|                                                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Loan      Agreementrelating      to a $34,000,000 facility to finance four MR Product Tankers                                                                                                                                                                                                                                                                      |
| Dated                      November                                      2007   |
| Agawam      Shipping Corp. and Aquidneck      Shipping Corp. and Anawan      Shipping Corp. and Isabelle      Shipholdings Corp. and Boss      Tankers Ltd.(as      joint and several Borrowers) Bank      of Scotland plc(as      Lender) Bank      of Scotland plc(as      Swap Bank)                     |

----

1
Definitions andinterpretation
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1.1
Definitions
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1.2
Interpretation
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2
Facility
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3
Drawdown
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3.1
Request forAdvance
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3.2
Availability
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3.3
Drawdown Noticeirrevocable
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3.4
Disbursement ofAdvance
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3.5
Disbursement of Advance tothird party
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4
Interest
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4.1
Payment of normalinterest
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4.2
Normal rate ofinterest
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4.3
Payment of accruedinterest
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4.4
Notification of marketdisruption
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4.5
Suspension ofdrawdown.
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4.6
Negotiation of alternativerate of interest
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4.7
Application of agreedalternative rate of interest
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4.8
Alternative rate of interestin absence of agreement
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4.9
Notice ofprepayment
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4.10
Prepayment
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4.11
Application ofprepayment
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5
InterestPeriods
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5.1
Commencement of InterestPeriods
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5.2
Duration of normal InterestPeriods
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5.3
Duration of Interest Periodsfor repayment instalments
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5.4
Duration of Interest Periodsduring the relevant Availability Period
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5.5
Non-availability of matchingdeposits for Interest Period selected
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6
Defaultinterest
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6.1
Payment of default intereston overdue amounts
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6.2
Default rate ofinterest
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6.3
Calculation of default rateof interest
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6.4
Notification of interestperiods and default rates
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6.5
Payment of accrued defaultinterest
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6.6
Compounding of defaultinterest
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6.7
Application to MasterAgreements
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7
Repayment andprepayment
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7.1
Amount of repaymentinstalments
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7.2
RepaymentDates
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7.3
Final RepaymentDate
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7.4
Voluntaryprepayment
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7.5
Conditions for voluntaryprepayment
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7.6
Effect of notice ofprepayment
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7.7
Mandatoryprepayment
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7.8
Amounts payable onprepayment
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7.9
Application of partialprepayment
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7.10
Noreborrowing
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7.11
Unwinding of DesignatedTransactions
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8
Conditionsprecedent
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8.1
Documents, fees and nodefault
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8.2
Waivers of conditionsprecedent
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9
Representations andwarranties
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9.1
General
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9.2
Status
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9.3
Share capital andownership
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9.4
Corporatepower
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9.5
Consents inforce
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9.6
Legal validity; effectiveSecurity Interests
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9.7
No third party SecurityInterests
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9.8
Noconflicts
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9.9
No withholdingtaxes
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9.10
Nodefault
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9.11
Information
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9.12
Nolitigation
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9.13
Compliance with certainundertakings
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9.14
Taxespaid
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9.15
ISM Code and ISPS Codecompliance
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9.16
No filing or stamptaxes
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9.17
Ownaccount
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9.18
Pari passuranking
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9.19
No sovereignimmunity
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10
Generalundertakings
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10.1
General
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10.2
Title; negativepledge
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10.3
No disposal ofassets
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10.4
No other liabilities orobligations to be incurred
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10.5
Information provided to beaccurate
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10.6
Provision of financialstatements and other information
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10.7
Form of financialstatements
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10.8
Shareholder and creditornotices
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10.9
Consents
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10.10
Maintenance of SecurityInterests
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10.11
Notification oflitigation
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10.12
No amendment to MasterAgreements
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10.13
Principal place ofbusiness
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10.14
Confirmation of nodefault
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10.15
Notification ofdefault
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10.16
Provision of furtherinformation
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10.17
Duediligence
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11
Corporateundertakings
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11.1
General
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11.2
Maintenance ofstatus
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11.3
Negativeundertakings
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12
Insurance
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12.1
General
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12.2
Maintenance of obligatoryinsurances
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12.3
Terms of obligatoryinsurances
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12.4
Further protections for theLender
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12.5
Renewal of obligatoryinsurances
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12.6
Copies of policies; lettersof undertaking
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12.7
Copies of certificates ofentry
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12.8
Deposit of originalpolicies
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12.9
Payment ofpremiums
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12.10
Guarantees
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12.11
Compliance with terms ofinsurances
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12.12
Alteration to terms ofinsurances
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12.13
Settlement ofclaims
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12.14
Provision of copies ofcommunications
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12.15
Provision ofinformation
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12.16
Mortgagee's interest,additional perils
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13
Shipcovenants
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13.1
General
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13.2
Ship's name andregistration
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13.3
Repair andclassification
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13.4
Modification
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13.5
Removal ofparts
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13.6
Surveys
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13.7
Inspection
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13.8
Prevention of and releasefrom arrest
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13.9
Compliance with lawsetc.
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13.10
Provision ofinformation
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13.11
Notification of certainevents
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13.12
Restrictions on chartering,appointment of managers etc.
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13.13
Notice ofMortgage
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13.14
Sharing ofEarnings
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14
Securitycover
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14.1
Minimum required securitycover
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14.2
Provision of additionalsecurity; prepayment
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14.3
Value of additional vesselsecurity
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14.4
Valuationsbinding
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14.5
Provision ofinformation
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14.6
Payment of valuationexpenses
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14.7
Application ofprepayment
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15
Payments andcalculations
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15.1
Currency and method ofpayments
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15.2
Payment on non-BusinessDay
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15.3
Basis for calculation ofperiodic payments
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15.4
Lenderaccounts
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15.5
Accounts prima facieevidence
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15.6
Source offunds
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16
Application ofreceipts
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16.1
Normal order ofapplication
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16.2
Variation of order ofapplication
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16.3
Notice of variation of orderof application
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16.4
Appropriation rightsoverridden
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17
Application ofEarnings
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17.1
Payment ofEarnings
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17.2
Location ofaccounts
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17.3
Debits for expensesetc.
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18
Events ofDefault
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18.1
Events ofDefault
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18.2
Actions following an Eventof Default
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18.3
Termination ofCommitment
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18.4
Acceleration of theAdvances
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18.5
Multiple notices; actionwithout notice
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18.6
Exclusion of Lender/SwapBank liability
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18.7
[Intentionally leftblank]
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18.8
Interpretation
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19
Fees andexpenses
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19.1
Arrangement and commitmentfees
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19.2
Prepaymentfee
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19.3
Costs of negotiation,preparation etc.
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19.4
Costs of variations,amendments, enforcement etc.
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19.5
Certification ofamounts
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20
Indemnities
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20.1
Indemnities regardingborrowing and repayment of the Advances
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20.2
Breakagecosts
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20.3
Miscellaneousindemnities
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20.4
Currencyindemnity
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20.5
Application to MasterAgreements
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20.6
Certification ofamounts
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21
No set-off or Tax Deduction;value added tax
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21.1
Definitions
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21.2
No set-off andcounterclaim
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21.3
Taxgross-up
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21.4
Taxindemnity
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21.5
TaxCredit
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21.6
Stamptaxes
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21.7
Value addedtax
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22
Illegality,etc.
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22.1
Illegality
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22.2
Notification and effect ofillegality
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22.3
Mitigation
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23
Increasedcosts
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23.1
Definitions
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23.2
IncreasedCosts
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23.3
Optionalprepayment
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24
Set-off
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24.1
Application of creditbalances
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24.2
Existing rightsunaffected
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24.3
No SecurityInterest
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25
Transfers and changes inlending office
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25.1
Transfer byBorrowers
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25.2
Assignment byLender
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25.3
Rights ofassignee
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25.4
Sub-participation;subrogation assignment
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25.5
Disclosure ofinformation
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25.6
Change of lendingoffice
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26
Variations andwaivers
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26.1
Variations, waivers etc. byLender
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26.2
Exclusion of other orimplied variations
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27
Notices
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27.1
Method anddelivery
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27.2
Addresses
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27.3
Receipt
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27.4
Electroniccommunication
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27.5
ServiceDocuments
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27.6
Validnotices
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28
Joint and severalliability
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28.1
General
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28.2
No impairment of Borrower'sobligations
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28.3
Principaldebtors
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28.4
Subordination
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28.5
Borrower's requiredaction
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29
Relationship between theLender and the Swap Bank
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30
Supplemental
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30.1
Rights cumulative,non-exclusive
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30.2
Invalidity
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30.3
Counterparts
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30.4
Third partyrights
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31
Governinglaw
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32
Jurisdiction
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32.1
Jurisdiction of the Englishcourts
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32.2
Proceedings in otherjurisdictions
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32.3
Waiver ofobjections
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33
Service ofprocess
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33.1
Address forservice
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33.2
Agreed method ofservice
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Schedule 1 - DrawdownNotice
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Schedule 2 - Conditionprecedent documents
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Schedule 3 – MandatoryCost formula
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Schedule 4 -Designation notice
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----

| (1)   | Agawam Shipping      Corp.; |
|-----------------|-----------------------------|

| (2)   | Aquidneck Shipping      Corp.; |
|-----------------|--------------------------------|

| (3)   | Anawan Shipping      Corp.; |
|-----------------|-----------------------------|

| (4)   | Isabelle Shipholdings      Corp.; |
|-----------------|-----------------------------------|

| (5)   | Boss Tankers      Ltd.; |
|-----------------|-------------------------|

| (6)   | Bank of Scotland plc as      the Lender (as that term is defined below);and |
|-----------------|-----------------------------------------------------------------------------|

| (7)   | Bank of Scotland plc as      the Swap Bank (as that term is definedbelow). |
|-----------------|----------------------------------------------------------------------------|

| A   | The      Lender has agreed to make available to the Borrowers a facility of up to      $34,000,000 in respect of (a) the refinancing of the Existing Loan, and      (b) the financing of the product tanker type vessel named "Pequod". Each      Ship is the subject of a conversion project which will convert each Ship      from a single hull status to a fully IMO compliant double hull      status. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B   | The      Swap Bank has agreed to enter into interest rate swap transactions with      the Borrowers from time to time to hedge the Borrowers' exposure under      this Agreement to interest ratefluctuations. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C   | The      Lender and the Swap Bank have agreed to share pari passu in the security      to be granted to the Lender pursuant to this  Agreement. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 1   | Definitions      and interpretation |
|---------------|-------------------------------------|

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

1.2

| (a)   | Anawan      Advance; |
|-----------------|----------------------|

| (b)   | Agawam      Advance; |
|-----------------|----------------------|

| (c)   | Aquidneck      Advance; and |
|-----------------|-----------------------------|

| (d)   | Pequod      Advance. |
|-----------------|----------------------|

3
Schedule 2

| (a)   | in      respect of the Anawan Advance the period commencing on the date of this      Agreement and ending on: |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (i)   | 1      December 2007 (or such later date as the Lender may agree with the      Borrowers); or |
|-----------------|-----------------------------------------------------------------------------------------------|

| (ii)   | if      earlier, the date on which the Commitment is fully borrowed, cancelled or      terminated. |
|------------------|----------------------------------------------------------------------------------------------------|

| (b)   | in      respect of the Agawan Advance the period commencing on the date of this      Agreement and ending on: |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (i)   | 1      December 2007 (or such later date as the Lender may agree with the      Borrowers); or |
|-----------------|-----------------------------------------------------------------------------------------------|

| (ii)   | if      earlier, the date on which the Commitment is fully borrowed, cancelled or      terminated. |
|------------------|----------------------------------------------------------------------------------------------------|

| (c)   | in      respect of the Aquidneck Advance the period commencing on the date of this      Agreement and ending on: |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (i)   | 1      March 2008 (or such later date as the Lender may agree with the      Borrowers); or |
|-----------------|--------------------------------------------------------------------------------------------|

| (ii)   | if      earlier, the date on which the Commitment is fully borrowed, cancelled or      terminated. |
|------------------|----------------------------------------------------------------------------------------------------|

| (d)   | in      respect of the Pequod Advance the period commencing on the date of this      Agreement and ending on: |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (i)   | 1      December 2007 (or such later date as the Lender may agree with the      Borrowers); or |
|-----------------|-----------------------------------------------------------------------------------------------|

| (ii)   | if      earlier, the date on which the Commitment is fully borrowed, cancelled or      terminated. |
|------------------|----------------------------------------------------------------------------------------------------|

| (a)   | the      Ship Owning Borrowers; and |
|-----------------|-------------------------------------|

| (b)   | Boss      Tankers Ltd., a corporation incorporated in the Marshall Islands whose      registered offices are at Trust Company Complex, Ajeltake Island, Majuro,      Marshall Islands MH96960 and whose principal office is at Par la Ville      Place, 14 Par la Ville Road, Hamilton HM 08,  Bermuda. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

20.4

| (a)   | it      is entered into by the Borrowers pursuant to a Master Agreement with the      Swap Bank; |
|-----------------|--------------------------------------------------------------------------------------------------|

| (b)   | its      purpose is the hedging of the Borrowers' exposure under this Agreement to      fluctuations in LIBOR arising from the funding of the Advances (or any      part thereof) for a period expiring no later than the final Repayment Date      relating to the last Advance to be repaid;and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | it      is designated by the Borrowers, by delivery by the Borrowers to the Swap      Bank and the Lender of a notice of designation, as a Designated      Transaction for the purposes of the Finance Documents, in the form set out      in Schedule 4. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Schedule 1

| (a)   | all      freight, hire and passage moneys, compensation payable to the Ship Owning      Borrower owning the Ship in the event of requisition of the Ship for hire,      remuneration for salvage and towage services, demurrage and detention      moneys and damages for breach (or payments for variation or termination)      of any charterparty or other contract for the employment of the      Ship; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all      moneys which are at any time payable under Insurances in respect of loss      of earnings; and |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (c)   | if      and whenever the Ship is employed on terms whereby any moneys falling      within paragraphs (a) or (b) are pooled or shared with any other person,      that proportion of the net receipts of the relevant pooling or sharing      arrangement which is attributable to theShip. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in      relation to a Ship, an account in the name of the Ship Owning Borrower      owning the Ship and held with the Lender and designated as      follows: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | "Agawam Shipping Corp. Earnings      Account" with account number39452USD01; |
|-----------------|------------------------------------------------------------------------------|

| (ii)   | "Aquidneck Shipping Corp.      Earnings Account" with account number  39452USD02; |
|------------------|-----------------------------------------------------------------------------------|

| (iii)   | "Anawan Shipping Corp. Earnings      Account" with account number39452USD03; |
|-------------------|------------------------------------------------------------------------------|

| (iv)   | "Isabelle Shipholdings Corp.      Earnings Account" with account number  39452USD05; |
|------------------|--------------------------------------------------------------------------------------|

|   | (b) | account      number 39452USD04 in the name of Boss Tankers Ltd., and held with the      Lender and designated "Boss Tankers Ltd.Earnings Account" into      which any monies held in the Ship Owning Borrower accounts shall be      transferred, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      claim by any governmental, judicial or regulatory authority which arises      out of an Environmental Incident or an alleged Environmental Incident or      which relates to any Environmental Law;or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      claim by any other person which relates to an Environmental Incident or to      an alleged Environmental Incident, |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      release of Environmentally Sensitive Material from a Ship;    or |
|-----------------|---------------------------------------------------------------------------|

| (b)   | any      incident in which Environmentally Sensitive Material is released from a      vessel other than a Ship and which involves a collision between a Ship and      such other vessel or some other incident of navigation or operation, in      either case, in connection with which a Ship is actually or potentially      liable to be arrested, attached, detained or injuncted and/or a Ship      and/or any Ship Owning Borrower and/or any operator or manager of the Ship      is at fault or allegedly at fault or otherwise liable to any legal or      administrative action; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      other incident in which Environmentally Sensitive Material is released      otherwise than from a Ship and in connection with which a Ship is actually      or potentially liable to be arrested and/or where any Ship Owning Borrower      and/or any operator or manager of a Ship is at fault or allegedly at fault      or otherwise liable to any legal or administrative  action. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Existing Loan Agreement; |
|-----------------|-----------------------------------|

| (b)   | this      Agreement; |
|-----------------|----------------------|

| (c)   | the      Guarantee; |
|-----------------|---------------------|

| (d)   | the      Deeds of Covenant; |
|-----------------|-----------------------------|

| (e)   | the      General Assignments; |
|-----------------|-------------------------------|

| (f)   | the      Mortgages; |
|-----------------|---------------------|

| (g)   | the      Accounts Security Deed; |
|-----------------|----------------------------------|

| (h)   | the      Master Agreement; |
|-----------------|----------------------------|

| (i)   | the      Master Agreement Assignment; |
|-----------------|---------------------------------------|

| (j)   | the      Release Documents; |
|-----------------|-----------------------------|

| (k)   | the      Deed of Accession; and |
|-----------------|---------------------------------|

| (l)   | any      other document (whether creating a Security Interest or not) which is      executed at any time by any Borrower or any other person as security for,      or to establish any form of subordination or priorities arrangement in      relation to, any amount payable to the Lender and/or the Swap Bank under      this Agreement or any of the other documents referred to in this      definition. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | for      principal, interest or any other sum payable in respect of any moneys      borrowed or raised by the debtor; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (b)   | under      any loan stock, bond, note or other security issued by the      debtor; |
|-----------------|------------------------------------------------------------------------------------|

| (c)   | under      any acceptance credit, guarantee or letter of credit facility made      available to the debtor; |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (d)   | under      a financial lease, a deferred purchase consideration arrangement or any      other agreement having the commercial effect of a borrowing or raising of      money by the debtor; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | under      any foreign exchange transaction any interest or currency swap or any      other kind of derivative transaction entered into by the debtor or, if the      agreement under which any such transaction is entered into requires      netting of mutual liabilities, the liability of the debtor for the net      amount; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | under      a guarantee, indemnity or similar obligation entered into by the debtor in      respect of a liability of another person which would fall within (a) to      (e) if the references to the debtor referred to the other      person. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | all      policies and contracts of insurance, including entries of the Ship in any      protection and indemnity or war risks association, which are effected in      respect of the Ship, her Earnings or otherwise in relation to her;      and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all      rights and other assets relating to, or derived from, any of the      foregoing, including any rights to a return of a  premium. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      rate per annum equal to the offered quotation for deposits in Dollars for      a period equal to, or as near as possible equal to, the relevant Interest      period which appears on Moneyline Telerate Page 3750 at or about 11.00      a.m. (London time) on the Quotation Date for that Interest Period (and,      for the purposes of this Agreement, "Moneyline Telerate Page      3750" means the display designated as "Page 3750" on the Telerate      Service or such other page as may replace Page 3750 on that service for      the purpose of displaying rates comparable to that rate or on such other      service as may be nominated by the British Bankers' Association as the      information vendor for the purpose of displaying British Bankers'      Association Interest Settlement Rates for Dollars);  or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if      no rate is quoted on Telerate Page 3750, the rate per annum at which      deposits in Dollars are offered to the Lender by leading banks in the      London interbank market at the Lender's request at or about 11.00 a.m.      (London time) on the Quotation Date for that Interest Period for a period      equal to that Interest Period and for delivery on the first Business Day      of it. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Schedule 3

| (a)   | with      or without physical inspection of the Ship (as the Lender may require);      and |
|-----------------|--------------------------------------------------------------------------------------------|

| (b)   | on      the basis of a sale for prompt delivery for cash on normal arm's length      commercial terms as between a willing seller and a willing buyer, free of      any existing charter or other contract of  employment. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

20.4

| (a)   | Security      Interests created by the FinanceDocuments; |
|-----------------|----------------------------------------------------------|

| (b)   | liens      for unpaid master's and crew's wages in accordance with usual maritime      practice; |
|-----------------|--------------------------------------------------------------------------------------------------|

| (c)   | liens      for salvage; |
|-----------------|-------------------------|

| (d)   | liens      arising by operation of law for not more than 2 months' prepaid hire      under any charter in relation to a Ship not prohibited by this      Agreement; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | liens      for master's disbursements incurred in the ordinary course of trading and      any other lien arising by operation of law or otherwise in the ordinary      course of the operation, repair or maintenance of a Ship, provided such      liens do not secure amounts more than 30 days overdue (unless the      overdue amount is being contested by the relevant Ship Owning Borrower in      good faith by appropriate steps); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | any      Security Interest created in favour of a plaintiff or defendant in any      proceedings or arbitration as security for costs and expenses where a      Borrower is actively prosecuting or defending such proceedings or      arbitration in good faith; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Security      Interests arising by operation of law in respect of taxes which are not      overdue for payment or in respect of taxes being contested in good faith      by appropriate steps and in respect of which appropriate reserves have      been made. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      Finance Document; |
|-----------------|----------------------------|

| (b)   | any      policy or contract of insurance contemplated by or referred to in      Clause 12 or any other      provision of this Agreement or another Finance  Document; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      other document contemplated by or referred to in any Finance Document;      and |
|-----------------|------------------------------------------------------------------------------------------|

| (d)   | any      document which has been or is at any time sent by or to the Lender in      contemplation of or in connection with any Finance Document or any policy,      contract or document falling within paragraphs (b) or (c). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | England      and Wales; |
|-----------------|-------------------------|

| (b)   | the      country under the laws of which the company is incorporated or      formed; |
|-----------------|--------------------------------------------------------------------------------------|

| (c)   | a      country in which the company's central management and control is or has      recently been exercised; |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (d)   | a      country in which the overall net income of the company is subject to      corporation tax, income tax or any similartax; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| (e)   | a      country in which assets of the company (other than securities issued by,      or loans to, related companies) having a substantial value are situated,      in which the company maintains a permanent place of business, or in which      a Security Interest created by the company must or should be registered in      order to ensure its validity or priority;and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | a      country the courts of which have jurisdiction to make a winding up,      administration or similar order in relation to the company or which would      have such jurisdiction if their assistance were requested by the courts of      a country referred to in paragraphs (b) or (c)  above. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      transaction or matter contemplated by, arising out of, or connection with      a Pertinent Document; or |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (b)   | any      statement relating to a Pertinent Document or to a transaction or matter      falling within paragraph (a); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (a)   | a      mortgage, charge (whether fixed or floating) or pledge, any maritime or      other lien or any other security interest of any  kind; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      security rights of a plaintiff under an action in rem;    and |
|-----------------|------------------------------------------------------------------------|

| (c)   | any      arrangement entered into by a person (A) the effect of which is to place      another person (B) in a position which is similar, in economic terms, to      the position in which B would have been had he held a security interest      over an asset of A; but this paragraph (c) does not apply to a right of      set off or combination of accounts conferred by the standard terms of      business of a bank or financialinstitution. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | all      amounts which have become due for payment by any Borrower or any Security      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 Finance Document; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (c)   | neither      any Borrower nor any Security Party has any future or contingent liability      under Clause 19, 20, or 21 or      any other provision of this Agreement or another Finance      Document. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      product tanker type vessel of 39,077 dwt currently named "Agawam" and      registered in the name of the Agawam Shipping Corp., under the Bahamas      flag; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      product tanker type vessel of 38,993 dwt currently named "Anawan" and      registered in the name of the Anawan Shipping Corp., under the Bahamas      flag; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      product tanker type vessel of 40,545 dwt currently named "Aquidneck" and      registered in the name of the Aquidneck Shipping Corp., under the Bahamas      flag; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      product tanker type vessel of 38,973 dwt currently named "Pequod" and      registered in the name of Isabelle Shipholdings Corp., under the Bahamas      flag. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Agawam      Shipping Corp., being a      corporation incorporated in the Marshall Islands whose registered offices      are at Trust Company Complex, Ajeltake Island, Majuro, Marshall Islands      MH96960 and whose principal office is at Par la Ville Place, 14 Par la      Ville Road, Hamilton HM 08,Bermuda; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Aquidneck      Shipping Corp., being a corporation incorporated in the Marshall Islands      whose registered offices are at Trust Company Complex, Ajeltake Island,      Majuro, Marshall Islands MH96960 and whose principal office is at Par la      Ville Place, 14 Par la Ville Road, Hamilton HM 08,  Bermuda; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Anawan      Shipping Corp., being a      corporation incorporated in the Marshall Islands whose registered offices      are at Trust Company Complex, Ajeltake Island, Majuro, Marshall Islands      MH96960 and whose principal office is at Par la Ville Place, 14 Par la      Ville Road, Hamilton HM 08, Bermuda;and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Isabelle      Shipholding Corp., being a      corporation incorporated in Liberia whose registered offices are at 80      Broad Street, Monrovia, Republic ofLiberia. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in      relation to the vessel Aquidneck, the survey to be carried out on or      before 31 March 2010; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (b) | in      relation to the vessel Anawan, the survey to be carried out on or before      31 March 2011; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (c) | in      relation to the vessel Agawam, the survey to be carried out on or before      30 June 2011; and |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (d) | in      relation to the vessel Pequod, the survey to be carried out on or before      30 March 2011. |
|--------|-----|------------------------------------------------------------------------------------------------------|

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

| (b)   | any      expropriation, confiscation, requisition or acquisition of the Ship,      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 government or official authority      (excluding a requisition for hire for a fixed period not exceeding 1 year      without any right to an extension) unless it is within 1 month redelivered      to the full control of the Ship Owning Borrower owning the      Ship; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      arrest, capture, seizure or detention of the Ship (including any hijacking      or theft) unless it is within 14 days redelivered to the full control of      the Ship Owning Borrower owning theShip. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | in      the case of a constructive, compromised, agreed or arranged total loss of      the Ship, the earliest of: |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (i)   | the      date on which a notice of abandonment is given to the insurers;      and |
|-----------------|-----------------------------------------------------------------------------------|

| (ii)   | the      date of any compromise, arrangement or agreement made by or on behalf of      the Ship Owning Borrower owning the Ship with the Ship's insurers in which      the insurers agree to treat the Ship as a total loss;  and |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.2   | Interpretation |
|-----------------|----------------|

| (a)   | words      denoting the singular number shall include the plural and vice      versa; |
|-----------------|---------------------------------------------------------------------------------------|

| (b)   | references      in Clause 1.1 to a Finance      Document or any other document being in the form of a particular appendix      include references to that form with any modifications to that form which      the Lender approves or reasonablyrequires; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      expression this Clause      shall, unless followed by reference to a specific provision, be      deemed to refer to the whole clause (not merely the sub-clause, paragraph      or other provision) in which the expression  occurs; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | references      to, or to a provision of, a Finance Document or any other document are      references to it as amended, varied, novated or supplemented, whether      before the date of this Agreement orotherwise; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | references      to, or to a provision of, any law include any amendment, extension,      re-enactment, consolidation or replacement, whether made before the date      of this Agreement or otherwise; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | the      list of contents and headings are for ease of reference only and shall not      be taken into account in construing this  Agreement; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | the      words include,      including and      in particular      shall be construed as being by way of illustration or emphasis only and      shall not be construed as, nor shall they take effect as, limiting the      generality of any preceding words; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | the      words other and      otherwise shall      not be construed ejusdem generis with any foregoing words where a wider      construction is possible; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | approved means, for the      purposes of Clause 12, approved in writing by the    Lender; |
|-----------------|------------------------------------------------------------------------------------------------|

| (j)   | asset includes every      kind of property, asset, interest or right, including any present, future      or contingent right to any revenues or other  payment; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | company or corporation includes any      company, corporation, body corporate, partnership, joint venture and      unincorporated association whereever and howsoever incorporated or      established; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | consent includes an      authorisation, consent, approval, resolution, licence, exemption, filing,      registration, notarisation andlegalisation; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)   | contingent liability      means a liability which is not certain to arise and/or the amount of which      remains unascertained; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (n)   | document includes a      deed; also a letter, fax or telex; |
|-----------------|-------------------------------------------------------------|

| (o)   | excess risks means, in      relation to a Ship, the proportion of claims for general average, salvage      and salvage charges not recoverable under the hull and machinery policies      in respect of the Ship in consequence of its insured value being less than      the value at which the Ship is assessed for the purpose of such      claims; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (p)   | expense means any kind      of cost, charge or expense (including all legal costs, charges and      expenses) and any applicable value added or other  tax; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (q)   | law includes any      legislation, any common or customary law, constitution, decree, judgment,      order, ordinance, or any treaty or international convention, any      regulation or resolution of the Council of the European Union, the      European Commission, the United Nations or its Security Council or other      legislative measure in anyjurisdiction; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r)   | legal or administrative      action means any legal proceeding or arbitration and any      administrative or regulatory action or  investigation; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (s)   | legislation includes any      statute, by-law, regulation, rule, subordinate or delegated legislation or      order; |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (t)   | liability includes any      obligation or any kind of debt or liability (whether present or future,      actual, certain or contingent, secured or unsecured, as principal or      surety or otherwise); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (u)   | a      period of one or more months ends on the day      in the relevant calendar month numerically corresponding to the day of the      calendar month on which the period started (the numerically corresponding      day), but: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | on      the Business Day following the numerically corresponding day if the      numerically corresponding day is not a Business Day or, if there is no      later Business Day in the same calendar month, on the Business Day      preceding the numerically corresponding day;or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | on      the last Business Day in the relevant calendar month, if the period      started on the last Business Day in a calendar month or if the last      calendar month of the period has no numerically corresponding      day; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | obligatory insurances      means, in relation to a Ship, all insurances effected, or which the      Borrower owning the Ship is obliged to effect, under Clause 12 or any      other provision of this Agreement or another Finance    Document; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (w)   | parent company has the      meaning given to it in paragraph (bb); |
|-----------------|--------------------------------------------------------------------|

| (x)   | person includes any      company or corporation; any state, political sub-division of a state and      local or municipal authority; and any international organisation; and      person includes      that person's successors in title and assigns or    transferees; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (y)   | policy, in relation to      any insurance, includes a slip, cover note, certificate of entry or other      document evidencing the contract of insurance or its  terms; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (z)   | protection and indemnity      risks means the usual risks covered by a protection and indemnity      association within the International Group of such associations, including      pollution risks and the proportion (if any) of any sums payable to any      other person or persons in case of collision which are not recoverable      under the hull and machinery policies by reason of the incorporation in      them of clause 1 of the Institute Time Clauses (Hulls)(1/10/83) or      clause 8 of the Institute Time Clauses (Hulls)(1/11/1995) or clause 6      of the Institute Hull Clauses (1/11/02) or the Institute Amended Running      Down Clause (1/10/71) or any equivalent  provision; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (aa)   | regulation includes any      regulation, rule, official directive, request or guideline whether or not      having the force of law but if not having the force of law, compliance      with which is reasonable in the ordinary course of business of the party      concerned, of any governmental, intergovernmental or supranational body,      agency, department or regulatory, self-regulatory or other authority or      organisation; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (bb)   | a      company (S) is a subsidiary of another      company (P) if: |
|------------------|--------------------------------------------------------------------|

| (i)   | a      majority of the issued shares in S (or a majority of the issued shares in      S which carry unlimited rights to capital and income distributions) are      directly owned by P or are indirectly attributable to P;  or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | P      has direct or indirect control over a majority of the voting rights      attaching to the issued shares of S;or |
|------------------|------------------------------------------------------------------------------------------------------------------------|

| (iii)   | P      has the direct or indirect power to appoint or remove a majority of the      directors of S; or |
|-------------------|--------------------------------------------------------------------------------------------------------|

| (iv)   | P      otherwise has the direct or indirect power to ensure that the affairs of S      are conducted in accordance with the wishes of  P; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (cc)   | tax includes any present      or future tax, duty, impost, levy, deduction, withholding or charge of any      kind, or any amount on account of or as security for any of the foregoing,      by whomsoever on whomsoever and wherever imposed, levied, collected,      withheld or assessed, together with any connected penalties, additions,      fines, surcharges or interest; and taxation shall be      construed accordingly; and |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (dd)   | war risks includes the      risk of mines and all risks excluded by clause 23 of the Institute      Time Clauses (Hulls)(1/10/83) or clause 24 of the Institute Time      Clauses (Hulls)(1/11/1995) or clause 29 of the Institute Hull Clauses      (1/11/02). |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | Facility |
|---------------|----------|

| (a)   | the      Commitment; and |
|-----------------|--------------------------|

| (b)   | 75      per cent. of the aggregate Market Values of the Ships (it being agreed      that the Market Value in relation to a Ship shall be determined no earlier      than 45 days prior to the relevant Drawdown Date relating to such      Ship). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | Drawdown |
|---------------|----------|

| 3.1   | Request      for Advance |
|-----------------|--------------------------|

| 3.2   | Availability |
|-----------------|--------------|

| (a)   | a      Drawdown Date has to be a Business Day during the Availability      Period; |
|-----------------|------------------------------------------------------------------------------------|

| (b)   | the      Agawam Advance shall be used to repay the "Agawam Advance" (as defined in      the Existing Loan Agreement); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Aquidneck Advance shall be used to repay the "Aquidneck Advance" (as      defined in the Existing LoanAgreement); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      Anawan Advance shall be used to repay the "Anawan Advance" (as defined in      the Existing Loan Agreement); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (e)   | the      amount of each Advance shall not exceed $8,500,000;  and |
|-----------------|-------------------------------------------------------------------|

| (f)   | the      aggregate amount of the Advances shall not exceed the      Commitment. |
|-----------------|---------------------------------------------------------------------------------|

| 3.3   | Drawdown      Notice irrevocable |
|-----------------|----------------------------------|

| 3.4   | Disbursement      of Advance |
|-----------------|------------------------------|

| 3.5   | Disbursement      of Advance to third party |
|-----------------|---------------------------------------------|

| 4   | Interest |
|---------------|----------|

| 4.1   | Payment      of normal interest |
|-----------------|---------------------------------|

| 4.2   | Normal      rate of interest |
|-----------------|------------------------------|

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

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

| (c)   | the      Mandatory Cost; |
|-----------------|--------------------------|

| 4.3   | Payment      of accrued interest |
|-----------------|----------------------------------|

| 4.4   | Notification      of market disruption |
|-----------------|----------------------------------------|

| 4.5   | Suspension      of drawdown. |
|-----------------|------------------------------|

| 4.6   | Negotiation      of alternative rate of interest |
|-----------------|--------------------------------------------------|

| 4.7   | Application      of agreed alternative rate ofinterest |
|-----------------|--------------------------------------------------------|

| 4.8   | Alternative      rate of interest in absence ofagreement |
|-----------------|----------------------------------------------------------|

4.8

| 4.9   | Notice      of prepayment |
|-----------------|---------------------------|

| 4.10   | Prepayment |
|------------------|------------|

4.8

| 4.11   | Application      of prepayment |
|------------------|--------------------------------|

| 5   | Interest      Periods |
|---------------|-----------------------|

| 5.1   | Commencement      of Interest Periods |
|-----------------|---------------------------------------|

| 5.2   | Duration      of normal Interest Periods |
|-----------------|------------------------------------------|

| 5.2.1   | Subject      to Clauses 5.3, 5.4 and 5.5, each Interest Period shall      be: |
|-------------------|------------------------------------------------------------------------------------|

| (a)   | 1,      3 or 6 months as notified by the Borrowers to the Lender not later than      11.00 a.m. (London time) 3 Business Days before the commencement of the      Interest Period (although the Borrowers acknowledge that a 1 month      Interest Period shall only be available a maximum of 3 times in any      calendar year); or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | 3      months, if the Borrowers fail to notify the Lender by the time specified      in paragraph (a); or |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (c)   | such      other period as the Lender may agree with the  Borrowers. |
|-----------------|---------------------------------------------------------------------|

| 5.2.2   | For      the avoidance of doubt, Interest Periods in respect of each of the      Advances shall not be consolidated. |
|-------------------|----------------------------------------------------------------------------------------------------------------------|

| 5.3   | Duration      of Interest Periods for repaymentinstalments |
|-----------------|------------------------------------------------------------|

| 5.4   | Duration      of Interest Periods during the relevant Availability  Period |
|-----------------|----------------------------------------------------------------------------|

| (a)   | in      respect of the Anawan Advance and for the period commencing on the      relevant Drawdown Date and ending on 1 March 2008, the Borrowers shall      select Interest Periods of such duration so as to ensure the final      Interest Period during such period ends on 1 March  2008; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      respect of the Agawan Advance and for the period commencing on the      relevant Drawdown Date and ending on 1 March 2008, the Borrowers shall      select Interest Periods of such duration so as to ensure the final      Interest Period during such period ends on 1 March  2008; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      respect of the Pequod Advance and for the period commencing on the      relevant Drawdown Date and ending on 1 March 2008, the Borrowers shall      select Interest Periods of such duration so as to ensure the final      Interest Period during such period ends on 1 March 2008;    and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | in      respect of the Aquidneck Advance and for the period commencing on the      relevant Drawdown Date and ending on 1 June 2008, the Borrowers shall      select Interest Periods of such duration so as to ensure the final      Interest Period during such period ends on 1 June  2008. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5   | Non-availability      of matching deposits for Interest Period  selected |
|-----------------|--------------------------------------------------------------------------|

| 6   | Default      interest |
|---------------|-----------------------|

| 6.1   | Payment      of default interest on overdueamounts |
|-----------------|----------------------------------------------------|

| (a)   | the      date on which the Finance Documents provide that such amount is due for      payment; or |
|-----------------|---------------------------------------------------------------------------------------------------|

| (b)   | if      a Finance Document provides that such amount is payable on demand, the      date on which the demand is served;or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (c)   | if      such amount has become immediately due and payable under Clause 18.4,      the date on which it became immediately due and  payable. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2   | Default      rate of interest |
|-----------------|-------------------------------|

| (a)   | in      the case of an overdue amount of principal, the higher of the rates set      out at Clauses 6.3(a) and (b);or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      the case of any other overdue amount, the rate set out at Clause 6.3(b). |
|-----------------|---------------------------------------------------------------------------------------|

| 6.3   | Calculation      of default rate of interest |
|-----------------|----------------------------------------------|

| (a)   | the      rate applicable to the overdue principal amount immediately prior to the      relevant date (but only for any unexpired part of any then current      Interest Period applicable to it); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Margin plus the Mandatory Cost plus, in respect of successive periods of      any duration (including at call) up to 3 months which the Lender may      select from time to time: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | LIBOR;      or |
|-----------------|----------------|

| (ii)   | if      the Lender determines that Dollar deposits for any such period are not      being made available to it by leading banks in the London interbank market      in the ordinary course of business, a rate from time to time determined by      the Lender by reference to the cost of funds to it from such other sources      as the Lender may from time to timedetermine. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4   | Notification      of interest periods and defaultrates |
|-----------------|--------------------------------------------------------|

| 6.5   | Payment      of accrued default interest |
|-----------------|------------------------------------------|

| 6.6   | Compounding      of default interest |
|-----------------|--------------------------------------|

| 6.7   | Application      to Master Agreements |
|-----------------|---------------------------------------|

| 7   | Repayment      and prepayment |
|---------------|-------------------------------|

| 7.1   | Amount      of repayment instalments |
|-----------------|--------------------------------------|

| 7.1.1   | Subject      to Clause 7.1.2, the Borrowers shall repay each Advance as      follows: |
|-------------------|---------------------------------------------------------------------------------------|

| (a)   | in      relation to the Anawan Advance by: |
|-----------------|--------------------------------------------|

| (i)   | 8      equal consecutive three-monthly instalments of  $600,000; |
|-----------------|------------------------------------------------------------------|

| (ii)   | followed      by 5 equal consecutive three-monthly instalments of $520,000 and at the      same time as thirteenth and final instalment of $520,000, a balloon      instalment of $1,100,000; and |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to the Agawam Advance by: |
|-----------------|--------------------------------------------|

| (i)   | 8      equal consecutive three-monthly instalments of  $587,500; |
|-----------------|------------------------------------------------------------------|

| (ii)   | followed      by 6 equal consecutive three-monthly instalments of $450,000 and at the      same time as fourteenth and final instalment of $450,000, a balloon      instalment of $1,100,000; and |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      relation to the Aquidneck Advanceby: |
|-----------------|----------------------------------------------|

| (i)   | 8      equal consecutive three-monthly instalments of  $525,000; |
|-----------------|------------------------------------------------------------------|

| (ii)   | followed      by 8 equal consecutive three-monthly instalments of $400,000 and at the      same time as sixteenth and final instalment of $400,000, a balloon      instalment of $1,100,000; and |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | in      relation to the Pequod Advance by: |
|-----------------|--------------------------------------------|

| (i)   | 8      equal consecutive three-monthly instalments of  $525,000; |
|-----------------|------------------------------------------------------------------|

| (ii)   | followed      by 8 equal consecutive three-monthly instalments of $400,000 and at the      same time as sixteenth and final instalment of $400,000, a balloon      instalment of $1,100,000; and |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1.2   | If      the full amount of an Advance is not drawn down under this Agreement, the      amount of each instalment (other than the balloon instalment) repayable in      relation to such Advance shall be reduced  pro-rata. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2   | Repayment      Dates |
|-----------------|----------------------|

| 7.2.1   | In      relation to the Anawan Advance, the first instalment in relation to such      Advance shall be repaid on 1 March 2008 and, subject to Clause 7.2.5, the      last instalment on 1 March 2011. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2.2   | In      relation to the Agawam Advance, the first instalment in relation to such      Advance shall be repaid on 1 March 2008 and, subject to Clause 7.2.5, the      last instalment on 1 June 2011. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2.3   | In      relation to the Aquidneck Advance, the first instalment in relation to      such Advance shall be repaid on 1 June 2008 and, subject to Clause 7.2.5,      the last instalment on 1 March2012. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2.4   | In      relation to the Pequod Advance, the first instalment in relation to such      Advance shall be repaid on 1 March 2008 and, subject to Clause 7.2.5, the      last instalment on 1 December 2011. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2.5   | The      above Repayment Dates in relation to each Advance have been calculated on      the assumption that: |
|-------------------|--------------------------------------------------------------------------------------------------------------|

| (a)   | in      relation to the Anawan Advance, the final Repayment Date occurs prior to      the Sixth Special Survey date relating to "Anawan". If the assumption      proves to be incorrect, the final Repayment Date shall be the day falling      immediately prior to the relevant Sixth Special Survey date for      "Anawan"; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to the Agawam Advance, the final Repayment Date occurs prior to      the Sixth Special Survey date relating to "Agawam". If the relevant      assumption proves to be incorrect, the final Repayment Date shall be the      day falling immediately prior to the relevant Sixth Special Survey date      for "Agawam"; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      relation to the Pequod Advance, the final Repayment Date occurs prior to      the Sixth Special Survey date relating to "Pequod". If the relevant      assumption proves to be incorrect, the final Repayment Date shall be the      day falling immediately after the relevant Sixth Special Survey date for      "Pequod"; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | in      relation to the Aquidneck Advance, " Aquidneck " satisfactorily passes its      Sixth Special Survey. If the relevant assumption proves to be incorrect,      the final Repayment Date shall be the day falling immediately after the      relevant Sixth Special Survey date for  "Aquidneck". |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3   | Final      Repayment Date |
|-----------------|---------------------------|

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

| 7.5   | Conditions      for voluntary prepayment |
|-----------------|------------------------------------------|

| (a)   | a      partial prepayment shall be $500,000 or a multiple of      $500,000; |
|-----------------|-----------------------------------------------------------------------------|

| (b)   | the      Lender has received from the Borrowers at least 5 Business Days' prior      written notice specifying the amount to be prepaid and the date on which      the prepayment is to be made; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Borrowers have provided evidence satisfactory to the Lender that any      consent required by any Borrower or any Security Party in connection with      the prepayment has been obtained and remains in force, and that any      regulation relevant to this Agreement which affects any Borrower or any      Security Party has been complied with;and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | that      the Borrowers have complied with Clause 7.11 on or prior to the date of      prepayment. |
|-----------------|---------------------------------------------------------------------------------------------------------|

| 7.6   | Effect      of notice of prepayment |
|-----------------|-------------------------------------|

| 7.7   | Mandatory      prepayment |
|-----------------|---------------------------|

| 7.7.1   | If      a Ship is sold or becomes a Total Loss, the Borrowers shall be obliged to      prepay the Advance relative to such Ship and to comply with Clause 7.11: |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | in      the case of a Total Loss, on the earlier of the date falling 120 days      after the Total Loss Date and the date of receipt by the Lender of the      proceeds of insurance relating to such Total  Loss. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7.2   | If,      following the sale or Total Loss of a Ship and after the prepayment      referred to in Clause 7.7.1, the security coverage ratio in Clause 14 is      not satisfied, the provisions of Clause 14 shall  apply. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.8   | Amounts      payable on prepayment |
|-----------------|------------------------------------|

20.1(b)

| 7.9   | Application      of partial prepayment |
|-----------------|----------------------------------------|

| 7.10   | No      reborrowing |
|------------------|---------------------|

| 7.11   | Unwinding      of Designated Transactions |
|------------------|-------------------------------------------|

| 8   | Conditions      precedent |
|---------------|---------------------------|

| 8.1   | Documents,      fees and no default |
|-----------------|-------------------------------------|

| (a)   | that,      on or before the date of thisAgreement: |
|-----------------|----------------------------------------------------|

| (i)   | the      Lender receives the documents described in Part A of Schedule 2 in form and substance      satisfactory to it and its lawyers;and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | each      of the other conditions referred to in Part A of Schedule 2 have been      satisfied. |
|------------------|-------------------------------------------------------------------------------------------------|

| (b)   | that,      on the Drawdown Date of an Advance but prior to the Advance being      disbursed, the Lender receives the documents described in Part B of Schedule 2 in form and substance      satisfactory to it and its lawyers; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | that,      on or before the service of the Drawdown Notice relating to the first      Advance to be disbursed, the Lender receives the arrangement fee referred      to in Clause 19.1; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | that,      on or before the service of any Drawdown Notice, the Lender      receives all accrued commitment fee payable pursuant to      Clause 19.1 and has received payment of the expenses referred to in      Clause 19.3; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | that      both at the date of any Drawdown Notice and on the relevant Drawdown      Date: |
|-----------------|-------------------------------------------------------------------------------------------|

| (i)   | no      Event of Default or Potential Event of Default has occurred and is      continuing or would result from the borrowing of the    Advance; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the      representations and warranties in Clause 9.1 and those of any      Borrower or any Security Party which are set out in the other Finance      Documents would be true and not misleading if repeated on each of those      dates with reference to the circumstances then existing;    and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | none      of the circumstances contemplated by Clause 4.4 has occurred and is      continuing; and |
|-------------------|---------------------------------------------------------------------------------------------------------|

| (f)   | that,      if the ratio set out in Clause 14.1 were applied immediately      following the making of an Advance, the Borrowers would not be obliged to      provide additional security or prepay the Advances under that Clause;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | that      the Lender has received, and found to be acceptable to it, any further      opinions, consents, agreements and documents in connection with the      Finance Documents which the Lender may request by notice to the Borrowers      prior to the Drawdown Date. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2   | Waivers      of conditions precedent |
|-----------------|--------------------------------------|

| 9   | Representations      and warranties |
|---------------|-------------------------------------|

| 9.1   | General |
|-----------------|---------|

| 9.2   | Status |
|-----------------|--------|

| 9.2.1   | Each      of Agawam Shipping Corp., Aquidneck Shipping Corp., Anawam Shipping Corp      and Boss Tankers Ltd are  is duly incorporated and validly      existing and in good standing under the laws of the Marshall      Islands. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2.2   | Isabelle      Shipholdings Corp., is duly incorporated and validly existing and in good      standing under the laws of Liberia. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------|

| 9.3   | Share      capital and ownership |
|-----------------|----------------------------------|

| 9.3.1   | [Each      of the Ship Owning Borrowers have an authorised share capital of $500      divided into 500 registered shares of $1 each, all of which shares have      been issued fully paid, and the legal title and beneficial ownership of      all those shares is held, free of any Security Interest or other claim, by      the Shareholder.] (To be      confirmed in relation toIsabelle] |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3.2   | The      Shareholder has an authorised share capital of $1,000 divided into 1,000      registered shares of $1 each, all of which shares have been issued fully      paid, and the legal title and beneficial ownership of all those shares is      held, free of any Security Interest or other claim, by the      Guarantor. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.4   | Corporate      power |
|-----------------|----------------------|

| 9.4.1   | Each      of the Ship Owning Borrowers have the corporate capacity, and has taken      all corporate action and obtained all consents necessary for it to      register the Ship owned by it in its name under Bahamas    flag. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.4.2   | Each      Borrower has the corporate capacity, and has taken all corporate action      and obtained all consents necessary forit: |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      execute the Finance Documents to which that Borrower is a party;      and |
|-----------------|-----------------------------------------------------------------------------------|

| (b)   | to      borrow under this Agreement, to enter into Designated Transactions under      the Master Agreement and to make all the payments contemplated by, and to      comply with, those FinanceDocuments. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5   | Consents      in force |
|-----------------|------------------------|

| 9.6   | Legal      validity; effective SecurityInterests |
|-----------------|--------------------------------------------------|

| (a)   | constitute      that Borrower's legal, valid and binding obligations enforceable against      that Borrower in accordance with their respective terms;    and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | create      legal, valid and binding Security Interests enforceable in accordance with      their respective terms over all the assets to which they, by their terms,      relate; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.7   | No      third party Security Interests |
|-----------------|----------------------------------------|

| (a)   | each      Borrower which is a party to that Finance Document will have the right to      create all the Security Interests which that Finance Document purports to      create; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | no      third party will have any Security Interest (except for Permitted Security      Interests) or any other interest, right or claim over, in or in relation      to any asset to which any such Security Interest, by its terms,      relates. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.8   | No      conflicts |
|-----------------|-------------------|

| (a)   | any      law or regulation; or |
|-----------------|--------------------------------|

| (b)   | the      constitutional documents of that Borrower;or |
|-----------------|-------------------------------------------------------|

| (c)   | any      contractual or other obligation or restriction which is binding on that      Borrower or any of its assets. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| 9.9   | No      withholding taxes |
|-----------------|---------------------------|

| 9.10   | No      default |
|------------------|-----------------|

| 9.11   | Information |
|------------------|-------------|

| 9.11.1   | All      information which has been provided in writing by or on behalf of the      Borrowers or any Security Party to the Lender in connection with any      Finance Document satisfied the requirements of      Clause 10.5. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.11.2   | All      audited and unaudited accounts which have been so provided satisfied the      requirements of Clause 10.7. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| 9.11.3   | There      has been no material adverse change in the financial position or state of      affairs of any Borrower or Security Party from that disclosed in the      latest of those accounts. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.12   | No      litigation |
|------------------|--------------------|

| 9.13   | Compliance      with certain undertakings |
|------------------|-------------------------------------------|

| 9.14   | Taxes      paid |
|------------------|-----------------|

| 9.14.1   | Each      Borrower has paid all taxes applicable to, or imposed on or in relation to      that Borrower or its business. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| 9.14.2   | Each      Ship Owning Borrower has paid all taxes applicable to, or imposed on or in      relation to the Ship owned by it. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| 9.15   | ISM      Code and ISPS Code compliance |
|------------------|----------------------------------------|

| 9.16   | No      filing or stamp taxes |
|------------------|-------------------------------|

| 9.17   | Own      account |
|------------------|------------------|

| 9.18   | Pari      passu ranking |
|------------------|-------------------------|

| 9.19   | No      sovereign immunity |
|------------------|----------------------------|

| 10   | General      undertakings |
|----------------|---------------------------|

| 10.1   | General |
|------------------|---------|

| 10.2   | Title;      negative pledge |
|------------------|-----------------------------|

| 10.2.1   | Each      Ship Owning Borrower shall hold the legal title to, and own the entire      beneficial interest in the Ship owned by it, her Insurances and Earnings,      free from all Security Interests and other interests and rights of every      kind, except for those created by the Finance Documents and the effect of      assignments contained in the Finance Documents and except for Permitted      Security Interests. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.2   | Each      Borrower shall not create or permit to arise any Security Interest (except      for Permitted Security Interests) over any other asset, present or future      (including, but not limited to, the Borrower's rights against the Swap      Bank under a Master Agreement or all or any part of the Borrower's      interest in any amount payable to the Borrower by a Swap Bank under a      Master Agreement). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3   | No      disposal of assets |
|------------------|----------------------------|

| (a)   | all      or a substantial part of its assets, whether by one transaction or a      number of transactions, whether related or not;  or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      debt payable to it or any other right (present, future or contingent      right) to receive a payment, including any right to damages or      compensation, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4   | No      other liabilities or obligations to beincurred |
|------------------|--------------------------------------------------------|

| 10.4.1   | No      Ship Owning Borrower shall incur any liability or obligation except      liabilities or obligations reasonably incurred in the ordinary course of      operating and chartering the Ship owned byit. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4.2   | No      Borrower shall incur any liability or obligation except liabilities or      obligations under the FinanceDocuments. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| 10.5   | Information      provided to be accurate |
|------------------|------------------------------------------|

| 10.6   | Provision      of financial statements and otherinformation |
|------------------|-------------------------------------------------------------|

| (a)   | as      soon as possible but in no event later than 180 days after the end of each      applicable financial year |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (i)   | the      audited consolidated accounts of Guarantor;and |
|-----------------|---------------------------------------------------------|

| (ii)   | the      audited accounts of Boss Tankers Ltd. set out within the said audited      consolidated accounts ofGuarantor;  |
|------------------|------------------------------------------------------------------------------------------------------------------------------|

| (b)   | as      soon as possible but in no event later than 45 days after the end of      each quarter in each financial year of Boss Tankers Ltd., the unaudited      accounts of Boss Tankers Ltd. certified as to their correctness by the      chief financial officer of Boss Tankers  Ltd.; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | as      soon as possible but in no event later than one month before      the beginning of each applicable financial year of Boss Tankers Ltd.,      a budget in a format approved by Lender which shows all anticipated income      and expenditures of each of the Ship Owning Borrowers during the next      financial year in respect of the Ship owned by  it. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7   | Form      of financial statements |
|------------------|-----------------------------------|

| (a)   | be      prepared in accordance with all applicable laws and generally accepted      accounting principles; |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (b)   | give      a true and fair view of the state of affairs of the relevant Borrower at      the date of those accounts and of its profit for the period to which those      accounts relate; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | fully      disclose or provide for all significant liabilities of the relevant      Borrower. |
|-----------------|-----------------------------------------------------------------------------------------------|

| 10.8   | Shareholder      and creditor notices |
|------------------|---------------------------------------|

| 10.9   | Consents |
|------------------|----------|

| (a)   | for      that Borrower to perform its obligations under any Finance Document to      which it is a party; |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (b)   | for      the validity or enforceability of any Finance Document to which it is a      party; |
|-----------------|----------------------------------------------------------------------------------------------|

| (c)   | for      that Borrower (to the extent it is a Ship Owning Borrower) to continue to      own and operate the Ship owned byit; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| 10.10   | Maintenance      of Security Interests |
|-------------------|----------------------------------------|

| (a)   | at      its own cost, do all that it reasonably can to ensure that any Finance      Document validly creates the obligations and the Security Interests which      it purports to create; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | without      limiting the generality of paragraph (a), at its own cost, promptly      register, file, record or enrol any Finance Document with any court or      authority in all Pertinent Jurisdictions, pay any stamp, registration or      similar tax in all Pertinent Jurisdictions in respect of any Finance      Document, give any notice or take any other step which may be or has      become necessary or desirable for any Finance Document to be valid,      enforceable or admissible in evidence or to ensure or protect the priority      of any Security Interest which itcreates. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11   | Notification      of litigation |
|-------------------|---------------------------------|

| 10.11.1   | Each      Borrower shall provide the Lender with details of any legal or      administrative action involving that Borrower, any Security Party or the      Approved Manager as soon as such action is instituted or it becomes      apparent to that Borrower that it is likely to be instituted, unless it is      clear that the legal or administrative action cannot be considered      material in the context of any FinanceDocument. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11.2   | Each      Ship Owning Borrower shall provide the Lender with details of any legal or      administrative action involving the Ship owned by it , the Earnings or the      Insurances as soon as such action is instituted or it becomes apparent to      that Borrower that it is likely to be instituted, unless it is clear that      the legal or administrative action cannot be considered material in the      context of any Finance Document. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12   | No      amendment to Master Agreements |
|-------------------|----------------------------------------|

| 10.13   | Principal      place of business |
|-------------------|----------------------------------|

| 10.14   | Confirmation      of no default |
|-------------------|---------------------------------|

| 10.14.1   | Each      Borrower shall procure that the chief financial officer of the Guarantor      shall, on a three-monthly basis serve on the Lender a notice which is      signed by the chief financial officer of the Guarantor and which, as the      case may be: |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | states      that no Event of Default or Potential Event of Default has occurred;      or |
|-----------------|------------------------------------------------------------------------------------------|

| (b)   | states      that no Event of Default or Potential Event of Default has occurred,      except for a specified event or matter, of which all material details are      given; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | includes      such other confirmations and supporting evidence that may be reasonably      requested by the Lender. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| 10.14.2   | Each      Borrower shall, within 2 Business Days after service by the Lender of a      written request, serve on the Lender a notice which is signed by 2      directors of the Borrower and which, as the case may  be: |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | states      that no Event of Default or Potential Event of Default has occurred;      or |
|-----------------|------------------------------------------------------------------------------------------|

| (b)   | states      that no Event of Default or Potential Event of Default has occurred,      except for a specified event or matter, of which all material details are      given. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15   | Notification      of default |
|-------------------|------------------------------|

| (a)   | the      occurrence of an Event of Default or a Potential Event of Default;      or |
|-----------------|-------------------------------------------------------------------------------------|

| (b)   | any      matter which indicates that an Event of Default or a Potential Event of      Default may have occurred; |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| 10.16   | Provision      of further information |
|-------------------|---------------------------------------|

| 10.16.1   | Each      Borrower shall, as soon as practicable after receiving the request,      provide the Lender with any additional financial or other information      reasonably relating to any matter relevant to, or to any provision of, a      Finance Document which may be requested by the Lender at any      time. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16.2   | Each      Ship Owning Borrower shall, as soon as practicable after receiving the      request, provide the Lender with any additional financial or other      information relating to that Ship Owning Borrower, the Ship owned by it,      the Earnings or the Insurances. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17   | Due      diligence |
|-------------------|--------------------|

| 11   | Corporate      undertakings |
|----------------|-----------------------------|

| 11.1   | General |
|------------------|---------|

| 11.2   | Maintenance      of status |
|------------------|----------------------------|

| 11.3   | Negative      undertakings |
|------------------|----------------------------|

| 11.3.1   | No      Ship Owning Borrower shall carry on any business other than the ownership,      chartering and operation of the Ship owned by  it. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3.2   | Boss      Tankers Ltd (as the non ship owning borrower) shall not, without the      consent of the Lender, carry on any business other than the ownership of      the shares in the Ship OwningBorrowers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3.3   | No      Borrower shall: |
|--------------------|-------------------------|

| (a)   | alter      its financial year; |
|-----------------|--------------------------------|

| (b)   | subject      to Clause  11.3.4, pay any dividend or make any other form of      distribution or effect any form of redemption, purchase or return of share      capital or repay any loans to its shareholders;  or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | provide      any form of credit or financial assistanceto: |
|-----------------|------------------------------------------------------------|

| (i)   | a      person who is directly or indirectly interested in that Borrower's share      or loan capital; or |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (ii)   | any      company in or with which such a person is directly or indirectly      interested or connected; |
|------------------|---------------------------------------------------------------------------------------------------------|

| (d)   | open      or maintain any account with any bank or financial institution except      accounts with the Lender for the purposes of the Finance      Documents; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | issue,      allot or grant any person a right to any shares in its capital or      repurchase or reduce its issued sharecapital; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (f)   | acquire      any shares or other securities other than US or UK Treasury bills and      certificates of deposit issued by major North American or European banks,      or enter into any transaction in a derivative other than Designated      Transactions; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | enter      into any form of amalgamation, merger or de-merger or any form of      reconstruction or reorganisation. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| 11.3.4   | Each      Borrower shall be entitled to pay a dividend to its shareholders      if: |
|--------------------|-------------------------------------------------------------------------------------|

| (a)   | at      the relevant time, no Potential Event of Default or Event of Default is      continuing; and |
|-----------------|------------------------------------------------------------------------------------------------------|

| (b)   | no      Potential Event of Default or Event of Default would occur as a result of      such payment. |
|-----------------|------------------------------------------------------------------------------------------------------|

| 12   | Insurance |
|----------------|-----------|

| 12.1   | General |
|------------------|---------|

| 12.2   | Maintenance      of obligatory insurances |
|------------------|-------------------------------------------|

| (a)   | fire      and usual marine risks (including hull and machinery and excess      risks); |
|-----------------|----------------------------------------------------------------------------------------|

| (b)   | war      risks; |
|-----------------|-----------------|

| (c)   | protection      and indemnity risks; and |
|-----------------|------------------------------------------|

| (d)   | any      other risks against which the Lender considers, having regard to practices      and other circumstances prevailing at the relevant time, it would in the      opinion of the Lender be reasonable for that Borrower to insure and which      are specified by the Lender by notice to that  Borrower. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3   | Terms      of obligatory insurances |
|------------------|-------------------------------------|

| 12.3.1   | Subject      to Clause 12.3.2, each Ship Owning Borrower shall effect such      insurances: |
|--------------------|---------------------------------------------------------------------------------------------|

| (a)   | in      Dollars; |
|-----------------|------------------|

| (b)   | in      the case of fire and usual marine risks and war risks, in an amount on an      agreed value basis of at least the market value of the Ship owned by      it; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      the case of oil pollution liability risks, for an aggregate amount equal      to the highest level of cover from time to time available under basic      protection and indemnity club entry and in the international marine      insurance market; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | in      relation to protection and indemnity risks in respect of the full tonnage      of the Ship owned by it; |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| (e)   | on      approved terms; and |
|-----------------|-----------------------------|

| (f)   | through      approved brokers and with approved insurance companies and/or underwriters      or, in the case of war risks and protection and indemnity risks, in      approved war risks and protection and indemnity risks      associations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3.2   | The      Ship Owning Borrowers shall ensure that in the case of fire and usual      marine risks and war risks insurance relating to all Ships, the aggregate      insured value is at all times at least 120% of the aggregate of the      Advances and any Swap Exposure. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4   | Further      protections for the Lender |
|------------------|-----------------------------------------|

| (a)   | whenever      the Lender requires name (or be amended to name) the Lender as additional      named assured for its rights and interests, warranted no operational      interest and with full waiver of rights of subrogation against the Lender,      but without the Lender thereby being liable to pay (but having the right      to pay) premiums, calls or other assessments in respect of such      insurance; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | name      the Lender as loss payee with such directions for payment as the Lender      may specify; |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (c)   | provide      that all payments by or on behalf of the insurers under the obligatory      insurances to the Lender shall be made without set-off, counterclaim or      deductions or condition whatsoever; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | provide      that such obligatory insurances shall be primary without right of      contribution from other insurances which may be carried by the      Lender; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | provide      that the Lender may make proof of loss if any of the Ship Owning Borrowers      fail to do so. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| 12.5   | Renewal      of obligatory insurances |
|------------------|---------------------------------------|

| (a)   | at      least 21 days before the expiry of any obligatory insurance effected by      it: |
|-----------------|------------------------------------------------------------------------------------------|

| (i)   | notify      the Lender of the brokers (or other insurers) and any protection and      indemnity or war risks association through or with whom that Borrower      proposes to renew that obligatory insurance and of the proposed terms of      renewal; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | obtain      the Lender's approval to the matters referred to in paragraph      (i); |
|------------------|-------------------------------------------------------------------------------------|

| (b)   | at      least 10 days before the expiry of any obligatory insurance (or such later      date as will be agreed by the Lender where the Borrower demonstrates      to the Lender's satisfaction that meaningful negotiations with      brokers or insurers continue within the 10 day period and that there is no      likelihood the obligatory insurance in respect of an applicable      Ship will not be obtained before the expiration of such period)      effected by it, renew that obligatory insurance in accordance with the      Lender's approval pursuant to paragraph (a);and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | procure      that the approved brokers and/or the war risks and protection and      indemnity associations with which such a renewal is effected shall      promptly after the renewal notify the Lender in writing of the terms and      conditions of the renewal. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.6   | Copies      of policies; letters of undertaking |
|------------------|-------------------------------------------------|

| (a)   | they      will have endorsed on each policy, immediately upon issue, a loss payable      clause and a notice of assignment complying with the provisions of      Clause 12.4; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | they      will hold such policies, and the benefit of such insurances, to the order      of the Lender in accordance with the loss payable clause referred to in      paragraph (a); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | they      will advise the Lender immediately of any material change to the terms of      the obligatory insurances; |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (d)   | they      will notify the Lender, not less than 14 days before the expiry of the      obligatory insurances, in the event of their not having received notice of      renewal instructions from that Ship Owning Borrower or its agents and, in      the event of their receiving instructions to renew, they will promptly      notify the Lender of the terms of the instructions;  and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | they      will not set off against any sum recoverable in respect of a claim      relating to the Ship owned by that Ship Owning Borrower under such      obligatory insurances any premiums or other amounts due to them or any      other person whether in respect of that Ship or otherwise, they waive any      lien on the policies, or any sums received under them, which they might      have in respect of such premiums or other amounts, and they will not      cancel such obligatory insurances by reason of non-payment of such      premiums or other amounts, and will arrange for a separate policy to be      issued in respect of that Ship immediately upon being so requested by the      Lender. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7   | Copies      of certificates of entry |
|------------------|--------------------------------------|

| (a)   | a      certified copy of the certificate of entry for that  Ship; |
|-----------------|-------------------------------------------------------------------|

| (b)   | a      letter or letters of undertaking in such form as may be required by the      Lender; and |
|-----------------|-------------------------------------------------------------------------------------------------|

| (c)   | a      certified copy of each certificate of financial responsibility for      pollution by oil or other Environmentally Sensitive Material issued by the      relevant certifying authority in relation to that  Ship. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.8   | Deposit      of original policies |
|------------------|-----------------------------------|

| 12.9   | Payment      of premiums |
|------------------|--------------------------|

| 12.10   | Guarantees |
|-------------------|------------|

| 12.11   | Compliance      with terms of insurances |
|-------------------|------------------------------------------|

| (a)   | each      Ship Owning Borrower shall take all necessary action and comply with all      requirements which may from time to time be applicable to the obligatory      insurances, and (without limiting the obligation contained in      Clause 12.7(c) ensure that      the obligatory insurances are not made subject to any exclusions or      qualifications to which the Lender has not given its prior      approval; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | no      Ship Owning Borrower shall make any changes relating to the classification      or classification society or manager or operator of the Ship owned by it      unless approved by the underwriters of the obligatory      insurances; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | each      Ship Owning Borrower shall make (and promptly supply copies to the Lender      of) all quarterly or other voyage declarations which may be required by      the protection and indemnity risks association in which the Ship owned by      it is entered to maintain cover for trading to the United States of      America and Exclusive Economic Zone (as defined in the United States Oil      Pollution Act 1990 or any other applicable legislation);    and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | no      Ship Owning Borrower shall employ the Ship owned by it, nor allow it to be      employed, otherwise than in conformity with the terms and conditions of      the obligatory insurances, without first obtaining the consent of the      insurers and complying with any requirements (as to extra premium or      otherwise) which the insurersspecify. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.12   | Alteration      to terms of insurances |
|-------------------|----------------------------------------|

| 12.13   | Settlement      of claims |
|-------------------|---------------------------|

| 12.14   | Provision      of copies of communications |
|-------------------|--------------------------------------------|

| (a)   | the      approved brokers; and |
|-----------------|--------------------------------|

| (b)   | the      approved protection and indemnity and/or war risks associations;      and |
|-----------------|------------------------------------------------------------------------------------|

| (c)   | the      approved insurance companies and/or underwriters, which relate directly or      indirectly to: |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (i)   | that      Ship Owning Borrower's obligations relating to the obligatory insurances      including, without limitation, all requisite declarations and payments of      additional premiums or calls; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any      credit arrangements made between that Ship Owning Borrower and any of the      persons referred to in paragraphs (a) or (b) relating wholly or partly to      the effecting or maintenance of the obligatory  insurances. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.15   | Provision      of information |
|-------------------|-------------------------------|

| (a)   | obtaining      or preparing any report from an independent marine insurance broker as to      the adequacy of the obligatory insurances effected or proposed to be      effected; and/or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | effecting,      maintaining or renewing any such insurances as are referred to in      Clause 12.16 below or dealing      with or considering any matters relating to any such      insurances; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.16   | Mortgagee's      interest, additional perils |
|-------------------|----------------------------------------------|

| 13   | Ship      covenants |
|----------------|---------------------|

| 13.1   | General |
|------------------|---------|

| 13.2   | Ship's      name and registration |
|------------------|-----------------------------------|

| (a)   | keep      the Ship owned by it registered in its name as a Bahamas ship at the port      of Nassau; |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (b)   | not      do or allow to be done anything as a result of which such registration      might be cancelled or imperilled;and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (c)   | not      change the name or port of registry of the Ship owned by    it. |
|-----------------|--------------------------------------------------------------------------|

| 13.3   | Repair      and classification |
|------------------|--------------------------------|

| (a)   | consistent      with first-class ship ownership and management  practice; |
|-----------------|---------------------------------------------------------------------------|

| (b)   | so      as to maintain the highest class notation available for ships of a similar      type and specification free of recommendations and conditions save to the      extent agreed by the Lender in writing;and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | so      as to comply with all laws and regulations applicable to vessels      registered at ports in Bahamas or to vessels trading to any jurisdiction      to which the Ship owned by it may trade from time to time including but      not limited to the ISM Code and the ISPSCode. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4   | Modification |
|------------------|--------------|

| 13.5   | Removal      of parts |
|------------------|-----------------------|

| 13.6   | Surveys |
|------------------|---------|

| 13.7   | Inspection |
|------------------|------------|

| 13.8   | Prevention      of and release from arrest |
|------------------|--------------------------------------------|

| (a)   | all      liabilities which give or may give rise to maritime or possessory liens on      or claims enforceable against the Ship owned by it, the Earnings or the      Insurances; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all      taxes, dues and other amounts charged in respect of the Ship owned by it,      the Earnings or the Insurances; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| (c)   | all      other outgoings whatsoever in respect of the Ship owned by it, the      Earnings or the Insurances; |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| 13.9   | Compliance      with laws etc. |
|------------------|--------------------------------|

| (a)   | comply,      or procure compliance with the ISM Code, ISPS Code, all Environmental Laws      and all other laws or regulations relating to the Ship owned by it, its      ownership, operation and management or to the business of that Ship Owning      Borrower; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | not      employ the Ship owned by it nor allow its employment in any manner      contrary to any law or regulation in any relevant jurisdiction including      but not limited to the ISM Code and the ISPS Code;  and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      the event of hostilities in any part of the world (whether war is declared      or not), not cause or permit the Ship owned by it to enter or trade to any      zone which is declared a war zone by any government or by the Ship's      war risk insurers, unless that Ship Owning Borrower has (at its expense)      effected any special, additional or modified insurance      cover as may be normally required by insurers in such      circumstances to maintain cover. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.10   | Provision      of information |
|-------------------|-------------------------------|

| (a)   | the      Ship owned by it, its employment, position and  engagements; |
|-----------------|-----------------------------------------------------------------------|

| (b)   | the      Earnings and payments and amounts due to the master and crew of the Ship      owned by it; |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (c)   | any      expenses incurred, or likely to be incurred, in connection with the      operation, maintenance or repair of the Ship owned by it and any payments      made in respect of that Ship; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | any      towages and salvages; |
|-----------------|--------------------------------|

| (e)   | its      compliance, the Approved Manager's compliance or the compliance of the      Ship owned by it with the ISM Code and the ISPS  Code; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| 13.11   | Notification      of certain events |
|-------------------|-------------------------------------|

| (a)   | any      casualty which is or is likely to be or to become a Major      Casualty; |
|-----------------|-----------------------------------------------------------------------------------|

| (b)   | any      occurrence as a result of which the Ship owned by it has become or is, by      the passing of time or otherwise, likely to become a Total      Loss; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      requirement or recommendation made by any insurer or classification      society or by any competent authority which is not immediately complied      with; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | any      arrest or detention of the Ship owned by it, any exercise or purported      exercise of any lien on that Ship or its Earnings or any requisition of      that Ship for hire; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | any      intended dry docking of the Ship owned byit; |
|-----------------|-------------------------------------------------------|

| (f)   | any      Environmental Claim made against that Ship Owning Borrower or in      connection with the Ship owned by it, or any Environmental      Incident; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | any      claim for breach of the ISM Code or the ISPS Code being made against that      Ship Owning Borrower, the Approved Manager or otherwise in connection with      the Ship owned by it; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | any      other matter, event or incident, actual or threatened, the effect of which      will or could lead to the ISM Code or the ISPS Code not being complied      with; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.12   | Restrictions      on chartering, appointment of managersetc. |
|-------------------|--------------------------------------------------------------|

| (a)   | let      that Ship on demise charter for anyperiod; |
|-----------------|-----------------------------------------------------|

| (b)   | enter      into any time or consecutive voyage charter in respect of that Ship for a      term which exceeds, or which by virtue of any optional extensions may      exceed, 13 months; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | enter      into any charter in relation to that Ship under which more than 2 months'      hire (or the equivalent) is payable inadvance; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | charter      that Ship otherwise than on bona fide arm's length terms at the time when      that Ship is fixed; |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| (e)   | appoint      a manager of that Ship other than the Approved Manager or agree to any      alteration to the terms of the Approved Manager's appointment;      or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | de-activate      or lay up that Ship. |
|-----------------|---------------------------------------|

| 13.13   | Notice      of Mortgage |
|-------------------|-------------------------|

| 13.14   | Sharing      of Earnings |
|-------------------|--------------------------|

| 14   | Security      cover |
|----------------|---------------------|

| 14.1   | Minimum      required security cover |
|------------------|--------------------------------------|

14.2

| (a)   | the      aggregate of the Market Values of the Ships;  plus |
|-----------------|-------------------------------------------------------------|

| (b)   | the      net realisable value of any additional security previously provided under      this Clause; |
|-----------------|------------------------------------------------------------------------------------------------------|

| 14.2   | Provision      of additional security; prepayment |
|------------------|---------------------------------------------------|

14.1

| (a)   | provide,      or ensure that a third party provides, additional security which, in the      opinion of the Lender, has a net realisable value at least equal to the      shortfall and is documented in such terms as the Lender may approve or      require; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | pay      to the Lender such amount so as to ensure once such sum has been applied      in accordance  with Clause 14.7, such shortfall will have been      eliminated. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3   | Value      of additional vessel security |
|------------------|------------------------------------------|

14.2

| 14.4   | Valuations      binding |
|------------------|-------------------------|

14.2
14.3

| 14.5   | Provision      of information |
|------------------|-------------------------------|

| 14.6   | Payment      of valuation expenses |
|------------------|------------------------------------|

19.4
20.3

| 14.7   | Application      of prepayment |
|------------------|--------------------------------|

7
14.2(b)

| 15   | Payments      and calculations |
|----------------|--------------------------------|

| 15.1   | Currency      and method of payments |
|------------------|--------------------------------------|

| (a)   | by      not later than 11.00 a.m. (New York City time) on the due      date; |
|-----------------|------------------------------------------------------------------------------|

| (b)   | in      same day Dollar funds settled through the New York Clearing House      Interbank Payments System (or in such other Dollar funds and/or settled in      such other manner as the Lender shall specify as being customary at the      time for the settlement of international transactions of the type      contemplated by this Agreement);and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | to      such account as the Lender may from time to time notify to the      Borrowers. |
|-----------------|----------------------------------------------------------------------------------------|

| 15.2   | Payment      on non-Business Day |
|------------------|----------------------------------|

| (a)   | the      due date shall be extended to the next succeeding Business Day;      or |
|-----------------|----------------------------------------------------------------------------------|

| (b)   | if      the next succeeding Business Day falls in the next calendar month, the due      date shall be brought forward to the immediately preceding Business      Day; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3   | Basis      for calculation of periodicpayments |
|------------------|------------------------------------------------|

| 15.4   | Lender      accounts |
|------------------|----------------------|

| 15.5   | Accounts      prima facie evidence |
|------------------|------------------------------------|

| 15.6   | Source      of funds |
|------------------|----------------------|

| 15.6.1   | The      Lender may at any time require evidence satisfactory to the Lender that      any payment under this Agreement is legally compliant and until such      evidence has been provided to the Lender, the Lender shall not be obliged      to accept any such payment but shall be entitled to place such payment      into a suspense account and such payment shall not be an effective      discharge of the liabilities of the Borrowers under this      Agreement. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.6.2   | For      the purposes of this Clause legallycompliant means that the      payment of any funds under this Agreement and their source (whether direct      or indirect) and their receipt and handling is or will be in the opinion      of the Lender in all respects in accordance with any European Community      legislation (including any regulation or directive), the common law,      United Kingdom legislation (including subordinate legislation and any      order or regulations made under such legislation), any law or order of any      court or administrative tribunal which is in force in the United Kingdom,      all laws of any relevant jurisdiction and all regulatory requirements, and      the receipt of such funds by the Lender will not or is not reasonably      likely in the opinion of the Lender to impose on the Lender any obligation      to make a report to any authority or to repay such  funds. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16   | Application      of receipts |
|----------------|------------------------------|

| 16.1   | Normal      order of application |
|------------------|----------------------------------|

| (a)   | FIRST:      in or towards satisfaction of any amounts then due and payable under the      Finance Documents in the following order and  proportions: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | first,      in or towards satisfaction pro rata of all amounts then due and payable to      the Lender and/or the Swap Bank under the Finance Documents other than      those amounts referred to at paragraphs (ii) and    (iii); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | secondly,      in or towards satisfaction pro rata of any and all amounts of interest or      default interest payable to the Lender and/or the Swap Bank under the      Finance Documents (and, for this purpose, the expression interest shall include      any net amount which the Borrowers shall have become liable to pay or      deliver under section 2(e) (Obligations) of any Master Agreement but shall      have failed to pay or deliver to the Swap Bank at the time of application      or distribution under this Clause);and |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | thirdly,      in or towards satisfaction pro rata of the Advances and the Swap Exposure      (in the case of the latter, calculated as at the actual Early Termination      Date applying to each particular Designated Transaction, or if no such      Early Termination Date shall have occurred, calculated as if an Early      Termination Date occurred on the date of application or distribution      hereunder); |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | SECONDLY:      in retention of an amount equal to any amount not then due and payable      under any Finance Document but which the Lender, by notice to the Borrower      and the Security Parties, states in its opinion (acting reasonably and      with due regard to the facts existing at such time) will or may become due      and payable in the future and, upon those amounts becoming due and      payable, in or towards satisfaction of them in accordance with the      provisions of paragraph (a);      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | THIRDLY:      any surplus shall be paid to the Borrowers or to any other person      appearing to be entitled to it. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| 16.2   | Variation      of order of application |
|------------------|----------------------------------------|

| 16.3   | Notice      of variation of order ofapplication |
|------------------|-------------------------------------------------|

| 16.4   | Appropriation      rights overridden |
|------------------|--------------------------------------|

| 17   | Application      of Earnings |
|----------------|------------------------------|

| 17.1   | Payment      of Earnings |
|------------------|--------------------------|

| (a)   | all      the Earnings of the Ship owned by it are paid into the Earnings Account;      and |
|-----------------|--------------------------------------------------------------------------------------------|

| (b)   | all      payments by the Swap Bank to a Borrower under each Designated Transaction      are paid into the Earnings Account held in the name of that      Borrower. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2   | Location      of accounts |
|------------------|---------------------------|

| (a)   | comply      with any requirement of the Lender as to the location or re-location of      the Earnings Accounts; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (b)   | execute      any documents which the Lender specifies to create or maintain in favour      of the Lender a Security Interest over (and/or rights of set-off,      consolidation or other rights in relation to) the Earnings      Accounts. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3   | Debits      for expenses etc. |
|------------------|-------------------------------|

| 18   | Events      of Default |
|----------------|------------------------|

| 18.1   | Events      of Default |
|------------------|------------------------|

| (a)   | any      Borrower or any Security Party fails to pay when due or (if so payable) on      demand any sum payable under a Finance Document or under any document      relating to a Finance Document; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      breach occurs of Clause 8.2, 10.2, 10.3, 11.2, 11.3, 12, 14.1 or      clause 12 of the Guarantee; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| (c)   | any      breach by any Borrower or any Security Party occurs of any provision of a      Finance Document (other than a breach covered by paragraph (a) or (b)) if,      in the opinion of the Lender, such default is capable of remedy and such      default continues unremedied 10 days after written notice from the Lender      requesting action to remedy that default;or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | (subject      to any applicable grace period specified in any Finance Document) any      breach by any of the Borrowers or any Security Party occurs of any      provision of a Finance Document (other than a breach covered by paragraph      (a), (b) or (c)); or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | any      representation, warranty or statement made by, or by an officer of, a      Borrower or a Security Party in a Finance Document or in the Drawdown      Notice or any other notice or document relating to a Finance Document is      untrue or misleading when it is made;or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | any      of the following occurs in relation to any Financial Indebtedness of any      Borrower or the Guarantor: |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (i)   | any      Financial Indebtedness of any Borrower or the Guarantor is not paid when      due or, if so payable, on demand;or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any      Financial Indebtedness of any Borrower or the Guarantor becomes due and      payable or capable of being declared due and payable prior to its stated      maturity date as a consequence of any event of default;  or |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | a      lease, hire purchase agreement or charter creating any Financial      Indebtedness of any Borrower or the Guarantor is terminated by the lessor      or owner or becomes capable of being terminated as a consequence of any      termination event; or |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | any      overdraft, loan, note issuance, acceptance credit, letter of credit,      guarantee, foreign exchange or other facility, or any swap or other      derivative contract or transaction, relating to any Financial Indebtedness      of any Borrower or the Guarantor ceases to be available or becomes capable      of being terminated as a result of any event of default, or cash cover is      required, or becomes capable of being required, in respect of such a      facility as a result of any event of default;or |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | any      Security Interest securing any Financial Indebtedness of any Borrower or      the Guarantor becomes enforceable;or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| (g)   | any      of the following occurs in relation to any Borrower or the      Guarantor: |
|-----------------|-------------------------------------------------------------------------------------|

| (i)   | any      Borrower or the Guarantor suspends payment of its debts or is unable or      admits its inability to pay its debts as they fall due;  or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any      Borrower or the Guarantor begins negotiations with any creditor with a      view to the readjustment or rescheduling of any of its Financial      Indebtedness; or |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | any      Borrower or the Guarantor proposes or enters into any composition or other      arrangement for the benefit of its creditors generally or any class of      creditors; or |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | any      assets of any Borrower or the Guarantor are subject to any form of      execution, attachment, arrest, sequestration, distress in respect of a sum      of, or sums aggregating, $250,000 or more or the equivalent in another      currency (other than a ship arrest or attachment arising in the usual      course of business and which is, in the reasonable opinion of the Lender,      adequately secured); or |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | any      person takes any action or any legal procedure is commenced or other steps      are taken (including the making of an application, the presentation of a      petition or the filing or service of a notice) with a view    to: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any      Borrower or the Guarantor being adjudicated or found insolvent;      or |
|-----------------|----------------------------------------------------------------------------------|

| (ii)   | the      winding-up or dissolution of any Borrower or the Guarantor other than in      connection with a solvent reconstruction, the terms of which have been      previously approved in writing by the Lender;or |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | any      Borrower or the Guarantor obtaining a moratorium or other protection from      its creditors; or |
|-------------------|-----------------------------------------------------------------------------------------------------------|

| (iv)   | the      appointment of a trustee, receiver, administrative receiver, administrator      or similar officer in respect of any Borrower or the Guarantor or any of      its assets; or |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any      adjudication, order or appointment is made under or in relation to any of      the proceedings referred to in paragraph (h);or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | any      event occurs or proceeding is taken with respect to any Borrower or the      Guarantor in any jurisdiction to which it is subject which has an effect      equivalent or similar to any of the events mentioned in paragraph (g) or (i);or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | any      Borrower or the Guarantor ceases or suspends carrying on its business or a      part of its business which, in the opinion of the Lender, is material in      the context of this Agreement; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | it      becomes unlawful in any Pertinent Jurisdiction or    impossible: |
|-----------------|--------------------------------------------------------------------------|

| (i)   | for      any Borrower or any Security Party to discharge any liability under a      Finance Document or to comply with any other obligation which the Lender      considers material under a Finance Document;or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | for      the Lender or the Swap Bank to exercise or enforce any right under, or to      enforce any Security Interest created by, a Finance Document;      or |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)   | any      consent necessary to enable any Ship Owning Borrower to own, operate or      charter the Ship owned by it or to enable any Borrower or any Security      Party to comply with any provision which the Lender considers material of      a Finance Document is not granted, expires without being renewed, is      revoked or becomes liable to revocation or any condition of such a consent      is not fulfilled; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)   | it      appears to the Lender that, without its prior consent, a change has      occurred or probably has occurred after the date of this Agreement in the      ultimate beneficial ownership of any of the shares in the Borrowers or the      Guarantor or in the ultimate control of the voting rights attaching to any      of those shares; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)   | any      provision which the Lender considers material of a Finance Document proves      to have been or becomes invalid or unenforceable, or a Security Interest      created by a Finance Document proves to have been or becomes invalid or      unenforceable or such a Security Interest proves to have ranked after, or      loses its priority to, another Security Interest or any other third party      claim or interest; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (p)   | the      security constituted by a Finance Document is in any way imperilled or in      jeopardy; or |
|-----------------|------------------------------------------------------------------------------------------------------|

| (q)   | the      Ship is arrested or otherwise detained and is not released from such      detention within a period of 14 days;or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (r)   | an      Event of default (as defined in section 14 of a Master Agreement) occurs;      or |
|-----------------|-------------------------------------------------------------------------------------------|

| (s)   | a      Master Agreement is terminated, cancelled, suspended, rescinded or revoked      or otherwise ceases to remain in full force and effect for any reason      except with the consent of the Lender;or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (t)   | any      other event occurs or any other circumstances arise or develop including,      without limitation: |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (i)   | a      change in the financial position, state of affairs or prospects of any      Borrower or the Guarantor; or |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (ii)   | any      accident or other event (including an Environmental Incident) involving      any Ship or another vessel owned, chartered or operated by any Borrower or      the Guarantor; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2   | Actions      following an Event of Default |
|------------------|--------------------------------------------|

| (a)   | serve      on the Borrowers a notice stating that all obligations of the Lender to      the Borrowers under this Agreement are terminated;  and/or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | serve      on the Borrowers a notice stating that the Advances, all accrued interest      and all other amounts accrued or owing under this Agreement are      immediately due and payable or are due and payable on demand;      and/or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | take      any other action which, as a result of the Event of Default or any notice      served under paragraph (a) or (b), the Lender and/or Swap Bank is entitled      to take under any Finance Document or any applicable  law. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3   | Termination      of Commitment |
|------------------|--------------------------------|

18.2(a)

| 18.4   | Acceleration      of the Advances |
|------------------|-----------------------------------|

18.2(b)

| 18.5   | Multiple      notices; action without notice |
|------------------|----------------------------------------------|

18.2(a)
(b)
18.2

| 18.6   | Exclusion      of Lender/Swap Bank liability |
|------------------|----------------------------------------------|

| (a)   | for      any loss caused by an exercise of rights under, or enforcement of a      Security Interest created by, a Finance Document or by any failure or      delay to exercise such a right or to enforce such a Security Interest;      or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | as      mortgagee in possession or otherwise, for any income or principal amount      which might have been produced by or realised from any asset comprised in      such a Security Interest or for any reduction (however caused) in the      value of such an asset. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.7   | [Intentionally      left blank] |
|------------------|---------------------------------|

| 18.8   | Interpretation |
|------------------|----------------|

18.1(f)

| 19   | Fees      and expenses |
|----------------|------------------------|

| 19.1   | Arrangement      and commitment fees |
|------------------|--------------------------------------|

| 19.2   | Prepayment      fee |
|------------------|---------------------|

| 19.3   | Costs      of negotiation, preparation etc. |
|------------------|---------------------------------------------|

| 19.4   | Costs      of variations, amendments, enforcementetc. |
|------------------|-------------------------------------------------------|

| (a)   | any      amendment or supplement to a Finance Document, or any proposal for such an      amendment to be made; |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (b)   | any      consent or waiver by the Lender or the Swap Bank concerned under or in      connection with a Finance Document, or any request for such a consent or      waiver; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      valuation of any security provided or offered under Clause 14 or any      other matter relating to such security;or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (d)   | any      step taken by the Lender or the Swap Bank with a view to the protection,      exercise or enforcement of any right or Security Interest created by a      Finance Document or for any similarpurpose. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5   | Certification      of amounts |
|------------------|-------------------------------|

| 20   | Indemnities |
|----------------|-------------|

| 20.1   | Indemnities      regarding borrowing and repayment of the  Advances |
|------------------|---------------------------------------------------------------------|

| (a)   | an      Advance not being borrowed on the date specified in a Drawdown Notice for      any reason other than a default by theLender; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      receipt or recovery of all or any part of an Advance or an overdue sum      otherwise than on the last day of an Interest Period or other relevant      period; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      failure (for whatever reason) by the Borrowers to make payment of any      amount due under a Finance Document on the due date or, if so payable, on      demand (after giving credit for any default interest paid by the Borrowers      on the amount concerned underClause 6); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      occurrence and/or continuance of an Event of Default or a Potential Event      of Default and/or the acceleration of repayment of the Advances under      Clause 18. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2   | Breakage      costs |
|------------------|---------------------|

| (a)   | in      liquidating or employing deposits from third parties acquired or arranged      to fund or maintain all or any part of the Advances and/or any overdue      amount (or an aggregate amount which includes the Advances or any overdue      amount); and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      terminating, or otherwise in connection with, any interest and/or currency      swap or any other transaction entered into (whether with another legal      entity or with another office or department of the Lender) to hedge any      exposure arising under this Agreement or a number of transactions of which      this Agreement is one. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3   | Miscellaneous      indemnities |
|------------------|--------------------------------|

| (a)   | any      action taken, or omitted or neglected to be taken, under or in connection      with any Finance Document by the Lender or by any receiver appointed under      a Finance Document; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      other Pertinent Matter; |
|-----------------|----------------------------------|

20.3

| 20.4   | Currency      indemnity |
|------------------|-------------------------|

| (a)   | making      or lodging any claim or proof against any Borrower or any Security Party,      whether in its liquidation, any arrangement involving it or otherwise;      or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | obtaining      an order or judgment from any court or other tribunal;  or |
|-----------------|---------------------------------------------------------------------------|

| (c)   | enforcing      any such order or judgment; |
|-----------------|--------------------------------------------|

20.4

20.4

| 20.5   | Application      to Master Agreements |
|------------------|---------------------------------------|

| 20.6   | Certification      of amounts |
|------------------|-------------------------------|

| 21   | No      set-off or Tax Deduction; value addedtax |
|----------------|--------------------------------------------------|

| 21.1   | Definitions |
|------------------|-------------|

21.3
21.4

| 21.2   | No      set-off and counterclaim |
|------------------|----------------------------------|

| 21.3   | Tax      gross-up |
|------------------|-------------------|

| 21.3.1   | Each      Borrower shall make all payments to be made by it without any Tax      Deduction, unless a Tax Deduction is required by  law. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 21.3.2   | If      a Tax Deduction is required by law to be made by a Borrower, the amount of      the payment in respect of which the Tax Deduction is required to be made      shall be increased to the amount which (after the Tax Deduction) will      leave an amount equal to the payment which would have been due if no Tax      Deduction had been required. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3.3   | If      a Borrower is required to make a Tax Deduction, that Borrower shall make      the Tax Deduction, and any payment required in connection with the Tax      Deduction within the time allowed and in the minimum amount required by      law. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3.4   | Within      30 days of making a Tax Deduction or a payment required in connection with      a Tax Deduction, the Borrower making the Tax Deduction or payment shall      deliver to the Lender evidence reasonably satisfactory to the Lender that      the Tax Deduction or payment has beenmade. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4   | Tax      indemnity |
|------------------|--------------------|

| 21.4.1   | If      the Lender is or will be subject to any liability or required to make any      payment for or on account of tax in relation to any sum received or      receivable (or any sum deemed for tax purposes to be received or      receivable) under any Finance Document, the Borrowers shall (within 3      Business Days of demand) pay to the Lender the amount determined by the      Lender in its absolute discretion to be equal to the loss, liability or      cost which it will or has (directly or indirectly) suffered for or on      account of tax by the Lender as a result of that liability or      payment. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4.2   | Sub-clause 21.4.1 shall not    apply: |
|--------------------|--------------------------------------------|

| (a)   | in      relation to any tax assessed on theLender: |
|-----------------|----------------------------------------------------|

| (i)   | under      the law of the jurisdiction in which the Lender is incorporated or, if      different, the jurisdiction (or jurisdictions) in which it is treated as      resident for tax purposes; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | under      the law of the jurisdiction in which the Lender's lending office is      located, in respect of amounts received or receivable in that      jurisdiction; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | to      the extent that the liability or requirement is compensated for by an      increased payment under Clause 21.3. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| 21.5   | Tax      Credit |
|------------------|-----------------|

| (a)   | an      increased payment of which that Tax Payment forms part;  or |
|-----------------|---------------------------------------------------------------------|

| (b)   | that      Tax Payment; |
|-----------------|------------------------|

| 21.6   | Stamp      taxes |
|------------------|------------------|

| 21.7   | Value      added tax |
|------------------|----------------------|

| 21.7.1   | All      consideration which is expressed to be payable under any of the Finance      Documents by the Borrowers to the Lender is exclusive of any      VAT.  If VAT is chargeable on any supply made by the Lender in      connection with any of the Finance Documents, the Borrowers shall pay to      the Lender (in addition to and at the same time as paying the      consideration for the supply) an amount equal to the amount of the      VAT. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.7.2   | Where      a Borrower is required by any of the Finance Documents to reimburse the      Lender in respect of any cost or expense, that Borrower shall at the same      time indemnify the Lender against any VAT incurred by the Lender in      respect of the cost or expense to the extent that the Lender reasonably      determines that it is not entitled to any credit or repayment in respect      of that VAT. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22   | Illegality,      etc. |
|----------------|-----------------------|

| 22.1   | Illegality |
|------------------|------------|

| (a)   | unlawful      or prohibited as a result of the introduction of a new law, an amendment      to an existing law or a change in the manner in which an existing law is      or will be interpreted or applied;or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | contrary      to, or inconsistent with, anyregulation, |
|-----------------|--------------------------------------------------------|

| 22.2   | Notification      and effect of illegality |
|------------------|--------------------------------------------|

| 22.3   | Mitigation |
|------------------|------------|

| (a)   | have      an adverse effect on its business, operations or financial condition;      or |
|-----------------|-----------------------------------------------------------------------------------------|

| (b)   | involve      it in any activity which is unlawful or prohibited or any activity that is      contrary to, or inconsistent with, any regulation;  or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | involve      it in any expense (unless indemnified to its satisfaction) or tax      disadvantage. |
|-----------------|---------------------------------------------------------------------------------------------------|

| 23   | Increased      costs |
|----------------|----------------------|

| 23.1   | Definitions |
|------------------|-------------|

| (a)   | any      law, regulation, practice or concession;or |
|-----------------|-----------------------------------------------------|

| (b)   | any      directive, requirement, request or guidance (whether or not having the      force of law but if not having the force of law, one which applies      generally to a class or category of financial institutions of which the      Lender (or that company) forms part and compliance with which is in      accordance with the general practice of those financial institutions) of      the European Community, any central bank including the European Central      Bank, the Financial Services Authority, or any other fiscal, monetary,      regulatory or other authority. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      Tax Liability (other than Tax on Overall Net Income) incurred by the      Lender; |
|-----------------|--------------------------------------------------------------------------------------------|

| (b)   | any      changes in the basis or timing of taxation of the Lender in relation to      the loan facility made available to the Borrowers under this Agreement or      any Advance or to the funding of anyAdvance; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      cost to the Lender (or any parent company of the Lender) of complying      with, or the reduction in the amount payable to or reduction in the return      on capital or regulatory capital achieved by the Lender (or any parent      company of the Lender) as a result of complying with, any capital adequacy      or similar requirements howsoever arising, including as a result of an      increase in the amount of capital to be allocated to the loan facility      made available to the Borrowers under this Agreement or of a change to the      weighting of the commitment under it or any  Advance; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      cost to the Lender of complying with any reserve, cash ratio, special      deposit or liquidity requirements (or any other similar requirements);      and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | the      amount of any fees payable by the Lender to any supervisory or regulatory      authority. |
|-----------------|----------------------------------------------------------------------------------------------------|

| (a)   | any      liability or any increase in the liability of that person to make any      payment of or in respect of tax; |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (b)   | the      loss of any relief, allowance, deduction or credit in respect of tax which      would otherwise have been available to that  person; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      setting off against income, profits or gains or against any tax liability      of any relief, allowance, deduction or credit in respect of tax which      would otherwise have been available to that person;  and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      loss or setting off against any tax liability of a right to repayment of      tax which would otherwise have been available to that    person. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.2   | Increased      Costs |
|------------------|----------------------|

| 23.2.1   | If,      after the date of this Agreement, a Change occurs which causes an      Increased Cost to the Lender (or any parent company of the Lender) then      the Borrowers shall pay (as additional interest) to the Lender within      5 Business Days of demand all amounts which the Lender (or any parent      company of the Lender) certifies to be necessary to compensate the Lender      for the Increased Cost. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.2.2   | Any      demand made under this Clause shall set out in reasonable detail so      far as is practicable the basis of computation of the Increased      Cost. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.2.3   | The      Borrowers shall not be obliged to make a payment in respect of an      Increased Cost under this Clause if and to the extent that the      Increased Cost has been compensated for by the payment of the Mandatory      Cost or the operation of Clause 21.3. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3   | Optional      prepayment |
|------------------|--------------------------|

7

| 24   | Set-off |
|----------------|---------|

| 24.1   | Application      of credit balances |
|------------------|-------------------------------------|

| (a)   | apply      any balance (whether or not then due) which at any time stands to the      credit of any account in the name of a Borrower at any office in any      country of the Lender in or towards satisfaction of any sum then due from      that Borrower to the Lender under any of the Finance Documents;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | for      that purpose: |
|-----------------|------------------------|

| (i)   | break,      or alter the maturity of, all or any part of a deposit of that      Borrower; |
|-----------------|-------------------------------------------------------------------------------------------|

| (ii)   | convert      or translate all or any part of a deposit or other credit balance into      Dollars; |
|------------------|---------------------------------------------------------------------------------------------------|

| (iii)   | enter      into any other transaction or make any entry with regard to the credit      balance which the Lender considersappropriate. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| 24.2   | Existing      rights unaffected |
|------------------|---------------------------------|

| 24.3   | No      Security Interest |
|------------------|---------------------------|

| 25   | Transfers      and changes in lending office |
|----------------|----------------------------------------------|

| 25.1   | Transfer      by Borrowers |
|------------------|----------------------------|

| 25.2   | Assignment      by Lender |
|------------------|---------------------------|

| 25.3   | Rights      of assignee |
|------------------|-------------------------|

| 25.4   | Sub-participation;      subrogation assignment |
|------------------|------------------------------------------------|

| 25.5   | Disclosure      of information |
|------------------|--------------------------------|

| 25.6   | Change      of lending office |
|------------------|-------------------------------|

| (a)   | the      date on which the Borrowers receive the notice;  and |
|-----------------|---------------------------------------------------------------|

| (b)   | the      date, if any, specified in the notice as the date on which the change will      come into effect. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| 26   | Variations      and waivers |
|----------------|-----------------------------|

| 26.1   | Variations,      waivers etc. by Lender |
|------------------|-----------------------------------------|

| 26.2   | Exclusion      of other or implied variations |
|------------------|-----------------------------------------------|

| (a)   | a      provision of this Agreement or another Finance Document;  or |
|-----------------|---------------------------------------------------------------------|

| (b)   | an      Event of Default; or |
|-----------------|------------------------------|

| (c)   | a      breach by a Borrower or a Security Party of an obligation under a Finance      Document or the general law; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (d)   | any      right or remedy conferred by any Finance Document or by the general      law; |
|-----------------|----------------------------------------------------------------------------------------|

| 27   | Notices |
|----------------|---------|

| 27.1   | Method      and delivery |
|------------------|--------------------------|

| (a)   | in      writing in English; |
|-----------------|-----------------------------|

| (b)   | signed      by or on behalf of a person duly authorised to do so by the party giving      the notice; and |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (c)   | delivered      by hand, or sent by prepaid first class post (or international courier in      the case of an address outside the United Kingdom) to the address set out      in Clause 27.2, or sent by fax      to the number set out in Clause 27.2; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

27.1

| (a)   | the      Borrowers |
|-----------------|--------------------|

| (b)   | the      Lender |
|-----------------|-----------------|

| (a)   | any      effective date specified in that notice;or |
|-----------------|-----------------------------------------------------|

| (b)   | if      no date is specified or the date specified is less than 5 Business Days      after the date when notice is received, the date falling 5 Business Days      after the notice has been received. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.3   | Receipt |
|------------------|---------|

| (a)   | if      delivered by hand or sent by prepaid recorded delivery or registered post      at the time of actual delivery (provided that if delivery occurs on a day      which is not a Business Day or after 5.30 p.m. it shall be deemed to be      delivered at 9.00 am on the next BusinessDay); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if      sent by prepaid first class recorded delivery or registered post from and      to any place within the United Kingdom, 2 Business Days after posting      (provided that if the date of posting is not a Business Day, it shall be      deemed to have been posted at 9.00 am on the next Business Day) and proof      that any such notice was properly addressed, prepaid and posted shall be      sufficient evidence that such notice has been duly  served; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | if      sent by registered airmail, 5 Business Days after posting (provided that      if the date of posting is not a Business Day, it shall be deemed to have      been posted at 9.00 am on the next Business Day) and proof that any such      notice was properly addressed, prepaid and posted shall be sufficient      evidence that such notice has been dulyserved; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | if      sent by fax, upon receipt by the addressee of the complete text in legible      form upon sending, subject to: |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| (i)   | confirmation      of uninterrupted and error-free transmission by a transmission report;      and |
|-----------------|---------------------------------------------------------------------------------------------------|

| (ii)   | there      having been no telephonic communication by the recipient to the sender      that the fax has not been received in legible  form: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (aa)   | within      3 hours after sending, if sent on a Business Day and between the hours of      9.00 a.m. and 4.00 p.m.; or |
|------------------|------------------------------------------------------------------------------------------------------------------------|

| (bb)   | by      noon on the next following Business Day if sent by 4.00 p.m. on a Business      Day but before 9.00 a.m. on the next following Business    Day. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.4   | Electronic      communication |
|------------------|-------------------------------|

| 27.5   | Service      Documents |
|------------------|------------------------|

| 27.6   | Valid      notices |
|------------------|--------------------|

| (a)   | the      failure to serve it in accordance with the requirements of this Agreement      or other Finance Document, as the case may be, has not caused any party to      suffer any significant loss or prejudice;or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      the case of incorrect and/or incomplete contents, it should have been      reasonably clear to the party on which the notice was served what the      correct or missing particulars should havebeen. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28   | Joint      and several liability |
|----------------|----------------------------------|

| 28.1   | General |
|------------------|---------|

| 28.2   | No      impairment of Borrower'sobligations |
|------------------|---------------------------------------------|

| (a)   | this      Agreement being or later becoming void, unenforceable or illegal as      regards any other Borrower; |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (b)   | the      Lender entering into any rescheduling, refinancing or other arrangement of      any kind with any other Borrower; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Lender releasing any other Borrower or any Security Interest created by a      Finance Document; or |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (d)   | any      combination of the foregoing. |
|-----------------|----------------------------------------|

| 28.3   | Principal      debtors |
|------------------|------------------------|

| 28.4   | Subordination |
|------------------|---------------|

| (a)   | claim      any amount which may be due to it from any other Borrower whether in      respect of a payment made, or matter arising out of, this Agreement or any      Finance Document, or any matter unconnected with this Agreement or any      Finance Document; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | take      or enforce any form of security from any other Borrower for such an      amount, or in any other way seek to have recourse in respect of such an      amount against any asset of any other Borrower;  or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | set      off such an amount against any sum due from it to any other Borrower;      or |
|-----------------|----------------------------------------------------------------------------------------|

| (d)   | prove      or claim for such an amount in any liquidation, administration,      arrangement or similar procedure involving any other Borrower or other      Security Party; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | exercise      or assert any combination of theforegoing. |
|-----------------|----------------------------------------------------------|

| 28.5   | Borrower's      required action |
|------------------|---------------------------------|

| 29   | Relationship      between the Lender and the SwapBank |
|----------------|-------------------------------------------------------|

| (a)   | it      has or will enter into certain documents with the Swap Bank (including the      Master Agreements) and may, under certain circumstances, become indebted      to the Swap Bank; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | pursuant      to arrangements between the Lender and the Swap Bank, the Lender has      agreed to hold the benefit of each of the Security Interests created      pursuant to the Finance Documents (including the Security Interests      created pursuant to each Mortgage) on trust for itself and the Swap Bank;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Secured Liabilities include those obligations owed by the Borrowers to the      Swap Bank pursuant to the Master Agreement and the other Finance Documents      entered into between the Borrowers and the Swap Bank and the obligations      owed by the Borrowers to the Lender pursuant to the Swap Bank      Indemnity. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30   | Supplemental |
|----------------|--------------|

| 30.1   | Rights      cumulative, non-exclusive |
|------------------|---------------------------------------|

| (a)   | cumulative; |
|-----------------|-------------|

| (b)   | may      be exercised as often as appears expedient;and |
|-----------------|---------------------------------------------------------|

| (c)   | shall      not, unless a Finance Document explicitly and specifically states so, be      taken to exclude or limit any right or remedy conferred by any      law. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.2   | Invalidity |
|------------------|------------|

| (a)   | the      validity, legality or enforceability in that jurisdiction of any other      provision of that Finance Document;or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      validity, legality or enforceability under the law of any other      jurisdiction of that or any other provision of that Finance      Document. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.3   | Counterparts |
|------------------|--------------|

| 30.4   | Third      party rights |
|------------------|-------------------------|

| 31   | Governing      law |
|----------------|--------------------|

| 32   | Jurisdiction |
|----------------|--------------|

| 32.1   | Jurisdiction      of the English courts |
|------------------|-----------------------------------------|

32.2

| 32.2   | Proceedings      in other jurisdictions |
|------------------|-----------------------------------------|

| 32.3   | Waiver      of objections |
|------------------|---------------------------|

| 33   | Service      of process |
|----------------|-------------------------|

| 33.1   | Address      for service |
|------------------|--------------------------|

| 33.2   | Agreed      method of service |
|------------------|-------------------------------|

27

----

----

----

----

| To: | Bank      of Scotland plc |
|-----|---------------------------|

|   | Pentland      House |
|--------|---------------------|

|   | 8      Lochside Avenue |
|--------|------------------------|

|   | Edinburgh |
|--------|-----------|

|   | EH12      9DJ |
|--------|---------------|

| 1   | We      refer to the loan agreement (the Loan Agreement) dated      **                     and      made between ourselves, as Borrowers, and yourselves, as Lender, in      connection with a facility of up to      US$**                    .  Terms      defined in the Loan Agreement have their defined meanings when used in      this Drawdown Notice. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | We      request to borrow as follows: |
|---------------|---------------------------------------|

| (a)   | Amount:      US$**                    ; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Drawdown      Date:  **                    ; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Duration      of the first Interest Period shall be      **                     months; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Payment      instructions : account in our name and numbered      **                     with      **                     of      **                    . |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | We      represent and warrant that: |
|---------------|-------------------------------------|

| (a)   | the      representations and warranties in Clause 9 of the Loan Agreement      would remain true and not misleading if repeated on the date of this      notice with reference to the circumstances now  existing; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | no      Event of Default or Potential Event of Default has occurred or will result      from the borrowing of the Advance;and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (c)   | this      Drawdown Notice is the [Anawan Advance]/[Agawam Advance]/[Aquidneck      Advance]/[Pequod Advance].* |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| 4   | This      notice cannot be revoked without the prior consent of the      Lender. |
|---------------|----------------------------------------------------------------------------------|

| 5   | [We      authorise you to deduct the commitment fee referred to in Clause 19.1      (b) from the amount of theAdvance.] |
|---------------|------------------------------------------------------------------------------------------------------------------------------|

----

8.1(a)

| 1   | A      duly executed original of each Finance Document (and of each document      required to be delivered by each Finance Document) other than those      referred to in Part B. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | Copies      of the certificate of incorporation and constitutional documents of each      Borrower and each Security Party. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------|

| 3   | Copies      of resolutions of the shareholders and directors of each Borrower and each      Security Party authorising the execution of each of the Finance Documents      to which that Borrower or that Security Party is a party and, in the case      of a Borrower, authorising named officers or attorneys (each an Authorised Officer) to      give the Drawdown Notice and other notices under this      Agreement. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | The      original of any power of attorney under which any Finance Document is      executed on behalf of the Borrower or a Security  Party. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | Copies      of all consents which any Borrower or any Security Party requires to enter      into, or make any payment under, any Finance  Document. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | The      originals of any mandates or other documents required in connection with      the opening or operation of the Earnings  Accounts. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | A      survey report addressed to the Lender, stated to be for the purposes of      this Agreement and dated not earlier than 45 days before the date of this      Agreement from an independent marine surveyor selected by the Lender in      respect of the physical condition of one of the  Ships. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | Documentary      evidence that the agent for service of process named in Clause 33 has accepted its      appointment. |
|---------------|----------------------------------------------------------------------------------------------------------------------------|

| 9   | Such      "know your customer" documentary evidence as the Lender may require in      relation to the Borrower and each Security Party to be provided in      accordance with the Lender's anti-money laundering      regulations. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | Favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the laws of England and the Marshall Islands and such other      relevant jurisdictions as the Lender may  require. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | If      the Lender so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Lender. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12   | The      Lender being satisfied that: |
|----------------|---------------------------------------|

| (a)   | no      litigation by any entity (private or governmental) shall be pending or      threatened with respect to the transactions contemplated hereunder or any      documentation executed in connection therewith, or which the Lender shall      determine is reasonably likely to have a materially adverse effect on the      business, property, assets, liabilities, condition (financial or      otherwise) or prospects of the Borrower, any Security Party or their      subsidiaries, either individually or taken as a  whole; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all      necessary governmental approvals (domestic and foreign) and third party      approvals and/or consents in connection with transactions contemplated by      the transactions contemplated hereunder and otherwise referred to herein      shall have been obtained and remain in effect, and all applicable waiting      periods shall have expired without any action being taken by any competent      authority which, in the judgment of the Lender, restrains, prevents, or      imposes materially adverse conditions contemplated by the transactions      contemplated hereunder or otherwise referred to      herein.  Additionally, there shall not exist any judgment,      order, injunction or other restraint prohibiting or imposing materially      adverse conditions upon the transactions contemplated by the transactions      contemplated hereunder; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | nothing      shall have occurred (and the Lender shall not have become aware of facts      or conditions not previously known to it), which the Lender shall      determine is reasonably likely to have a material adverse effect on the      rights or remedies of the Lender, or on the ability of the Borrowers or      any Security Party or their subsidiaries, either individually or taken as      a whole, to perform their obligations to the Lender, or which is      reasonably likely to have a materially adverse effect on the business,      property, assets, liabilities, condition (financial or otherwise) or      prospects of the Borrowers, the Security Parties or their subsidiaries,      either individually or taken as awhole. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

8.1(b)

| 1   | A      duly executed original of the: |
|---------------|---------------------------------------|

| (a)   | Mortgage; |
|-----------------|-----------|

| (b)   | General      Assignment; |
|-----------------|--------------------------|

| (c)   | Deed      of Covenant; |
|-----------------|------------------------|

| (d)   | Accounts      Security Deed; |
|-----------------|------------------------------|

| (e)   | Release      Documents relating to such Ship, |
|-----------------|-----------------------------------------------|

| 2   | Documentary      evidence that: |
|---------------|---------------------------------|

| (a)   | the      Ship is definitively and permanently registered in the name of the Ship      Owning Owner under the Bahamas flag at the Port of  Nassau; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Ship is in the absolute and unencumbered ownership of the Ship Owning      Borrower save as contemplated by the Finance  Documents; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Ship maintains the class +A1, Chemical Carrier, Oil Carrier, (E), +AMS,      +ACCU with the American Bureau of Shipping free of all overdue      recommendations and conditions of such Classification    Society; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      Mortgage has been duly registered against the Ship as a valid first      priority ship mortgage in accordance with the laws of the      Bahamas; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | the      Ship is insured in accordance with the provisions and all requirements of      this Agreement in respect of insurances have been complied with;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | the      Ship has satisfactory documentation relating to the upgrading of the Ship      to a double hulled vessel. |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| 3   | Documents      establishing that the Ship will, as from the Drawdown Date, be managed by      the Approved Manager on terms acceptable to the Lender, together      with: |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | a      certified copy of the Ship Management Agreement and a letter of      undertaking executed by the Approved Manager in favour of the Lender in      the terms required by the Lender agreeing certain matters in relation to      the management of the Ship and subordinating the rights of the Approved      Manager against the Ship Owning Borrower to the rights of the Lender under      the Finance Documents; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | copies      of the Approved Manager's Document of Compliance and of Ship's Safety      Management Certificate (together with any other details of the applicable      safety management system which the Lender  requires). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | Evidence      that the Borrowers have enter into arrangements with the Swap Bank      pursuant to the terms of the Master Agreement, pursuant to which the      Borrowers have hedged at least 50 per cent. their exposure under this      Agreement to interest ratefluctuations. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | Valuations      in respect of the Ship, addressed to the Lender and stated to be for the      purposes of this Agreement and dated not earlier than 45 days before the      proposed Drawdown Date, showing the Market Value of the Ship being not      less that 120 per cent. of the Advance to be disbursed on the relevant      Drawdown Date. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | A      survey report addressed to the Lender, stated to be for the purposes of      this Agreement and dated not earlier than 45 days before the date of the      relevant Drawdown Date from an independent marine surveyor selected by the      Lender in respect of the conversion of the Ship, from a single hulled      vessel to a double hulled vessel. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | Favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the laws of England, the Bahamas, the Marshall Islands and such      other relevant jurisdictions as the Lender may  require. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | A      favourable opinion from BankServe Insurance Services Limited on such      matters relating to the insurances for the Ship as the Lender may      require. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9   | The      Lender being satisfied that: |
|---------------|---------------------------------------|

|   | (a) | no      litigation by any entity (private or governmental) shall be pending or      threatened with respect to the transactions contemplated hereunder or any      documentation executed in connection therewith, or which the Lender shall      determine is reasonably likely to have a materially adverse effect on the      business, property, assets, liabilities, condition (financial or      otherwise) or prospects of the Borrower, any Security Party or their      subsidiaries, either individually or taken as a  whole; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      necessary governmental approvals (domestic and foreign) and third party      approvals and/or consents in connection with transactions contemplated by      the transactions contemplated hereunder and otherwise referred to herein      shall have been obtained and remain in effect, and all applicable waiting      periods shall have expired without any action being taken by any competent      authority which, in the judgment of the Lender, restrains, prevents, or      imposes materially adverse conditions contemplated by the transactions      contemplated hereunder or otherwise referred to      herein.  Additionally, there shall not exist any judgment,      order, injunction or other restraint prohibiting or imposing materially      adverse conditions upon the transactions contemplated by the transactions      contemplated hereunder; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | nothing      shall have occurred (and the Lender shall not have become aware of facts      or conditions not previously known to it), which the Lender shall      determine is reasonably likely to have a material adverse effect on the      rights or remedies of the Lender, or on the ability of the Borrowers or      any Security Party or their subsidiaries, either individually or taken as      a whole, to perform their obligations to the Lender, or which is      reasonably likely to have a materially adverse effect on the business,      property, assets, liabilities, condition (financial or otherwise) or      prospects of the Borrowers, the Security Parties or their subsidiaries,      either individually or taken as awhole. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1   | The      Mandatory Cost is an addition to the interest rate to compensate the      Lender for the cost of compliance with (a) the requirements of the Bank of      England and/or the Financial Services Authority (or, in either case, any      other authority which replaces all or any of its functions) or (b) the      requirements of the European CentralBank. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | The      Mandatory Cost where the Lender is lending from a lending office in a      Participating Member State will be the percentage notified by the Lender      to the Borrowers.  This percentage will be certified by the      Lender in its notice to the Borrowers to be its reasonable determination      of the cost (expressed as a percentage of all Advances made by the Lender      from that lending office) of complying with the minimum reserve      requirements of the European Central Bank in respect of loans made from      that lending office. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | The      Mandatory Cost where the Lender is lending from a lending office in the      United Kingdom will be calculated by the Lender as a percentage rate per      annum on the first day of each Interest Period (or as soon as practicable      thereafter) as follows |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E x 0.01 | per      cent per annum |
|----------|-------------------------|
| 300      |                    |

| 4   | For      the purposes of this Schedule: |
|---------------|-----------------------------------------|

| (a)   | Fees Rules means the      rules on periodic fees contained in the FSA Supervision Manual or such      other law or regulation as may be in force from time to time in respect of      the payment of fees for the acceptance of  deposits; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Fee Tariffs means the      fee tariffs specified in the Fees Rules under the activity group A.1      Deposit acceptors (ignoring any minimum fee or zero rated fee required      pursuant to the Fees Rules but taking into account any applicable discount      rate); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Participating Member      State means any member state of the European Communities that      adopts or has adopted the euro as its lawful currency in accordance with      legislation of the      European Community relating to Economic and Monetary Union;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Tariff Base has the      meaning given to it in, and will be calculated in accordance with, the      Fees Rules. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| 5   | Any      determination by the Lender pursuant to this Schedule in relation to a      formula, the Mandatory Cost or any amount payable to the Lender shall, in      the absence of manifest error, be conclusive and binding on the      Borrowers. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | The      Lender may from time to time, after consultation with the Borrowers,      determine and notify to the Borrowers any amendments which are required to      be made to this Schedule in order to comply with any change in law,      regulation or any requirements from time to time imposed by the Bank of      England, the Financial Services Authority or the European Central Bank      (or, in any case, any other authority which replaces all or any of its      functions) and any such determination shall, in the absence of manifest      error, be conclusive and binding on the  Borrowers. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1   | The      Loan Agreement; |
|---------------|--------------------------|

| 2   | the      Master Agreement dated      **                     made      between ourselves and      **                    ;      and |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | a      Confirmation delivered pursuant to the said Master Agreement dated      **                     and      addressed by      **                     to      us. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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