                  Reasonably promptly after the Grant Date,
the Company shall issue and deliver to the Participant stock certificates,
registered in the name of the Participant, evidencing the shares of Restricted
Stock or shall instruct its transfer agent to issue shares of Restricted Stock
which shall be maintained in book entry form on the books of the transfer
agent.  The Restricted Stock, if
certificated, shall bear the following legend:

 

“THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, HYPOTHECATION
ENCUMBRANCE OR OTHER DISPOSAL OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO THE TERMS OF THE BALTIC TRADING LIMITED 2010 EQUITY INCENTIVE
PLAN AND A RESTRICTED STOCK GRANT AGREEMENT BETWEEN GENCO SHIPPING &
TRADING LIMITED AND THE HOLDER OF RECORD OF THE SECURITIES REPRESENTED BY THIS 

 

2

 

CERTIFICATE.  NO TRANSFER OF THE SECURITIES REPRESENTED BY
THIS CERTIFICATE IN CONTRAVENTION OF SUCH PLAN AND RESTRICTED STOCK GRANT
AGREEMENT SHALL BE VALID OR EFFECTIVE.  COPIES
OF SUCH AGREEMENT MAY BE OBTAINED BY WRITTEN REQUEST MADE BY THE HOLDER OF
RECORD OF THE CERTIFICATE TO THE SECRETARY OF BALTIC TRADING LIMITED.”

 

If the Restricted
Stock is in book entry form, it shall be subject to electronic coding or stop
order indicating that such shares of Restricted Stock are restricted by the
terms of this Agreement and the Plan. 
Such legend, electronic coding or stop order shall not be removed until
such shares of Restricted Stock vest.

 

(b)                                 Reasonably promptly after any such shares
of Restricted Stock vest pursuant to Section 4 hereof, (i) in the
case of certificated shares, in exchange for the surrender to the Company of
the certificates evidencing the Restricted Stock, delivered to the Participant
under Section 7(a) hereof, and the certificates evidencing any other
securities received in respect of such shares, if any, the Company shall issue
and deliver to the Participant (or the Participant’s legal representative,
beneficiary or heir) certificates evidencing such shares of Restricted Stock
and such other securities, free of the legend provided in Section 7(a) hereof
and (ii) in the case of book entry shares, the Company shall cause to be
lifted and removed any electronic coding or stop order established pursuant to Section 7(a) hereof.

 

(c)                                  The Company may require as a condition of
the delivery of stock certificates or the removal of any electronic coding or
stop order, pursuant to Section 7(b) hereof, that the Participant
remit to the Company an amount sufficient in the opinion of the Company to
satisfy any federal, state and other governmental tax withholding requirements
related to the vesting of the applicable shares.  The Board of Directors, in its sole
discretion, may permit the Participant to satisfy such obligation by delivering shares of Common Stock or by
directing the Company to withhold from delivery shares of Common Stock, in either case valued at their
Fair Market Value on the Vesting Date with fractional shares being settled in
cash.

 

(d)                                 The Participant shall not be deemed for
any purpose to be, or have rights as, a shareholder of the Company by virtue of
the grant of Restricted Stock, except to the extent a stock certificate is
issued therefor or an appropriate book entry is made on the books of the
transfer agent reflecting the issuance thereof pursuant to Section 7(a) hereof,
and then only from the date such certificate is issued or such book entry is
made.  Upon the issuance of a stock
certificate or the making of an appropriate book entry on the books of the
transfer agent, the Participant shall have the rights of a shareholder with
respect to the Restricted Stock, including the right to vote the shares,
subject to the restrictions on transferability and the forfeiture provisions,
as set forth in this Agreement.

 

8.                                       Securities Matters. 
The Company shall be under no obligation to effect the registration
pursuant to the Securities Act of 1933, as amended (the “1933 Act”) of any
interests in the Plan or any shares of Common Stock to be issued thereunder or
to effect similar compliance under any state laws.  The Company shall
not be obligated to cause to be issued any shares, whether by means of stock certificates
or appropriate book entries, unless and until the Company is advised by its
counsel that the issuance of such shares is in compliance with all 

 

3

 

applicable laws, regulations of governmental authority
and the requirements of any securities exchange on which shares of Common Stock
are traded.  The Board of Directors may require, as a condition of
the issuance of shares of Common Stock pursuant to the terms hereof, that the
recipient of such shares make such covenants, agreements and representations,
and that any certificates bear such legends and any book entries be subject to
such electronic coding, as the Board of Directors, in its sole discretion,
deems necessary or desirable.  The Participant specifically
understands and agrees that the shares of Common Stock, if and when issued, may
be “restricted securities,” as that term is defined in Rule 144 under the
1933 Act and, accordingly, the Participant may be required to hold the shares
indefinitely unless they are registered under such Act or an exemption from
such registration is available.

 

9.                                       Dividends, etc.  Any
cash dividends or other property (but not including securities) received by a
Participant with respect to a share of Restricted Stock shall be returned to
the Company in the event such share of Restricted Stock is forfeited, subject
to Section 2.7(e) of the Plan. 
Any securities received by a Participant with respect to a share of
Restricted Stock as a result of any dividend, recapitalization, merger,
consolidation, combination, exchange of shares or otherwise will not vest until
such share of Restricted Stock vests and shall be forfeited if such share of
Restricted Stock is forfeited, subject to Section 2.7(e) of the Plan.  Unless the Board of Directors otherwise
determines, such securities shall bear the legend or be subject to the
electronic coding or stop order set forth in Section 7(a) hereof.

 

10.                                 Delays or Omissions.  No delay or omission to
exercise any right, power or remedy accruing to any party hereto upon any
breach or default of any party under this Agreement, shall impair any such right,
power or remedy of such party, nor shall it be construed to be a waiver of any
such breach or default, or an acquiescence therein, or of or in any similar
breach or default thereafter occurring, nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring.  Any waiver, permit, consent or approval of
any kind or character on the part of any party of any breach or default under
this Agreement, or any waiver on the part of any party or any provisions or
conditions of this Agreement, must be in a writing signed by such party and
shall be effective only to the extent specifically set forth in such writing.

 

11.                                 Right of Discharge Preserved. 
Nothing in this Agreement shall confer upon the Participant the right to
continue in the employ or other service of the Company, or affect any right
which the Company may have to terminate such employment or service.

 

12.                                 Integration.  This Agreement contains the
entire understanding of the parties with respect to its subject
matter.  There are no restrictions, agreements, promises,
representations, warranties, covenants or undertakings with respect to the
subject matter hereof other than those expressly set forth
herein.  This Agreement, including, without limitation, the Plan,
supersedes all prior agreements and understandings between the parties with
respect to its subject matter.

 

13.                                 Counterparts.  This Agreement may be
executed in two or more counterparts, each of which shall be deemed an original,
but all of which shall constitute one and the same instrument.

 

4

 

14.                                 Governing Law.  This Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of New York, without regard to the provisions governing conflict of laws.

 

15.                                 Obligation to Notify. 
If the Participant makes the election permitted under Section 83(b) of
the Internal Revenue Code of 1986, as amended (that is, an election to include
in gross income in the year of transfer the amounts specified in Section 83(b)),
the Participant shall notify the Company of such election within 10 days of
filing notice of the election with the Internal Revenue Service and shall
within the same 10-day period remit to the Company an amount sufficient in the
opinion of the Company to satisfy any federal, state and other governmental tax
withholding requirements related to such inclusion in Participant’s income. The
Participant should consult with his or her tax advisor to determine the tax
consequences of acquiring the Restricted Stock and the advantages and
disadvantages of filing the Section 83(b) election.  The Participant acknowledges that it is his
sole responsibility, and not the Company’s, to file a timely election under Section 83(b),
even if the Participant requests the Company or its representatives to make
this filing on his behalf.

 

16.                                 Reimbursement for Excise Tax.

 

(a)                                  Anything in this Agreement to the
contrary notwithstanding, in the event it shall be determined (as hereafter
provided) that any payment, benefit or distribution to or for the Participant’s
benefit under this Agreement (a “Payment”), would be subject to the excise tax
imposed by Section 4999 of the Code (or any successor provision thereto),
or any interest or penalties with respect to such excise tax (such tax,
together with any such interest and penalties, hereafter collectively referred
to as the “Excise Tax”), then the Participant shall be entitled to receive an
additional payment or payments (a “Gross-Up Payment”) in an amount such that,
after payment by the Participant of all taxes (including any interest or
penalties imposed with respect to such taxes), including any Excise Tax,
imposed upon the Gross-Up Payment, the Participant retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments.  For purposes of determining the amount of the
Gross-Up Payment, the Participant shall be deemed to pay federal income taxes
at the highest marginal rates of federal income taxation applicable to
individuals in the calendar year in which the Gross-Up Payment is to be made
and state and local income taxes at the highest marginal rates of taxation
applicable to individuals as are in effect in the state and locality of the
Participant’s residence in the calendar year in which the Gross-Up Payment is
to be made, net of the maximum reduction in federal income taxes that can be
obtained from deduction of such state and local taxes, taking into account any
limitations applicable to individuals subject to federal income tax at the
highest marginal rates.

 

(b)                                 All determinations required to be made
under this Section 16, including whether an Excise Tax is payable by the
Participant, the amount of such Excise Tax, whether a Gross-Up Payment is
required, and the amount of such Gross-Up Payment, shall be made by an
independent auditor (the “Firm”) selected by the Participant and the
Company.  The Firm shall be a
nationally-recognized United States public accounting firm which has not,
during the two years preceding the date of its selection, acted in any way for
the Company or any affiliate thereof. 
Either the Company or the Participant may request that a determination
be made.  The Firm shall submit its
determination and detailed supporting calculations to the Participant and the
Company as promptly as practicable.  If
the Firm determines that any Excise Tax is payable by 

 

5

 

the
Participant and that a Gross-Up Payment is required, the Company shall pay the
Participant the required Gross-Up Payment within thirty (30) days of receipt of
such determination and calculations.  In
no event shall the Gross-Up Payment be paid later than December 31 of the
year following the year in which the Participant pays the applicable Excise
Tax.  If the Firm determines that no
Excise Tax is payable by the Participant, it shall, at the same time it makes
such determination, furnish the Participant with an opinion that the
Participant has substantial authority not to report any Excise Tax on the
Participant’s federal income tax return. 
Any determination by the Firm as to the amount of the Gross-Up Payment
shall be binding upon the Participant and the Company.

 

(c)                                  As a result of the uncertainty in the
application of Section 4999 of the Code (or any successor provision
thereto) at the time of the initial determination by the Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made (an “Underpayment”). 
If the Participant thereafter is required to make a payment of any
Excise Tax, the Firm shall determine the amount of the Underpayment (if any)
that has occurred and submit its determination and detailed supporting
calculations to the Participant and the Company as promptly as possible.  Any such Underpayment shall be promptly paid
by the Company to the Participant, or for the Participant’s benefit, within
thirty (30) days of receipt of such determination and calculations, but in no
event later than December 31 of the year following the year in which the
Participant pays the applicable Excise Tax.

 

(d)                                 In the event that the Internal Revenue
Service makes any claim, gives notice of any potential claim or institutes a
proceeding against the Participant asserting that any Excise Tax or additional
Excise Tax is due in respect of the Payments, the Participant shall promptly
give the Company notice of any such claim, potential claim or proceeding.  The Company shall have the right to conduct
all discussions, negotiations, defenses, actions and proceedings, to the extent
reasonably requested by the Company.  The
Participant will not settle any claim or proceeding relating solely to the
Excise Tax payable in respect of the Payments without the consent of the
Company, which consent shall not be unreasonably withheld.  The Participant shall file, at the Company’s
expense, all requests for refunds of the Gross-Up Amount, or any portion
thereof, paid to any taxing authority as shall be reasonably requested by the
Company and shall pay over to the Company (net of any tax payable thereon) any
such refunds, together with any interest thereon, when and as such refunds and
interest are received by the Participant. 
All fees and expenses for services in connection with the determinations
and calculations contemplated by this Section 5(f)(ii), including without
limitation the costs of the Participant’s own counsel, shall be borne by the
Company and shall be paid not later than December 31 of the year following
the year in which any such Internal Revenue Service audit is completed or there
is a final and nonappealable settlement or other resolution.

 

17.                                 Participant Acknowledgment.  The Participant hereby
acknowledges receipt of a copy of the Plan.  The Participant hereby
acknowledges that all decisions, determinations and interpretations of the
Board of Directors in respect of the Plan, this Agreement and the Restricted
Stock shall be final and conclusive.

 

[Signature page follows.]

 

6

 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be duly executed by its duly authorized officer, and the
Participant has hereunto signed this Agreement on his own behalf, thereby
representing that he has carefully read and understands this Agreement and the
Plan as of the day and year first written above.

 

 

	
   

  	
  BALTIC TRADING LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John C. Wobensmith

  
	
   

  	
  Name:

  	
  John C. Wobensmith

  
	
   

  	
  Title:

  	
  President, Chief Financial Officer, Secretary and
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Peter C. Georgiopoulos

  
	
   

  	
  PETER C. GEORGIOPOULOSExhibit 10.2

 

Baltic Trading Limited

Executive Officer Restricted Stock Grant Agreement

 

THIS
AGREEMENT, made as of March 15, 2010, between BALTIC TRADING LIMITED (the “Company”)
and John C. Wobensmith (the “Participant”).

 

WHEREAS,
the Company has adopted and maintains the Baltic Trading Limited 2010 Equity
Incentive Plan (the “Plan”) to provide certain key persons, on whose initiative
and efforts the successful conduct of the business of the Company depends, with
incentives to: (a) enter into and remain in the service of the Company, (b) acquire
a proprietary interest in the success of the Company, (c) maximize their
performance and (d) enhance the long-term performance of the Company;

 

WHEREAS,
the Plan provides that the Board of Directors of the Company (the “Board of
Directors”) shall administer the Plan and determine the key persons to whom
awards shall be granted and the amount and type of such awards; and

 

WHEREAS,
the Board of Directors has determined that the purposes of the Plan would be
furthered by granting the Participant an award under the Plan as set forth in
this Agreement;

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto hereby agree as follows:

 

1.                                       Grant of Restricted Stock.  Pursuant to, and subject to,
the terms and conditions set forth herein and in the Plan, the Board of
Directors hereby grants to the Participant one hundred eight thousand
(108,000) restricted shares (the “Restricted Stock”) of common stock
of the Company, par value $0.01 per share (“Common Stock”).

 

2.                                       Grant Date.  The Grant Date of the Restricted Stock is
March 15, 2010.

 

3.                                       Incorporation of Plan.  All terms, conditions and
restrictions of the Plan are incorporated herein and made part hereof as if
stated herein.  If there is any conflict between the terms and
conditions of the Plan and this Agreement, the terms and conditions of the
Plan, as interpreted by the Board of Directors, shall govern.  Except
as otherwise provided herein, all capitalized terms used herein shall have the
meaning given to such terms in the Plan.

 

4.                                       Vesting.

 

(a)                                  Subject to Section 4(b) hereof
and the further provisions of this Agreement, a number of whole shares of
Restricted Stock as close as possible to 25% of the total number of shares
granted hereunder shall vest on each of the first four anniversaries of March 15,
2010 (each such date, a “Vesting Date”).

 

(b)                                 In the event (i) of the occurrence
of a Change in Control, as defined in Section 3.8(a) of the Plan, as
in effect on the date of such occurrence, or (ii) the Participant’s 

 

 

Service with the Company and Genco Shipping &
Trading Limited (“Genco”) is terminated before all the shares of Restricted
Stock are vested by
the Company without cause (as defined in the Plan) or by the Participant for
Good Reason (as defined in the Participant’s Employment Agreement with Genco
Shipping dated as of September 21, 2007 (the “Employment Agreement”)), the Restricted Stock shall become vested in full on
the date of such Change in Control or such termination, as applicable.

 

5.                                       Restrictions on Transferability. 
Until a share of Restricted Stock vests, the Participant shall not
transfer the Participant’s rights to such share of Restricted Stock or to any
rights related thereto.  Any attempt to
transfer unvested shares of Restricted Stock or any rights related thereto,
whether by transfer, pledge, hypothecation or otherwise and whether voluntary
or involuntary, by operation of law or otherwise, shall not vest the transferee
with any interest or right in or with respect to such shares of Restricted
Stock or such related rights.

 

6.                                       Termination of Service.

 

(a)                                  In the event that the Participant’s
Service with the Company and Genco terminates before all the shares of Restricted Stock are vested for any reason other than a termination
by the Company without cause (as defined in the Plan), by the Participant for
Good reason, or due to the Participant’s death or disability (as defined in the
Plan), all unvested shares of Restricted Stock, together with any property
received in respect of such shares, subject to and as set forth in Section 9
hereof, shall be forfeited as of the date such Service terminates, and the
Participant promptly shall return to the Company any certificates evidencing
such shares, together with any cash dividends or other property received in
respect of such shares.  For purposes hereof, “Service” means a
continuous time period during which the Participant is at least one of the
following:  an employee or a director of,
or a consultant to, the Company or Genco.

 

(b)                                 In the event that the Participant’s
Service with the Company and Genco is terminated for reason of the Participant’s
death or disability (as defined in the Plan), a portion of the shares of
Restricted Stock shall become vested immediately prior to the date such Service
terminates, and all other shares of Restricted Stock which are not and have not
become vested, together with any property received in respect of such shares,
as set forth in Section 9 hereof, shall be forfeited as of the date such
Service terminates, and the Participant promptly shall return to the Company
any certificates evidencing such shares, together with any cash dividends or
other property received in respect of such shares.  The number of shares to become vested
immediately prior to the date such Service terminates shall be as follows:

 

(i)                                     If the termination occurs prior to March 15,
2011, 25% of the number of shares set forth in Section 1 hereof multiplied
by a fraction, the denominator of which is 11 and the numerator of which is the
number of completed months between the date hereof and the date such Service
terminates.  For the purposes of this
paragraph, a month shall be deemed completed on the 15th of such month.

 

(ii)                                  If the termination occurs on or after March 15,
2011, 25% of the number of shares set forth in Section 1 hereof multiplied
by a fraction, the denominator of which is 12 and the numerator of which is the
number of completed months between the 

 

2

 

immediately preceding March 15 and the date such
Service terminates.  For the purposes of
this paragraph, a month shall be deemed completed on the 15th of such month.

 

7.                                       Issuance of Shares.

 

(a)                                  Reasonably promptly after the Grant Date,
the Company shall issue and deliver to the Participant stock certificates,
registered in the name of the Participant, evidencing the shares of Restricted
Stock or shall instruct its transfer agent to issue shares of Restricted Stock
which shall be maintained in book entry form on the books of the transfer
agent.  The Restricted Stock, if
certificated, shall bear the following legend:

 

“THE SALE, TRANSFER,
ASSIGNMENT, PLEDGE, HYPOTHECATION ENCUMBRANCE OR OTHER DISPOSAL OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF THE BALTIC
TRADING LIMITED 2010 EQUITY INCENTIVE PLAN AND A RESTRICTED STOCK GRANT
AGREEMENT BETWEEN BALTIC TRADING LIMITED AND THE HOLDER OF RECORD OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE. 
NO TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IN
CONTRAVENTION OF SUCH PLAN AND RESTRICTED STOCK GRANT AGREEMENT SHALL BE VALID
OR EFFECTIVE.  COPIES OF SUCH AGREEMENT MAY BE
OBTAINED BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THE CERTIFICATE TO
THE SECRETARY OF BALTIC TRADING LIMITED.”

 

If the Restricted Stock is in book entry form, it shall be subject to
electronic coding or stop order indicating that such shares of Restricted Stock
are restricted by the terms of this Agreement and the Plan.  Such legend, electronic coding or stop order shall
not be removed until such shares of Restricted Stock vest.

 

(b)                                 Reasonably promptly after any such shares
of Restricted Stock vest pursuant to Section 4 hereof, (i) in the
case of certificated shares, in exchange for the surrender to the Company of
the certificates evidencing the Restricted Stock, delivered to the Participant
under Section 7(a) hereof, and the certificates evidencing any other
securities received in respect of such shares, if any, the Company shall issue
and deliver to the Participant (or the Participant’s legal representative,
beneficiary or heir) certificates evidencing such shares of Restricted Stock
and such other securities, free of the legend provided in Section 7(a) hereof
and (ii) in the case of book entry shares, the Company shall cause to be
lifted and removed any electronic coding or stop order established pursuant to Section 7(a) hereof.

 

(c)                                  The Company may require as a condition of
the delivery of stock certificates or the removal of any electronic coding or
stop order, pursuant to Section 7(b) hereof, that the Participant
remit to the Company an amount sufficient in the opinion of the Company to
satisfy any federal, state and other governmental tax withholding requirements
related to the vesting of the applicable shares.  The Board of Directors, in its sole
discretion, may permit the Participant to satisfy such obligation by delivering shares of Common Stock or by
directing the 

 

3

 

Company
to withhold from
delivery shares of Common Stock, in either
case valued at their Fair Market Value on the Vesting Date with fractional
shares being settled in cash.

 

(d)                                 The Participant shall not be deemed for
any purpose to be, or have rights as, a shareholder of the Company by virtue of
the grant of Restricted Stock, except to the extent a stock certificate is
issued therefor or an appropriate book entry is made on the books of the
transfer agent reflecting the issuance thereof pursuant to Section 7(a) hereof,
and then only from the date such certificate is issued or such book entry is
made.  Upon the issuance of a stock
certificate or the making of an appropriate book entry on the books of the
transfer agent, the Participant shall have the rights of a shareholder with
respect to the Restricted Stock, including the right to vote the shares,
subject to the restrictions on transferability and the forfeiture provisions,
as set forth in this Agreement.

 

8.                                       Securities Matters. 
The Company shall be under no obligation to effect the registration
pursuant to the Securities Act of 1933, as amended (the “1933 Act”) of any
interests in the Plan or any shares of Common Stock to be issued thereunder or
to effect similar compliance under any state laws.  The Company shall
not be obligated to cause to be issued any shares, whether by means of stock certificates
or appropriate book entries, unless and until the Company is advised by its
counsel that the issuance of such shares is in compliance with all applicable
laws, regulations of governmental authority and the requirements of any
securities exchange on which shares of Common Stock are traded.  The
Board of Directors may require, as a condition of the issuance of shares of
Common Stock pursuant to the terms hereof, that the recipient of such shares
make such covenants, agreements and representations, and that any certificates
bear such legends and any book entries be subject to such electronic coding, as
the Board of Directors, in its sole discretion, deems necessary or
desirable.  The Participant specifically understands and agrees that
the shares of Common Stock, if and when issued, may be “restricted securities,”
as that term is defined in Rule 144 under the 1933 Act and, accordingly,
the Participant may be required to hold the shares indefinitely unless they are
registered under such Act or an exemption from such registration is available.

 

9.                                       Dividends, etc.  Any
cash dividends or other property (but not including securities) received by a
Participant with respect to a share of Restricted Stock shall be returned to
the Company in the event such share of Restricted Stock is forfeited, subject
to Section 2.7(e) of the Plan. 
Any securities received by a Participant with respect to a share of
Restricted Stock as a result of any dividend, recapitalization, merger,
consolidation, combination, exchange of shares or otherwise will not vest until
such share of Restricted Stock vests and shall be forfeited if such share of
Restricted Stock is forfeited, subject to Section 2.7(e) of the Plan.  Unless the Board of Directors otherwise
determines, such securities shall bear the legend or be subject to the
electronic coding or stop order set forth in Section 7(a) hereof.

 

10.                                 Delays or Omissions.  No delay or omission to
exercise any right, power or remedy accruing to any party hereto upon any
breach or default of any party under this Agreement, shall impair any such
right, power or remedy of such party, nor shall it be construed to be a waiver
of any such breach or default, or an acquiescence therein, or of or in any
similar breach or default thereafter occurring, nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring.  Any waiver, permit, consent or
approval of any kind or character on the part of any party of any breach or

 

4

 

default under this Agreement, or any waiver on the
part of any party or any provisions or conditions of this Agreement, must be in
a writing signed by such party and shall be effective only to the extent
specifically set forth in such writing.

 

11.                                 Right of Discharge Preserved. 
Nothing in this Agreement shall confer upon the Participant the right to
continue in the employ or other service of the Company, or affect any right
which the Company may have to terminate such employment or service.

 

12.                                 Integration.  This Agreement contains the
entire understanding of the parties with respect to its subject
matter.  There are no restrictions, agreements, promises,
representations, warranties, covenants or undertakings with respect to the
subject matter hereof other than those expressly set forth
herein.  This Agreement, including, without limitation, the Plan,
supersedes all prior agreements and understandings between the parties with
respect to its subject matter.

 

13.                                 Counterparts.  This Agreement may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

 

14.                                 Governing Law.  This Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of New York, without regard to the provisions governing conflict of laws.

 

15.                                 Obligation to Notify. 
If the Participant makes the election permitted under Section 83(b) of
the Internal Revenue Code of 1986, as amended (that is, an election to include
in gross income in the year of transfer the amounts specified in Section 83(b)),
the Participant shall notify the Company of such election within 10 days of
filing notice of the election with the Internal Revenue Service and shall
within the same 10-day period remit to the Company an amount sufficient in the
opinion of the Company to satisfy any federal, state and other governmental tax
withholding requirements related to such inclusion in Participant’s income. The
Participant should consult with his or her tax advisor to determine the tax
consequences of acquiring the Restricted Stock and the advantages and
disadvantages of filing the Section 83(b) election.  The Participant acknowledges that it is his
or her sole responsibility, and not the Company’s, to file a timely election
under Section 83(b), even if the Participant requests the Company or its
representatives to make this filing on his or her behalf.

 

16.                                 Reimbursement for Excise Tax. 
In the event that the Participant incurs any Excise Tax (as defined in
the Employment Agreement) on any payments or benefits under this Agreement, the
Company shall gross-up the Participant the amount of such Excise Tax incurred
in accordance with the provisions of Section 7(b) of the Employment
Agreement (such provisions to apply irrespective of whether the Employment
Agreement or its Term continues in effect at the time of such Excise Tax) and
such Section 7(b) of the Employment Agreement relating to the
Gross-Up Payment (as defined in the Employment Agreement) shall be incorporated
with full effect into this Agreement, provided that any reference to “you” and
to “this Agreement” in such Section 7(b) shall be deemed to refer to
the “Participant” and this Restricted Stock Grant Agreement, respectively.

 

5

 

17.                                 Participant Acknowledgment.  The Participant hereby
acknowledges receipt of a copy of the Plan.  The Participant hereby
acknowledges that all decisions, determinations and interpretations of the
Board of Directors in respect of the Plan, this Agreement and the Restricted
Stock shall be final and conclusive.

 

[Signature page follows.]

 

6

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by
its duly authorized officer, and the Participant has hereunto signed this
Agreement on his own behalf, thereby representing that he has carefully read
and understands this Agreement and the Plan as of the day and year first
written above.

 

 

	
   

  	
  BALTIC TRADING
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John C.
  Wobensmith

  
	
   

  	
  Name:

  	
  John C. Wobensmith

  
	
   

  	
  Title:

  	
  President, Chief
  Financial Officer, 

  Secretary and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ John C. Wobensmith

  
	
   

  	
  JOHN C. WOBENSMITH

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]