| **USD****202,000,000** **reducing                revolving CREDIT facilitY Agreement**                                 |
|----------------------------------------------------------------------------------------------------------------------------------|
| for                                                                                                                         |
| **The                Companies listed in Schedule 1**** ** as                Borrowers                            |
|                                                                                                                             |
| provided                by                                                                                                  |
| **The                Financial Institutions** **named                herein** as                Original Lenders  |
| with                                                                                                                        |
| **Nordea                Bank Finland Plc****.**** ** as                Swap Bank                                  |
| and                                                                                                                         |
| **Nordea                Bank Norge ASA** as                Agent                                                       |
| and                                                                                                                         |
| **Nordea                Bank Norge ASA** as                Mandated Lead Arranger                                      |
|     **Dated                29 August 2006**                                                             |

----

**TABLE      OF CONTENTS**

1DEFINITIONS      AND INTERPRETATION

**SCHEDULES**

----

**THIS      REDUCING REVOLVING CREDIT FACILITY AGREEMENT **

| (1) | **THE                COMPANIES**listed                in Part I of Schedule                1                as                original borrowers (together the “**Original                Borrowers**”) |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**The      banks and financial institutions listed in Part II of **
**Schedule      1**
**Lenders**

**Nordea      Bank Finland Plc.**
**Swap      Bank**

**Nordea      Bank Norge ASA**
**Bookrunner**

**Nordea      Bank Norge ASA**
**Agent**

**Nordea      Bank Norge ASA**
**Arranger**
**Underwriter**

**DVB      Bank America NV**
**The      Governor and Company of the Bank of Scotland**
**HSH      Nordbank AG**
**Co-Arrangers**

**IT      IS AGREED**

| **1  ** | **DEFINITIONS                AND INTERPRETATION** |
|-------------------|---------------------------------------------------|

| **1.1  ** | **Definitions** |
|---------------------|-----------------|

**Accession      Letter**

**Account      Charge**

**Additional      Borrower**

**Agreement**

**Allocated      Loan Amount**

| a)   | in                respect of each Existing Vessel, the amount set out in Part III of                Schedule                1                (Original Parties, Commitments and Allocated Loan                Amounts); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | in                respect of MV “Sibohelle” (tbr “Sakonnet”), the lower of (i) USD                27,000,000 and (ii) seventy-five per cent (75.00%) of the Market                Value of                such vessel at such time, and always adjusted for the scheduled reductions                in Schedule                7                (Scheduled reductions) up until the Drawdown Date for the Loan related                to                MV “Sibohelle” (tbr “Sakonnet”);                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | in                respect of any New Vessel, as determined by the Agent (on behalf                the                Lenders). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------|

**Approved      Brokers**

**Assignment      Agreement**

**Availability      Period**

**Available      Commitment**

| a)   | the                amount of its participation in any outstanding Loans;                and |
|----------------|---------------------------------------------------------------------------------------------|

| b)   | in                relation to any proposed Drawdown, the amount of its participation                in any                other Loans that are due to be made on or before the proposed Drawdown                Date, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**BHOBO      One**

**BHOBO      Two**

**BHOBO      Three**

**Borrower**

**Break      Costs**

| a)   | the                interest which a Lender should have received for the period from                the date                of receipt of all or part of its participation in a Loan or Unpaid                Sum to                the last day of the current Interest Period in respect of a Loan                or Unpaid                Sum, had the principal amount or Unpaid Sum been paid on the last                day of                that Interest Period; exceeds |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                amount which that Lender would be able to obtain by placing an amount                equal to the principal amount or Unpaid Sum received by it on deposit                with                a leading bank in the relevant interbank market for a period starting                on                the Business Day following receipt or recovery and ending on the                last day                of the current Interest Period. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Business      Day**

**Cash      and Cash Equivalents**

**Charter      Guarantee**

**Charter      Guarantor**

| a)   | in                respect of (i) MV “Rip Hudner”, (ii) MV “Bonnie Smithwick” and (iii) MV                “Searose G”, Sempra Energy of 101 Ash Street, San Diego,                U.S.A.; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | in                respect of MV “Roger M. Jones”, Clearwater Advisors Corporation of                Tortola, BVI; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

| c)   | in                respect of MT “Sagamore”, ENOC Supply & Trading LLC of Dubai, however                only to the extent that the ENOC Supply & Trading LLC has nominated                another company as charterers under the Charterparty for MT “Sagamore”;                and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | any                other charter guarantor for any of the New Vessels (if any), as approved                by the Agent (on behalf of the Lenders) from time to                time. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Charterers**
** **

| a)   | in                respect of each of (i) MV “Rip Hudner”, MV “Bonnie Smithwick” and MV                “Searose G”, TTMI Sarl. of Geneva,                Switzerland; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | in                respect of MV “Roger M. Jones”, Clearlake Shipping Ltd. of Tortola, BVI; |
|----------------|--------------------------------------------------------------------------------------------------------|

| c)   | in                respect of MT “Sagamore”, ENOC Supply & Trading LLC of Dubai;                and |
|----------------|--------------------------------------------------------------------------------------------------------------------|

| d)   | any                other charterer of any of the New Vessels as approved by the Agent                (on                behalf of the Lenders) from time to                time. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Charterparty**

| a)   | in                respect of each of MV “Rip Hudner” and MV “Bonnie Smithwick”, the time                charterparties dated 4 February 2005, respectively, made between                BHOBO Two                and BHOBO One (as owners), respectively, and TTMI Sarl. (as charterers),                for a period of five (5) years at a net daily charter rate of not                less                than USD 26,600 during year 1, USD 24,600 during year 2, USD 23,600                during                year 3, USD 22,600 during year 4 and USD 20,600 during year                5; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | in                respect of MV “Searose G”, the time charterparty dated 4 February 2005                made between BHOBO Three (as owner) and TTMI Sarl. (as charterers),                for a                charter period of five (5) years at a net daily charter rate of not                less                than USD 26,000 during year 1, USD 24,000 during year 2, USD 23,000                during                year 3, USD 22,000 during year 4 and USD 20,000 during year 5 and                with a                35.00% profit share in years 2 - 5; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | in                respect of MV “Roger M. Jones”, the time charterparty made or to be made                between RMJ OBO Shipping Ltd. (as owner) and Clearlake Shipping Ltd.                (as                charterers), for a period of three (3) years commencing on the relevant                Drawdown Date, at a daily charter rate of not less than USD 23,500                (less                3.75% commission); |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | in                respect of MV “Sagamore”, the time charterparty made or to be made between                Sagamore Shipping Ltd. (as owner) and ENOC Supply & Trading LLC (as                charterers), for a charter period of three (3) years commencing at                the                relevant Drawdown Date, at a daily charter rate of not less than                USD                23,500 (less 3.75% commission); and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | in                respect of any of the New Vessels, (i) the time charterparty between                the                relevant Borrower and TTMI Sarl (in respect of MV “Sibohelle” (tbr                “Sakonnet”) or (ii) any other time charterparty between the relevant                Borrower and a Charterer, |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Charterparty      Assignment**

**Commercial      Management Agreement**

**Commercial      Manager**

**Commitment**

| a)   | in                relation to a Lender, the amount set opposite its name under the                heading                “Commitments” in Part II of Schedule                1                (Original Parties, Commitments and Allocated Loan Amounts) and the                amount                of any other Commitment transferred to it pursuant to Clause 24.1                (Assignments and transfers by the Lenders); and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | in                relation to any New Lender, the amount of any Commitment transferred                to it                pursuant to Clause 24.1 (Assignments and transfers by the                Lenders), |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Compliance      Certificate**

**Deeds      of Covenants**

**Default**

**DOC**

**Drawdown**

**Drawdown      Date**

**Drawdown      Notice**

**Earnings**

| a)   | all                freight, hire and passage moneys payable to any of the Borrowers,                including (without limitation) payments of any nature under any of                the                Charterparties or any other charter or agreement for the employment,                use,                possession, management and/or operation of any of the                Vessels; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | any                claim under any guarantees related to freight and hire payable to                any of                the Borrowers as a consequence of the operation of any of the                Vessels; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | compensation                payable to any of the Borrowers in the event of any requisition of                any of                the Vessels or for the use of any of the Vessels by any government                authority or other competent                authority; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | remuneration                for salvage, towage and other services performed by any of the Vessels                payable to any of the Borrowers; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | demurrage                and retention money receivable by any of the Borrowers in relation                to any                of the Vessels; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | all                moneys which are at any time payable under the Insurances in respect                of                loss of earnings; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | if                and whenever any of the Vessels is employed on terms whereby any                moneys                falling within litra a) to f) above are pooled or shared with any                other                person, that proportion of the net receipts of the relevant pooling                or                sharing arrangement which is attributable to such Vessel; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | any                other money whatsoever due or to become due to any of the Borrowers                from                third parties in relation to any of the Vessels, or                otherwise. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Earnings      Accounts**

| a)   | account                no. 52861102 in the name of OBO Holdings Ltd. with Nordea Bank Finland                plc, London Branch; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------|

| b)   | account                no. 52862102 in the name of BHOBO One with the Nordea Bank Finland                Plc.                London Branch; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | account                no. 52863102 in the name of BHOBO Two with the Nordea Bank Finland                Plc.                London Branch; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | account                no. 52864102 in the name of BHOBO Three with Nordea Bank Finland                Plc.                London Branch; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | account                no. 53182102 in the name of RMJ OBO Shipping Ltd. with Nordea Bank                Finland                Plc. London Branch; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | account                no. 53272102 in the name of Sagamore Shipping Ltd. with Nordea Bank                Finland Plc. London Branch, |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

**EBITDA**

**Environmental      Approval**

**Environmental      Claim**

**Environmental      Law**

**Event      of Default**

**Existing      Credit Facility**

**Existing      Vessels**

| a)   | M/V                “Bonnie Smithwick”, a 83,000 dwt OBO tanker built in 1993, with IMO number                9050084, registered in the name of BHOBO One in the Bahamas Ship                Register; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | M/V                “Rip Hudner”, a 83,000 dwt OBO tanker built in 1994, with IMO number                9077111, registered in the name of BHOBO Two in the Bahamas Ship                Register; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | M/V                “Searose G”, a 83,000 dwt OBO tanker built in 1994, with IMO number                9050096, registered in the name of BHOBO Three in the Bahamas Ship                Register; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | M/V                “Roger M. Jones”, a 75,000 dwt OBO tanker built in 1992, with IMO number                9009396 to                be registered in the name of RMJ OBO Shipping Ltd. in the Bahamas                Ship                Registry; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | MT                “Sagamore”, a 68,000 dwt product tanker built in 1991, with IMO number                9002192 to be registered in the name of Sagamore Shipping Ltd. in                the                Bahamas Ship Registry. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**FA      Act**

**Facility**

**Fee      Letter**

**Final      Maturity Date**

**Finance      Documents**

**Finance      Party**

**Financial      Indebtedness**

**Fixed      Charges**

**GAAP**

**Group**

**Guarantee**
*selvskyldnerkausjon*

**Guarantor**

**Insurances**

**Interest      Payment Date**

**Interest      Period**

**ISM      Code**

**ISPS      Code**

**Lenders**

**LIBOR**

| a)   | the                rate per annum equal to the offered quotation for deposits in USD                for the                relevant Interest Period ascertained by the Agent to be the rate                as                displayed on the Reuters' screen, page LIBOR01, at or about 11:00                hours                (London time) on the applicable Quotation Day;                or |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | if                no such rate is available, the arithmetic means of the rate per annum                at                which the Lenders are able to acquire USD in the amount and for the                relevant Interest Period of the Loan in the London interbank market                at or                about 11:00 hours (London time) on the applicable Quotation Day,                as (in                the absence of manifest error) conclusively certified by the Agent                to the                Borrowers. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Loan**

**Majority      Lenders**

| a)   | if                there are no Loans outstanding, a Lender or Lenders whose Commitments                aggregate more than 66.67% of the Total Commitments (or, if the Total                Commitments have been reduced to zero, aggregated more than 66.67%                of the                Total Commitments immediately prior to the reduction);                or |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | at                any other time, a Lender or Lenders whose participations in the Loan                then                outstanding aggregate more than 66.67% of the Loan then outstanding. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Mandatory      Cost**
*Mandatory      Cost formulae*

**Managers**

**Margin**

**Market      Value**

**Material      Adverse**
**Effect**

| a)   | the                business, operation, assets or condition (financial or otherwise)                of any                of the Borrowers and/or the Guarantor and/or the Charterers and/or                the                Charter Guarantor (as the case may be); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                ability of any of the Borrowers and/or the Guarantor (as the case                may be)                to perform any of their obligations under the Finance Documents;                or |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the                rights or remedies of the Lenders under the Finance                Documents. |
|----------------|--------------------------------------------------------------------------------------------------|

**Measurement      Period**

**MOAs**

**Mortgages**

**Net      Interest**

**New      Lender**

**New      Vessels**

| a)   | MV                “Sibohelle” (tbr “Sakonnet”), a 75,000 dwt OBO carrier built in 1993 at                B&W Shipyard in Denmark, however so that the principal amount of the                Loan incurred to partly finance MV “Sibohelle” (tbr “Sakonnet”) shall not                exceed seventy-five per cent (75.00%) of the Market Value of such                vessel                on the date of consummation of such vessel acquisition;                and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | two                (2) additional vessels (i) being a type of vessel complementary to                the                current business plan of the Guarantor and acceptable to the Majority                Lenders, (ii) maintaining a flag and class acceptable to the Majority                Lenders, (iii) for which the purchase price shall not exceed the                Market                Value of the respective vessel, (iv) of maximum fifteen (15) years                of age                and (v) for which the principal amount of the Loan incurred to partly                finance each such new vessel shall not exceed seventy-five per cent                (75.00%) of the Market Value of such new vessel on the date of                consummation of such vessel                acquisition. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Original      Borrowers**

**Original      Financial Statements**

**Party**

**Quarter      Date**

**Quotation      Day**

**Secured      Party**

**Security      Documents**

**Security      Interest**

**Security      Period”**

| a)   | all                amounts which have become due for payment by any of the Borrowers                or any                other party under the Finance Documents and any Swap Agreement(s)                have                been paid; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | no                amount is owing or has accrued (without yet having become due for                payment)                under any of the Finance Documents or any Swap                Agreement(s); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | none                of the Borrowers or any other party has any future or contingent                liability                under any provision of this Agreement, the other Finance Documents                or any                Swap Agreement(s); and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | none                of the Agent, the Majority Lenders and the Swap Bank do consider                that                there is a significant risk that any payment or transaction under                a                Finance Document or any Swap Agreement(s) would be set aside, or                would                have to be reversed or adjusted, in any present or possible future                proceeding relating to a Finance Document or any Swap Agreement or                any                asset covered (or previously covered) by a Security Interest created                by a                Finance Document or any Swap                Agreement. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Seller**

**SMC**

**SMS**

**Subsidiaries**

**Swap      Agreement**

**Tax      on Overall Net**
**Income**

| a)   | the                net income, profits or gains of that Finance Party world wide; or |
|----------------|--------------------------------------------------------------------------------------|

| b)   | such                of the net income, profits or gains of that Finance Party as are                considered to arise in or relate to or are taxable in that                jurisdiction. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Taxes**
**tax**
**taxation**

**Technical      Management Agreements**

**Technical      Manager**

**Total      Commitments**

**Total      Debt**

**Total      Loss**

| a)   | the                actual, constructive, compromised, agreed, arranged or other total                loss of                such Vessel; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | any                expropriation, confiscation, requisition or acquisition of such Vessel,                whether for full consideration, a consideration less than its proper                value, a nominal consideration or without any consideration, which                is                effected by any government or official authority or by any person                or                persons claiming to be or to represent a governmental or official                authority (excluding a requisition for hire for a fixed period not                exceeding one (1) year without any right to extension) unless it                is within                one (1) month from the Total Loss Date redelivered to the full control                of                the relevant Borrower; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | any                arrest, capture, seizure or detention of such Vessel (including any                hijacking or theft) unless it is within one (1) month from the Total                Loss                Date redelivered to the full control of the relevant                Borrower. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Total      Loss Date**

| a)   | in                the case of an actual total loss of any of the Vessels, the date                on which                it occurred or, if that is unknown, the date when the relevant Vessel                was                last heard of; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | in                the case of a constructive, compromised, agreed or arranged total                loss of                any of the Vessels, the earlier of: (i) the date on which a notice                of                abandonment is given to the insurers (provided a claim for total                loss is                admitted by such insurers) or, if such insurers do not forthwith                admit                such a claim, at the date at which either a total loss is subsequently                admitted by the insurers or a total loss is subsequently adjudged                by a                competent court of law or arbitration panel to have occurred or,                if                earlier, the date falling six (6) months after notice of abandonment                of                the relevant Vessel was given to the insurers; and (ii) the date                of                compromise, arrangement or agreement made by or on behalf of the                relevant                Borrower with the relevant Vessel’s insurers in which the insurers agree                to treat such Vessel as a total loss;                or |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | in                the case of any other type of total loss, on the date (or the most                likely                date) on which it appears to the Agent that the event constituting                the                total loss occurred. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Transaction      Documents**

**Transfer      Certificate**

**Transfer      Date**

**Unpaid      Sum**

**USD**

**Value**
**Adjusted      Equity**

**Value      Adjusted Equity Ratio**

**Value      Adjusted Total Assets**

**VAT**

**Vessels**

| **1.2  ** | **Construction** |
|---------------------|------------------|

| a)   | Clause                and Schedule headings are for ease of reference                only; |
|----------------|--------------------------------------------------------------------------------------------|

| b)   | words                denoting the singular number shall include the plural and vice versa.                In                particular, for so long as Nordea Bank Norge ASA is the only Lender,                references to “Lenders” or “Majority Lenders” shall be construed as a                reference to Nordea Bank Norge ASA; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | references                to Clauses and Schedules are references, respectively, to the Clauses                and                Schedules of this Agreement; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | references                to a provision of law is a reference to that provision as it may                be                amended or re-enacted, and to any regulations made by the appropriate                authority pursuant to such law; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | references                to “**control**”                means the power to appoint a majority of the board of directors or                to                direct the management and policies of an entity, whether through                the                ownership of voting capital, by contract or                otherwise; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | references                to “**indebtedness**”                includes any obligation (whether incurred as principal or as surety)                for                the payment or repayment of money, whether present or future, actual                or                contingent; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | references                to a “**person**”                shall include any individual, firm, partnership, joint venture, company,                corporation, trust, fund, body, corporate, unincorporated body of                persons,                or any state or any agency of a state or association (whether or                not                having separate legal personality). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2  ** | **THE                FACILITY**** ** |
|-------------------|-------------------------------------------|

| **2.1  ** | **The                Facility** |
|---------------------|---------------------------------|

| **2.2  ** | **Finance                Parties’ rights and                obligations** |
|---------------------|---------------------------------------------------------------------------------|

| **2.3  ** | **Nature                of rights and obligations of the                Borrowers** |
|---------------------|-------------------------------------------------------------------------------------|

| a)   | The                obligations of the Borrowers under this Agreement and the other Finance                Documents shall be joint and several. Any Loans shall, once drawn,                be                deemed to have been made by the Lenders to the Borrowers jointly                and                severally, and the obligations of the Borrowers to repay a Loan and                to                perform all other obligations pursuant to this Agreement and the                other                Finance Documents shall be owed to the Lenders jointly and severally.                The                liability of a Borrower for Loans actually made to any of the other                Borrowers shall not exceed USD 202,000,000 plus interest, fees and                expenses under this Agreement and the Finance                Documents. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Each                of the Borrowers hereby specifically agrees and accepts that the                nature of                their liability hereunder being joint and several shall not be affected                by                any reason or circumstances of legal or factual nature, including,                but not                limited to: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any                waiver granted to any of the Borrowers, the Guarantor or any third                party; |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (ii)   | any                failure to enforce any rights, remedy or security against any of                the other                Borrowers, the Guarantor or any other third                party; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | any                legal limitation, incapacity or other circumstances relating to any                of the                other Borrowers, the Guarantor or any other third                party; |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | the                liquidation, bankruptcy, insolvency or dissolution or the appointment                of                receiver for any of the other Borrowers, the Guarantor or any other                third                party; or |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | this                Agreement or any of the Finance Documents becoming invalid or                unenforceable against any of the other Borrowers and/or the Guarantor. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Each                of the Borrowers specifically waives all rights under the provisions                of                the Norwegian FA Act not being mandatory provisions, including (but                not                limited to) the relevant provisions of §§ 62, 63, 65, 66, 67, 70, 71, 72,                73 and 74. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.4  ** | **Borrowers’                agent** |
|---------------------|-------------------------------------------|

| a)   | Each                Borrower irrevocably appoints OBO Holdings Ltd. to act on its behalf                as                its agent in relation to the Finance Documents and irrevocably                authorises: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | OBO                Holdings Ltd. on its behalf to supply all information concerning                itself                contemplated by this Agreement to the Finance Parties and to give                and                receive all notices, consents and instructions (including Drawdown                Notices), to agree, accept and execute on its behalf all documents                in                connection with the Finance Documents (including amendments and variations                and consents under any Finance Document) and to execute any new Finance                Document and to take such other action as may be necessary or desirable                under or in connection with the Finance Documents;                and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | each                Finance Party to give any notice, demand or other communication to                that                Borrower pursuant to the Finance Documents to the                Company. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Each                Borrower confirms that: |
|----------------|---------------------------------------------|

| (i)   | it                will be bound by any action taken by OBO Holdings Ltd. under or in                connection with the Finance Documents;                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | each                Finance Party may relay on any action purported to be taken by OBO                Holdings Ltd. on behalf of that                Borrower. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                respective liabilities of each of the Borrowers and the Guarantor                under                the Finance Documents shall not be in any way affected                by: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any                actual or purported irregularity in any act done, or failure to act,                by                OBO Holdings Ltd.; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | OBO                Holdings Ltd. acting (or purporting to act) in any respect outside                any                authority conferred upon it by any Borrower;                or |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | any                actual or purported failure by, or inability of, OBO Holdings Ltd.                to                inform any Borrower of receipt by it of any notification under the                Finance                Documents. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | In                the event of a conflict between any notices or other communications                of OBO                Holdings Ltd. and any Borrower, those of OBO Holdings Ltd. shall                prevail. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3  ** | **PURPOSE**** ** |
|-------------------|-----------------------|

| **3.1  ** | **Purpose** |
|---------------------|-------------|

| a)   | to                repay the amount outstanding under the Existing Credit Facility (provided                that such repayment shall not exceed an amount equal to seventy-                five per                cent (75.00%) of the Market Value of the Existing Vessels); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | to                part-finance the purchase price for the New                Vessels; |
|----------------|---------------------------------------------------------------------------------------|

| c)   | for                the Borrowers’ and their Subsidiaries’ general corporate and working                capital purposes; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | for                the payment of fees and expenses incurred in connection with the                Facility. |
|----------------|--------------------------------------------------------------------------------------------------------------|

| **3.2  ** | **Monitoring** |
|---------------------|----------------|

| **4  ** | **CONDITIONS                PRECEDENT** |
|-------------------|-----------------------------------------|

| **4.1  ** | **Initial                conditions precedent** |
|---------------------|-------------------------------------------------|

| **4.2  ** | **Further                conditions precedent** |
|---------------------|-------------------------------------------------|

| a)   | no                Default is continuing or would result from the proposed Loan;                and |
|----------------|----------------------------------------------------------------------------------------------------|

| b)   | the                representations and warranties contained in Clause 18 (Representations                and                warranties) deemed to be repeated on those dates are true and correct                in                all respects. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.3  ** | **Maximum                number of Loans** |
|---------------------|--------------------------------------------|

| **4.4  ** | **Waiver                of conditions precedent** |
|---------------------|---------------------------------------------------|

| **5  ** | **DRAWDOWN** |
|-------------------|--------------|

| **5.1  ** | **Delivery                of a Drawdown Notice** |
|---------------------|--------------------------------------------------|

| **5.2  ** | **Completion                of a Drawdown Notice** |
|---------------------|----------------------------------------------------|

| a)   | it                is substantially in the form set out in Schedule                3                (Form of Drawdown Notice); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                proposed Drawdown Date is a Business Day within the Availability                Period; |
|----------------|------------------------------------------------------------------------------------------------------------|

| c)   | the                currency specified is USD and the amount of the proposed Loan (which                together with the other Loans outstanding) is an amount which is                not more                than the Total Commitments and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | the                proposed Interest Period complies with Clause 9 (Interest                Periods). |
|----------------|-------------------------------------------------------------------------------------------------------|

| **5.3  ** | **Availability** |
|---------------------|------------------|

| **5.4  ** | **Lenders’                participation** |
|---------------------|-------------------------------------------------|

| **6  ** | **SCHEDULED                REDUCTIONS AND REPAYMENT** |
|-------------------|-------------------------------------------------------|

| **6.1  ** | **Roll-over                of Loans** |
|---------------------|---------------------------------------|

**New      Loan**
**Maturing      Loan**

| a)   | the                Maturing Loan shall be deemed to be repaid on the last day of its                Interest                Period to the extent that the amount of the New Loan is equal to                or                greater than the amount of the Maturing Loan;                and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | to                that extent, the amount of the New Loan shall be deemed to have been                credited to the account of the Borrower, and the Lenders shall only                be                obliged to make available an amount equal to the amount by which                amount                the New Loan exceeds the Maturing                Loan. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.2  ** | **Repayment                of Loans** |
|---------------------|---------------------------------------|

| a)   | The                Allocated Loan Amount for each Existing Vessel and MV “Sibohelle” (tbr                “Sakonnet”) shall be reduced on the dates and in such amounts as set out                in Schedule                7                (Scheduled reductions) (and the Total Commitments shall be reduced                accordingly). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Each                Allocated Loan Amount relating to any New Vessel (except for MV                “Sibohelle” (tbr “Sakonnet”)) shall be subject to consecutive quarterly                scheduled reductions (to be calculated by the Agent and Schedule                7                (Scheduled reductions) shall be amended accordingly) commencing on                the                first following reduction date of a Loan related to the Existing                Vessels,                each such reduction in equal quarterly amounts in accordance with                a                profile of twenty (20) years (so that each Allocated Loan Amount                and the                Total Commitments, related to a New Vessel except for MV “Sibohelle” (tbr                “Sakonnet”)) shall be reduced quarterly to zero when such New Vessel                except for MV “Sibohelle” (tbr “Sakonnet”) reaches twenty (20) years of                age). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                Borrowers shall ensure that sufficient Loans are repaid on an Interest                Payment Date to the extent necessary so that the aggregate amount                of the                outstanding Loans (after that repayment) is equal to or less than                the                reduced amount of Total                Commitments. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Any                reduction of the Total Commitments shall reduce rateably each Lender’s                Commitment. |
|----------------|----------------------------------------------------------------------------------------------------------------------------|

| **6.3  ** | **Final                repayment** |
|---------------------|------------------------------------|

| **7  ** | **PREPAYMENT                AND CANCELLATION** |
|-------------------|------------------------------------------------|

| **7.1  ** | **Mandatory                prepayment****- Total Loss or sale** |
|---------------------|-----------------------------------------------------------------|

| a)   | If                any of the Vessels is sold or becomes a Total Loss or early termination                fees are paid under any of the Charterparties, the Borrowers shall                be                obliged to prepay the Facility by an amount equal to the sum of                outstanding remaining scheduled reductions related to such Vessel                as per                Schedule                7                (Schedule reductions) and the Total Commitments shall be reduced                by an                amount equal to the Allocated Loan Amount for such                Vessel: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | in                case of a sale, on or before the date on which the sale is completed                by                delivery of the relevant Vessel to the buyer;                or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | in                the case of a Total Loss, on the earlier of the date falling ninety                (90)                days after the Total Loss Date and the receipt by the Agent (on behalf                of                the Lenders) of the proceeds of Insurance relating to such Total                Loss (or                in the event of a requisition for title of the relevant Vessel,                immediately upon receipt of the requisition proceeds relating to                such                requisition of title). |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | In                addition to the prepayment pursuant to sub-paragraph a) above, if                the                Market Value of the remaining Vessels is below one hundred and twenty                per                cent (120.00%) of the outstanding Loans following the prepayment                under                sub-paragraph a) above, the Borrowers shall within fifteen (15) Business                Days, either: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | prepay                the Loans by such amount, upon which the Total Commitments shall                be                reduced by such amount; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | provide                the Lenders with such additional security, in form and substance                satisfactory to the Agent (on behalf of the                Lenders), |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.2  ** | **Mandatory                prepayment - Market Value** |
|---------------------|--------------------------------------------------------|

| a)   | prepay                the Loans by such amount, upon which the Total Commitments shall                be                reduced by such amount; or |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | provide                the Lenders with such additional security, in form and substance                satisfactory to the Agent (on behalf of the                Lenders), |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.3  ** | **Mandatory                prepayment - illegality** |
|---------------------|------------------------------------------------------|

| a)   | that                Lender shall promptly notify the Agent upon becoming aware of that                event; |
|----------------|--------------------------------------------------------------------------------------------------------------|

| b)   | the                Agent shall promptly notify the Borrowers (specifying the obligations                the                performance of which is thereby rendered unlawful and the law giving                rise                to the same) upon receipt of notification in accordance with litra                a)                above; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | upon                the Agent notifying the Borrowers, the Commitment of that Lender                will be                immediately cancelled; and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | the                Borrowers shall prepay that Lender’s participation in such Loan made to                the Borrowers on the last day of the Interest Period occurring after                the                Agent has notified the Borrowers or, if earlier, the date specified                by the                Lender in the notice delivered to the Agent (being no earlier than                the                last day of any applicable grace period permitted by                law). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.4  ** | **Mandatory                prepayment - Change of                control** |
|---------------------|----------------------------------------------------------------------------|

| a)   | If                a change of control occurs: |
|----------------|-----------------------------------------------|

| (i)   | the                Borrowers shall promptly notify the Agent upon becoming aware of                such                event; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | a                Lender shall not be obliged to fund a proposed Loan;                and |
|------------------|------------------------------------------------------------------------------------------|

| (iii)   | unless                otherwise approved by the Majority Lenders (such approval not to                be                unreasonably withheld), the Agent shall, by notice to the Borrowers,                cancel the Total Commitments and declare all outstanding Loans, together                with accrued interest, and all other amounts accrued under the Finance                Documents immediately due and payable, whereupon the Total Commitments                will be cancelled and all such outstanding amounts shall be paid                in full                within sixty (60) days. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | For                the purpose of paragraph a) above, the term “**change                of control**”                means an event by which two (2) or more persons acting in concert                or any                individual person: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | acquires                legally and/or beneficially (directly or indirectly) in excess of                forty                per cent (40.00%) of the issued share capital and/or voting rights                of the                Guarantor; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | has                the right or the ability to control (whether directly or indirectly),                the                affairs of or the composition of the majority of the board of director                (or                equivalent of it) of the Guarantor. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.5  ** | **Voluntary                prepayment** |
|---------------------|-----------------------------------------|

| **7.6  ** | **Voluntary                cancellation** |
|---------------------|-------------------------------------------|

| a)   | The                Borrowers may, if they give the Agent not less than three (3) Business                Days’ (or such shorter period as the Majority Lenders may agree) prior                notice, cancel the whole or any part, being an amount that reduces                the                Total Commitments by a minimum amount of USD 5,000,000 and in integral                multiples of USD 1,000,000. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Any                cancellation under this Clause 7.6 shall reduce the Commitments of                the                Lenders rateably. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| **7.7  ** | **Right                of repayment and cancellation in relation to a single                Lender** |
|---------------------|------------------------------------------------------------------------------------------------------|

| a)   | If                any of the Borrowers is required to pay a Lender any additional amount                in                accordance with Clauses 12 (Tax gross-up and indemnities) or 13 (Increased                costs), then (without prejudice to the obligations of the Borrowers                under                those Clauses) the Borrowers may, whilst the circumstances giving                rise to                the requirement or indemnification continues, give the Agent a notice                of                cancellation of the Commitment of that Lender and its intention to                procure                the repayment of that Lender’s participation in the                Loans. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On                receipt of a notice referred to in paragraph a) above, the Commitment                of                that Lender shall immediately be reduced to                zero. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On                the last day of each Interest Period which ends after the Borrowers                have                given notice under paragraph a) above (or, if earlier, the date specified                by the Borrowers in that notice), the Borrowers shall repay that                Lender’s                participation in that Loan. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.8  ** | **Terms                and conditions for prepayments and                cancellation** |
|---------------------|-----------------------------------------------------------------------------------------|

| *7.8.1  * | *Irrevocable                notice* |
|---------------------|-------------------------------------|

| *7.8.2  * | *Additional                payments* |
|---------------------|--------------------------------------|

| *7.8.3  * | *Time                of prepayment and cancellation* |
|---------------------|------------------------------------------------------|

| *7.8.4  * | *No                reinstatement* |
|---------------------|-----------------------------------|

| *7.8.5  * | *Forwarding                of notice of prepayment and                cancellation* |
|---------------------|-------------------------------------------------------------------------------------|

| *7.8.6  * | *Application* |
|---------------------|---------------|

| a)   | in                respect of the Existing Vessels, be used to reduce the remaining                scheduled                reductions as set out in Clause 6.2 a) and Schedule                7                (Scheduled reductions) on a pro rata basis between the Existing Vessels,                and in inverse order of maturity; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | in                respect of the New Vessels, be used to reduce the remaining scheduled                reductions set out in Clause 6.2 b) (Repayment of Loans) on a pro                rata                basis between the New Vessels and in inverse order of maturity, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8  ** | **INTEREST** |
|-------------------|--------------|

| **8.1  ** | **Calculation                of interest** |
|---------------------|--------------------------------------------|

| a)   | the                Margin; |
|----------------|----------------------------|

| b)   | LIBOR;                and |
|----------------|---------------------------|

| c)   | the                Mandatory Cost. |
|----------------|------------------------------------|

| **8.2  ** | **Payment                of interest** |
|---------------------|----------------------------------------|

| **8.3  ** | **Default                interest** |
|---------------------|-------------------------------------|

| **8.4  ** | **Notification                of rates of interest** |
|---------------------|------------------------------------------------------|

| **9  ** | **INTEREST                PERIODS** |
|-------------------|-------------------------------------|

| **9.1  ** | **Selection                of Interest Periods** |
|---------------------|--------------------------------------------------|

| a)   | The                Borrowers may select an Interest Period for a Loan in the Drawdown                Notice,                however so that the first Interest Period for a Loan drawn following                drawing of the first Loan hereunder, shall end on the last day of                the then                current Interest Period for the first Loan                drawn. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Borrowers may select an Interest Period of one (1), two (2), three                (3) or                six (6) months or any such other period agreed between the Borrowers                and                the Agent (on behalf of the Lenders). In addition, the Borrowers                may                select an Interest Period of a period of less than one (1) month,                if                necessary to ensure that there are sufficient Loans with an aggregate                amount equal to or greater than the reduction instalment which have                an                Interest Period ending on a repayment date for the scheduled reduction                to                occur. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | An                Interest Period for a Loan shall not extend beyond the Final Maturity                Date, but shall be shortened so that it ends on the Final Maturity                Date. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Each                Interest Period for a Loan shall start on the Drawdown                Date. |
|----------------|-------------------------------------------------------------------------------------------------|

| e)   | Each                Loan may have one (1) Interest Period                only. |
|----------------|--------------------------------------------------------------------------------|

| **9.2  ** | **Non-Business                Day** |
|---------------------|-------------------------------------|

| **9.3  ** | **Notification                of Interest Periods** |
|---------------------|-----------------------------------------------------|

| **10  ** | **CHANGES                TO THE CALCULATION OF INTEREST**** ** |
|--------------------|---------------------------------------------------------------------|

| **10.1  ** | **Market                disruption** |
|----------------------|--------------------------------------|

| a)   | If                a Market Disruption Event occurs in relation to a Loan for any Interest                Period, then the rate of interest on each Lender’s share of such Loan for                the Interest Period shall be the rate per annum which is the sum                of: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | the                Margin; |
|-----------------|----------------------------|

| (ii)   | the                rate notified to the Agent by that Lender as soon as practicable                and in                any event before interest is due to be paid in respect of that Interest                Period, to be that which expresses as a percentage rate per annum                the cost                to that Lender of funding its participation in such Loan from whatever                source it may reasonably select;                and |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | Mandatory                Costs. |
|-------------------|---------------------------------|

| b)   | In                this Agreement, “**Market                Disruption Event**”                means: |
|----------------|------------------------------------------------------------------------------------------------------------------|

| (i)   | at                or about 11:00 hours (London time) on the Quotation Day for the relevant                Interest Period LIBOR is not available;                or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | before                close of business in London on the Quotation Day for the relevant                Interest                Period, the Agent receives notifications from a Lender or Lenders                (whose                participations in the Loan exceed fifty per cent (50.00%) of the                Loan)                that the cost to it or them of obtaining matching deposits in the                London                interbank market would be in excess of                LIBOR. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10.2  ** | **Alternative                basis of interest or                funding** |
|----------------------|----------------------------------------------------------------------------|

| **10.3  ** | **Break                Costs** |
|----------------------|--------------------------------|

| **11  ** | **FEES** |
|--------------------|----------|

| **11.1  ** | **Agency                fee** |
|----------------------|-------------------------------|

* *

| **11.2  ** | **Arrangement                fee** |
|----------------------|------------------------------------|

| **11.3  ** | **Commitment                Fee** |
|----------------------|-----------------------------------|

| a)   | twenty-five                per cent (25.00%) per annum of the Margin accruing from the first                Drawdown                Date and up until 30 June 2007; and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | forty                per cent (40.00%) per annum of the Margin thereafter and up until                the                Final Maturity Date, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| **11.4  ** | **Other                fees** |
|----------------------|-------------------------------|

* *

| **12  ** | **TAX                GROSS-UP AND INDEMNITIES** |
|--------------------|-------------------------------------------------|

| **12.1  ** | **Taxes** |
|----------------------|-----------|

| *12.1.1  * | *No                withholding* |
|----------------------|---------------------------------|

| *12.1.2  * | *Tax                gross-up* |
|----------------------|-------------------------------|

| a)   | The                Borrowers shall promptly upon becoming aware that any of them must                make a                Tax deduction or withholding (or that there is any change in the                rate or                the basis of a Tax deduction or withholding) notify the Agent accordingly.                Similarly, a Lender shall notify the Agent on becoming so aware in                respect                of a payment payable to that Lender. If the Agent receives such                notification from a Lender it shall notify the Borrowers and that                Lender. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | If                a Tax deduction or withholding is required by law to be made by any                of the                Borrowers: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | the                amount of the payment due from the Borrowers shall be increased to                an                amount which (after making any Tax deduction or withholding) leaves                an                amount equal to the payment which would have been due if no Tax deduction                or withholding had been required;                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the                Borrowers shall make that Tax deduction or withholding within the                time                allowed and in the minimum amount required by                law. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Within                thirty (30) days of making either a Tax deduction or withholding                or any                payment required in connection with that Tax deduction or withholding,                the                Borrowers shall deliver to the Agent for the Finance Party entitled                to the                payment evidence reasonably satisfactory to that Finance Party that                the                Tax deduction or withholding has been made or (as applicable) any                appropriate payment paid to the relevant taxing authority. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12.2  ** | **Tax                indemnity** |
|----------------------|----------------------------------|

| **12.3  ** | **VAT** |
|----------------------|---------|

| **13  ** | **INCREASED                COSTS** |
|--------------------|------------------------------------|

| **13.1  ** | **Increased                Costs** |
|----------------------|------------------------------------|

| a)   | The                Borrowers shall, upon demand from the Agent, pay for the account                of a                Finance Party the amount of any Increased Cost incurred by that Finance                Party or any of its affiliates as a result of (i) the introduction                of or                any change in (or in the interpretation, administration or application                of)                any law or regulation (including any laws and regulations implementing                new                or modified capital adequacy requirements) or (ii) compliance with                any law                or regulation made after the date of this                Agreement. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | In                this Agreement, the term “**Increased                Costs**”                means: |
|----------------|-------------------------------------------------------------------------------------------------------------------|

| (i)   | a                reduction in the rate of return from the Facility or on a Finance                Party’s                (or its affiliate’s) overall capital; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | an                additional or increased cost; or |
|------------------|----------------------------------------------------|

| (iii)   | a                reduction of any amount due and payable under any Finance Document, |
|-------------------|--------------------------------------------------------------------------------------|

| c)   | A                Finance Party intending to make a claim pursuant to this Clause 13.1                shall                notify the Agent of the event giving rise to the claim, following                which                the Agent shall promptly notify the Borrowers. Each Finance Party                shall as                soon as practicable after a demand by the Agent, provide a confirmation                showing the amount of its Increased                Costs. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **13.2  ** | **Exceptions** |
|----------------------|----------------|

| a)   | attributable                to a Tax deduction or withholding required by law to be made by any                of the                Borrowers; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | compensated                for by Clause 12.1 (Tax gross-up) or Clause 12.2 (Tax Indemnity);                or |
|----------------|----------------------------------------------------------------------------------------------------------------|

| c)   | attributable                to the wilful breach by the relevant Finance Party or its affiliates                of                any law or regulation. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14  ** | **OTHER                INDEMNITIES**** ** |
|--------------------|------------------------------------------------|

| **14.1  ** | **Currency                indemnity** |
|----------------------|---------------------------------------|

| a)   | If                any sum due from any of the Borrowers under the Finance Documents                (a                “**Sum**”),                or any order, judgement or award given or made in relation to a Sum,                has                to be converted from the currency (the “**First                Currency**”)                in which that Sum is payable into another currency (the “**Second                Currency**”)                for the purpose of: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | making                or filing a claim or proof against any of the                Borrowers; |
|-----------------|-----------------------------------------------------------------------------------------------|

| (ii)   | obtaining                or enforcing an order, judgement or award in relation to any litigation                or                arbitration proceedings, |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Borrowers waive any right they may have in any jurisdiction to pay                any                amount under the Finance Documents in a currency or currency unit                other                than that in which it is expressed to be payable. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14.2  ** | **Other                indemnities** |
|----------------------|--------------------------------------|

| a)   | the                occurrence of any Event of Default; |
|----------------|--------------------------------------------------------|

| b)   | a                failure by any of the Borrowers and/or the Guarantor (as the case                may be)                to pay any amount due under the Finance Documents on its due date,                including without limitation, any cost, loss or liability arising                as a                result of Clause 27 (Sharing among the Finance                Parties); |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the                funding, or making arrangements to fund, its participation in a Drawing                or                a Loan (as the case may be) requested by the Borrowers in a Drawdown                Notice but not made by reason of the operation of any one or more                of the                provisions of this Agreement (other than by reason of default or                negligence by that Lender alone); or |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | a                Loan (or part of a Loan) not being prepaid in accordance with a notice                of                prepayment given by the Borrowers. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14.3  ** | **Indemnity                to the Agent** |
|----------------------|-------------------------------------------|

| a)   | investigating                any event which it reasonably believes is a possible Event of Default;                or |
|----------------|-----------------------------------------------------------------------------------------------------------------------|

| b)   | acting                or verifying any notice, request or instruction which it reasonably                believes to be genuine, correct or appropriately                authorised. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15  ** | **MITIGATION                BY THE LENDERS** |
|--------------------|----------------------------------------------|

| **15.1  ** | **Mitigation** |
|----------------------|----------------|

| a)   | Clause                7.1 (Mandatory prepayment - Total Loss or                sale); |
|----------------|---------------------------------------------------------------------------------------|

| b)   | Clause                7.2 (Mandatory prepayment - Market                Value); |
|----------------|---------------------------------------------------------------------------------|

| c)   | Clause                7.3 (Mandatory prepayment -                Illegality); |
|----------------|-------------------------------------------------------------------------------|

| d)   | Clause                7.4 (Mandatory prepayment - Change of                control); |
|----------------|--------------------------------------------------------------------------------------|

| e)   | Clause                12 (Tax gross-up and indemnities); and |
|----------------|--------------------------------------------------------------|

| f)   | Clause                13 (Increased Costs), |
|----------------|---------------------------------------------|

| **15.2  ** | **Indemnity** |
|----------------------|---------------|

| **16  ** | **COSTS                AND EXPENSES** |
|--------------------|---------------------------------------|

| **16.1  ** | **Transaction                expenses** |
|----------------------|-----------------------------------------|

| a)   | this                Agreement and any other documents referred to in this Agreement;                and |
|----------------|---------------------------------------------------------------------------------------------------------|

| b)   | any                other Finance Documents executed after the date of this Agreement. |
|----------------|---------------------------------------------------------------------------------------|

| **16.2  ** | **Amendment                and enforcement costs, etc** |
|----------------------|---------------------------------------------------------|

| a)   | the                granting of any release, waiver or consent under the Finance                Documents; |
|----------------|-----------------------------------------------------------------------------------------------------------|

| b)   | any                amendment or variation of any of the Finance Documents;                and |
|----------------|-----------------------------------------------------------------------------------------------|

| c)   | the                preservation, protection, enforcement or maintenance of, or attempt                to                preserve or enforce, any of the rights of the Finance Parties under                the                Finance Documents. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **17  ** | **SECURITY** |
|--------------------|--------------|

| **17.1  ** | **Security                - Loans** |
|----------------------|-------------------------------------|

| a)   | the                Mortgages; |
|----------------|-------------------------------|

| b)   | the                Deeds of Covenants; |
|----------------|----------------------------------------|

| c)   | the                Assignment Agreements; |
|----------------|-------------------------------------------|

| d)   | the                Charterparty Assignments; |
|----------------|----------------------------------------------|

| e)   | the                Account Charges; and |
|----------------|-----------------------------------------|

| f)   | the                Guarantee. |
|----------------|-------------------------------|

| **17.2  ** | **Security                and subordination - Swap                Agreement(s)** |
|----------------------|----------------------------------------------------------------------------------|

| **17.3  ** | **Enforcement                of Security Documents - Swap                Agreements** |
|----------------------|---------------------------------------------------------------------------------------|

| **17.4  ** | **Swap                Bank’s undertakings** |
|----------------------|---------------------------------------------------|

| a)   | at                the same time as giving any formal notice to the Borrowers that an                event                of default (as defined in the relevant Swap Agreement) has occurred,                notify the Agent hereof; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | in                the event that the Agent declares an Event of Default under the Agreement                and following receipt by the Swap Bank of a notice from the Agent                pursuant                to Clause 17.3 (Enforcement of the Security Documents), any monies                received thereafter by the Swap Bank, shall forthwith be paid to                the Agent                until all sums due to the Finance Parties under the Agreement and/or                the                Security Documents have been fully                paid; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | it                will not make or allow to be made any material variation, amendment                or                supplement to the Swap Agreement(s) without the prior written consent                of                the Borrowers and the Agent; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | it                shall not assign, transfer or otherwise dispose of its rights or                obligations under the Swap Agreement(s) to any other party unless                such                party has first entered into an agreement with the Agent relating                to the                subordination of its rights under the Security Documents in form                and                substance satisfactory to the Agent and the Finance                Parties. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18  ** | **REPRESENTATIONS                AND WARRANTIES** |
|--------------------|---------------------------------------------------|

| **18.1  ** | **Status** |
|----------------------|------------|

| a)   | Each                of the Borrowers is a corporation, duly incorporated and validly                existing                under the laws of the Marshall Island and has the power to own its                assets                and carry on its business as it is currently being conducted. Each                of                BHOBO One, BHOBO Two, BHOBO Three, RMJ OBO Shipping Ltd. and Sagamore                Shipping Ltd. is one hundred per cent (100.00%) owned by OBO Holdings                Ltd.                which is one hundred per cent (100.00%) owned by the                Guarantor. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Guarantor is a corporation, duly incorporated and validly existing                under                the laws of Liberia and has the power to own its assets and carry                on its                business as it is currently being                conducted. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.2  ** | **Binding                obligations** |
|----------------------|----------------------------------------|

| **18.3  ** | **No                conflict with other                obligations** |
|----------------------|----------------------------------------------------------------------|

| a)   | any                law or regulation or any order or decree of any governmental agency                or                court by which it is bound; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | any                constitutional documents of any of the Borrowers and/or the Guarantor                (as                the case may be); or |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | any                agreement or document to which it is a party or by which it or any                of its                assets are bound. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| **18.4  ** | **Power                and authority** |
|----------------------|----------------------------------------|

| **18.5  ** | **Authorisations                and consents** |
|----------------------|------------------------------------------------|

| **18.6  ** | **T****axes** |
|----------------------|---------------|

| **18.7  ** | **No                Default** |
|----------------------|-------------------------------|

| **18.8  ** | **No                misleading information** |
|----------------------|----------------------------------------------|

| **18.9  ** | **Original                Financial Statements** |
|----------------------|--------------------------------------------------|

| *a)  * | *Complete                and correct*.                The Original Financial Statements fairly and accurately represent                the                assets, liabilities and the financial condition of the Borrowers                and the                Guarantor and have been prepared in accordance with GAAP consistently                applied. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *b)  * | *No                undisclosed liabilities*.                As of the date of the Original Financial Statements, the Borrowers                and the                Guarantor had no material liabilities, direct or indirect, actual                or                contingent, and there is no material, unrealised or anticipated losses                from any unfavourable commitments not disclosed by or reserved against                in                the Original Financial Statements or in the notes                thereto. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *c)  * | *No                material change*.                Since the date of the Original Financial Statements, there has been                no                material adverse change in the business, operations, assets or condition                (financial or otherwise) of the Borrowers and the                Guarantor. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.10  ** | **Pari                passu ranking** |
|-----------------------|---------------------------------------|

*pari      passu*

| **18.11  ** | **No                proceedings pending or threatened** |
|-----------------------|---------------------------------------------------------|

| **18.12  ** | **No                existing Security Interest** |
|-----------------------|--------------------------------------------------|

| **18.13  ** | **No                immunity** |
|-----------------------|--------------------------------|

| **18.14  ** | **No                winding-up** |
|-----------------------|----------------------------------|

| **18.15  ** | **Environmental                compliance** |
|-----------------------|---------------------------------------------|

| **18.16  ** | **Environmental                Claims** |
|-----------------------|-----------------------------------------|

| **18.17  ** | **ISM                Code and ISPS Code                compliance** |
|-----------------------|---------------------------------------------------------------------|

| **18.18  ** | **The                Vessels** |
|-----------------------|--------------------------------|

| a)   | in                the absolute ownership of the relevant Borrower free and clear of                all                encumbrances (other than current crew wages and the relevant Mortgage)                and                the relevant Borrower will be the sole, legal and beneficial owner                of the                relevant Vessel; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | registered                in the name of the relevant Borrower with the Bahamas Ship Registry                (or                such other ship registry as approved by the Lenders) under the laws                and                flag of The Bahamas (or under such other flag as approved by the                Lenders); |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | operationally                seaworthy in every way and fit for service;                and |
|----------------|---------------------------------------------------------------------------------------------|

| d)   | classed                with Det norske Veritas, free of all overdue requirements and                recommendations. |
|----------------|----------------------------------------------------------------------------------------------------------------------|

| **18.19  ** | **No                money laundering** |
|-----------------------|----------------------------------------|

| **18.20  ** | **Repetition** |
|-----------------------|----------------|

| a)   | on                the date of a Drawdown Notice; |
|----------------|--------------------------------------------------|

| b)   | on                a Drawdown Date; |
|----------------|------------------------------------|

| c)   | on                the first day of each Interest Period;                and |
|----------------|-----------------------------------------------------------------------------|

| d)   | in                each Compliance Certificate forwarded to the Agent pursuant to Clause                19.2                (Compliance certificate) (or, if no such Compliance Certificate is                forwarded, on each day such certificate should have been forwarded                to the                Agent at the latest). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19  ** | **INFORMATION                UNDERTAKINGS** |
|--------------------|---------------------------------------------|

| **19.1  ** | **Financial                statements** |
|----------------------|-----------------------------------------|

| a)   | as                soon as available, but no later than hundred and twenty (120) days                after                the end of each of their fiscal years, complete copies of the financial                reports of each of the Borrowers, all in reasonable detail, which                shall                include at least the balance sheet of each of the Borrowers as of                the end                of such year and the related statements of income and sources and                uses of                funds for such year, all in reasonable detail, unaudited, but certified                to                be true and complete by the chief financial officer of the Guarantor; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | as                soon as available, but not less than forty-five (45) days after the                end of                each of the first three (3) quarters of each fiscal year of the Borrowers,                a quarterly interim balance sheet of each of the Borrowers and the                related                profit and loss statements and sources and uses of funds, all in                reasonable detail, unaudited, but certified to be true and complete                by the                chief financial officer of the                Guarantor; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | as                soon as available but not later than one hundred and twenty (120)                days                after the end of each fiscal year of the Guarantor, complete copies                of the                consolidated financial reports of the Guarantor and its Subsidiaries,                all                in reasonable detail, which shall include at least the consolidated                balance sheet of the Guarantor and its Subsidiaries as of the end                of such                year and the related consolidated statements of income and sources                and                uses of funds for such year, which shall be audited reports prepared                by an                accounting firm acceptable to the                Agent; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | as                soon as available but not less than forty-five (45) days after the                end of                each of the first three (3) quarters of each fiscal year of the Guarantor,                a quarterly interim consolidated balance sheet of the Guarantor and                its                Subsidiaries and the related consolidated profit and loss statements                and                sources and uses of funds, all in reasonable detail, unaudited, but                certified to be true and complete by the chief financial officer                of the                Guarantor; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | within                ten (10) days of the filing thereof, copies of all registration statements                and reports on Forms 20-F and 8-K (or their equivalent) and other                material                filings which the Guarantor shall have filed with the Securities                and                Exchange Commission or any similar governmental                authority; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | promptly                upon the mailing thereof to the shareholders of the Guarantor, copies                of                all financial statements, reports, proxy statements and other                communications provided to the Guarantor’s                shareholders; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | within                ten (10) days of any of the Borrowers’ or the Guarantor’s receipt thereof,                copies of all audit letters or other correspondence from any external                auditors including material financial information in respect of any                of the                Borrowers or the Guarantor, as the case may be; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | within                December each year cash-flow projections for each of the Borrowers                and the                Guarantor (on a consolidated basis) for the twelve (12) months following                the date of such financial statements in a form acceptable to the                Agent                (on behalf of the Finance Parties); and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)   | such                other statements (including, without limitation, monthly consolidated                statements of operating revenues and expenses), lists of assets and                accounts, budgets, forecasts, reports and other financial information                with                respect to the theirs’ or the Guarantor’s business as the Agent may from                time to time reasonably request, certified to be true and complete                by the                chief financial officer of the                Guarantor. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19.2  ** | **Compliance                Certificate** |
|----------------------|-------------------------------------------|

| **19.3  ** | **Requirements                as to financial statements** |
|----------------------|------------------------------------------------------------|

| a)   | a                description of any change necessary for those financial statements                to                reflect GAAP, accounting practices and reference periods upon which                the                Borrower’s and/or the Guarantor’s Original Financial Statements were                prepared; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | sufficient                information, in form and substance as may be reasonably required                by the                Agent, to enable the Lenders to determine whether Clause 20 (Financial                covenants) has been complied with and make an accurate comparison                between                the financial position indicated in those financial statements and                the                Borrowers’ and/or the Guarantor’s Original Financial                Statements. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19.4  ** | **Information                - miscellaneous** |
|----------------------|------------------------------------------------|

| a)   | all                material documents dispatched by the Borrowers and/or the Guarantor                to                their shareholders or their creditors generally and any press releases                at                the same time as they are                dispatched; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | promptly                upon becoming aware of them, the details of any litigation, arbitration                or                administrative proceedings which are current, threatened or pending                against any of the Borrowers and/or the Guarantor and/or the Charterers                and/or the Charter Guarantors, and which might, if adversely determined,                have a Material Adverse Effect; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | promptly,                such further information regarding the business, assets and operations                (financial or otherwise) of any of the Borrowers and/or the Guarantor                as                any Finance Party (through the Agent) may reasonably                request. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19.5  ** | **Notification                of default** |
|----------------------|--------------------------------------------|

| **19.6  ** | **Notification                of Environmental Claims** |
|----------------------|---------------------------------------------------------|

| a)   | if                any Environmental Claim has been commenced or (to the best of the                Borrowers’ knowledge and belief) is threatened against any of the                Borrowers or any of the Vessels;                and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | of                any fact and circumstances which will or are reasonably likely to                result                in any Environmental Claim being commenced or threatened against                any of                the Borrowers or any of the                Vessels, |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19.7  ** | **“Know                your customer”requirements** |
|----------------------|-----------------------------------------------------------------|

| a)   | Each                Borrower shall and shall procure that the Guarantor shall promptly                on the                request of any Finance Party supply to that Finance Party any                documentation or other evidence which is reasonably requested by                that                Finance Party (whether for itself, on behalf of any Finance Party                or any                prospective new Lender) to enable a Finance Party or prospective                new                Lender to carry out and be satisfied it has complied with all necessary                “know your customer” or other similar checks under all applicable laws and                regulations pursuant to the transactions contemplated in the Finance                Documents. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Each                Lender must promptly on the request of the Agent supply to the Agent                any                documentation or other evidence which is reasonably required by the                Agent                to carry out and be satisfied it has complied with all necessary“know                your customer” or other similar checks under all applicable laws and                regulations pursuant to the transactions contemplated in the Finance                Documents. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **20  ** | **FINANCIAL                COVENANTS** |
|--------------------|----------------------------------------|

| **20.1  ** | **Definitions** |
|----------------------|-----------------|

| a)   | “**Cash                and Cash Equivalents**”                means, in respect of the Group, and at any                time: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | cash                in hand or on deposits with any acceptable bank available for cash                management purposes; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (ii)   | investment                grade certificates or deposit or investment grade marketable debt                securities, maturing within one (1) year after the relevant date                of                calculation; or |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | any                other instrument, security or investment approved by the Majority                Lenders, |
|-------------------|--------------------------------------------------------------------------------------------------------------|

| b)   | “**EBITDA**”                means, always in accordance with GAAP, the aggregate of operating                profits                of the Borrowers or the Guarantor (on a consolidated basis) for a                Measurement Period before Taxes, financial items, depreciations and                amortisations, excluding: |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | the                profit or loss attributable to any extraordinary or exceptional items                or                any write-offs on investments during that Measurement Period; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the                profit and loss arising on any disposal of fixed assets during that                Measurement Period save for any disposals made in the ordinary course                of                business. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | “**Fixed                Charges**”                means: |
|----------------|----------------------------------------------------------------------|

| (i)   | Net                Interest for any Measurement Period,                plus |
|-----------------|-----------------------------------------------------------------------------|

| (ii)   | the                amount of scheduled repayments of the Facility and/or any other credit                facilities and the interest and repayment element under capitalised                charterparties in accordance with GAAP which fall due for repayment                or                payment during the Measurement Period, other than any amount prepaid                under                this Agreement, |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | “**Measurement                Period**”                means a rolling period of twelve (12) calendar months ending on a                Quarter                Date. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | “**Quarter                Date**”                means each 31 March, 30 June, 30 September and 31                December. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| f)   | “**Net                Interest**”                means all interest, arrangement fees and capitalised commissions                and                periodic fees (whether, in each case, paid or payable) as reported                in                accordance with GAAP being incurred (after having deducted any interest,                arrangement fee and capitalised income earned) by the Borrowers and                the                Guarantor (on a consolidated basis) during a Measurement Period. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | “**Total                Debt**”                means, on a consolidated basis, the aggregate book value of all                provisions, other long term liabilities and current liabilities of                the                Borrowers and the Guarantor (on a consolidated basis). |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | “**Value                Adjusted Equity**”                means Value Adjusted Total Assets less Total                Debt. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| i)   | “**Value                Adjusted Equity Ratio**”                means Value Adjusted Equity divided by Value Adjusted Total                Assets. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j)   | “**Value                Adjusted Total Assets**”                means, on a consolidated basis, the total market value of all of                the                assets of the Guarantor (on a consolidated                basis). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **20.2  ** | **Financial                covenants** |
|----------------------|----------------------------------------|

| *20.2.1  * | *Minimum                Value Adjusted Equity Ratio* |
|----------------------|------------------------------------------------------|

| *20.2.2  * | *Minimum                Value Adjusted Equity* |
|----------------------|------------------------------------------------|

| *20.2.3  * | *Ratio                of EBITDA to Fixed Charges* |
|----------------------|---------------------------------------------------|

| *20.2.4  * | *Positive                working capital* |
|----------------------|-------------------------------------------|

| *20.2.5  * | *Minimum                value* |
|----------------------|--------------------------------|

| *20.2.6  * | *Cash                and Cash Equivalents* |
|----------------------|--------------------------------------------|

| *20.2.7  * | *Adjustments* |
|----------------------|---------------|

| **21  ** | **GENERAL                UNDERTAKINGS** |
|--------------------|-----------------------------------------|

| **21.1  ** | **Authorisations                etc.** |
|----------------------|----------------------------------------|

| a)   | obtain,                comply and do all that is necessary to maintain in full force and                effect;                and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|

| b)   | supply                certified copies to the Agent (if so requested)                of, |
|----------------|------------------------------------------------------------------------------------------|

| **21.2  ** | **Compliance                with laws** |
|----------------------|-----------------------------------------|

| **21.3  ** | **Pari                passu ranking** |
|----------------------|---------------------------------------|

*pari      passu*

| **21.4  ** | **Title** |
|----------------------|-----------|

| **21.5  ** | **Negative                pledge** |
|----------------------|------------------------------------|

| a)   | Security                Interest under the Security                Documents; |
|----------------|-------------------------------------------------------------------------------|

| b)   | Security                Interests arising in the ordinary course of business;                and |
|----------------|--------------------------------------------------------------------------------------------------|

| c)   | Security                Interests consented to in writing by the Agent (acting upon instructions                from the Majority Lenders). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| **21.6  ** | **Borrowings                and guarantees** |
|----------------------|----------------------------------------------|

| **21.7  ** | **Interest                hedging** |
|----------------------|-------------------------------------|

| **21.8  ** | **Disposals** |
|----------------------|---------------|

| **21.9  ** | **Distributions** |
|----------------------|-------------------|

| **21.10  ** | **Investm****ent                restrictions** |
|-----------------------|------------------------------------------------|

| **21.11  ** | **Bank                accounts** |
|-----------------------|----------------------------------|

| **21.12  ** | **Shareholders                and change of control** |
|-----------------------|-------------------------------------------------------|

| **21.13  ** | **Change                of business etc.** |
|-----------------------|--------------------------------------------|

| a)   | The                Borrowers shall, and shall procure that the Guarantor shall, ensure                that                no change is made to the general nature of the business of the Borrowers                or the Guarantor (as the case may be) from that carried out at the                date of                this Agreement (for the Borrowers being single-purpose companies                having no                other business than owning and commercial ownership of the                Vessels). |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | None                of the Borrowers shall and the Borrowers shall procure that neither                the                Guarantor shall change their legal                names. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **21.14  ** | **No                mergers etc.** |
|-----------------------|------------------------------------|

| **21.15  ** | **Environmental                compliance** |
|-----------------------|---------------------------------------------|

| **21.16  ** | **Commercial                management** |
|-----------------------|------------------------------------------|

| **21.17  ** | **Transaction                Documents** |
|-----------------------|------------------------------------------|

| **22  ** | **VESSELS’                COVENANTS** |
|--------------------|---------------------------------------------|

| **22.1  ** | **Insurance** |
|----------------------|---------------|

| a)   | The                Borrowers shall maintain or ensure that the Vessels are insured against                such risks, including but not limited to, Hull and Machinery, Protection                & Indemnity (including maximum cover for pollution liability as                normally adopted by the industry for similar vessels), Hull Interest                and/or Freight Interest, Loss of Hire and War Risk insurances, in                such                amounts, on such terms and with such insurers as the Agent shall                approve. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                value of the Hull and Machinery insurance shall cover at least eighty                per                cent (80.00%) of the Market Value, and the aggregate insurance value                of                the Vessels (except Protection & Indemnity and Loss of Hire) shall be                at least equal to the higher of the Market Value and one hundred                and                twenty per cent (120.00%) of the                Loans. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                Borrowers shall procure that the Agent (on behalf of the Finance                Parties                and the Swap Bank) is noted as first priority mortgagee in the insurance                contracts, together with the confirmation from the underwriters to                the                Agent thereof that the notice of assignment with regards to the Insurances                and the loss payable clauses are noted in the insurance contracts                and that                standard letters of undertaking are executed by the                insurers. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Not                later than fourteen (14) days prior to the expiry date of the relevant                Insurances the Borrowers shall procure the delivery to the Agent                of a                certificate from the insurance broker(s) through whom the Insurances                referred to in litra a) have been renewed and taken out in respect                of the                Vessels with insurance values as required by litra b), that such                Insurances are in full force and effect and that the Agent (on behalf                of                the Finance Parties and the Swap Bank) have been noted by the relevant                insurers. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | The                Agent will, for the account of the Borrowers, take out a Mortgagee’s                Interest Insurance and a Mortgagee’s Interest - Additional Perils                Pollution Insurance (covering one hundred and ten per cent (110.00%)                of                the Loans) relevant to the Vessels. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | If                any of the Insurances referred to in litra a) form part of a fleet                cover,                the Borrowers shall procure that the insurers shall undertake to                the Agent                that they shall neither set-off against any claims in respect of                the                Vessels any premiums due in respect of other vessels under such fleet                cover or any premiums due for other insurances, nor cancel this Insurance                for reason of non-payment of premiums for other vessels under such                fleet                cover or of premiums for such other insurances, and shall undertake                to                issue a separate policy in respect of the Vessels if and when so                requested                by the Agent. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | The                Borrowers shall procure that the Vessels always are employed in conformity                with the terms of the instruments of Insurances (including any warranties                expressed or implied therein) and comply with such requirements as                to                extra premium or otherwise as the insurers may                prescribe. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | The                Borrowers will not make any change to the Insurances described under                litra                a) and b) above without the prior written consent of the Agent (on                behalf                of the Lenders). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.2  ** | **Classification                and repairs** |
|----------------------|-----------------------------------------------|

| a)   | so                as to maintain its class at the highest level with Det norske Veritas                or                another classification society approved by the Agent, free of overdue                recommendations and qualifications;                and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | so                as to comply with the laws and regulations (statutory or otherwise)                applicable to vessels registered under the flag state of the Vessels                or to                vessels trading to any jurisdiction to which any of the Vessels may                trade                from time to time. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.3  ** | **Market                Value** |
|----------------------|---------------------------------|

| a)   | The                Market Value of the Vessels shall at any time from the earlier of                (i) the                expiry of the Charterparty relating to MV “Roger M. Jones” and (ii) 30                September 2008 never be less than one hundred and twenty per cent.                (120%)                of the Loans. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Borrowers shall from such time, at their own expense, arrange for                the                Market Value for all of the Vessels to be determined semi-annually                and                shall include the amount of such Market Value in the relevant Compliance                Certificate to be delivered together with the financial statements                for                each reporting date ending on 30 June and 31 December in any financial                year. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.4  ** | **Restrictions                on chartering, appointment of Managers                etc.** |
|----------------------|--------------------------------------------------------------------------------------------|

| a)   | let                the Vessels on bareboat charter for any                period; |
|----------------|-----------------------------------------------------------------------------------|

| b)   | enter                into any agreement related to the chartering and operation of any                of the                Vessels exceeding twelve (12) months or any pooling arrangements                related                to the Earnings of the Vessels; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | appoint                a technical manager for the Vessels other than the Technical Manager                or                agree to any alteration to the terms of the Technical Management                Agreement; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | change                the classification society of any of the Vessels;                or |
|----------------|-------------------------------------------------------------------------------------------|

| e)   | neither                terminate, cancel, amend (save for immaterial amendments which will                have                no impact on the Borrowers’ ability to fulfil their obligations under the                Finance Documents) or supplement any of the Charterparties nor assign                any                of the Charterparties to any other                person. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.5  ** | **Notification                of certain events** |
|----------------------|---------------------------------------------------|

| a)   | any                accident to any of the Vessels involving repairs where the costs                will or                is likely to exceed USD 500,000 (or the equivalent in any other                currency); |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | any                requirement or recommendation made by any insurer or classification                society or by any competent authority which is not, or cannot be,                immediately complied with; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | any                exercise or purported exercise of any lien on any of the Vessels,                the                Earnings or the Insurances; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | any                occurrence as a result of which any of the Vessels has become or                is, by                the passing of time or otherwise, likely to become a Total Loss;                and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | any                claim for a material breach of the ISM Code or the ISPS Code being                made                against any of the Borrowers, the Managers, the Charterers or otherwise                in                connection with the Vessels. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.6  ** | **Operation                of the Vessels** |
|----------------------|---------------------------------------------|

| a)   | The                Borrowers shall comply, or procure the compliance in all material                respects                with the ISM Code and the ISPS Code, all Environmental Laws and all                other                laws or regulations relating to the Vessels, their ownership, operation                and management or to the business of any of the Borrowers and shall                not                employ any of the Vessels nor allow their                employment: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | in                any manner contrary to law or regulation in any relevant jurisdiction                including but not limited to the ISM Code;                and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | in                the event of hostilities in any part of the world (whether war is                declared                or not), in any zone which is declared a war zone by any government                or by                the war risk insurers of the Vessels unless the Borrowers have (at                their                expense) effected any special, additional or modified insurance cover                which shall be necessary or customary for first class shipowners                trading                vessels within the territorial waters of such country at such time                and has                provided evidence of such cover to the                Agent. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Vessels shall be employed under the Charterparties or such other                charterparty as approved by the Agent (on behalf of the Finance Parties)                in writing. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.7  ** | **ISM                Code compliance** |
|----------------------|----------------------------------------|

| a)   | procure                that the Vessels remain subject to a SMS for the duration of the                Facility; |
|----------------|------------------------------------------------------------------------------------------------------------------|

| b)   | procure                that a valid and current SMC is maintained for each of the Vessels                for the                duration of the Facility; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | if                not themselves, procure that the Technical Manager of the Vessels                maintains a valid and current DOC for the duration of the                Facility; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | immediately                notify the Agent in writing of any actual or threatened withdrawal,                suspension, cancellation or modification of the SMC of any of the                Vessels                or of the DOC of the Technical Manager;                and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | immediately                notify the Agent in writing of any “accident” or “major non-conformity”,                each as those terms is defined in the Guidelines in the application                of the                IMO International Safety Management Code issued by the International                Chamber of Shipping and International Shipping                Federation. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.8  ** | **Inspections                and class records** |
|----------------------|--------------------------------------------------|

| a)   | The                Borrowers shall permit, and shall procure that any charterers permit,                one                person appointed by the Agent to inspect the Vessels once a year                for the                account of the Borrowers upon the Agent giving prior written                notice. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Borrowers shall instruct the classification society to send to the                Agent,                following a written request from the Agent, copies of all class records                held by the classification society in relation to the                Vessels. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.9  ** | **Surveys** |
|----------------------|-------------|

| **22.10  ** | **Arrest** |
|-----------------------|------------|

| a)   | all                liabilities which give or may give rise to maritime or possessory                liens on                or claims enforceable against any of the Vessels, the Earnings or                the                Insurances; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | all                tolls, taxes, dues, fines, penalties and other amounts charged in                respect                of any of the Vessels, the Earnings or the Insurances;                and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | all                other outgoings whatsoever in respect of any of the Vessels, the                Earnings                and the Insurances, |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.11  ** | **Total                Loss** |
|-----------------------|-------------------------------|

| **22.12  ** | **Flag,                name and registry** |
|-----------------------|--------------------------------------------|

| **23  ** | **EVENTS                OF DEFAULT** |
|--------------------|--------------------------------------|

| **23.1  ** | **Non-payment** |
|----------------------|-----------------|

| a)   | their                failure to pay is caused by administrative or technical error affecting                the transfer of funds despite timely payment instructions by the                Borrowers; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | payment                is made within three (3) Business Days of its due date. |
|----------------|--------------------------------------------------------------------------------|

| **23.2  ** | **Financial                covenants** |
|----------------------|----------------------------------------|

| **23.3  ** | **Other                obligations** |
|----------------------|--------------------------------------|

| a)   | The                Borrowers do not comply with any provision of the Finance Documents                (other                than those referred to in Clause 23.1 (Non-payment) and Clause 23.2                (Financial covenants)). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | No                Event of Default under litra a) above will occur if the failure to                comply                is capable of remedy and is remedied within thirty (30) days of the                Agent                giving notice to the Borrowers or any of the Borrowers becoming aware                of                the failure to comply. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **23.4  ** | **Misrepresentations** |
|----------------------|------------------------|

| **23.5  ** | **Cross                default** |
|----------------------|----------------------------------|

| a)   | Any                Financial Indebtedness of any of the Borrowers and/or the Guarantor                and/or                any of the Charterers and/or any of the Charter Guarantors is not                paid                when due nor within any originally applicable grace                period. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Any                Financial Indebtedness of any of the Borrowers and/or the Guarantor                and/or                any of the Charterers and/or any of the Charter Guarantors is declared                to                be or otherwise becomes due and payable prior to its specified maturity                as                a result of an event of default (however described). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Any                commitment for any Financial Indebtedness of any of the Borrowers                and/or                the Guarantor and/or any of the Charterers and/or any of the Charter                Guarantors is cancelled or suspended by a creditor of any of the                Borrowers                and/or the Guarantor and/or any of the Charterers and/or any of the                Charter Guarantors as a result of an event of default (however                described). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Any                creditor of any of the Borrowers and/or the Guarantor and/or any                of the                Charterers and/or any of the Charter Guarantors becomes entitled                to                declare any Financial Indebtedness of any of the Borrowers and/or                the                Guarantor and/or any of the Charterers and/or any of the Charter                Guarantors due and payable prior to its specified maturity as a result                of                an event of default (however                described). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **23.6  ** | **Insolvency** |
|----------------------|----------------|

| a)   | Any                of the Borrowers and/or the Guarantor are unable or admits inability                to                pay their debts as they fall due, suspends making payments on any                of their                respective debts or, by reason of actual or anticipated financial                difficulties, commences negotiations with one or more of their respective                creditors with a view to rescheduling any of their                indebtedness. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                value of the assets of any of the Borrowers and/or the Guarantor                (as the                case may be) is less than their respective liabilities (taking into                account contingent and prospective                liabilities). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | A                moratorium is declared in respect of any indebtedness of any of the                Borrowers and/or the Guarantor (as the case may                be). |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **23.7  ** | **Insolvency                proceedings** |
|----------------------|-------------------------------------------|

| a)   | the                suspension of payments, a moratorium of any indebtedness, winding-up,                dissolution, administration or reorganisation (by way of voluntary                arrangement, scheme or arrangement or otherwise) of any of the Borrowers                and/or the Guarantor; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | a                composition, compromise, assignment or arrangement with any creditor                of                any of the Borrowers and/or the                Guarantor; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the                appointment of a liquidator, receiver, administrative receiver,                administrator or other similar officer in respect of any of the Borrowers                and/or the Guarantor; or |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | enforcement                of any Security Interest over any assets of any of the Borrower and/or                the                Guarantor. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| **23.8  ** | **Creditor’s                process** |
|----------------------|---------------------------------------------|

| **23.9  ** | **Unlawfulness** |
|----------------------|------------------|

| **23.10  ** | **Material                adverse change** |
|-----------------------|--------------------------------------------|

| **23.11  ** | **Permits** |
|-----------------------|-------------|

| **23.12  ** | **Litigation** |
|-----------------------|----------------|

| **23.13  ** | **Acceleration** |
|-----------------------|------------------|

| a)   | cancel                the Total Commitments whereupon they shall immediately be                cancelled; |
|----------------|-----------------------------------------------------------------------------------------------------------|

| b)   | declare                that all or part of the Loans together with accrued interest, and                all                other amounts accrued or outstanding under the Finance Documents,                be                either immediately due and payable and/or payable upon demand, whereupon                they shall become either immediately due and payable or payable on                demand;                and/or |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | start                enforcement in respect of the Security Interests established by the                Security Documents; and/or |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|

| d)   | take                any other action, with or without notice to the Borrowers, exercise                any                other right or pursue any other remedy conferred upon the Agent or                the                Finance Parties by any of the Finance Documents or by any applicable                law                or regulation or otherwise as a consequence of such Event of                Default. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **24  ** | **CHANGES                TO THE LENDERS** |
|--------------------|-------------------------------------------|

| **24.1  ** | **Assignments                and transfers by the                Lenders** |
|----------------------|----------------------------------------------------------------------------|

**Existing      Lender**
**Transfer**

| a)   | another                Existing Lender or an affiliate of an Existing Lender;                or |
|----------------|-------------------------------------------------------------------------------------------------|

| b)   | with                the prior consent of the Borrowers (such consent not to be unreasonably                withheld or delayed, and is not required in the case an Event of                Default                has occurred), another bank or financial institution or to a trust,                fund                or other entity which is regularly engaged in or established for                the                purpose of making, purchasing or investing in loans, securities or                other                financial assets (the “**New                Lender**”), |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **24.2  ** | **Limitations                of responsibility of Existing                Lenders** |
|----------------------|-------------------------------------------------------------------------------------|

| *24.2.1  * | *Borrowers’                performance, etc* |
|----------------------|----------------------------------------------------|

| a)   | the                legality, validity, effectiveness, adequacy or enforceability of                the                Finance Documents or any other                documents; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                financial condition of the                Borrowers; |
|----------------|-------------------------------------------------------------------------|

| c)   | the                performance and observance by the Borrowers of their obligations                under the                Finance Documents or any other documents;                or |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | the                accuracy of any statements (whether written or oral) made in or in                connection with the Finance Documents or any other                document. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *24.2.2  * | *New                Lender’s own credit appraisal,                etc* |
|----------------------|------------------------------------------------------------------------------|

| a)   | has                made (and will continue to make) its own independent investigation                and                assessment of the financial condition and affairs of the Borrowers                and                their related entities in connection with its participation in this                Agreement and has not relied exclusively on any information provided                to it                by the Existing Lender in connection with any Finance Document;                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | will                continue to make its own independent appraisal of the creditworthiness                of                the Borrowers and their related entities whilst any amount is or                may be                outstanding under the Finance Documents or any Commitment is in                force. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *24.2.3  * | *Re-transfer                to an Existing Lender, etc* |
|----------------------|---------------------------------------------------------|

| a)   | accept                a re-transfer from a New Lender of any of the rights and obligations                assigned or transferred under this Clause 24;                or |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | support                any losses directly or indirectly incurred by the New Lender by reason                of                the non-performance by the Borrowers of their obligations under the                Finance Documents or otherwise. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **24.3  ** | **Procedure                for transfer** |
|----------------------|-------------------------------------------|

| a)   | the                Existing Lender must notify the Agent of its intention to Transfer                all or                part of its rights and obligations by delivering a duly completed                Transfer                Certificate to the Agent duly executed by the Existing Lender and                the New                Lender; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | subject                to Clause 24.1 (Assignments and transfers by the Lenders), the Agent                shall                as soon as reasonable possible after receipt of a Transfer Certificate                execute the Transfer Certificate and deliver a copy of the same to                each of                the Existing Lender and the New Lender;                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | subject                to Clause 24.1 (Assignments and transfers by the Lenders), the Transfer                shall become effective on the Transfer                Date. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **24.4  ** | **Effects                of the Transfer** |
|----------------------|--------------------------------------------|

| a)   | to                the extent that in the Transfer Certificate the Existing Lender seeks                to                transfer its rights and obligations under the Finance Documents,                the                Borrowers and the Existing Lender shall be released from further                obligations to one another under the Finance Documents and their                respective rights against one another under the Finance Documents                shall be                cancelled (the “**Discharged                Rights and Obligations**”); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                Borrowers and the New Lender shall assume obligations towards one                another                and/or acquire rights against one another which differ from the Discharged                Rights and Obligations only insofar as the Borrowers and the New                Lender                have assumed and/or acquired the same in place of the Borrowers and                the                Existing Lender; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the                Agent, the Arranger, the New Lender and the other Lenders shall acquire                the same rights and assume the same obligations between themselves                as they                would have acquired and assumed had the New Lender been an original                Lender                hereunder with the rights and/or obligations acquired or assumed                by it as                a result of the Transfer and to that extent the Agent, the Arranger                and                the Existing Lender shall each be released from further obligations                to                each other under the Finance Documents;                and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | the                New Lender shall become a Party as a“Lender”. |
|----------------|------------------------------------------------------------------------------|

| **24.5  ** | **Further                assurances** |
|----------------------|---------------------------------------|

| **24.6  ** | **Disclosure                of information** |
|----------------------|----------------------------------------------|

| a)   | to                any of its affiliates and a potential assignee; |
|----------------|-------------------------------------------------------------------|

| b)   | to                whom that Lender enters into (or may potentially enter into) any                sub-participation in relation to, or any other transaction under                which                payments are to be made by reference to, this Agreement or the Borrowers;                and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | to                whom, to the extent that, information is required to be discloses                by any                applicable law, |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| **24.7  ** | **Assignment                or transfer fee** |
|----------------------|-----------------------------------------------|

| **25  ** | **CHANGES                TO THE****BORROWERS** |
|--------------------|------------------------------------------------|

| **25.1  ** | **Assignments                and transfer by Borrowers** |
|----------------------|----------------------------------------------------------|

| **25.2  ** | **Additional                Borrowers** |
|----------------------|-----------------------------------------|

| a)   | Subject                to the compliance with the provisions of Clause 19.7 (“Know your customer”                checks), OBO Holdings Ltd. may request that any of its Subsidiaries                becomes an Additional Borrower. The Subsidiary shall become an Additional                Borrower if: |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | OBO                Holdings Ltd. delivers to the Agent a duly completed and executed                Accession Letter; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the                Agent has received all of the documents and other evidence listed                in Part                III of Schedule                2                (Conditions precedent) in relation to that Additional Borrower in                form and                substance satisfactory to the                Agent. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Agent shall notify OBO Holdings Ltd. and the Lenders promptly upon                being                satisfied that it has received (in form and substance satisfactory                to it)                all the documents and other evidence listed in Part III of Schedule                2                (Conditions precedent). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **25.3  ** | **Repetition                of representations** |
|----------------------|--------------------------------------------------|

| **26  ** | **ROLE                OF THE AGENT AND THE                ARRANGER** |
|--------------------|----------------------------------------------------------------------|

| **26.1  ** | **Appointment                and authorisation of the                Agent** |
|----------------------|------------------------------------------------------------------------------|

| a)   | Each                other Finance Party and the Swap Bank appoint the Agent to act as                its                facility agent and security agent under and in connection with the                Finance                Documents. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Each                other Finance Party and the Swap Bank authorises the Agent to exercise                the                rights, powers, authorities and discretions specifically given to                the                Agent under or in connection with the Finance Documents together                with any                other incidental rights, powers, authorities and                discretions. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.2  ** | **Duties                of the Agent** |
|----------------------|----------------------------------------|

| a)   | promptly                forward to a Party the original or a copy of any document which is                delivered to it in its capacity as Agent for the attention of that                Party                by another Party; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | supply                the other Finance Parties and the Swap Bank with all material information                which the Agent receives from the                Borrowers; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | if                it receives notice from a Party referring to this Agreement, describing                an                Event of Default and stating that the circumstance is an Event of                Default,                promptly notify the Finance Parties and the Swap Bank;                and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | from                it receives sufficient information; promptly notify the Lenders of                the                occurrence of any Event of Default arising under Clause 23 (Events                of                Default). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.3  ** | **Role                of the Arranger** |
|----------------------|-----------------------------------------|

| **26.4  ** | **Relationship** |
|----------------------|------------------|

| **26.5  ** | **Business                with the Borrowers** |
|----------------------|------------------------------------------------|

| **26.6  ** | **Rights                and discretions of the                Agent** |
|----------------------|-----------------------------------------------------------------------|

| a)   | The                Agent may rely on: |
|----------------|---------------------------------------|

| (i)   | any                representation, notice or document believed by it to be genuine,                correct                and appropriately authorised; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any                statement made by a director, authorised signatory or employee of                any                person regarding any matters which may reasonably be assumed to be                within                his knowledge or within his power to                verify. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Agent may assume (unless it has received notice to the contrary in                its                capacity as Agent for the Lenders)                that: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | no                Event of Default has occurred (unless it has actual knowledge of                an Event                of Default under Clause 23.1 (Non-payment));                and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any                right, power, authority or discretion vested in any Party or the                Majority                Lenders has not been exercised. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                Agent may engage, pay for and rely on the advise or services of any                lawyers, accountants, surveyors or other                experts. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | The                Agent may act in relation to the Finance Documents through its personnel                and agents. |
|----------------|------------------------------------------------------------------------------------------------------------------------|

| e)   | The                Agent may disclose to any other Party any information it reasonably                believes it has received as agent under this                Agreement. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | Notwithstanding                any other provision of any Finance Document to the contrary, neither                the                Agent nor the Arranger is obliged to do or omit to do anything if                it would                or might in its reasonable opinion constitute a breach of any law                or                regulation or a breach of duty of confidentiality or render it liable                to                any person. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.7  ** | **Majority                Lenders’ instructions** |
|----------------------|---------------------------------------------------------|

| a)   | Unless                a contrary indication appears in a Finance Document, the Agent shall                (i)                exercise any right, power, authority or discretion vested in it as                Agent                in accordance with any instructions given to it by the Majority Lenders                (or, if so instructed by the Majority Lenders, refrain from exercising                any                right, power, authority or discretion vested in it as Agent) and                (ii) not                be liable for any act (or omission) if it acts in accordance with                an                instruction of the Majority                Lenders. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Unless                a contrary indication appears in a Finance Document, any instructions                given by the Majority Lenders will be binding on all the Finance                Parties. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                Agent may refrain from acting in accordance with the instructions                of the                Majority Lenders (or, if appropriate, the Lenders) until it has received                such security as it may require for any cost, loss or liability (together                with any associated VAT) which it may incur in complying with the                instructions. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | In                the absence of instructions from the Majority Lenders (or, if appropriate,                the Lenders) the Agent may act (or refrain from acting) as it considers                to                be in the best interest of the                Lenders. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | The                Agent is not authorised to act on behalf of a Lender (without first                obtaining that Lender’s consent) in any legal or arbitration proceedings                relating to any Finance Document. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.8  ** | **Responsibility                for documentation** |
|----------------------|-----------------------------------------------------|

| a)   | is                responsible for the adequacy, accuracy and/or completeness of any                information (whether oral or written) supplied by the Agent, the                Arranger,                the Borrowers or any other person in or in connection with any Finance                Document; or |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | is                responsible for the legality, validity, effectiveness, adequacy or                enforceability of any Finance Document or any other agreement, arrangement                or document entered into, made in anticipation of or in connection                with                any Finance Document. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.9  ** | **Exclusion                of liability** |
|----------------------|-------------------------------------------|

| a)   | Without                limiting litra b) below, the Agent will not be liable for any action                taken                by it under or in connection with any Finance Document, unless directly                caused by its gross negligence or wilful                misconduct. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | No                Party (other than the Agent) may take any proceedings against any                officer,                employee or agent of the Agent in respect of any claim it might have                against the Agent or in respect of any act or omission of any kind                by that                officer, employee or agent in relation to any Finance Document and                any                officer, employee and agent of the Agent may rely on this                Clause. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                Agent will not be liable for any delay (or any related consequences)                in                crediting an account with an amount required under the Finance Documents                to be paid by the Agent if the Agent has taken all necessary steps                as soon                as reasonably practicable to comply with the regulations or operating                procedures of any recognised clearing or settlement system used by                the                Agent for that purpose. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Nothing                in this Agreement shall oblige the Agent or the Arranger to carry                out any                “know your customer” or other checks in relation to any person on behalf                of any Lender and each Lender confirms to the Agent and the Arranger                that                it is solely responsible for any such checks it is required to carry                out                and that it may not rely on any statement in relation to such checks                made                by the Agent or the Arranger. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.10  ** | **Lenders’                indemnity to the Agent** |
|-----------------------|----------------------------------------------------------|

| **26.11  ** | **Resignation                of the Agent** |
|-----------------------|---------------------------------------------|

| a)   | The                Agent may resign and appoint one of its affiliates as successor by                giving                notice to the other Finance Parties, the Swap Bank and the Borrowers. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Alternatively                the Agent may resign by giving notice to the other Finance Parties,                the                Swap Bank and the Borrowers in which case the Majority Lenders (after                consultation with the Borrowers) may appoint a successor                Agent. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | If                the Majority Lender have not appointed a successor Agent in accordance                with litra b) above within thirty (30) days after notice of resignation                was given, the Agent (after consultation with the Borrowers) may                appoint a                successor Agent. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | The                retiring Agent shall, at its own cost, make available to the successor                Agent such documents and records and provide such assistance as the                successor Agent may reasonably request for the purposes of performing                its                functions as Agent under the Finance                Documents. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | The                Agent’s resignation notice shall only take effect upon appointment of a                successor. |
|----------------|----------------------------------------------------------------------------------------------------------------------------|

| f)   | Upon                the appointment of a successor, the retiring Agent shall be discharged                from any further obligation in respect of the Finance Documents but                shall                remain entitled to the benefit of this Clause 26. Its successor and                each                of the other Parties shall have the same rights and obligations amongst                themselves as they would have had if such successor had been an original                Party. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | After                consultation with the Borrowers, the Majority Lenders may, by notice                to                the Agent, require it to resign in accordance with litra b) above.                In this                event, the Agent shall resign in accordance with litra b)                above. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.12  ** | **Confidentiality** |
|-----------------------|---------------------|

| a)   | In                acting as agent for the Finance Parties and the Swap Bank, the Agent                shall                be regarded as acting through its agency division which shall be                treated                as a separate entity from any other of its divisions or departments. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | If                information is received by another division or department of the                Agent, it                may be treated as confidential to that division or department and                the                Agent shall not be deemed to have notice of                it. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.13  ** | **Credit                appraisal by the Lenders** |
|-----------------------|----------------------------------------------------|

| a)   | the                financial condition, status and nature of the Borrowers and/or the                Guarantor; |
|----------------|-----------------------------------------------------------------------------------------------------------------|

| b)   | the                legality, validity, effectiveness, adequacy or enforceability of                any                Finance Document and any other agreement, arrangement or document                entered                into, made or executed in anticipation of, under or in connection                with any                Finance Document; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | whether                that Lender has recourse, and the nature and extent of that recourse,                against any Party or any of its respective assets under or in connection                with any Finance Document, the transactions contemplated by the Finance                Documents or any other agreement, arrangement or document, entered                into,                made or executed in anticipation of, under or in connection with                any                Finance Document. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **26.14  ** | **Conduct                of business of the Finance                Parties** |
|-----------------------|------------------------------------------------------------------------------|

| a)   | interfere                with the right of any Finance Party or the Swap Bank to arrange its                affairs (tax or otherwise) in whatever manner it thinks                fit; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | oblige                any Finance Party or the Swap Bank to investigate or claim any credit,                relief, remission or repayment available to it or to the extent,                order or                manner of any claim; or |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | oblige                any Finance Party or the Swap Bank to disclose any information relating                to                its affairs (tax or otherwise) or any computations in respect of                Tax. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **27  ** | **SHARING                AMONG THE FINANCE PARTIES** |
|--------------------|------------------------------------------------------|

| **27.1  ** | **Payment                to Finance Parties** |
|----------------------|-----------------------------------------------|

**Recovering      Finance Party**

| a)   | the                Recovering Finance Party shall promptly, within three (3) Business                Days,                notify details of the receipt or recovery to the                Agent; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                Agent shall determine whether the receipt or recovery is in excess                of the                amount the Recovering Finance Party would have been paid had the                receipt                or recovery been received by or made by the Agent and distributed                in                accordance with Clause 28 (Payment mechanics), without taking account                of                Tax which would be imposed on the Agent in relation to the receipt,                recovery or distribution; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the                Recovering Finance Party shall, within three (3) Business Days of                demand                by the Agent, pay to the Agent an amount (the “**Sharing                Payment**”)                equal to such receipt or recovery less any amount which the Agent                determines may be retained by the Recovering Finance Party as its                share of                any payment to be made, in accordance with Clause 28.5 (Partly                payments). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **27.2  ** | **Redistribution                of payments** |
|----------------------|-----------------------------------------------|

| **27.3  ** | **Recovering                Finance Party’s rights** |
|----------------------|------------------------------------------------------------|

| a)   | On                a distribution by the Agent under Clause 27.2 (Redistribution of                payments), the Recovering Finance Party will be subrogated to the                rights                of the Finance Parties which have shared in the redistribution. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | If                and to the extent that the Recovering Finance Party is not able to                rely on                its rights under litra a) above, the Borrowers shall be liable to                the                Recovering Finance Party for a debt equal to the Sharing Payment                which is                immediately due and payable. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **27.4  ** | **Reversal                of redistribution** |
|----------------------|-----------------------------------------------|

| a)   | each                Finance Party which has received a share of the relevant Sharing                Payment                pursuant to Clause 27.2 (Redistribution of payments) shall, upon                request                of the Agent, pay to the Agent for the account of that Recovering                Finance                Party an amount equal to the appropriate part of its share of the                Sharing                Payment (together with an amount as is necessary to reimburse that                Recovering Finance Party for its proportion of any interest on the                Sharing                Payment which that Recovering Finance Party is required to pay);                and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | that                Recovering Finance Party’s rights of subrogation in respect of any                reimbursement shall be cancelled and the Borrowers will be liable                to the                reimbursing Finance Party for the amount so                reimbursed. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **27.5  ** | **Exceptions** |
|----------------------|----------------|

| a)   | This                Clause 27 shall not apply to the extent that the Recovering Finance                Party                would not, after making any payment pursuant to this Clause, have                a valid                and enforceable claim against the                Borrowers. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | A                Recovering Finance Party is not obliged to share with any other Finance                Party any amount which the Recovering Finance Party has received                or                recovered as a result of taking legal proceedings,                if: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | it                notified that other Finance Party of the legal proceedings;                and |
|-----------------|--------------------------------------------------------------------------------------------------|

| (ii)   | that                other Finance Party had an opportunity to participate in those legal                or                arbitration proceedings but did not do so as reasonably practicable                having                received notice and did not take separate legal or arbitration                proceedings. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **28  ** | **PAYMENT                MECHANICS** |
|--------------------|--------------------------------------|

| **28.1  ** | **Payments                to the Agent** |
|----------------------|------------------------------------------|

| a)   | to                the Agent to its account with such office or bank as the Agent may                from                time to time designate in writing to the Borrowers or a Lender for                this                purpose; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | for                value on the due date at such times and in such funds as the Agent                may                specify to the Party concerned as being customary at the time for                settlement of transactions in the relevant currency in the place                of                payment. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **28.2  ** | **Distributions                by the Agent** |
|----------------------|-----------------------------------------------|

| **28.3  ** | **Distributions                to the Borrowers** |
|----------------------|---------------------------------------------------|

| **28.4  ** | **Clawback** |
|----------------------|--------------|

| a)   | Where                a sum is to be paid to the Agent under the Finance Documents for                distribution to another Party, the Agent is not obliged to pay that                sum to                that other Party until it has been able to establish to its satisfaction                that it has actually received that sum. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | If                the Agent pays an amount to another Party and it proves to be the                case                that the Agent had not actually received that amount, then the Party                to                whom that amount was paid by the Agent shall on demand refund the                same                amount to the Agent, together with interest on that amount from the                date                of payment to the date of receipt by the Agent, calculated by the                Agent to                reflect its cost of funds. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **28.5  ** | **Partial                payments** |
|----------------------|-------------------------------------|

| a)   | firstly,                in or towards payment pro rata of any unpaid fees, costs and expenses                of                the Agent under the Finance                Documents; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | secondly,                in or towards payment pro rata of any accrued interest (including                default                interest), fee or commissions due but unpaid under this                Agreement; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | thirdly,                in or towards payment pro rata of any principal due but unpaid under                this                Agreement; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | fourthly,                in or towards payment pro rata of any other sum due but unpaid under                the                Finance Documents. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| **28.6  ** | **Application                following an Event of                Default** |
|----------------------|-----------------------------------------------------------------------------|

| a)   | firstly,                in respect of all costs and expenses whatsoever incurred in connection                with or about incidental to the said                sale; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | secondly,                in or towards satisfaction of all prior claims (being any claims,                liabilities or debts owed or taking priority in respect of such proceeds                over the Security Interests constituted by the Security Documents)                secured                on the relevant Vessel; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | thirdly,                in or towards payment pro rata of all sums owed to the Finance Parties                under the Finance Documents; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | fourthly,                in or towards payment of all sums owed to the Swap Bank under any                Swap                Agreement(s) at the time of default;                and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | fifthly,                the balance, if any to the Borrowers or to their                order. |
|----------------|------------------------------------------------------------------------------------------------|

| **28.7  ** | **No                set-off by the Borrowers** |
|----------------------|------------------------------------------------|

| **28.8  ** | **Payment                on non-Business Days** |
|----------------------|-------------------------------------------------|

| a)   | Any                payment which is due to be made on a day that is not a Business Day                shall                be made on the next Business Day in the same calendar month (if there                is                one) or the preceding Business Day (if there is not). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | During                any extension of the due date for payment of any principal or Unpaid                Sum                under this Agreement interest is payable on the principal or Unpaid                Sum at                the rate payable on the original due                date. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **28.9  ** | **Currency                of account** |
|----------------------|----------------------------------------|

| a)   | any                amount payable under this Agreement, except as otherwise provided                for                herein, in USD; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | all                payments of Costs and Taxes in the currency in which the same were                incurred. |
|----------------|----------------------------------------------------------------------------------------------------------------|

| **29  ** | **SET-OFF**** ** |
|--------------------|-----------------------|

| **30  ** | **NOTICES**** ** |
|--------------------|-----------------------|

| **30.1  ** | **Communication                in writing** |
|----------------------|---------------------------------------------|

| **30.2  ** | **Addresses** |
|----------------------|---------------|

| **30.3  ** | **Communication                with the Borrowers** |
|----------------------|-----------------------------------------------------|

| **30.4  ** | **Language** |
|----------------------|--------------|

| **31  ** | **CALCULATIONS** |
|--------------------|------------------|

| **32  ** | **MISCELLANEOUS** |
|--------------------|-------------------|

| **32.1  ** | **Partial                invalidity** |
|----------------------|---------------------------------------|

| **32.2  ** | **Remedies                and waivers** |
|----------------------|-----------------------------------------|

| **32.3  ** | **Amendments                and waivers** |
|----------------------|-------------------------------------------|

| *32.3.1  * | *Required                consents* |
|----------------------|------------------------------------|

| a)   | Subject                to Clause 32.3.2 (Exceptions), any term of the Finance Documents                may be                amended or waived only with the written consent of the Majority Lenders                and the Borrowers and any such amendment will be binding on all Parties. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Agent may effect, on behalf of any Finance Party, any amendment or                waiver                permitted by this Clause. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| *32.3.2  * | *Exceptions* |
|----------------------|--------------|

| a)   | the                definition of “Majority Lenders”; |
|----------------|------------------------------------------------------------------|

| b)   | an                extension of the date of any payment of any amount under the Finance                Documents; |
|----------------|------------------------------------------------------------------------------------------------------------------|

| c)   | a                reduction in the Margin or a reduction in the amount of any payment                of                principal, interest, fees or commission                payable; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | an                increase in or extension of any                Commitment; |
|----------------|------------------------------------------------------------------------------|

| e)   | a                term of the Finance Documents which expressly requires the consent                of all                the Lenders; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| f)   | a                proposed substitution or replacement of any of the Borrowers;                or |
|----------------|--------------------------------------------------------------------------------------------------|

| g)   | a                change of Clauses 2.2 (Finance Parties’ rights and obligations), 18                (Security), 22.1 (Insurance), 24 (Changes to the Lenders) and this                Clause                32.3, |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **32.4  ** | **Disclosure                of information and                confidentiality** |
|----------------------|---------------------------------------------------------------------------------|

| a)   | is                publicised by a Party as required by applicable laws and regulations; |
|----------------|-----------------------------------------------------------------------------------------|

| b)   | has                entered the public domain or is publicly known, provided that such                information is not made publicly known by the receiving Party of                such                information; or |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | was                or becomes, as the Party is able to demonstrate by supporting documents,                available to the such Party on a non-confidential basis prior to                the                disclosure thereof. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **32.5  ** | **Conflicting                provisions** |
|----------------------|-------------------------------------------|

| **33  ** | **GOVERNING                LAW AND ENFORCEMENT** |
|--------------------|--------------------------------------------------|

| **33.1  ** | **Governing                law** |
|----------------------|----------------------------------|

| **33.2  ** | **Jurisdiction** |
|----------------------|------------------|

| a)   | For                the benefit of each Finance Party, the Borrowers agree that the courts                of                Oslo, Norway, have jurisdiction to settle any disputes arising out                of or                in connection with the Finance Documents including a dispute regarding                the                existence, validity or termination of this Agreement, and each of                the                Borrowers accordingly submit to the non-exclusive jurisdiction of                the Oslo                District Court (*Oslo* *tingrett*). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Nothing                in this Clause 33.2 shall limit the right of the Finance Parties                to                commence proceedings against any of the Borrowers in any other court                of                competent jurisdiction. To the extent permitted by law, the Finance                Parties may take concurrent proceedings in any number of                jurisdictions. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **33.3  ** | **Service                of process** |
|----------------------|---------------------------------------|

| a)   | irrevocably                appoints Wikborg Rein & Co., Kronprinsesse Märthas plass 1, P.O. Box                1513 Vika, N-0117 Oslo, Norway as its agent for service of process                in                relation to any proceedings before Norwegian courts in connection                with any                Finance Document; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | agrees                that failure by its process agent to notify it of the process will                not                invalidate the proceedings                concerned. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SCHEDULE      1**

**ORIGINAL      PARTIES**

**PART      I: ORIGINAL BORROWERS**

| **Name**                              | **Address**                                                                                              | **Ownership**                       |
|---------------------------------------|----------------------------------------------------------------------------------------------------------|-------------------------------------|
| OBO                Holdings Ltd.      | Trust                Company Complex, Ajeltake Island. Majuro, Marshall Islands, MH                96960 | The                Guarantor (100%) |
| BHOBO                One Ltd.         | Trust                Company Complex, Ajeltake Island. Majuro, Marshall Islands, MH                96960 | OBO                Holdings (100%)  |
| BHOBO                Two Ltd.         | Trust                Company Complex, Ajeltake Island. Majuro, Marshall Islands, MH                96960 | OBO                Holdings (100%)  |
| BHOBO                Three Ltd.       | Trust                Company Complex, Ajeltake Island. Majuro, Marshall Islands, MH                96960 | OBO                Holdings (100%)  |
| RMJ                OBO Shipping Ltd.  | Trust                Company Complex, Ajeltake Island. Majuro, Marshall Islands, MH                96960 | OBO                Holdings (100%)  |
| Sagamore                Shipping Ltd. | Trust                Company Complex, Ajeltake Island. Majuro, Marshall Islands, MH                96960 | OBO                Holdings (100%)  |

**PART      II: ORIGINAL LENDERS AND COMMITMENTS**

| **Lenders:**                                                                                                                                                                            | **Commitments:**                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
| **DVB                Bank America NV**Zeelandia                Office ParkKaya                W.F.G. Mensing 14P.O.                Box 3107Curacao,                Netherlands Antilles | USD                40,000,000            |
| **The                Governor and Company of the Bank of Scotland**Pentland                House 8Lochside                AvenueEdinburghScotland                EH12 9DJ               | USD                40,000,000            |
| **HSH                Nordbank AG**Gerhart                Hauptmann Platz 5020095                HamburgGermany                                                                          | USD                40,000,000            |
| **Nordea                Bank Norge ASA**Middelthusgate                17N-0368                OsloNorway                                                                                | USD                82,000,000            |
|  Total:                                                                                                                                                                            |  **USD                202,000,000** |

**PART      III: ALLOCATED LOAN AMOUNTS**

| **Vessel**                                    | **Market                Value** | **Allocated                Loan Amount** |
|-----------------------------------------------|---------------------------------|------------------------------------------|
| “Rip                Hudner”       | USD                38,310,000   | USD                28,725,000            |
| “Bonnie                Smithwick” | USD                36,300,000   | USD                27,212,000            |
| “Searose                G”        | USD                38,310,000   | USD                28,725,000            |
| “Roger                M. Jones”   | USD                32,500,000   | USD                24,625,000            |
| “Sagamore”                        | USD                23,880,000   | USD                17,713,000            |
|                                          |                            |                                     |

----

**SCHEDULE      2**

**CONDITIONS      PRECEDENT**

**Part      I**

**Conditions      Precedent To initial Drawdown**

| **1  ** | **CORPORATE                AUTHORISATION** |
|-------------------|--------------------------------------------|

| **1.1  ** | **In                respect of****each                of the Borrowers, the Guarantor, the Charterers and the Charter                Guarantors:** |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| a)   | Certificate                of Incorporation/Certificate of                Registration; |
|----------------|-----------------------------------------------------------------------------------------|

| b)   | Memorandum                and Articles of                Association/Bye-laws; |
|----------------|--------------------------------------------------------------------------------|

| c)   | Resolutions                passed at a board meeting of the relevant Party                evidencing: |
|----------------|-------------------------------------------------------------------------------------------------------|

| (i)   | the                approval of the terms of, and the transactions contemplated by, the                Transaction Documents and the registration the Mortgage (if relevant);                and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the                authorisation of its appropriate officer or officers or other                representatives to execute the Transaction Documents and any other                documents necessary for the transactions contemplated by the Transaction                Documents, on its behalf; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Power                of Attorney (notarised and legalised); |
|----------------|-------------------------------------------------------------|

| e)   | Updated                Good Standing Certificate/Certificate of Compliance; |
|----------------|-----------------------------------------------------------------------------|

| f)   | Secretary’s                Certificate (notarised and legalised);                and |
|----------------|--------------------------------------------------------------------------------------------|

| g)   | A                specimen of the signature of each person authorised by the resolution                referred to in paragraph c) above. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| **2  ** | **AUTHORISATIONS** |
|-------------------|--------------------|

| **3  ** | **THE****EXISTING                VESSEL****S** |
|-------------------|------------------------------------------------|

| a)   | The                Charterparty; |
|----------------|----------------------------------|

| b)   | Evidence                (by way of transcript of registry) that the relevant Vessel is, or                will                be, registered in the name of the relevant Borrower in the Bahamas                Ship                Registry (or such other ship registry as approved by the Lenders),                that                the relevant Mortgage has been, or will in connection with the utilisation                of the first Drawdown be, executed and recorded with its intended                first                priority against the relevant Vessel and that no other encumbrances,                maritime liens, mortgages or debts whatsoever are registered against                the                relevant Vessel; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | An                updated class certificate related to the relevant Vessel from the                relevant                classification society, confirming that such Vessel is classed with                the                highest class in accordance with Clause 22.2 (Classification and                repairs),                free of extensions and overdue                recommendations; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Copies                of confirmations from the insurers (copies of the insurance policies/cover                notes to follow) documenting that insurance cover has been taken                out in                respect of the relevant Vessel in accordance with Clause 22.1 (Insurance),                and evidencing that the Agent’s (on behalf of the Finance Parties and the                Swap Bank) Security Interest in the insurance policies have been                noted in                accordance with the relevant notices as required under the Assignment                Agreement; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | A                report in form and scope acceptable to the Lenders from a firm of                marine                insurance brokers acceptable to the Lenders, with respect to the                insurance                maintained in respect of the Existing Vessels, together with a certificate                from such broker certifying that such                insurances: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | are                placed with insurance companies and/or underwriters and /or clubs,                in such                amounts, against such risks and in such form, as is acceptable to                the                Lenders; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | conform                with the requirements of Clause 22.1                (Insurances); |
|------------------|------------------------------------------------------------------------------------------|

| f)   | Market                Value evaluations from two (2) Approved Brokers, evidencing that                the total                Market Value of the Existing Vessels at the first Drawdown Date is                equal                to or greater than USD 169,300,000; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | The                relevant Vessel’s current SMC; |
|----------------|---------------------------------------------------------|

| h)   | The                Technical Manager’s current DOC; |
|----------------|-----------------------------------------------------------|

| i)   | The                ISPS Certificate. |
|----------------|--------------------------------------|

| **4  ** | **FINANCE                DOCUMENTS** |
|-------------------|--------------------------------------|

| a)   | The                Agreement; |
|----------------|-------------------------------|

| b)   | The                Assignment Agreement; |
|----------------|------------------------------------------|

| c)   | Notice                of Assignment and Acknowledgement in respect of the                Earnings; |
|----------------|----------------------------------------------------------------------------------------------------|

| d)   | Notice                of Assignment and Acknowledgement in respect of the                Insurances; |
|----------------|------------------------------------------------------------------------------------------------------|

| e)   | Notice                of Assignment and Acknowledgement in respect of the Charter                Guarantees; |
|----------------|--------------------------------------------------------------------------------------------------------------|

| f)   | The                Charterparty Assignments; |
|----------------|----------------------------------------------|

| g)   | Notice                of Assignment and Acknowledgement in respect of the                Charterparty; |
|----------------|--------------------------------------------------------------------------------------------------------|

| h)   | The                Account Charge; |
|----------------|------------------------------------|

| i)   | The                Mortgages; |
|----------------|-------------------------------|

| j)   | The                Deeds of Covenants; and |
|----------------|--------------------------------------------|

| k)   | The                Guarantee. |
|----------------|-------------------------------|

| **5  ** | **TRANSACTION                DOCUMENTS** |
|-------------------|------------------------------------------|

| a)   | The                Charter Guarantees; |
|----------------|----------------------------------------|

| b)   | The                Technical Management Agreements;                and |
|----------------|------------------------------------------------------------------------|

| c)   | The                Fee Letter(s). |
|----------------|-----------------------------------|

| **6  ** | **MISCELLANEOUS** |
|-------------------|-------------------|

| a)   | The                Drawdown Notice at least three (3) Business Days prior to the Drawdown                Date; |
|----------------|----------------------------------------------------------------------------------------------------------------|

| b)   | Evidence                that the Existing Vessels still employed under the respective                Charterparties and that the respective Charter Guarantee are in full                force                and effect; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Evidence                that all fees referred to in Clause 11 (Fees), as are payable on                or prior                to the first Drawdown Date, have or will be paid on its due                date; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | A                Compliance Certificate confirming that the Borrowers and the Guarantor                are                in compliance with the financial covenants as set out in Clause 20                (Financial covenants); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | The                effective interest letter. |
|----------------|-----------------------------------------------|

| f)   | Evidence                of capital structure of the Borrowers and the Guarantor satisfactory                to                the Agent; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | Evidence                of release of the Security Interest granted as security under the                Existing                Credit Facility; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | Evidence                that all required registrations and notifications have been made                under the                Security Documents in order to perfect the Security Interest contemplated                thereby, including transcripts from the relevant public registers; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)   | Appointment                of Wikborg Rein & Co. and the acceptance by Wikborg Rein & Co. as                the Borrowers’ process agent in Norway under the Finance Documents; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j)   | Appointment                of Wikborg Rein & Co. and the acceptance by Wikborg Rein & Co. as                the Guarantor’s process agent in Norway under the Guarantee;                and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k)   | Any                other documents as reasonably requested by the                Agent. |
|----------------|-----------------------------------------------------------------------------------------|

| **7  ** | **LEGAL                OPINIONS** |
|-------------------|-----------------------------------|

| a)   | A                legal opinion from Thommessen Krefting Greve Lund AS related to Norwegian                law issues; |
|----------------|-----------------------------------------------------------------------------------------------------------------------|

| b)   | A                legal opinion from Higgs & Johnson related to Bahamas law                issues; |
|----------------|-------------------------------------------------------------------------------------------------------|

| c)   | A                legal opinion from Seward & Kissel LLP related to Marshall Island law                issues; |
|----------------|-------------------------------------------------------------------------------------------------------------------|

| d)   | A                legal opinion from Seward & Kissel LLP related to Liberian law                issues; |
|----------------|------------------------------------------------------------------------------------------------------------|

| e)   | A                legal opinion from Prettys related to English law issues;                and |
|----------------|-----------------------------------------------------------------------------------------------|

| f)   | Any                such other favourable legal opinions in form and substance satisfactory                to                the Agent from lawyers appointed by the Agent on matters concerning                all                relevant jurisdictions. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Part      II**

**Conditions      Precedent Required to be**

**Delivered      by an Additional Borrower and/or in respect of a New Vessel**

| **1  ** | **CORPORATE                AUTHORISATION** |
|-------------------|--------------------------------------------|

| **1.1  ** | **In                respect of the Additional                Borrower:** |
|---------------------|--------------------------------------------------------------------------|

| a)   | Certificate                of Incorporation/Certificate of                Registration; |
|----------------|-----------------------------------------------------------------------------------------|

| b)   | Memorandum                and Articles of                Association/Bye-laws; |
|----------------|--------------------------------------------------------------------------------|

| c)   | Resolutions                passed at a board meeting of the relevant Additional Borrower                evidencing: |
|----------------|---------------------------------------------------------------------------------------------------------------------|

| (i)   | the                approval of the terms of, and the transactions contemplated by, the                Transaction Documents and the registration the Mortgage (if relevant);                and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the                authorisation of its appropriate officer or officers or other                representatives to execute the Transaction Documents and any other                documents necessary for the transactions contemplated by the Transaction                Documents, on its behalf; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Power                of Attorney (notarised and legalised); |
|----------------|-------------------------------------------------------------|

| e)   | Updated                Good Standing Certificate/Certificate of Compliance; |
|----------------|-----------------------------------------------------------------------------|

| f)   | Secretary’s                Certificate (notarised and legalised);                and |
|----------------|--------------------------------------------------------------------------------------------|

| g)   | A                specimen of the signature of each person authorised by the resolution                referred to in paragraph c) above. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| **1.2  ** | **In                respect of the Sellers:** |
|---------------------|-----------------------------------------------|

| a)   | Corporate                resolutions to the sale and delivery of the relevant New Vessel;                and |
|----------------|--------------------------------------------------------------------------------------------------------------|

| b)   | Power                of Attorney. |
|----------------|-----------------------------------|

| **2  ** | **AUTHORISATIONS** |
|-------------------|--------------------|

| **3  ** | **THE                NEW VESSELS** |
|-------------------|------------------------------------|

| a)   | The                MoA; |
|----------------|-------------------------|

| b)   | The                Protocol of Delivery and Acceptance under the                MoA; |
|----------------|--------------------------------------------------------------------------------------|

| c)   | The                Bill of Sale; |
|----------------|----------------------------------|

| d)   | The                Charterparty; |
|----------------|----------------------------------|

| e)   | The                Protocol of Delivery and Acceptance under the                Charterparty; |
|----------------|-----------------------------------------------------------------------------------------------|

| f)   | Evidence                (by way of transcript of registry) that the relevant New Vessel is,                or                will be, registered in the name of the relevant Additional Borrower                in the                Bahamas Ship Registry (or such other ship registry as approved by                the                Lenders), that the relevant Mortgage has been, or will in connection                with                the utilisation of the relevant Drawdown be, executed and recorded                with                its intended first priority against the relevant New Vessel and that                no                other encumbrances, maritime liens, mortgages or debts whatsoever                are                registered against the relevant New                Vessel; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | An                updated class certificate related to the relevant New Vessel from                the                relevant classification society, confirming that such Vessel is classed                with the highest class in accordance with Clause 22.2 (Classification                and                repairs), free of extensions and overdue                recommendations; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | Copies                of confirmations from the insurers (copies of the insurance policies/cover                notes to follow) documenting that insurance cover has been taken                out in                respect of the relevant Vessel in accordance with Clause 22.1 (Insurance),                and evidencing that the Agent’s (on behalf of the Finance Parties and the                Swap Bank) Security Interest in the insurance policies have been                noted in                accordance with the relevant notices as required under the Assignment                Agreement; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)   | A                report in form and scope acceptable to the Lenders from a firm of                marine                insurance brokers acceptable to the Lenders, with respect to the                insurance                maintained in respect of the relevant New Vessel, together with a                certificate from such broker certifying that such                insurances: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | are                placed with insurance companies and/or underwriters and /or clubs,                in such                amounts, against such risks and in such form, as is acceptable to                the                Lenders; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | conform                with the requirements of Clause 22.1                (Insurances); |
|------------------|------------------------------------------------------------------------------------------|

| j)   | The                relevant New Vessel’s current SMC; |
|----------------|-------------------------------------------------------------|

| k)   | The                ISPS Certificate; and |
|----------------|------------------------------------------|

| l)   | Deletion                Certificate from the current ship registry (if                applicable). |
|----------------|----------------------------------------------------------------------------------------------------|

| **4  ** | **FINANCE                DOCUMENTS** |
|-------------------|--------------------------------------|

| a)   | The                Assignment Agreement (or an amendment                thereto); |
|----------------|-----------------------------------------------------------------------------------|

| b)   | Notice                of Assignment and Acknowledgement in respect of the                Earnings; |
|----------------|----------------------------------------------------------------------------------------------------|

| c)   | Notice                of Assignment and Acknowledgement in respect of the                Insurances; |
|----------------|------------------------------------------------------------------------------------------------------|

| d)   | Notice                of Assignment and Acknowledgement in respect of the Charter                Guarantees; |
|----------------|--------------------------------------------------------------------------------------------------------------|

| e)   | The                Charterparty Assignment (or an amendment                thereto); |
|----------------|--------------------------------------------------------------------------------------|

| f)   | Notice                of Assignment and Acknowledgement in respect of the                Charterparty; |
|----------------|--------------------------------------------------------------------------------------------------------|

| g)   | The                Account Charge; |
|----------------|------------------------------------|

| h)   | The                Mortgage; |
|----------------|------------------------------|

| i)   | The                Deed of Covenants; and |
|----------------|-------------------------------------------|

| j)   | An                Accession Letter, duly executed by the Additional Borrower and OBO                Holdings Ltd. |
|----------------|-------------------------------------------------------------------------------------------------------------------|

| **5  ** | **TRANSACTION                DOCUMENTS** |
|-------------------|------------------------------------------|

| a)   | The                Charter Guarantee; and |
|----------------|-------------------------------------------|

| b)   | The                Technical Management Agreement. |
|----------------|----------------------------------------------------|

| **6  ** | **MISCELLANEOUS** |
|-------------------|-------------------|

| a)   | The                Drawdown Notice at least three (3) Business Days prior to the relevant                Drawdown Date; |
|----------------|-------------------------------------------------------------------------------------------------------------------------|

| b)   | Evidence                that all fees referred to in Clause 11 (Fees), as are payable on                or prior                to the relevant Drawdown Date, have or will be paid on its due                date; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | A                Compliance Certificate confirming that the Borrowers and the Guarantor                are                in compliance with the financial covenants as set out in Clause 20                (Financial covenants); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Evidence                of the Market Value of such New Vessel, issued no later than two                (2)                months prior to the proposed Drawdown                Date; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | Appointment                of Wikborg Rein & Co. and the acceptance by Wikborg Rein & Co. as                the Additional Borrower’s process agent in Norway under the Finance                Documents; and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | Any                other documents as reasonably requested by the                Agent. |
|----------------|-----------------------------------------------------------------------------------------|

| **7  ** | **LEGAL                OPINIONS** |
|-------------------|-----------------------------------|

| a)   | A                legal opinion from Higgs & Johnson related to Bahamas law                issues; |
|----------------|-------------------------------------------------------------------------------------------------------|

| b)   | A                legal opinion from Seward & Kissel LLP related to Marshall Island law                issues; |
|----------------|-------------------------------------------------------------------------------------------------------------------|

| c)   | A                legal opinion from Prettys related to English law issues;                and |
|----------------|-----------------------------------------------------------------------------------------------|

| d)   | Any                such other favourable legal opinions in form and substance satisfactory                to                the Agent from lawyers appointed by the Agent on matters concerning                all                relevant jurisdictions. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SCHEDULE      3**

**FORM      OF DRAWDOWN NOTICE**

**USD      202,000,000 REDUCING REVOLVING CREDIT FACILITY AGREEMENT DATED 29 AUGUST 2006      (THE “AGREEMENT”)**

| a)   | You                are hereby irrevocably notified that we wish to make the following                drawdown of a Drawdown under: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                proceeds of the Loan shall be credited to [•] [*insert                name and number of account*]. |
|----------------|------------------------------------------------------------------------------------------------------------------------------|

| c)   | We                confirm that, as of the date hereof (i) each condition specified                in Clause                4 (Conditions Precedent) of the Agreement is satisfied; (ii) each                of the                representations and warranties set out in Clause 18 (Representations                and                warranties) of the Agreement is true and correct; and (iii) no event                or                circumstances has occurred and is continuing which constitute or                may                constitute an Event of Default. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SCHEDULE      4**

**FORM      OF COMPLIANCE CERTIFICATE**

*To      be      delivered no later than [one hundred and twenty (120) /forty-five (45)] days      after each Reporting Date*

**USD      202,000,000 REDUCING REVOLVING CREDIT FACILITY AGREEMENT DATED 29 AUGUST 2006      (THE “AGREEMENT”)**

| **a)  ** | **Minimum                Value Adjusted Equity Ratio**.                The Minimum Value Adjusted Equity Ratio of the Guarantor (on a                consolidated basis) was [•]. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **b)  ** | **Minimum                Value Adjusted Equity Ratio**.                The Minimum Value Adjusted Equity of the Guarantor (on a consolidated                basis) was USD [•]. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **c)  ** | **Ratio                EBITDA to Fixed Charges**.                The ratio of EBITDA to Fixed Charges of the Guarantor (on a consolidated                basis) was [•]. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **d)  ** | **Positive                working capital.**The                working capital of the the Guarantor (on a consolidated basis) was                [·]. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **e)  ** | **[Minimum                value**.                The Market Value of the Vessels pursuant to the attached survey is                [•]. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| **f)  ** | **Cash                and Cash Equivalents.**The                Cash and Cash Equivalent of the Guarantor (on a consolidated basis)                is                [·]. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **g)  ** | **Insurance.**                We                confirm that each of the Vessels is insured against such risks and                in such                amounts as set out in Appendix 1 hereto. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | We                confirm that, as of the date hereof (i) each of the representations                and                warranties set out in Clause 18 (Representations and warranties)                of the                Agreement is true and correct; and (ii) no event or circumstances                has                occurred and is continuing which constitute or may constitute an                Event of                Default. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Appendix      1**

| **Name                of Vessel**                             | **Hull                & Machinery**  | **Increased                Value**  | **Loss                of Hire**  | **Protection                & Indemnity**  | **War                Risk**  |
|--------------------------------------------------------------------|-----------------------------------------------|------------------------------------------|---------------------------------------|-----------------------------------------------------|-----------------------------------|
| M/V                “-Rip Hudner ”                 | **Insurer:**                             | **Amount:**                         | **Insurer:**                     | **Amount:**                                    | **Insurer:**                 | **Amount:**  | **Insurer:**  | **Amount:**  | **Insurer:**  | **Amount:**  |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
| MV                “Bonnie Smith- wick”  | **Insurer:**                             | **Amount:**                         | **Insurer:**                     | **Amount:**                                    | **Insurer:**                 | **Amount:**  | **Insurer:**  | **Amount:**  | **Insurer:**  | **Amount:**  |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
| MV                “Searose G”                     | **Insurer:**                             | **Amount:**                         | **Insurer:**                     | **Amount:**                                    | **Insurer:**                 | **Amount:**  | **Insurer:**  | **Amount:**  | **Insurer:**  | **Amount:**  |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
| MV                “Roger M. Jones”                |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
| MT                “Saga-more”                     |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |
|                                                               |                                          |                                     |                                  |                                                |                              |   |   |   |   |   |

**SCHEDULE      **
**5**

**FORM      OF TRANSFER CERTIFICATE**

**Existing      Lender**
**New      Lender**

**USD      202,000,000 REDUCING REVOLVING CREDIT FACILITY AGREEMENT DATED 29 AUGUST 2006      (THE “AGREEMENT”)**

| a)   | The                Existing Lender, in its capacity as Lender under the Agreement, confirms                that it participates with []                per cent of the Total Commitments. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Existing Lender hereby transfers to the New Lender []                per cent of the Total Commitments as specified in the Schedule hereto,                and                of the equivalent rights and interest in all Finance Documents, and                the                New Lender hereby accepts such transfer from the Existing Lender                in                accordance with the terms set out herein and Clause 24 (Changes to                the                Lenders) of the Agreement and assumes the same obligations to the                other                Finance Parties as it would have been under if it was an original                Lender. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                proposed Transfer Date is [],                as from which date the Transfer of such portion of the Total Commitments                shall take full legal effect. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | The                New Lender confirms that it has received a copy of the Agreement,                together                with such other information as it has required in connection with                this                transaction. The New Lender expressly acknowledges and agrees to                the                limitations on the Existing Lender’s responsibility set out in Clause 24.2                (Limitations of responsibility of Existing Lenders) of the                Agreement. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | The                New Lender hereby undertakes to the Existing Lender and the Borrowers                that                it will perform in accordance with the terms and conditions of the                Agreement all those obligations which will be assumed by it upon                execution                of this Transfer Certificate. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | The                address, telefax number and attention details for notices, as well                as the                account details of the New Lender, are set out in the Schedule. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | This                Transfer Certificate is governed by Norwegian law, with Oslo City                Court                (*Oslo                tingrett*)                as legal venue. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**The      Schedule**

**Commitments/rights      and obligations to be transferred**

| **I**   | **Existing                Lender:**                      | [                ]     |
|---------|----------------------------------------------------------|------------------------|
|    |                                                     |                   |
| **II**  | **New                Lender:**                           | [                ]     |
|    |                                                     |                   |
| **III** | **Total                Commitments of Existing Lender:** | USD                [ ] |
|    |                                                     |                   |
| **IV**  | **Aggregate                amount transferred:**         | USD                [ ] |
|    |                                                     |                   |
| **V**   | **Total                Commitments of New Lender:**      | USD                [ ] |
|    |                                                     |                   |
| **VI**  | **Transfer                Date:**                        | [                ]     |

**Administrative      Details / Payment Instructions of New Lender**

**Existing      Lender**
**New      Lender**

**Agent:**
**Borrowers**

**SCHEDULE      6**

**FORM      OF ACCESSION LETTER **

**USD      202,000,000 REDUCING REVOLVING CREDIT FACILITY AGREEMENT DATED 29 AUGUST 2006      (THE “AGREEMENT”)**

| 1   | We                refer to the Agreement. This is an Accession Letter. Terms defined                in the                Agreement have the same meaning in this Accession Letter unless given                a                different meaning in this Accession                Letter. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | [*Name                of Subsidiary*]                agrees to become an Additional Borrower and to be bound by the terms                of                the Agreement as an Additional Borrower pursuant to Clause 25.2                (Additional Borrowers) of the Agreement. [*Name                of Subsidiary*]                is a company duly incorporated under the laws of [*name                of relevant jurisdiction*]. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | [*Name                of Subsidiary*]’s                administrative details are as                follows: |
|---------------|--------------------------------------------------------------------------------------------------------------------|

| 4   | This                Accession Letter is governed by Norwegian                law. |
|---------------|-----------------------------------------------------------------------------------|

*Name      of Subsidiary*

**SCHEDULE      7**

**SCHEDULED      REDUCTIONS **

| **Reduction                No.**                                            |       | Today                  |                     | 1                *)      | 2                        | 3                        | 4                        | 5                        | 6                        | 7                        | 8                        | 9                        | 10                       |
|-----------------------------------------------------------------------------|------------|------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|--------------------------|
| ($1000)                                                                     |       | jun.                06 | sep.                06   | des.                06   | mar.                07   | jun.                07   | sep.                07   | des.                07   | mar.                08   | jun.                08   | sep.                08   | des.                08   | mar.                09   |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
|                                                                        | Principal  | 84                662  | 84                662    | 81                362    | 78                062    | 74                762    | 71                462    | 68                162    | 64                862    | 61                562    | 58                262    | 54                962    | 51                662    |
| ***Existing                Vessels***                                       |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| M/V                “Rip Hudner”                                 | Reductions |                   |                     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     |
| M/V                “Bonnie Smithwick”                           | Reductions |                   |                     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     |
| M/V                “Searose G”                                  | Reductions |                   |                     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     |
|                                                                        |       |                   |                     | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| M/V                ”Roger M. Jones”                             | Principal  | 24                625  | 24                625    | 23                425    | 22                225    | 21                025    | 19                825    | 18                625    | 17                425    | 16                225    | 15                025    | 13                825    | 12                625    |
|                                                                        | Reductions |                   |                     | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| M/V                “Sagamore”                                   | Principal  | 17                713  | 17                713    | 16                763    | 15                813    | 14                863    | 13                913    | 12                963    | 12                013    | 11                063    | 10                113    | 9                163     | 8                213     |
|                                                                        | Reductions |                   |                     | **950**                  | **950**                  | **950**                  | **950**                  | **950**                  | **950**                  | **950**                  | **950**                  | **950**                  | **950**                  |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| ***New                Vessel***                                             |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| M/V                “Sibohelle” (tbr “Sakonnet”) **) | Principal  |                   |                     | 27                000    | 25                750    | 24                500    | 23                250    | 22                000    | 20                750    | 19                500    | 18                250    | 17                000    | 15                750    |
|                                                                        | Reductions |                   |                     |                     | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** |
|                                                                        |       | 127                000 | 127                000   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| **Reduction                No.**                                            |       |                   | 11                       | 12                       | 13                       | 14                       | 15                       | 16                       | 17                       | 18                       | 19                       | 20                       | 21                       |
| ($1000)                                                                     |       |                   | jun.                09   | sep.                09   | des.                09   | mar.                10   | jun.                10   | sep.                10   | des.                10   | mar.                11   | jun.                11   | sep.                11   | des.                11   |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
|                                                                        | Principal  |                   | 48                362    | 45                062    | 41                762    | 38                462    | 35                162    | 31                862    | 28                562    | 25                262    | 21                962    | 18                662    | 15                362    |
| ***Existing                Vessels***                                       |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| M/V                “Rip Hudner”                                 | Reductions |                   | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     |
| M/V                “Bonnie Smithwick”                           | Reductions |                   | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     |
| M/V                “Searose G”                                  | Reductions |                   | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     | 1                100     |
|                                                                        |       |                   | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** | **3                300** |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| M/V                ”Roger M. Jones”                             | Principal  |                   | 11                425    | 10                225    | 9                025     | 7                825     | 6                625     | 5                425     | 4                225     | 3                025     | 1                825     | 625                      | -                        |
|                                                                        | Reductions |                   | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **1                200** | **625**                  |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| M/V                “Sagamore”                                   | Principal  |                   | 7                613     | 7                013     | 6                413     | 5                813     | 5                213     | 4                613     | 4                013     | 3                413     | 2                813     | 2                213     | 1                613     |
|                                                                        | Reductions |                   | **600**                  | **600**                  | **600**                  | **600**                  | **600**                  | **600**                  | **600**                  | **600**                  | **600**                  | **600**                  | **600**                  |
|                                                                        |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| ***New                Vessel***                                             |       |                   |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |                     |
| M/V                “Sibohelle” (tbr “Sakonnet”) **) | Principal  |                   | 14                500    | 13                250    | 12                000    | 10                750    | 9                500     | 8                250     | 7                000     | 5                750     | 4                500     | 3                250     | 2                000     |
|                                                                        | Reductions |                   | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** | **1                250** |

** **

**SCHEDULE      **
**8**

**FORM      OF ASSIGNMENT AGREEMENT**

**THIS      ASSIGNMENT AGREEMENT **
**Assignment      Agreement**

**OBO      Holdings Ltd.**
** **

**BHOBO      One Ltd.**

**BHOBO      Two Ltd. **

**BHOBO      Three Ltd.**

**RMJ      OBO SHIPPING LTD.**

**SAGAMORE      SHIPPING LTD.**

**Borrowers**

**Nordea      Bank Norge ASA **
**Agent**

**Background**

**Agreement**
**Lenders**
**Swap      Bank**
**Agent**
**Arranger**
**Loans**

**NOW      THEREFORE**

| **1  ** | **INTERPRETATION** |
|-------------------|--------------------|

| **1.1  ** | **Definitions** |
|---------------------|-----------------|

| **1.2  ** | **Construction** |
|---------------------|------------------|

| a)   | reference                to Clauses or Appendices are to be construed as references to clauses                or                appendices of this Assignment Agreement unless otherwise                stated; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | references                to (or to any specified provision of) this Assignment Agreement or                any                other document shall be construed as references to this Assignment                Agreement, that provision or that document as from time to time amended;                and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | words                importing the plural shall include the singular and vice                versa. |
|----------------|-----------------------------------------------------------------------------------------------------|

| **2  ** | **ASSIGNMENT                OF EARNINGS, INSURANCES****AND CHARTER GUARANTEE****S** |
|-------------------|-------------------------------------------------------------------------------------|

| **2.1  ** | **Assignment** |
|---------------------|----------------|

| a)   | the                Earnings; |
|----------------|------------------------------|

| b)   | the                Insurances, and |
|----------------|------------------------------------|

| c)   | any                and all rights to receive any monies under the Charter Guarantees                (the                “**Charter                Guarantees**”). |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.2  ** | **Notice                and acknowledgement, etc.** |
|---------------------|-----------------------------------------------------|

| a)   | The                Borrowers undertake promptly to give notice of the assignment of                the                Earnings to the Charterers and any other third party from which any                of the                Earnings or amounts may become payable in the form set out in Appendix                1(A)                hereto and procure that any recipient of such notice acknowledges                receipt                of the notice as set out therein in the form of Appendix                1(B)                hereto. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Borrowers undertake to insure and keep the Vessels fully insured                in                accordance with Clause 22.1 (Insurance) of the Agreement;                and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | in                the event that the Insurances, or any one of them, have been taken                out on                conditions other than the Norwegian Marine Insurance Plan of 1996,                version                2003 (as amended from time to time) (the “**Plan**”),                to give all the relevant insurers notice in the form of Appendix                2 (A)                hereto, and procure that the said insurers acknowledge receipt of                such                notice in the form of Appendix                2 (B)                hereto or give such other form of notice and procure such other form                of                acknowledgement as the Agent shall require in writing to the Borrowers;                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | in                the event that the Insurances, or any one of them, have been taken                out                according to the Plan, to procure written statements from all the                relevant                insurers and/or approved brokers confirming that the Agent (on behalf                of                the Finance Parties and the Swap Bank) has been duly registered as                co-insured first priority mortgagee on all such insurance policies                taken                out for the Vessels and that notice according to the Plan has been                duly                received by all the relevant                insurers. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                Borrowers undertake promptly to give notice of the assignment of                the                Charter Guarantees to the Charter Guarantors in the form set out                in                Appendix                3 (A)                hereto and procure that the Charter Guarantor acknowledged receipt                of the                notice as set out in therein in the form of Appendix                3 (B)                hereto. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.3  ** | **Loss                Payable** |
|---------------------|---------------------------------|

| **3  ** | **PLEDGE                OF ACCOUNT****S** |
|-------------------|-------------------------------------------|

| **3.1  ** | **Pledge** |
|---------------------|------------|

**Pledged      Accounts**

| **3.2  ** | **Drawings** |
|---------------------|--------------|

| **3.3  ** | **Blocking                upon Event of Default** |
|---------------------|---------------------------------------------------|

| **4  ** | **MAXIMUM                LIABILITY** |
|-------------------|--------------------------------------|

| **5  ** | **WAIVER                OF RIGHTS** |
|-------------------|-------------------------------------|

| **6  ** | **PERFECTION** |
|-------------------|----------------|

| **7  ** | **ENFORCEMENT** |
|-------------------|-----------------|

| a)   | immediately                sell, dispose, collect, transfer ownership to all or any of the claims                pledged in favour of the Agent (on behalf of the Finance Parties                and the                Swap Bank) under this Assignment Agreement (the “**Claims**”),                as provided for in the Financial Securities Act;                and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | apply                any and all proceeds from the Claims in satisfaction of all amounts                owing                to the Finance Parties in accordance with the Agreement and to the                Swap                bank in accordance with the relevant Swap Agreement, and keep and                hold any                surplus as security for any amount owing (actual or contingent) in                accordance with the Agreement but not yet due. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8  ** | **ASSIGNMENT** |
|-------------------|----------------|

| **9  ** | **NO                FURTHER ASSIGNMENT OR                PLEDGE** |
|-------------------|-------------------------------------------------------------------|

| **10  ** | **ADDITIONAL                AND CONTINUING SECURITY** |
|--------------------|-------------------------------------------------------|

| **11  ** | **MISCELLANEOUS** |
|--------------------|-------------------|

| a)   | Each                of the Borrowers hereby specifically agrees and accepts that the                nature of                their liability hereunder being joint and several shall not be affected                by                any reason or circumstances of legal or factual nature, including,                but not                limited to: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any                waiver granted to the other Borrowers, the Guarantor or any other                third                party; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any                failure to enforce any rights, remedy or security against any of                the other                Borrowers, the Guarantor or any other third                party; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | any                legal limitation, incapacity or other circumstances relating to any                of the                other Borrowers, the Guarantor or any other third                party; |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | the                liquidation, bankruptcy, insolvency or dissolution or the appointment                of                receiver for any of the other Borrowers, the Guarantor or any other                third                party; or |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | the                Agreement or any of the Finance Documents becoming invalid or                unenforceable against any of the other Borrowers and/or the Guarantor. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Each                of the Borrowers specifically waives all rights under the provisions                of                the FA Act not being mandatory provisions, including (but not limited                to)                the relevant provisions of §§ 62, 63, 65, 66, 67, 70, 71, 72, 73 and 74. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Each                of the Borrowers acknowledges and agrees that it has full knowledge                of the                cross-default provision in the Agreement, and of the security which                is to                be granted in respect of the amounts outstanding under the Agreement                and                as listed in Clause 17 (Security) of the                Agreement. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **12  ** | **NOTICES** |
|--------------------|-------------|

| **13  ** | **GOVERNING                LAW - JURISDICTION**** ** |
|--------------------|-----------------------------------------------------------|

*Oslo      tingrett*

----

**Borrowers**
**Agent**

----

**Appendix      1 (A)**

**FORM      OF NOTICE OF ASSIGNMENT**

**(Assignment      of Earnings)**

**M/V      “[**
**]”**

**Charterparty**
**Vessel**

| a)   | by                an agreement dated 29 August 2006 (the “**Assignment                Agreement**”)                made between among others us and Nordea Bank Norge ASA, Middelthunsgt.                17,                N-0368 Oslo, Norway, acting as agent on behalf of certain other banks                and                swap bank (the “**Agent**”),                related to a loan agreement of even date (the “**Agreement**”)                and any Swap Agreement (as defined in the Agreement) made or to be                entered                into with the Swap Bank (as defined in the Agreement), we have assigned                absolutely and have agreed to assign absolutely to and in favour                of the                Agent all our rights, title and interest, present and future, to                all                payments to be made to us under the Charterparty, including in respect                of                any breach by you thereunder; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | you                are herby irrevocably authorised and instructed to make all payments                under                the Charterparty to our account with Nordea Bank Finland Plc., London                Branch account no [•]until such time as the Agent shall direct to the                contrary whereupon all instructions or demands for actions shall                be made                by the Agent and payments are due to the Agent or as it may                direct. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**[**
**]**

----

**Appendix      1 (B)**

**FORM      OF ACKNOWLEDGEMENT**

**(Assignment      of Earnings)**

**MV      “[**
**·**
**]”**

*Alternatively:      *

----

**Appendix      2 (A)**

**FORM      OF NOTICE OF ASSIGNMENT**

**(Assignment      of Insurances)**

**M/V      [**
**]**

**Owner**
**Vessel**
**Mortgagee**
**Assignment      Agreement**
**Agreement**

**[**
**]**

----

**Appendix      2 (B)**

**FORM      OF ACKNOWLEDGEMENT**

**(Assignment      of Insurances)**

**MV      “[**
**·**
**]”**

**Notice**
**Owner**
**Vessel**

----

**Appendix      3 (A)**

**FORM      OF NOTICE OF ASSIGNMENT**

**(Assignment      of Charter Guarantee)**

**M/V      “[**
**]”**

**Charter      Guarantee**
**Charterers**
**Vessel**

| a)   | by                an agreement dated 29 August 2006 (the “**Assignment                Agreement**”)                made between among others us and Nordea Bank Norge ASA, Middelthunsgt.                17,                N-0368 Oslo, Norway, acting as agent on behalf of certain other banks                and                swap bank (the “**Agent**”),                related to a loan agreement of even date (the “**Agreement**”)                and any Swap Agreement (as defined in the Agreement) made or to be                entered                into with the Swap Bank (as defined in the Agreement), we have assigned                absolutely and have agreed to assign absolutely to and in favour                of the                Agent all our rights, title and interest, present and future, to                all                payments to be made to us under the Charter Guarantee, including                in                respect of any breach by you thereunder;                and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | you                are herby irrevocably authorised and instructed to make all payments                under                the Charter Guarantee to our account with Nordea Bank Finland Plc.,                London                Branch account no [•]until such time as the Agent shall direct to the                contrary whereupon all instructions or demands for actions shall                be made                by the Agent and payments are due to the Agent or as it may                direct. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**[**
**]**

----

**Appendix      3 (B)**

**FORM      OF ACKNOWLEDGEMENT**

**(Assignment      of Charter Guarantee)**

**MV      “[**
**·**
**]”**

*Alternatively:      *

----

**Appendix      4**

**LIST      OF PLEDGED ACCOUNTS**

| **Account                Holder**      | **Account                Number**  | **Bank**                              |
|---------------------------------------------|-----------------------------------------|--------------------------------------------|
| OBO                Holdings Ltd.       | 6019.04.44107                      | Nordea                Bank Norge ASA  |
| RMJ                OBO Shipping Ltd.   | 6012.04.43049                      | Nordea                Bank Norge ASA  |
| Sagamore                Shipping Ltd.  | 6012.04.43057                      | Nordea                Bank Norge ASA  |

**SCHEDULE      9**

**MANDATORY      COST FORMULAE **

| 1   | The                Mandatory Cost is an addition to the interest rate to compensate                Lenders                for the cost of compliance with (a) the requirements of the Bank                of                England and/or the Financial Services Authority (or, in either case,                any                other authority which replaces all or any of its functions) or (b)                the                requirements of the European Central                Bank. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | On                the first day of each Interest Period (or as soon as possible thereafter)                the Agent shall calculate, as a percentage rate, a rate (the "**Additional                Cost Rate**")                for each Lender, in accordance with the paragraphs set out below.                The                Mandatory Cost will be calculated by the Agent as a weighted average                of                the Lenders' Additional Cost Rates (weighted in proportion to the                percentage participation of each Lender in the relevant Loan) and                will be                expressed as a percentage rate per                annum. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | The                Additional Cost Rate for any Lender lending from a Facility Office                in a                Participating Member State will be the percentage notified by that                Lender                to the Agent. This percentage will be certified by that Lender in                its                notice to the Agent to be its reasonable determination of the cost                (expressed as a percentage of that Lender's participation in all                Loans                made from that Facility Office) of complying with the minimum reserve                requirements of the European Central Bank in respect of loans made                from                that Facility Office. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | The                Additional Cost Rate for any Lender lending from a Facility Office                in the                United Kingdom will be calculated by the Agent as                follows: |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)   | in                relation to a sterling Loan: |
|----------------|------------------------------------------------|

| b)   | in                relation to a Loan in any currency other than                sterling: |
|----------------|------------------------------------------------------------------------------------------|

| 5   | For                the purposes of this Schedule: |
|---------------|---------------------------------------------------|

| a)   | "**Eligible                Liabilities**"                and "**Special                Deposits**"                have the meanings given to them from time to time under or pursuant                to the                Bank of England Act 1998 or (as may be appropriate) by the Bank of                England; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | "**Fees                Rules**"                means the rules on periodic fees contained in the FSA Supervision                Manual                or such other law or regulation as may be in force from time to time                in                respect of the payment of fees for the acceptance of                deposits; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | "**Fee                Tariffs**"                means the fee tariffs specified in the Fees Rules under the activity                group                A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee                required                pursuant to the Fees Rules but taking into account any applicable                discount                rate); and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | "**Tariff                Base**"                has the meaning given to it in, and will be calculated in accordance                with,                the Fees Rules. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | In                application of the above formulae, A, B, C and D will be included                in the                formulae as percentages (i.e. 5 per cent. will be included in the                formula                as 5 and not as 0.05). A negative result obtained by subtracting                D from B                shall be taken as zero. The resulting figures shall be rounded to                four                decimal places. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | If                requested by the Agent, each Reference Bank shall, as soon as practicable                after publication by the Financial Services Authority, supply to                the                Agent, the rate of charge payable by that Reference Bank to the Financial                Services Authority pursuant to the Fees Rules in respect of the relevant                financial year of the Financial Services Authority (calculated for                this                purpose by that Reference Bank as being the average of the Fee Tariffs                applicable to that Reference Bank for that financial year) and expressed                in pounds per £1,000,000 of the Tariff Base of that Reference                Bank. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | Each                Lender shall supply any information required by the Agent for the                purpose                of calculating its Additional Cost Rate. In particular, but without                limitation, each Lender shall supply the following information on                or prior                to the date on which it becomes a                Lender: |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)   | the                jurisdiction of its Facility Office;                and |
|----------------|----------------------------------------------------------------------------|

| b)   | any                other information that the Agent may reasonably require for such                purpose. |
|----------------|-------------------------------------------------------------------------------------------------------------|

| 9   | The                percentages of each Lender for the purpose of A and C above and the                rates                of charge of each Reference Bank for the purpose of E above shall                be                determined by the Agent based upon the information supplied to it                pursuant                to paragraphs 7 and 8 above and on the assumption that, unless a                Lender                notifies the Agent to the contrary, each Lender's obligations in                relation                to cash ratio deposits and Special Deposits are the same as those                of a                typical bank from its jurisdiction of incorporation with a Facility                Office                in the same jurisdiction as its Facility                Office. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | The                Agent shall have no liability to any person if such determination                results                in an Additional Cost Rate which over or under compensates any Lender                and                shall be entitled to assume that the information provided by any                Lender or                Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and                correct                in all respects. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | The                Agent shall distribute the additional amounts received as a result                of the                Mandatory Cost to the Lenders on the basis of the Additional Cost                Rate for                each Lender based on the information provided by each Lender and                each                Reference Bank pursuant to paragraphs 3, 7 and 8                above. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12   | Any                determination by the Agent pursuant to this Schedule in relation                to a                formula, the Mandatory Cost, an Additional Cost Rate or any amount                payable                to a Lender shall, in the absence of manifest error, be conclusive                and                binding on all Parties. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13   | The                Agent may from time to time, after consultation with the Company                and the                Lenders, determine and notify to all Parties any amendments which                are                required to be made to this Schedule in order to comply with any                change in                law, regulation or any requirements from time to time imposed by                the Bank                of England, the Financial Services Authority or the European Central                Bank                (or, in any case, any other authority which replaces all or any of                its                functions) and any such determination shall, in the absence of manifest                error, be conclusive and binding on all                Parties. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SCHEDULE      10**

**FORM      OF GUARANTEE **

**Guarantee**

**B+H      Ocean Carriers Ltd.**
**Guarantor**

**Nordea      Bank Norge ASA**
**Agent**

**WHEREAS**

**Agreement**
**Borrowers**
**Lenders**
**Swap      Bank**
**Agent**
**Arranger**
**Loan**

**IT      IS AGREED AS FOLLOWS:**

| **1  ** | **DEFINITIONS** |
|-------------------|-----------------|

| **2  ** | **GUARANTEE** |
|-------------------|---------------|

| **2.1  ** | **Guarantee                obligations** |
|---------------------|------------------------------------------|

*selvskyldnerkausjonist*

| a)   | the                due and punctual payment by the Borrowers of any and all sums which                are                now or at any time hereafter will be payable by any of the Borrowers                under                or in respect of the Finance Documents in accordance with the terms                and                provisions thereof (including, without limitation, principal, interest,                default interest, legal fees and other fees, Break Costs, transaction                and                enforcement costs and any other costs, expenses, Taxes and Tax                indemnities, currency indemnities and any other indemnities, claims                for                damages and any other costs and expenses in respect of any Event                of                Default or any other breach by any of the Borrowers under the Finance                Documents or any Swap Agreement); |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                due and punctual performance by the Borrowers of all of the Borrowers’                obligations under or in respect of the Finance Documents and any                Swap                Agreement; and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | to                indemnify each Finance Party and the Swap Bank immediately upon the                Agent’s first written demand against any loss, liability, costs and                expenses suffered, incurred or paid by that Finance Party or the                Swap Bank                if any obligation of the Guarantor is or becomes unenforceable, invalid                or                illegal, |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Outstanding      Indebtedness**

| **2.2  ** | **Payment                upon first demand** |
|---------------------|----------------------------------------------|

| **2.3  ** | **No                limitation on number of                demands** |
|---------------------|----------------------------------------------------------------------|

| **2.4  ** | **Maximum                guarantee liability** |
|---------------------|------------------------------------------------|

| **3  ** | **SURVIVAL                OF THE GUARANTOR’S                LIABILITY** |
|-------------------|-------------------------------------------------------------------------------|

| **3.1  ** | **Continuing                guarantee** |
|---------------------|-----------------------------------------|

| **3.2  ** | **No                discharge** |
|---------------------|---------------------------------|

| a)   | any                total or partial invalidity, irregularity, illegality, unenforceability,                imperfection or avoidance of or any defect in any security granted                by, or                the obligation of the Borrowers, the Finance Parties, the Swap Bank                or any                other person under the Finance Documents, any Swap Agreement or any                other                document or security; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | any                time, waiver, consent or other indulgence granted to any of the Borrowers                or any other person or any composition or arrangement made by any                Finance                Party, the Swap Bank or any other person with the Borrowers or any                other                person; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | any                increase or reduction of the amount of the Loan, or variation of                the terms                and conditions for its repayment (including without limitation, the                rate                and/or method of calculation of interest payable on the                Loan); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | any                amendment, modification, replacement, supplement, variation, compromise,                extension or renewal of any Finance Document or any Swap Agreement                or any                right against any security over any assets of any of the Borrowers                or any                other person; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | any                refusal or neglect to take up or perfect or enforce or any release,                indulgence or other relief granted under any Finance Document or                any Swap                Agreement or any rights against or any security over any assets of                any of                the Borrowers or any other person or any failure to realize the full value                of any security; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | any                transfer, assignment, assumption or novation of rights and obligations                under the Finance Documents by any of the Borrowers, a Lender or                any other                person; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | any                incapacity or lack of power, authority or legal personality of or                dissolution or change in the members or status of any of the Borrowers,                a                Lender, the Swap Bank or any other                person; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | any                corporate reorganisation, reconstruction, amalgamation, dissolution,                merger, acquisition or any other alteration in the corporate existence                or                structure of any of the Finance Parties, the Swap Bank, the Borrowers                or                any other person; or |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)   | any                insolvency or similar proceedings concerning any of the Borrowers,                a                Lender, the Swap Bank or any other                person. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.3  ** | **Waiver** |
|---------------------|------------|

| a)   | §                62 (1) (a) (to be notified of any security the giving of which was                a                precondition for the advance of the Loan, but which has not been                validly                granted or has lapsed); |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | §                63 (1) - (2) (to be notified of any Event of Default under the Agreement                or any Swap Agreement and to be kept informed                thereof); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | §                63 (3) (to be notified of any extension granted to any of the Borrowers                in                payment of principal and/or                interest); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | §                63 (4) (to be notified of any of the Borrowers’ bankruptcy proceedings or                debt reorganisation proceedings and/or any application for the                latter); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | §                65 (3) (that the consent of the Guarantor is required for the Guarantor                to                be bound by amendments to the Agreement and any Swap Agreement that                may be                detrimental to its interest); |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | §                66 (1) - (2) (that the Guarantor shall be released from liabilities                hereunder if security which was given, or the giving of which was                a                precondition for the advance of the Loan, is released by any of the                Finance Parties without the consent of the                Guarantor); |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | §                66 (3) (that the Guarantor shall be released from its liabilities                hereunder if, without its consent, security the giving of which was                a                precondition for the advance of the Loan or the execution of the                Guarantee, was not validly                granted); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | §                67 (2) (about reduction of the Guarantor’s liabilities                hereunder); |
|----------------|---------------------------------------------------------------------------------------------------------------|

| i)   | §                67 (4) (that the Guarantor's liabilities hereunder shall lapse after                ten                (10) years, as the Guarantor shall remain liable hereunder as long                as any                amount is outstanding under the Agreement, any Swap Agreement or                the                Security Documents); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j)   | §                70 (as the Guarantor shall have no right of subrogation into the                rights of                the Finance Parties and the Swap Bank under the Agreement, any Swap                Agreement or the Security Documents until and unless the Finance                Parties                and the Swap Bank shall have received all amounts due or to become                due to                them under the Agreement, any Swap Agreement and the Security                Documents); |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k)   | §                71 (as the Finance Parties and the Swap Bank shall have no liability                first                to make demand upon or seek to enforce remedies against any of the                Borrowers or any other security provided in respect of the Borrowers’                liabilities under the Agreement and/or any Swap Agreement and/or                the                Security Documents before seeking to enforce the security created                hereunder); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l)   | §                72 (as all interest and default interest due under the Agreement                and/or                any Swap Agreement and/or the Security Documents shall be secured                hereunder); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| m)   | §                73 (1) - (2) (as all costs and expenses related to a default under                the                Agreement and/or the Swap Agreement and/or the Security Documents                shall be                secured hereunder); and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| n)   | §                74 (1) - (2) (as the Guarantor shall make no claim against any of                the                Borrowers for payment until and unless the Finance Parties and the                Swap                Bank first shall have received all amounts due or to become due to                them                under the Agreement, any Swap Agreement and the Security                Documents). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.4  ** | **Reinstatement** |
|---------------------|-------------------|

| a)   | the                liability of the Guarantor shall continue as if such payment, discharge,                avoidance or reduction had not occurred;                and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                Finance Parties and the Swap Bank shall be entitled to recover the                value                or amount of that security or payment from the Guarantor, as if such                payment, discharge, avoidance or reduction had not                occurred. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4  ** | **UNDERTAKINGS** |
|-------------------|------------------|

| a)   | it                shall at all times comply with all its obligations, covenants,                undertakings and representations under the Finance Documents (to                which it                is a party), and undertakes to comply with and perform all such                obligations, covenants, undertakings and representations with relates                to                the Guarantor in the Agreement, hereunder (but not limited to) the                financial covenants set out in Clause 20 (Financial covenants) of                the                Agreement and the obligation to deliver a Compliance Certificate                as set                out in Clause 19.2 (Compliance Certificate) of the                Agreement; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | following                receipt of a notice from the Agent of the occurrence of any Event                of                Default, the Guarantor will not make a demand for any claim of moneys                due                to the Guarantor from any of the Borrowers or any other guarantor,                or                exercise any other right or remedy to which any of the Borrowers                or any                other guarantor are entitled to in respect of such moneys unless                and until                all moneys due and payable by any of the Borrowers have been irrevocably                paid in full; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | if                any of the Borrowers or any other guarantor becomes the subject of                an                insolvency proceeding or shall be wound up or liquidated, the Guarantor                shall not (unless so instructed by the Agent and then only on condition                that the Guarantor holds the benefit of any claim in such insolvency                or                liquidation to pay any amounts recovered thereunder to the Agent)                make any                claim in such insolvency, winding-up or liquidation until all the                Outstanding Indebtedness owing or due has been irrevocably paid in                full; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | if                the Guarantor being in breach of litra b) and c) above receives or                recovers any money pursuant to such exercise, claim or proof as therein                referred to, such moneys shall be held by the Guarantor for the Agent                to                apply the same as if they were money received or recovered by the                Agent                under this Guarantee; and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | it                will not take or has not taken from any of the Borrowers any security                whatsoever for the obligations guaranteed hereunder. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5  ** | **REPRESENTATIONS                AND WARRANTIES** |
|-------------------|---------------------------------------------------|

| a)   | the                Guarantor is duly organised and validly existing as a private limited                liability company under the laws of Bermuda and has the corporate                power                and authority to own its assets and carry on its business as it is                presently being conducted in each jurisdiction in which it owns assets                or                carry on business; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                Guarantor has the power to enter into, perform and deliver, and has                taken                all necessary actions to authorise its entry into, performance and                delivery of this Guarantee; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the                Guarantee constitutes the legal, valid and binding obligations of                the                Guarantor, enforceable against the Guarantor in accordance with its                terms                and will be so treated in any relevant courts and this Guarantee                is in                proper form for enforcement in such                courts. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6  ** | **ENFORCEMENT** |
|-------------------|-----------------|

| **6.1  ** | **Immediate                recourse** |
|---------------------|---------------------------------------|

| **6.2  ** | **No                right of recourse and no                security** |
|---------------------|------------------------------------------------------------------------|

| **6.3  ** | **No                subrogation in Finance Parties’ or Swap Bank’s security** |
|---------------------|-------------------------------------------------------------------------------------------|

| **6.4  ** | **Action** |
|---------------------|------------|

| **6.5  ** | **Knowledge                of the Agreement and additional                security** |
|---------------------|--------------------------------------------------------------------------------------|

| a)   | it                has received a copy of and has full knowledge of the terms and provisions                of the Agreement hereunder, but not limited to the cross-default                provision                therein, and that it has been informed of the security which is to                be                granted in respect of the amounts outstanding under the Agreement                and as                listed in Clause 17 (Security) of the Agreement; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | it                has been informed by the Borrowers that no Event of Default under                the                Agreement has occurred as per today;                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | this                Guarantee is in addition to and is not in any way prejudiced by any                other                guarantee or security now or subsequently held by any Finance Party                or the                Swap Bank as security for the Borrowers’ obligations under the Agreement                and any Swap Agreement(s). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7  ** | **ASSIGNMENT** |
|-------------------|----------------|

| **8  ** | **EXPENSES** |
|-------------------|--------------|

| **9  ** | **MISCELLANEOUS** |
|-------------------|-------------------|

| **9.1  ** | **No                implied waivers** |
|---------------------|---------------------------------------|

| **9.2  ** | **Separable                provisions** |
|---------------------|-----------------------------------------|

| **9.3  ** | **Borrowers                as agent for the Guarantor** |
|---------------------|---------------------------------------------------------|

| **9.4  ** | **Law                and jurisdiction** |
|---------------------|-----------------------------------------|

| *9.4.1  * | *Governing                law* |
|---------------------|--------------------------------|

| *9.4.2  * | *Main                jurisdiction* |
|---------------------|------------------------------------|

| *9.4.3  * | *Alternative                jurisdiction* |
|---------------------|-------------------------------------------|

| a)   | to                commence proceedings against the Guarantor or its assets both in                any court                in Norway and any other jurisdiction;                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | to                commence enforcement proceedings in any jurisdiction concurrently                with or                in addition to proceedings in Norway or without commencing proceedings                in                Norway. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **10  ** | **NOTICES** |
|--------------------|-------------|

| **10.1  ** | **Service                of process** |
|----------------------|---------------------------------------|

| a)   | irrevocably                appoints Wikborg Rein & Co., Kronprinsesse Märthas plass 1, P.O. Box                1513 Vika, N-0017 Oslo, Norway as its agent for service of process                relating to any proceedings before Norwegian courts in connection                with                this Agreement; and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | agrees                that failure by its process agent to notify it of the process will                not                invalidate the proceedings                concerned. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**B+      H Ocean Carriers Ltd.**
**Nordea      Bank Norge ASA**

----

**SIGNATORIES**

**OBO      Holdings Ltd. **

**BHOBO      One Ltd. **

**BHOBO      Two Ltd. **

**BHOBO      Three Ltd. **

**RMJ      OBO Shipping Ltd. **

**Sagamore      Shipping Ltd. **

**Nordea      Bank Norge ASA**

**DVB      Bank America NV**

**HSH      Nordbank AG**

**The      Governor and Company of the Bank of Scotland**

**Nordea      Bank Norge ASA**

----

**Nordea      Bank Norge ASA**

**Nordea      Bank Norge ASA**

**DVB      Bank America NV**

**HSH      Nordbank**
**AG**

**The      Governor and Company of the Bank of Scotland**

----

**Nordea      Bank Finland Plc.**

**B+H      Ocean Carriers Ltd.**