| **USD****8,000,000** **TERM                Loan facilitY Agreement**  |
|---------------------------------------------------------------------------------|
| for                                                                        |
| **Seapowet                Trading Ltd.** as                Borrower   |
|                                                                            |
| and                                                                        |
|                                                                            |
| provided                by                                                 |
| **Nordea                Bank Norge ASA** as                Lender     |
|                                                                            |
|                                                                            |
|                                                                            |
|                                                                            |
|                                                                            |
|                                                                            |
|     **Dated****5                September 2006**       |

**TABLE      OF CONTENTS**

1DEFINITIONS      AND INTERPRETATION

2THE      FACILITY

3PURPOSE

4CONDITIONS      PRECEDENT

5DRAWDOWN

6REPAYMENT

7PREPAYMENT      AND CANCELLATION

8INTEREST

9INTEREST      PERIODS

10CHANGES      TO THE CALCULATION OF INTEREST

11FEES

12TAX      GROSS-UP AND INDEMNITIES

13INCREASED      COSTS

14OTHER      INDEMNITIES

15MITIGATION      BY THE LENDER

16COSTS      AND EXPENSES

17SECURITY

18REPRESENTATIONS      AND WARRANTIES

19INFORMATION      UNDERTAKINGS

20FINANCIAL      COVENANTS

21GENERAL      UNDERTAKINGS

22VESSEL’S      COVENANTS

23EVENTS      OF DEFAULT

24CHANGES      TO THE PARTIES

25PAYMENT      MECHANICS

26SET-OFF

27NOTICES

28CALCULATIONS

29MISCELLANEOUS

30GOVERNING      LAW AND ENFORCEMENT

----

**SCHEDULES**

----

**THIS      TERM LOAN AGREEMENT **

| (1) | **Seapowet                Trading Ltd**.,                of Marshall Islands with its business address at 3rd                Floor Par La Place, 14 Par La Ville Road, Hamilton HM 08 Bermuda                as                borrower (the “**Borrower**”);                and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Nordea      Bank Norge ASA**
**Lender**

**IT      IS AGREED**

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

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

**Accounts**

**Account      Charge**

**Agreement**

**Availability      Period**

**Available      Commitment**

**Break      Costs**

| a)   | the                interest which the Lender should have received for the period from                the                date of receipt of all or part of its participation in the Loan or                Unpaid                Sum to the last day of the current Interest Period in respect of                the 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 the 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**

**Charterparty**

**Company**

**Company      Shares**

**Commitment**

**Compliance      Certificate**

**Default**

**DOC**

**Drawdown**

**Drawdown      Date**

**Drawdown      Notice**

**EBITDA**

**Environmental      Approval**

**Environmental      Claim**

**Environmental      Law**

**Event      of Default**

**FA      Act**

**Facility**

**Final      Maturity Date**

**Finance      Documents**

**Financial      Indebtedness**

**Fixed      Charges**

**GAAP**

**Group**

**Guarantee**

**Guarantor**

**Insurances**

**Interest      Payment Date**

**Interest      Period**

**ISM      Code**

**ISPS      Code**

**LIBOR**

| a)   | the                rate per annum equal to the offered quotation for deposits in USD                for the                relevant Interest Period ascertained by the Lender 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 Lender is 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 Lender to                the                Borrower. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Loan**

**Margin**

**Market      Value**

**Material      Adverse**
**Effect**

| a)   | the                business, operation, assets or condition (financial or otherwise)                of the                Borrower, the Guarantor and/or the Company (as the case may be);                or |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                ability of the Borrower and/or the Guarantor to perform any of their                obligations under the Finance Documents;                or |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**Measurement      Period**

**Net      Interest**

**“NIS**

**Original      Financial Statements**

**Owning      Company**

**Party**

**Quarter      Date**

**Quotation      Day**

**Security      Documents**

**Security      Interest**

**Security      Period”**

| a)   | all                amounts which have become due for payment by the Borrower or any                other                party under the Finance Documents have been                paid; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| c)   | the                Borrower has no future or contingent liability under any provision                of this                Agreement or the other Finance Documents;                and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | the                Lender does not consider that there is a significant risk that any                payment                or transaction under a Finance Document 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 asset covered (or previously                covered) by a Security Interest created by a Finance                Document. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Selection      Notice**

**Seller**

**Share      Pledge Agreement**

**Share      Purchase Agreement**

**SMC**

**SMS**

**Subsidiaries**

**Swap      Agreement**

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

| a)   | the                net income, profits or gains of the Lender world wide; or |
|----------------|------------------------------------------------------------------------------|

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

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

**Total      Debt**

**Total      Loss**

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

| b)   | any                expropriation, confiscation, requisition or acquisition of the 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 Owning Company; and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | any                arrest, capture, seizure or detention of the 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 Owning                Company. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Total      Loss Date**

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

| b)   | in                the case of a constructive, compromised, agreed or arranged total                loss of                the Vessel, 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 Vessel was given                to the                insurers; and (ii) the date of compromise, arrangement or agreement                made                by or on behalf of the Owning Company with the Vessel’s insurers in which                the insurers agree to treat the 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 Lender that the event constituting                the                total loss occurred. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Transaction      Documents**

**Unpaid      Sum**

**USD**

**Value**
**Adjusted      Equity**

**Value      Adjusted Equity Ratio**

**Value      Adjusted Total Assets**

**VAT**

**Vessel**

| **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; |
|----------------|-----------------------------------------------------------------------------------------------------------|

| 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**** ** |
|-------------------|-------------------------------------------|

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

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

| a)   | partly                refinancing the purchase price paid by it for the Company Shares                under the                Share Purchase Agreement; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | 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 drawings** |
|---------------------|-----------------------------------------------|

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

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

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

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

| a)   | it                is substantially in the form set out in Schedule                2                (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 is                an amount                which is not more than the Commitments;                and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| **6  ** | **REPAYMENT** |
|-------------------|---------------|

| a)   | The                Borrower shall repay the Loan in sixteen (16) quarterly consecutive                instalments, each being in an amount of USD 500,000, the first instalment                falling due three (3) months after the Drawdown Date. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On                the Final Maturity Date the Borrower shall repay all amounts then                outstanding under this Agreement in full, together with all other                sums due                and outstanding under the Finance Documents at such date (if                any). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| **7.1  ** | **Mandatory                prepayment****- Total Loss or sale of the                Vessel** |
|---------------------|----------------------------------------------------------------------------------------------|

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

| b)   | in                the case of a Total Loss, on the earlier of the date falling ninety                (90)                days after the Total Loss Date (or in the event of a requisition                for title                of the Vessel, immediately upon receipt of the requisition proceeds                relating to such requisition of                title). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.2  ** | **Mandatory                prepayment - sale of the Company                Shares** |
|---------------------|-------------------------------------------------------------------------------------|

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

| a)   | the                Lender shall promptly notify the Borrower (specifying the obligations                the                performance of which is thereby rendered unlawful and the law giving                rise                to the same); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | upon                the Lender notifying the Borrower, the Commitments will be immediately                cancelled; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------|

| c)   | the                Borrower shall prepay the Loan on the last day of the Interest Period                occurring after the Lender has notified the Borrower or, if earlier,                the                date specified by the Lender in the notice delivered to the Borrower                (being no earlier than the last day of any applicable grace period                permitted by law). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.4  ** | **Voluntary                prepayment** |
|---------------------|-----------------------------------------|

| **7.5  ** | **Voluntary                cancellation** |
|---------------------|-------------------------------------------|

| **7.6  ** | **Terms                and conditions for prepayments and                cancellation** |
|---------------------|-----------------------------------------------------------------------------------------|

| *7.6.1  * | *Irrevocable                notice* |
|---------------------|-------------------------------------|

| *7.6.2  * | *Additional                payments* |
|---------------------|--------------------------------------|

| *7.6.3  * | *Time                of prepayment and cancellation* |
|---------------------|------------------------------------------------------|

| *7.6.4  * | *No                reinstatement* |
|---------------------|-----------------------------------|

| *7.6.5  * | *Application* |
|---------------------|---------------|

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

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

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

| b)   | LIBOR. |
|----------------|--------|

| **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                Borrower may select an Interest Period for the Loan in the Drawdown                Notice                or (if the Loan has already been borrowed) in a Selection                Notice. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Each                Selection Notice is irrevocable and must be received by the Lender                not                later than 11:00 hours (London time) two (2) Business Day before                the                Quotation Day for that Interest                Period. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | If                the Borrower fails to deliver a Selection Notice to the Lender in                accordance with litra b) above, the relevant Interest Period will                be three                (3) months. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | The                Borrower may select an Interest Period of three (3) or six (6) months                or                any such other period agreed between the Borrower and the Lender. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| f)   | Each                Interest Period for the Loan shall start on the Drawdown Date or                (if                already made) on the last day of its preceding Interest                Period. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **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 the Loan for any                Interest                Period, then the rate of interest on the Loan for the Interest Period                shall be the rate per annum which is the sum of: |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (ii)   | the                rate that which expresses as a percentage rate per annum the cost                to the                Lender of funding the Loan from whatever source it may reasonably                select. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 cost to the Lender 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  ** | **Arrangement                fee** |
|----------------------|------------------------------------|

| **11.2  ** | **Commitment                Fee** |
|----------------------|-----------------------------------|

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

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

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

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

| a)   | The                Borrower 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 Lender                accordingly. Similarly, the Lender shall notify the Borrower on becoming                so aware in respect of a payment payable to the                Lender. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (i)   | the                amount of the payment due from the Borrower 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                Borrower 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                Borrower shall deliver to the Lender evidence reasonably satisfactory                to                the Lender 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                Borrower shall, upon demand from the Lender, pay the amount of any                Increased Cost incurred by the Lender 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 the Lender’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, |
|-------------------|--------------------------------------------------------------------------------------|

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

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

| 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 Lender or its affiliates of any law or                regulation. |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

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

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

| a)   | If                any sum due from the Borrower 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 the                Borrower; |
|-----------------|---------------------------------------------------------------------------------------|

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

| b)   | The                Borrower waives any right it 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 the Borrower to pay any amount due under the Finance Documents                on its due date; |
|----------------|----------------------------------------------------------------------------------------------------------------------------|

| c)   | the                funding, or making arrangements to fund, the Loan requested by the                Borrower in the 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 the Lender); or |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| **14.3  ** | **Indemnity                to the Lender** |
|----------------------|--------------------------------------------|

| 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 LENDER** |
|--------------------|---------------------------------------------|

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

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

| b)   | Clause                7.2 (Mandatory prepayment - sale of Company                Shares); |
|----------------|-------------------------------------------------------------------------------------------|

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

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

| e)   | 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 Lender under the Finance                Documents. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| a)   | the                Share Pledge Agreement; |
|----------------|--------------------------------------------|

| b)   | the                Account Charge; and |
|----------------|----------------------------------------|

| c)   | the                Guarantee |
|----------------|------------------------------|

| **17.2  ** | **Set-off** |
|----------------------|-------------|

| a)   | The                Lender may, to the extent permitted by applicable law, set off any                matured                obligation due from an Borrower under the Finance Documents, (and                to the                extent beneficially owned by the Lender) against any matured obligations                owed by the Lender to that Borrower, regardless of the place of payment,                booking branch or currency of either obligation. If the obligations                are in                different currencies, the Lender may convert either obligation at                a market                rate of exchange in its usual course of business for the purpose                of the                set-off. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Borrower hereby agrees and accept that this Clause 17.2                shall constitute a waiver of the provisions of Section 29 of the                FA Act                and further agrees and accepts, to the extent permitted by law, that                Section 29 of the FA Act shall not apply to this                Agreement. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| a)   | The                Borrower is a corporation, duly incorporated and validly existing                under                the laws of the Marshall Islands and has the power to own its assets                and                carry on its business as it is currently being conducted. The Borrower                is                indirectly 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 the Borrower;                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 Guarantor                and the                Borrower and have been prepared in accordance with GAAP consistently                applied. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *b)  * | *No                undisclosed liabilities*.                As of the date of the Original Financial Statements, none of the                Borrower                or the Guarantor had any 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 Borrower and/or 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                Vessel** |
|-----------------------|-------------------------------|

| a)   | in                the absolute ownership of the Owning Company and the Owning Company                will                be the sole, legal and beneficial owner of the                Vessel; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | registered                in the name of the Owning Company in NIS or the Bahamas (or such                other                ship registry as approved by the Lender) under the laws and flag                of Norway                or the Bahamas (or under such other flag as approved by the                Lender); |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 the Drawdown Notice; |
|----------------|----------------------------------------------------|

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

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

| d)   | in                each Compliance Certificate forwarded to the Lender 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                Lender at the latest). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| a)   | as                soon as available, but no later than one hundred and twenty (120)                days                after the end of each of its fiscal years, complete copies of the                financial reports of the Borrower, all in reasonable detail, which                shall                include at least the balance sheet of the Borrower 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 Borrower,                a quarterly interim balance sheet of the Borrower 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                Lender; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 the Borrower’s and/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 the                Borrower and/or the Guarantor, as the case may be; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | as                soon as available but not less than forty-five (45) days after the                end of                each of the quarters of each fiscal year of the Company, a quarterly                interim consolidated balance sheet of the Company 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;                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 Borrower’s business as the Lender 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 the Guarantor’s Original Financial Statements were                prepared; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | sufficient                information, in form and substance as may be reasonably required                by the                Lender, to enable it 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                Borrower’s and the Guarantor’s Original Financial                Statements. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| a)   | all                material documents dispatched by the Borrower to its shareholders                or its                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 the Borrower and/or the Guarantor and/or the Owning Company                and/or                the Company, 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 the Borrower and/or the Guarantor and/or                the                Company as the Lender 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                Borrower’s knowledge and belief) is threatened against the Company or the                Vessel; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| **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, issued by an acceptable bank;                or |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| b)   | “**EBITDA**”                means, always in accordance with GAAP, the aggregate of operating                profits                of the Borrower and 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 Borrower 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                Borrower 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  * | *Cash                and Cash Equivalents* |
|----------------------|--------------------------------------------|

| *20.2.6  * | *Adjustments* |
|----------------------|---------------|

| a)   | The                Lender is aware that the Guarantor (on a consolidated basis) for                the                purpose of calculating the financial covenants under this Clause                20, will                have the right to adjust to the amounts booked as (i) average earnings                in                the profit and loss accounts and (ii) deferred income in the balance                sheet                related to the Charterparties for MV “Rip Hudner”, MV “Bonnie Smithwick”                and MV “Searose G”, to ensure that the actual income under such                Charterparties is taken into consideration in                full. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | If                there is any amendment(s) to the financial covenants relating to                the                Guarantor (on a consolidated basis) under the USD 202,000,000 reducing                     revolving credit facility agreement dated 29 August 2006 and                made between                among others OBO Holdings Ltd., BHOBO One Ltd., BHOBO Two Ltd., BHOBO                Three Ltd., RMJ OBO Shipping Ltd. and Sagamore Shipping Ltd. (as                joint and                several borrowers) and the Lender (in its capacity as mandated lead                arranger, agent for a syndicate of banks and lender), the financial                amendments as set out in this Clause 20 shall be amended                accordingly. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **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 Lender (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)   | the                existing first priority mortgage in favour of Den Danske Skibskredit                and                the second priority mortgage in favour of the                Company; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| d)   | Security                Interests consented to in writing by the                Lender. |
|----------------|-----------------------------------------------------------------------------------------|

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

| **21.7  ** | **Disposals** |
|----------------------|---------------|

| **21.8  ** | **Distributions** |
|----------------------|-------------------|

| **21.9  ** | **Investm****ent                restrictions** |
|----------------------|------------------------------------------------|

| **21.10  ** | **Bank                accounts** |
|-----------------------|----------------------------------|

| **21.11  ** | **Shareholders                and change of control** |
|-----------------------|-------------------------------------------------------|

| **21.12  ** | **Change                of business etc.** |
|-----------------------|--------------------------------------------|

| a)   | The                Borrower shall ensure that no change is made to the general nature                of the                business of the Borrower, and the Borrower shall procure that no                change is                made to the general nature of the business of the Company from that                carried out at the date of this Agreement (for the Company being                the                bareboat charterer of the Vessel). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Borrower shall not change its legal                name. |
|----------------|-----------------------------------------------------------------------------|

| **21.13  ** | **No                mergers etc.** |
|-----------------------|------------------------------------|

| **21.14  ** | **Environmental                compliance** |
|-----------------------|---------------------------------------------|

| **21.15  ** | **Commercial                management and technical                management** |
|-----------------------|----------------------------------------------------------------------------------|

| **21.16  ** | **Transaction                Documents** |
|-----------------------|------------------------------------------|

| **22  ** | **VESSEL’S                COVENANTS** |
|--------------------|---------------------------------------------|

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

| a)   | The                Borrower shall ensure that the Vessel is 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 Lender 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 Vessel (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                Loan. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **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 Lender, 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 Vessel                or to                vessels trading to any jurisdiction to which the Vessel may trade                from                time to time. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.3  ** | **Notification                of certain events** |
|----------------------|---------------------------------------------------|

| a)   | any                accident to the Vessel 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 the Vessel or the                Insurances; |
|----------------|---------------------------------------------------------------------------------------------------------------|

| d)   | any                occurrence as a result of which the Vessel 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 the Borrower, the Company or otherwise in connection with                the                Vessel. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.4  ** | **Operation                of the Vessel** |
|----------------------|--------------------------------------------|

| a)   | The                Borrower shall 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 Vessel, its ownership, operation and                management or to the business of the Company and shall procure that                the                Company employs the Vessel and allow its                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 Vessel unless the Company has (at its                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                Lender. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Vessel shall be employed under the                Charterparty. |
|----------------|------------------------------------------------------------------------------------|

| **22.5  ** | **ISM                Code compliance** |
|----------------------|----------------------------------------|

| a)   | procure                that the Vessel remains subject to a SMS for the duration of the                Facility; |
|----------------|------------------------------------------------------------------------------------------------------------------|

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

| c)   | procure                that any technical manager of the Vessel maintains a valid and current                DOC                for the duration of the Facility; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | immediately                notify the Lender in writing of any actual or threatened withdrawal,                suspension, cancellation or modification of the SMC of the Vessel                or of                the DOC of the technical manager of the Vessel;                and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | immediately                notify the Lender 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. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.6  ** | **Inspections                and class records** |
|----------------------|--------------------------------------------------|

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

| b)   | The                Borrower shall procure that the Company instructs the classification                society to send to the Lender, following a written request from the                Lender, copies of all class records held by the classification society                in                relation to the Vessel. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.7  ** | **Surveys** |
|----------------------|-------------|

| **22.8  ** | **Arrest** |
|----------------------|------------|

| a)   | all                liabilities which give or may give rise to maritime or possessory                liens on                or claims enforceable against the Vessel or the                Insurances; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| c)   | all                other outgoings whatsoever in respect of the Vessel and the Insurances, |
|----------------|--------------------------------------------------------------------------------------------|

| **22.9  ** | **Total                Loss** |
|----------------------|-------------------------------|

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

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

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

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

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

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

| a)   | The                Borrower 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                Lender                giving notice to the Borrower or the Borrower becoming aware of the                failure to comply. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| a)   | Any                Financial Indebtedness of the Borrower and/or any member of the Group                and/or the Company is not paid when due nor within any originally                applicable grace period. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Any                Financial Indebtedness of the Borrower and/or any member of the Group                and/or the Company and/or the Owning Company 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 the Borrower and/or                any                member of the Group and/or the Company and/or the Owning Company                is                cancelled or suspended by a creditor of the Borrower and/or any member                of                the Group and/or the Company and/or the Owning Company as a result                of an                event of default (however                described). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Any                creditor of the Borrower and/or any member of the Group and/or the                Company                and/or the Owning Company becomes entitled to declare any Financial                Indebtedness of the Borrower and/or any member of the Group and/or                the                Company and/or the Owning Company due and payable prior to its specified                maturity as a result of an event of default (however                described). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| a)   | The                Borrower is unable or admits inability to pay its debts as they fall                due,                suspends making payments on any of its debts or, by reason of actual                or                anticipated financial difficulties, commences negotiations with one                or                more of its creditors with a view to rescheduling any of its                indebtedness. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                value of the assets of the Borrower is less than its liabilities                (taking                into account contingent and prospective                liabilities). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | A                moratorium is declared in respect of any indebtedness of the                Borrower. |
|----------------|--------------------------------------------------------------------------------------------------------|

| **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 the Borrower; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | a                composition, compromise, assignment or arrangement with any creditor                of                the Borrower; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the                appointment of a liquidator, receiver, administrative receiver,                administrator or other similar officer in respect of the Borrower;                or |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | enforcement                of any Security Interest over any assets of the Borrower. |
|----------------|--------------------------------------------------------------------------------------|

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

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

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

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

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

| **23.13  ** | **Charterparty** |
|-----------------------|------------------|

| **23.14  ** | **Acceleration** |
|-----------------------|------------------|

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

| b)   | declare                that all or part of the Loan 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 Borrower, exercise                any                other right or pursue any other remedy conferred upon the Lender                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 PARTIES** |
|--------------------|-------------------------------------------|

| **24.1  ** | **Assignments                and transfer by the                Borrower** |
|----------------------|----------------------------------------------------------------------------|

| **24.2  ** | **Assignment                and transfer by the Lender** |
|----------------------|----------------------------------------------------------|

| **25  ** | **PAYMENT                MECHANICS** |
|--------------------|--------------------------------------|

| **25.1  ** | **Payments                to the Lender** |
|----------------------|-------------------------------------------|

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

| b)   | for                value on the due date at such times and in such funds as the Lender                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. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **25.2  ** | **Distributions                by the Lender** |
|----------------------|------------------------------------------------|

| **25.3  ** | **Distributions                to the Borrower** |
|----------------------|--------------------------------------------------|

| **25.4  ** | **Clawback** |
|----------------------|--------------|

| a)   | Where                a sum is to be paid to the Lender under the Finance Documents for                distribution to another Party, the Lender 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 Lender pays an amount to another Party and it proves to be the                case                that the Lender had not actually received that amount, then the Party                to                whom that amount was paid by the Lender shall on demand refund the                same                amount to the Lender, together with interest on that amount from                the date                of payment to the date of receipt by the Lender, calculated by the                Lender                to reflect its cost of funds. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **25.5  ** | **Partial                payments** |
|----------------------|-------------------------------------|

| a)   | firstly,                in or towards payment pro rata of any unpaid fees, costs and expenses                of                the Lender 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. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| **25.6  ** | **No                set-off by the Borrower** |
|----------------------|-----------------------------------------------|

| **25.7  ** | **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. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **25.8  ** | **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. |
|----------------|----------------------------------------------------------------------------------------------------------------|

| **26  ** | **SET-OFF**** ** |
|--------------------|-----------------------|

| **27  ** | **NOTICES**** ** |
|--------------------|-----------------------|

| **27.1  ** | **Communication                in writing** |
|----------------------|---------------------------------------------|

| **27.2  ** | **Addresses** |
|----------------------|---------------|

| **27.3  ** | **Language** |
|----------------------|--------------|

| **28  ** | **CALCULATIONS** |
|--------------------|------------------|

| **29  ** | **MISCELLANEOUS** |
|--------------------|-------------------|

| **29.1  ** | **Partial                invalidity** |
|----------------------|---------------------------------------|

| **29.2  ** | **Remedies                and waivers** |
|----------------------|-----------------------------------------|

| **29.3  ** | **Amendments                and waivers** |
|----------------------|-------------------------------------------|

| **29.4  ** | **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. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **29.5  ** | **Conflicting                provisions** |
|----------------------|-------------------------------------------|

| **30  ** | **GOVERNING                LAW AND ENFORCEMENT** |
|--------------------|--------------------------------------------------|

| **30.1  ** | **Governing                law** |
|----------------------|----------------------------------|

| **30.2  ** | **Jurisdiction** |
|----------------------|------------------|

| a)   | For                the benefit of the Lender, the Borrower agrees 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 the Borrower                accordingly submit to the non-exclusive jurisdiction of the Oslo                District                Court (*Oslo* *tingrett*). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Nothing                in this Clause 30.2 shall limit the right of the Lender to commence                proceedings against the Borrower in any other court of competent                jurisdiction. To the extent permitted by law, the Lender may take                concurrent proceedings in any number of                jurisdictions. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **30.3  ** | **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**

**CONDITIONS      PRECEDENT**

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

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

| (i)   | the                approval of the terms of, and the transactions contemplated by, the                Transaction Documents; 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 Guarantor** |
|---------------------|------------------------------------------------|

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

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

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

| (i)   | the                approval of the terms of, and the transactions contemplated by, the                Transaction Documents; 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****VESSEL** |
|-------------------|-------------------|

| a)   | Evidence                (by way of transcript of registry) that the Vessel is registered                in the                name of the Owning Company in the NIS (or such other ship registry                as                approved by the Lender) and that the Vessel is free of any mortgage                or                registered encumbrances, liens etc. save as set out in Clause 21.5                (Negative pledge); |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| c)   | The                Vessel’s current SMC; |
|----------------|------------------------------------------------|

| d)   | The                DOC; |
|----------------|-------------------------|

| e)   | The                ISPS Certificate. |
|----------------|--------------------------------------|

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

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

| b)   | The                Share Pledge Agreement (and any documents thereunder, including (but                not                limited to) any share certificates (if applicable)); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The                Account Charge; and |
|----------------|----------------------------------------|

| d)   | The                Guarantee. |
|----------------|-------------------------------|

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

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

| b)   | The                Share Purchase Agreement. |
|----------------|----------------------------------------------|

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

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

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

| c)   | A                Compliance Certificate confirming that the Borrower and the Guarantor                (on                a consolidated basis) is in compliance with the financial covenants                as set                out in Clause 20 (Financial covenants); |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | The                effective interest letter; |
|----------------|-----------------------------------------------|

| e)   | Evidence                that the Financial Indebtedness of the Owning Company is not more                than USD                8,700,000; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | Evidence                of the time charterparty of the Vessel between the Company (as owner)                and                ST Shipping Ltd. (acting under a guarantee of Glencore International                A.G.)                for a period of not less than three (3) years from February 2006                at a                daily net hire of USD 22,000 in year 1 and 2 and USD 21,000 in year                3 with                a profit split for all three (3) years; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | Evidence                (in form acceptable to the Lender) that the Company is able, and                not                restricted in any way from paying                dividends; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | Evidence                of capital structure of the Borrower satisfactory to the                Lender; |
|----------------|---------------------------------------------------------------------------------------------------------|

| i)   | 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; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j)   | Appointment                of Ince Process Agents Limited and the acceptance by Ince Process                Agents                Limited as the Borrower’s process agent in England under the Account                Charge; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k)   | Appointment                of Bugge Arentz-Hansen & Rasmussen and the acceptance by Bugge                Arentz-Hansen & Rasmussen as the Borrower’s and the Guarantor’s                process agent in Norway under the Finance Documents;                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l)   | Any                other documents as reasonably requested by the                Lender. |
|----------------|------------------------------------------------------------------------------------------|

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

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

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

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

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

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

----

**SCHEDULE      2**

**FORM      OF DRAWDOWN NOTICE**

**SEAPOWET      TRADING LTD. - USD 8,000,000 TERM LOAN FACILITY AGREEMENT DATED 5 SEPTEMBER      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. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Seapowet      Trading Ltd.**

----

**SCHEDULE      3**

**FORM      OF SELECTION NOTICE**

**SEAPOWET      TRADING LTD. - USD 8,000,000 TERM LOAN FACILITY AGREEMENT DATED 5 SEPTEMBER      2006      (THE “AGREEMENT”)**

| a)   | We                refer to the amount outstanding under the Loan with an Interest Period                ending on [•]. |
|----------------|------------------------------------------------------------------------------------------------------------------------------|

| b)   | We                request that the next Interest Period for the Loan is                [•]. |
|----------------|---------------------------------------------------------------------------------------------------|

**Seapowet      Trading Ltd.**

----

**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*

**SEAPOWET      TRADING LTD. - USD 8,000,000 TERM LOAN FACILITY AGREEMENT DATED      [**
**·**
**]      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 Guarantor (on a consolidated basis) was                [·]. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| **e)  ** | **Cash                and Cash Equivalents.**The                Guarantor (on a consolidated basis) shall at all times ensure that                it has                Cash and Cash Equivalents equal to or greater than (i) USD 15,000,000                and                (ii) six per cent (6.00%) of the long term debt of the                Guarantor. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | 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. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**B+H      Ocean Carriers Ltd.**
**Seapowet      Trading Ltd.**

**SCHEDULE      5**

**FORM      OF GUARANTEE**

**Guarantee      and Indemnity**

**Guarantee**

**B+H      Ocean Carriers Ltd.**
**Guarantor**

**Nordea      Bank Norge ASA**
**Lender**

**WHEREAS**

**Agreement**
**Borrower**
**Loan**

**IT      IS AGREED AS FOLLOWS:**

| **1  ** | **DEFINITIONS** |
|-------------------|-----------------|

| **2  ** | **GUARANTEE** |
|-------------------|---------------|

| **2.1  ** | **Guarantee                obligations** |
|---------------------|------------------------------------------|

| a)   | guarantees                to the Lender, as and for its own debt and not merely as surety (as                *selv*s*kyldnerkausjonist*),                the punctual performance by the Borrower of all of the Borrower’s                obligations under the Finance Documents and any Swap Agreement(s); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | undertakes                with the Lender that whenever the Borrower does not pay any amount                when                due under or in connection with any Finance Document and/or any Swap                Agreement(s), the Guarantor shall immediately on demand by the Lender                pay                that amount as if it were the principal obligor; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | indemnifies                the Lender immediately on demand against any cost, loss or liability                suffered by the Lender if any obligation guaranteed by the Guarantor                is or                becomes unenforceable, invalid or illegal. The amount of the cost,                loss or                liability shall be equal to the amount which that Lender would otherwise                have been entitled to recover. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.2  ** | **Payment                upon first demand** |
|---------------------|----------------------------------------------|

| **2.3  ** | **Continuing                guarantee** |
|---------------------|-----------------------------------------|

**Guarantee      Obligations**

| **2.4  ** | **Maximum                liability** |
|---------------------|--------------------------------------|

| **2.5  ** | **Reinstatement** |
|---------------------|-------------------|

| a)   | the                liability of the Borrower shall continue as if the payment, discharge,                avoidance or reduction had not occurred;                and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                Lender shall be entitled to recover the value or amount of that security                or payment from the Borrower, as if the payment, discharge, avoidance                or                reduction had not occurred. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.6  ** | **Waiver                of defences** |
|---------------------|---------------------------------------|

| a)   | any                time, waiver or consent granted to, or composition with, the Borrower                or                other person; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the                release of the Borrower or any other person under the terms of any                composition or arrangement with any creditor of any member of the                Group; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the                taking, variation, compromise, exchange, renewal or release of, or                refusal                or neglect to perfect, take up or enforce, any rights against, or                security                over assets of, the Borrower or other person or any non-presentation                or                non-observance of any formality or other requirement in respect of                any                instrument or any failure to realise the full value of any                security; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | any                incapacity or lack of power, authority or legal personality of or                dissolution or change in the members or status of the Borrower or                any                other person; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | any                amendment (however fundamental) or replacement of a Finance Document,                a                Swap Agreement or any other document or                security; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | any                unenforceability, illegality or invalidity of any obligation of any                person                under any Finance Document, any Swap Agreement or any other document                or                security; or |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | any                insolvency or similar proceedings. |
|----------------|-------------------------------------------------------|

| **2.7  ** | **Waiver                of rights under the FA Act** |
|---------------------|------------------------------------------------------|

**FA      Act**
** **

| **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 and/or                any                Swap Agreement and to be kept informed                thereof); |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **c)  ** | **§                63 (3)**(to                be notified of any extension granted to the Borrower in payment of                principal and/or interest); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **d)  ** | **§                63 (4)**                (to be notified of the Borrower’s 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/or 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 the Lender 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 Lender under the Agreement, any Swap Agreement or the Security                Documents until and unless the Lender shall have received all amounts                due                or to become due to it under the Agreement, any Swap Agreement and                the                Security Documents); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **k)  ** | **§                71**                (as the Lender shall have no liability first to make demand upon                or seek                to enforce remedies against the Borrower or any other security provided                in                respect of the Borrower’s 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                any Swap Agreement and/or the Security Documents shall be secured                hereunder); and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **n)  ** | **§                74 (1) - (2)**                (as the Guarantor shall make no claim against the Borrower for payment                until and unless the Lender first shall have received all amounts                due or                to become due to them under the Agreement, any Swap Agreement and                the                Security Documents). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.8  ** | **Immediate                recourse** |
|---------------------|---------------------------------------|

| **2.9  ** | **Appropriations** |
|---------------------|--------------------|

| a)   | refrain                from applying or enforcing any other moneys, security or rights held                or                received by the Lender (or any agent on its behalf) in respect of                those                amounts, or apply and enforce the same in such manner and order as                it sees                fit (whether against those amounts or otherwise) and the Guarantor                shall                not be entitled to the benefit of the same; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | hold                in an interest-bearing suspense account any moneys received from                the                Guarantor or on account of the Guarantor’s liability under this Clause                2. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.10  ** | **Deferral                of Guarantor’s rights** |
|----------------------|---------------------------------------------------------|

| a)   | to                be indemnified by the Borrower; |
|----------------|---------------------------------------------------|

| b)   | to                claim any contribution from any other guarantor of the Borrower’s                obligations under the Finance Documents and/or any Swap Agreement;                and/or |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | to                take the benefit (in whole or in part and whether by way of subrogation                or                otherwise) of any rights of the Lender under the Finance Documents                and/or                any Swap Agreement or of any other guarantee or security taken pursuant                to, or in connection with, the Finance Documents and/or any Swap                Agreement                by the Lender. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.11  ** | **Additional                security** |
|----------------------|----------------------------------------|

| **3  ** | **UNDERTAKINGS** |
|-------------------|------------------|

| a)   | it                shall at all times comply with all its obligations, covenants,                undertakings and representations under the Finance Documents and/or                any                Swap Agreement, 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                information undertakings as set out in Clause 19 (Information                undertakings), the financial covenants as set out in Clause 20 (Financial                covenants) and the general undertakings as set out in Clause 21 (General                undertakings) 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 Lender 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 the Borrower or any other guarantor, or exercise                any                other right or remedy to which the Borrower or any other guarantor                are                entitled to in respect of such moneys unless and until all moneys                due and                payable by the Borrower have been irrevocably paid in                full; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | if                the Borrower 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 Lender 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 Lender) make any claim                in                such insolvency, winding-up or liquidation until all the Loan 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 Lender                to                apply the same as if they were money received or recovered by the                Lender                under this Guarantee; and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | it                will not take or has not taken from the Borrower any security whatsoever                for the obligations guaranteed hereunder. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| **4  ** | **REPRESENTATIONS                AND WARRANTIES** |
|-------------------|---------------------------------------------------|

| a)   | the                Guarantor is duly organised and validly existing as a private limited                liability company under the laws of Liberia 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. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5  ** | **ASSIGNMENT** |
|-------------------|----------------|

| **6  ** | **EXPENSES** |
|-------------------|--------------|

| **7  ** | **MISCELLANEOUS** |
|-------------------|-------------------|

| **7.1  ** | **No                implied waivers** |
|---------------------|---------------------------------------|

| **7.2  ** | **Separable                provisions** |
|---------------------|-----------------------------------------|

| **7.3  ** | **Borrower                as agent for the Guarantor** |
|---------------------|--------------------------------------------------------|

| **7.4  ** | **Law                and jurisdiction** |
|---------------------|-----------------------------------------|

| *7.4.1  * | *Governing                law* |
|---------------------|--------------------------------|

| *7.4.2  * | *Main                jurisdiction* |
|---------------------|------------------------------------|

| *7.4.3  * | *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. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8  ** | **NOTICES** |
|-------------------|-------------|

| a)   | If                to the Lender:Nordea                Bank Norge ASA |
|----------------|----------------------------------------------------------------------|

| b)   | If                to the Guarantor:B                +                H Ocean Carriers Ltd. |
|----------------|--------------------------------------------------------------------------------------------|

| **8.2  ** | **Service                of process** |
|---------------------|---------------------------------------|

| a)   | irrevocably                appoints Wikborg Rein & Co., Kronprinsesse Märthas plass 1, P.O. Box                1513 Vika, N-0017 Oslo, Norway as its Lender for service of process                relating to any proceedings before Norwegian courts in connection                with                this Agreement; and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

**IN      WITNESS WHEREOF**

**B+      H Ocean Carriers Ltd.**
**Nordea      Bank Norge ASA**

----

**SIGNATORIES**

**Seapowet      Trading Ltd**
** **
**Nordea      Bank Norge ASA**

**B+H      Ocean Carriers Ltd.**