----

| USD      26,700,000TERM      LOAN FACILITY AGREEMENT                |
|---------------------------------------------------------------------|
| for                                                                 |
| Cliaship      Holdings Ltd.as      Borrower                         |
|                                                                |
| provided by                                                         |
| The Financial Institutionsnamed      hereinas      Original Lenders |
| with                                                                |
| Nordea Bank Finland      Plc.as      Swap Bank                      |
| and                                                                 |
| Nordea      Bank Norge ASAas      Agent                             |
| and                                                                 |
| Nordea      Bank Norge ASAas      Mandated Lead Arranger            |
|   Dated      25 October 2007                              |

----

| 1 | DEFINITIONS AND      INTERPRETATION  | 4 |
|---|-------------------------------------------|---|

| 2 | THE      FACILITY  | 14 |
|---|-------------------------|----|

| 3 | PURPOSE  | [14 |
|---|---------------|-----|

| 4 | CONDITIONS      PRECEDENT  | 14 |
|---|---------------------------------|----|

| 5 | DRAWDOWN  | 15 |
|---|----------------|----|

| 6 | REPAYMENT  | 15 |
|---|-----------------|----|

| 7 | PREPAYMENT AND      CANCELLATION  | 16 |
|---|----------------------------------------|----|

| 8 | INTEREST  | 18 |
|---|----------------|----|

| 9 | INTEREST      PERIODS  | 19 |
|---|-----------------------------|----|

| 10 | CHANGES TO THE CALCULATION OF      INTEREST  | 20 |
|----|---------------------------------------------------|----|

| 11 | FEES  | 20 |
|----|------------|----|

| 12 | TAX GROSS-UP AND      INDEMNITIES  | 21 |
|----|-----------------------------------------|----|

| 13 | INCREASED      COSTS  | 22 |
|----|----------------------------|----|

| 14 | OTHER      INDEMNITIES  | 22 |
|----|------------------------------|----|

| 15 | MITIGATION BY THE      LENDERS  | 23 |
|----|--------------------------------------|----|

| 16 | COSTS AND      EXPENSES  | 24 |
|----|-------------------------------|----|

| 17 | SECURITY  | 24 |
|----|----------------|----|

| 18 | REPRESENTATIONS AND      WARRANTIES  | 25 |
|----|-------------------------------------------|----|

| 19 | INFORMATION      UNDERTAKINGS  | 29 |
|----|-------------------------------------|----|

| 20 | FINANCIAL      COVENANTS  | 31 |
|----|--------------------------------|----|

| 21 | GENERAL      UNDERTAKINGS  | 33 |
|----|---------------------------------|----|

| 22 | VESSELS’      COVENANTS  | 36 |
|----|-------------------------------------|----|

| 23 | EVENTS OF      DEFAULT  | 40 |
|----|------------------------------|----|

| 24 | CHANGES TO THE      LENDERS  | 42 |
|----|-----------------------------------|----|

| 25 | CHANGES TO THE      BORROWER  | 44 |
|----|------------------------------------|----|

| 26 | ROLE OF THE AGENT AND THE      ARRANGER  | 45 |
|----|-----------------------------------------------|----|

| 27 | SHARING AMONG THE FINANCE      PARTIES  | 49 |
|----|----------------------------------------------|----|

| 28 | PAYMENT      MECHANICS  | 50 |
|----|------------------------------|----|

| 29 | SET-OFF  | 52 |
|----|---------------|----|

| 30 | NOTICES  | 52 |
|----|---------------|----|

| 31 | CALCULATIONS  | 53 |
|----|--------------------|----|

| 32 | MISCELLANEOUS  | 53 |
|----|---------------------|----|

| 33 | GOVERNING LAW AND      ENFORCEMENT  | 55 |
|----|------------------------------------------|----|

----

| (1) | Cliaship Holdings Ltd.      of Trust Company Complex, Ajeltake Road, Ajeltake Island; Majuro      MH96960, Marshall Islands as borrower (the “Borrower”); |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The banks and financial      institutions listed in Schedule      1, as original lenders (together, the  “Lenders”); |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (3) | Nordea Bank Finland Plc.      of TO1, FIN-00020 Nordea, Helsinki, Finland, as swap bank, (the “Swap    Bank”); |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (4) | Nordea Bank Norge ASA of      Middelthunsgate 17, N-0368 Oslo, Norway, organisation number 911 044 110,      as facility agent (the “Agent”);    and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Nordea Bank Norge ASA of      Middelthunsgate 17, N-0368 Oslo, Norway, organisation number 911 044 110,      as mandated lead arranger (the “Arranger”) and      underwriter (the “Underwriter”). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| a)   | the      amount of its participation in the Loan and/or a Tranche (as the case may      be); and |
|----------------|--------------------------------------------------------------------------------------------------|

| b)   | in      relation to any proposed Loan and/or Tranches (as the case may be), the      amount of its participation in the Loan and/or such Tranche(s) (as the      case may be)  that are due to be made on or before the proposed      Drawdown Date. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| b)   | any      claim under any guarantees related to freight and hire payable to the      Borrower and/or any Owning Company as a consequence of the operation of      any of the Vessels; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | compensation      payable to the Borrower and/or any Owning Company in the event of any      requisition of any of the Vessels or for the use of any of the Vessels by      any government authority or other competent  authority; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | remuneration      for salvage, towage and other services performed by any of the Vessels      payable to the Borrower and/or any Owning  Company; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | demurrage      and retention money receivable by the Borrower and/or any Owning Company      in relation to any of the Vessels; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------|

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

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

| h)   | any      other money whatsoever due or to become due to the Borrower and/or any      Owning Company from third parties in relation to any of the Vessels, or      otherwise. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)   | in      respect of Tranche A: 30 April 2009;and |
|----------------|-------------------------------------------------|

| b)   | in      respect of Tranche B: the earlier of five (5) years from the first      Drawdown Date hereunder and 30 October2012. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------|

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

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

| c)   | if      the rate quoted on Reuters BMA Page LIBOR 01 exceeds by more than one      sixteenth of one per centum per annum the rate per annum notified to the      Agent by the Reference Bank (the “Notified Rate”) as the      lowest rate at which deposits in USD are offered to the Reference Bank by      leading banks in the London interbank market at the Reference Bank’s      request at or about 11:00 hours (London time) on the Quotation Date for      that Interest Period (or, as the case may be, such other period) for a      period equal to that Interest Period (or, as the case may be, such other      period) and for delivery on the first Business Day of it, then LIBOR for      such Interest period or such other period shall be the Notified      Rate. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| b)   | at      any other time, a Lender or Lenders whose participations in the Loan or a      Tranche (as the case may be) then outstanding aggregate more than 66.67%      of the Loan or Tranches (as the case may be) then    outstanding. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| a)   | Algonquin      Shipping Corp of Trust Company Complex, Ajeltake Road, Ajeltake Island,      Majuro MH96960, Marshall Islands in respect of MT    “Algonquin”; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Acushnet      Shipping Corp. of Trust Company Complex, Ajeltake Road, Ajeltake Island,      Majuro MH96960, Marshall Islands in respect of MT    “Acushnet”; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Sachuest      Shipping Ltd., of Trust Company Complex, Ajeltake Road, Ajeltake Island,      Majuro MH96960, Marshall Islands in respect of MT    “Sachuest”; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | TJH      Shipholding Ltd. of Trust Company Complex, Ajeltake Road, Ajeltake Island,      Majuro MH96960, Marshall Islands in respect of MT “Capt. Thomas J. Hudner,      Jr.” and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | Isabelle      Shipholdings Ltd. of 80 Broad Street, Monrovia, Liberia, in respect of MT      “Pequod”. |
|----------------|--------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

| a)   | M/T      “Algonquin”, a 40,552 dwt product tanker built in 1983, with IMO number      8005006, registered in the name of Algonquin Shipping Corp. in the Bahamas      Ship Register; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | M/T      “Acushnet”, a  40,545 dwt product tanker built in 1981, with IMO      number 7929683, registered in the name of Acushnet Shipping Corp. in the      Bahamas Ship Register; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | M/T      “Sachuest”, a  98,358 dwt ore/bulk/oil carrier built in 1986,      with IMO number 7915632, registered in the name of Sachuest Shipping Ltd.      in the Bahamas Ship Register; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | M/T      “Capt. Thomas J. Hudner, Jr.”, a  44,999 dwt tanker built in      1990, with IMO number 8613994, registered in the name of THJ Shipholding      Ltd. in the Bahamas Ship Register;and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | M/T      “Pequod”, a 40,632 dwt product tanker built in 1982 with IMO number      8011304, registered in the name of Isabelle Shipholdings Ltd. in the      Bahamas Ship Registry. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

| a)   | under      Tranche A; to refinance the amount outstanding under the Existing Credit      Facility; and |
|----------------|--------------------------------------------------------------------------------------------------------|

| b)   | under      Tranche B; to refinance the purchase price of M/T “Capt. Thomas J. Hudner,      Jr”. |
|----------------|-------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

| 4.3   | Maximum      number of drawings |
|-----------------|---------------------------------|

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

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

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

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

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

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

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

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

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

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

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

| 6.1   | Repayment      of Tranche A |
|-----------------|-----------------------------|

| 6.2   | Repayment      of Tranche B |
|-----------------|-----------------------------|

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

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

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

| a)   | If      any of the Vessels is sold or becomes a Total Loss or early termination      fees are paid under any of the Charterparties, the Borrower shall be      obliged to prepay the Facility by an amount equal to the sum required to      maintain the minimum value covenant in Clause 22.3 (Market value) and the      Total Commitments shall be reduced by an amount equal to such      amount: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 7.2   | Mandatory      prepayment – Market Value |
|-----------------|------------------------------------------------|

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

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

| 7.3   | Mandatory      prepayment – illegality |
|-----------------|----------------------------------------------|

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

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

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

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

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

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

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

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

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

| b)   | For      the purpose of paragraph a) above, the term “change of control” means      an event by which the Guarantor no longer is controlled by Mr. Michael S.      Hudner. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

| 7.8   | Terms      and conditions for prepayments andcancellation |
|-----------------|-----------------------------------------------------------|

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

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

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

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

| 7.8.5   | Forwarding      of notice of prepayment andcancellation |
|-------------------|---------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

| b)   | The      Borrower may select an Interest Period of three (3) or six (6) months or      any such other period agreed between the Borrower and the Agent (on behalf      of the Lenders). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| e)   | Each      Tranche may have one (1) Interest Periodonly. |
|----------------|---------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| (i)   | making      or filing a claim or proof against theBorrower; |
|-----------------|-------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

| a)   | Clause      7.1 (Mandatory prepayment – Total Loss orsale); |
|----------------|-------------------------------------------------------------------|

| b)   | Clause      7.2 (Mandatory prepayment – MarketValue); |
|----------------|-------------------------------------------------------------|

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

| d)   | Clause      7.4 (Mandatory prepayment – Change ofcontrol); |
|----------------|------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

| 17.1   | Security      - Loan |
|------------------|----------------------|

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

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

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

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

| e)   | the      Guarantee. |
|----------------|---------------------|

| 17.2   | Security      – Swap Agreement(s) |
|------------------|-----------------------------------------|

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

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

| a)   | It      is a corporation, duly incorporated and validly existing under the laws of      the Marshall Islands and has the power to own its assets and carry on its      business as it is currently being conducted.  The Borrower is      one hundred per cent (100.00%) owned by the  Guarantor. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Each      of he Owning Companies are a corporation, duly incorporated and validly      existing under the laws of the Marshall Islands and has the power to own      its assets and carry on its business as it is currently being      conducted. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

| 18.6   | Taxes |
|------------------|-------|

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

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

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

| a)   | Complete and correct.      The Original Financial Statements fairly and accurately represent the      assets, liabilities and the financial condition of the Borrower, the      Guarantor or any of the Owning Companies and have been prepared in      accordance with GAAP consistentlyapplied. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| d)   | classed      with Det norske Veritas, American Bureau of Shipping or Bureau Veritas (as      the case may be), free of all overdue requirements and      recommendations. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| b)   | “Contracted Employment”      means any time charterparty (provided that the freight rates under such      charterparties are fixed and ensure a firm and predictable cashflow),      contract of affreightment (or similar) and forward freight agreement      (however only for hedging purposes in connection with charter agreements      or charter contracts and not for speculative  purposes). |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| d)   | “Fixed Charges”      means: |
|----------------|-----------------------------------------|

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

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

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

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

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

| h)   | “Total Debt” means, on a      consolidated basis, the aggregate book value of all provisions, other long      term liabilities and current liabilities of the Borrower and the Guarantor      (on a consolidated basis), however reduced by Cash and Cash Equivalents in      excess of the minimum Cash and Cash Equivalent requirement in Clause      20.2.6 (Cash and Cash Equivalents).. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| k)   | “Value Adjusted Total      Assets” means, on a consolidated basis, the total market value of      all of the assets of the Guarantor (on a consolidated basis) however,      excluding Cash and Cash Equivalents in excess of the minimum Cash and Cash      Equivalents requirement in Clause 20.2.6 (Cash and Cash      Equivalent). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 20.2.4   | Minimum      value |
|--------------------|--------------------|

| 20.2.5   | Cash      and Cash Equivalents |
|--------------------|--------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| 21.10   | Investment      restrictions |
|-------------------|------------------------------|

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

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

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

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

| b)   | The      Borrower shall not and the Borrower shall procure that neither the      Guarantor nor any Owning Company shall change its legal    name. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| a)   | The      Market Value of the Vessels shall at any time never be less than one      hundred and twenty per cent. (120%) of theLoan. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|

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

| 22.4   | Restrictions      on chartering, appointment of Managersetc. |
|------------------|--------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

| e)   | any      claim for a material breach of the ISM Code or the ISPS Code being made      against the Borrower, the Owning Companies, the Managers, the Charterers      (to the extent known by the Borrower or any of the Owning Companies) or      otherwise in connection with theVessels. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| b)   | No      Event of Default under litra a) above will occur (save in respect of      Clause 22.1 (Insurance) which is not capable of remedy) if the failure to      comply is capable of remedy and is remedied within thirty (30) days of the      Agent giving notice to the Borrower or the Borrower becoming aware of the      failure to comply. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| b)   | another      bank or financial institution or to a trust, fund or other entity which is      regularly engaged in or established for the purpose of making, purchasing      or investing in loans, securities or other financial assets (the “New      Lender”). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.2   | Limitations      of responsibility of ExistingLenders |
|------------------|-------------------------------------------------------|

| 24.2.1   | Borrower’s      performance, etc |
|--------------------|----------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| a)   | to      any of its affiliates and a potentialassignee; |
|----------------|--------------------------------------------------------|

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

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

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

| 25   | CHANGES      TO THE BORROWER |
|----------------|------------------------------|

| 25.1   | Assignments      and transfer by Borrower |
|------------------|-------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

| 26.5   | Business      with the Borrower |
|------------------|---------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| 28.3   | Distributions      to the Borrower |
|------------------|------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

| e)   | fifthly, the      balance, if any to the Borrower or to itsorder. |
|----------------|-------------------------------------------------------------------|

| 28.7   | No      set-off by the Borrower |
|------------------|---------------------------------|

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

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

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

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

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

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

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

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

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

| a)   | if      by letter, when delivered at the address of the relevant      Party; |
|----------------|------------------------------------------------------------------------------|

| b)   | if      by telefax or e-mail, whenreceived. |
|----------------|---------------------------------------------|

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

| If      to the Agent: | Nordea      Bank Norge ASA |
|-----------------------|----------------------------|

|   | Att:      Shipping, Offshore and Oil Services |
|--------|-----------------------------------------------|

|   | Middelthuns      gate 17 |
|--------|--------------------------|

|   | P.O.      Box 1166 Sentrum |
|--------|----------------------------|

|   | N-0107      Oslo, Norway |
|--------|--------------------------|

|   | Telefax      No: +47 22 48 66 68 |
|--------|----------------------------------|

|   | E-mail:      olav.ringdal@nordea.com |
|--------|--------------------------------------|

| If      to the Borrower: | c/o      B + M Management Ltd. |
|--------------------------|--------------------------------|

|   | Par-la-Ville      Place |
|--------|-------------------------|

|   | 14      Par-la-Ville Road |
|--------|---------------------------|

|   | Hamilton      HM 08 |
|--------|---------------------|

|   | Bermuda |
|--------|---------|

|   | Telefax      No: + 1 441 295 6796 |
|--------|---------------------------------------------|

|   | E-mail:      dpaterson@consolidated.bm,      adazell@bhcousa.com      and tcoleman@bhcousa.com |
|--------|------------------------------------------------------------------------------------------------|

| 30.3   | Communication      with the Borrower |
|------------------|--------------------------------------|

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

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

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

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

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

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

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

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

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

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

| a)   | the      definition of  “MajorityLenders”; |
|----------------|------------------------------------------------------------------|

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

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

| d)   | an      increase in or extension of anyCommitment; |
|----------------|----------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

| Lenders:                                                                                                                           | Tranche      A:          | Tranche      B:           | Total      Commitments:   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------------------------|---------------------------|---------------------------|
| Nordea      Bank Norge ASAMiddelthusgate      17N-0368      OsloNorway                                                             | USD      3,550,000       | USD      9,800,0000       | USD      13,350,000       |
| DVB      Bank America NVZeelandia      Office ParkKaya      W.F.G. Mensing 14P.O.      Box 3107Curacao,      Netherlands Antilles  | USD      3,550,000       | USD      9,800,000        | USD      13,350,000       |
|  Total:                                                                                                                            |  USD      7,100,000 |  USD      19,600,000 |  USD      26,700,000 |

----

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

| 1.1   | In      respect of the Borrower, the Guarantor and the Owning      Companies: |
|-----------------|-------------------------------------------------------------------------------|

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

| b)   | Memorandum      and Articles ofAssociation/Bye-laws; |
|----------------|------------------------------------------------------|

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

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

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

| d)   | Power      of Attorney (notarised andlegalised); |
|----------------|--------------------------------------------------|

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

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

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

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

| 3   | THE      VESSELS |
|---------------|------------------|

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

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

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

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

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

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

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

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

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

| h)   | The      ISPS Certificate. |
|----------------|----------------------------|

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

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

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

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

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

| e)   | Notice      of Assignment and Acknowledgement in respect of the money claims under the      Intercompany Loan Agreements; |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

| f)   | The      Account Charge; |
|----------------|--------------------------|

| g)   | The      Mortgages; |
|----------------|---------------------|

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

| i)   | The      Guarantee. |
|----------------|---------------------|

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

| a)   | The      Commercial Management Agreement; |
|----------------|-------------------------------------------|

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

| c)   | The      Intercompany Loan Agreements; and |
|----------------|--------------------------------------------|

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

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

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

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

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

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

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

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

| g)   | Appointment      of Wikborg Rein & Co. and the acceptance by Wikborg Rein & Co. as      the Borrower’s, the Guarantor’s and the Owning Companies’ process agent in      Norway under the Finance Documents;and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

----

| a)   | You      are hereby irrevocably notified that we wish to make the following      drawdown of Tranche [A][B]: |
|----------------|--------------------------------------------------------------------------------------------------------------|

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

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

----

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

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

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

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

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

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

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

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

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

----

| Name      of Vessel | Hull      & Machinery | Increased      Value | Loss      of Hire | Protection      & Indemnity | War      Risk |
|---------------------|---------------------------|----------------------|-------------------|---------------------------------|---------------|
|                | Insurer:                  | Amount:              | Insurer:          | Amount:                         | Insurer:      | Amount: | Insurer: | Amount: | Insurer: | Amount: |
|                |                      |                 |              |                            |          |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                | Insurer:                  | Amount:              | Insurer:          | Amount:                         | Insurer:      | Amount: | Insurer: | Amount: | Insurer: | Amount: |
|                |                      |                 |              |                            |          |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                | Insurer:                  | Amount:              | Insurer:          | Amount:                         | Insurer:      | Amount: | Insurer: | Amount: | Insurer: | Amount: |
|                |                      |                 |              |                            |          |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |
|                |                      |                 |              |                            |          |   |   |   |   |   |

----

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

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

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

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

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

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

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

----

| I      | Existing      Lender:                      | [    ]                |
|--------|--------------------------------------------|-------------------------------------------|
|   |                                       |                                      |
| II     | New      Lender:                           | [    ]                |
|   |                                       |                                      |
| III    | Total      Commitments of Existing Lender: | USD      [     ] |
|   |                                       |                                      |
| IV     | Aggregate      amount transferred:         | USD      [     ] |
|   |                                       |                                      |
| V      | Total      Commitments of New Lender:      | USD      [    ]       |
|   |                                       |                                      |
| VI     | Transfer      Date:                        | [     ]          |

| (i)   | Administrative      Details / Payment Instructions of NewLender |
|-----------------|-----------------------------------------------------------------|

----

| (1)   | [·] of [·] (the “Assignor”);      and |
|-----------------|-------------------------------------------------------------|

| (2) | Nordea Bank Norge ASA of      Middelthunsgate 17, N-0368 Oslo, Norway, organisation number 911 044 110      as agent on behalf of the Finance Parties and the Swap Bank (as defined in      the Agreement as referred to below) (the “Agent”). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A) | Pursuant      to the terms and conditions of a term loan facility agreement dated 25      October 2007 (as amended, supplemented or restated from time to time, the      “Agreement”)      between i.a. Cliaship Holdings Ltd. as borrower (the “Borrower”), the banks      and financial institutions listed in schedule 1 thereto as lenders (the      “Lenders”), Nordea      Bank Finland Plc., as swap bank (the “Swap Bank”) and Nordea      Bank Norge ASA as agent for the Lenders (the “Agent”) and mandated      lead arranger (the “Arranger”), the Lenders      have agreed to make available to the Borrower a term loan facility in the      aggregate amount of USD 26,700,000 (the “Loan”);    and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | it      is a condition precedent to the Lenders making the Loan available to the      Borrower that i.a. the Assignor executes and delivers, inter alia, this      Assignment Agreement and grants the Security Interests set out herein as      security for the Borrower’s obligations towards (i) the Finance Parties      under the Agreement and (ii) the Swap Bank under any Swap      Agreement(s). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1   | INTERPRETATION |
|---------------|----------------|

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

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

| a)   | reference      to Clauses or Appendices are to be construed as references to clauses or      appendices of this Assignment Agreement unless otherwise      stated; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | references      to (or to any specified provision of) this Assignment Agreement or any      other document shall be construed as references to this Assignment      Agreement, that provision or that document as from time to time amended;      and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | words      importing the plural shall include the singular and vice      versa. |
|----------------|---------------------------------------------------------------------------------|

| 2   | ASSIGNMENT      OF EARNINGS AND INSURANCES |
|---------------|--------------------------------------------|

| 2.1   | Assignment |
|-----------------|------------|

| a)   | the      Earnings; |
|----------------|--------------------|

| b)   | the      Insurances; and |
|----------------|--------------------------|

| c)   | [any      money claims under the Intercompany Loan Agreements (the “Intercompany      Claims”)]. |
|----------------|--------------------------------------------------------------------------------------------------------------|

| 2.2   | Notice      and acknowledgement, etc. |
|-----------------|---------------------------------------|

| a)   | The      Assignor undertakes promptly to give notice of the assignment of the      Earnings to the Charterers and any other third party from which any of the      Earnings or amounts may become payable in the form set out in Appendix 1(A)      hereto and procure that any recipient of such notice acknowledges receipt      of the notice as set out therein in the form of Appendix 1(B)      hereto. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The      Assignor undertakes to insure and keep the Vessel fully insured in      accordance with Clause 22.1 (Insurance) of the Agreement;    and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | in      the event that the Insurances, or any one of them, have been taken out on      conditions other than the Norwegian Marine Insurance Plan of 1996, version      2003 (as amended from time to time) (the “Plan”), to give all the      relevant insurers notice in the form of Appendix 2 (A)      hereto, and procure that the said insurers acknowledge receipt of such      notice in the form of Appendix 2 (B)      hereto or give such other form of notice and procure such other form of      acknowledgement as the Agent shall require in writing to the Assignor;      and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | in      the event that the Insurances, or any one of them, have been taken out      according to the Plan, to procure written statements from all the relevant      insurers and/or approved brokers confirming that the Agent (on behalf of      the Finance Parties and the Swap Bank) has been duly registered as      co-insured first priority mortgagee on all such insurance policies taken      out for the Vessel and that notice according to the Plan has been duly      received by all the relevantinsurers. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The      Assignor undertakes promptly to give notice of the assignment of the      Intercompany Claims the relevant Owning Company in the form set out in      Appendix      3(A) hereto and procure that any recipient of such notice      acknowledges receipt of the notice as set out therein in the form of Appendix 3(B)      hereto. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3   | Loss      Payable |
|-----------------|-------------------|

| 3   | [MAXIMUM      LIABILITY |
|---------------|-------------------------|

| 4   | PERFECTION |
|---------------|------------|

| 5   | ENFORCEMENT |
|---------------|-------------|

| a)   | immediately      sell, dispose, collect, transfer ownership to all or any of the claims      pledged in favour of the Agent (on behalf of the Finance Parties and the      Swap Bank) under this Assignment Agreement (the “Claims”), as provided      for in the Financial Securities Act;and |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | apply      any and all proceeds from the Claims in satisfaction of all amounts owing      to the Finance Parties in accordance with the Agreement and to the Swap      bank in accordance with the relevant Swap Agreement, and keep and hold any      surplus as security for any amount owing (actual or contingent) in      accordance with the Agreement but not yetdue. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | ASSIGNMENT |
|---------------|------------|

| 7   | NO      FURTHER ASSIGNMENT OR PLEDGE |
|---------------|--------------------------------------|

| 8   | ADDITIONAL      AND CONTINUING SECURITY |
|---------------|-----------------------------------------|

| 9   | [MISCELLANEOUS |
|---------------|----------------|

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

| (i)   | any      waiver granted to the Guarantor, any Owning Company or any other third      party; |
|-----------------|---------------------------------------------------------------------------------------------|

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

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

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

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

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

| c)   | The      Assignor acknowledges and agrees that it has full knowledge of the terms      and conditions of the Agreement (including (but not limited to) the      cross-default provision in the Agreement, and of the security which is to      be granted in respect of the amounts outstanding under the Agreement and      as listed in Clause 17 (Security) of the  Agreement. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | The      Assignor hereby confirms that it has been informed by the Borrower that      there is no Default outstanding under the Agreement at the date      hereof.] |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | NOTICES |
|----------------|---------|

| 11   | GOVERNING      LAW – JURISDICTION |
|----------------|-----------------------------------------|

----

----

| a)   | by      an agreement dated [·] October 2007 (as      amended, supplemented or restated from time to time, the “Assignment Agreement”)      made between among others us and Nordea Bank Norge ASA, Middelthunsgt. 17,      N-0368 Oslo, Norway, acting as agent on behalf of certain other banks and      swap bank (the “Agent”), related to a      loan agreement dated 25 October 2007 ( as amended, supplemented or      restated from time to time, the “Agreement”) and any Swap      Agreement (as defined in the Agreement) made or to be entered into with      the Swap Bank (as defined in the Agreement), we have assigned absolutely      and have agreed to assign absolutely to and in favour of the Agent all our      rights, title and interest, present and future, to all payments to be made      to us under the Charterparty, including in respect of any breach by you      thereunder; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | you      are herby irrevocably authorised and instructed to make all payments under      the Charterparty to our account with Nordea Bank Finland Plc., London      Branch account no [•] until such time as the Agent shall direct to the      contrary whereupon all instructions or demands for actions shall be made      by the Agent and payments are due to the Agent or as it may      direct. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| a)   | by      an agreement dated [·] October 2007 (as      amended, supplemented or restated from time to time, the “Assignment Agreement”)      made between among others us and Nordea Bank Norge ASA, Middelthunsgt. 17,      N-0368 Oslo, Norway, acting as agent on behalf of certain other banks and      swap bank (the “Agent”), related to a      loan agreement dated 25 October 2007 (as amended, supplemented or restated      from time to time, the “Agreement”) and any Swap      Agreement (as defined in the Agreement) made or to be entered into with      the Swap Bank (as defined in the Agreement), we have assigned absolutely      and have agreed to assign absolutely to and in favour of the Agent all our      rights, title and interest, present and future, to all payments to be made      to us under the Intercompany Loan Agreement, including in respect of any      breach by you thereunder; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | you      are herby irrevocably authorised and instructed to make all payments under      the Intercompany Loan Agreement to our account with Nordea Bank Finland      Plc., London Branch account no [•] until such time as the Agent shall      direct to the contrary whereupon all instructions or demands for actions      shall be made by the Agent and payments are due to the Agent or as it may      direct. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (2) | Nordea Bank Norge ASA,      organisation no. 911 044 110, Middelthunsgt. 17, N-0368 Oslo, Norway (the      “Agent”), acting      on behalf of itself and on behalf of the Finance Parties and the Swap Bank      (as defined in the Agreement referred tobelow). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A) | Pursuant      to the terms and conditions of a term loan facility agreement dated 25      October 2007 (as amended, supplemented and restated from time to time, the      “Agreement”)      between Cliaship Holdings Ltd. as borrower (the “Borrower”), the banks      and financial institutions listed in Schedule 1      thereto as lenders (the “Lenders”), Nordea Bank      Finland Plc., as swap bank (the “Swap Bank”) and Nordea      Bank Norge ASA as agent for the Lenders (the “Agent”) and mandated      lead arranger (the “Arranger”), the Lenders      have agreed to make available to the Borrower a term loan facility in the      aggregate amount of USD 26,700,000 (the “Loan”); |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | subject      to the terms and conditions of the Agreement, the Loan will be made      available to the Borrower for the purpose of (i) refinancing the loans      under the Existing Credit Facility, (ii) part-financing of the purchase      price for the “Capt. Thomas J. Hudner, Jr.”;and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | it      is a condition of the Agreement that the Guarantor enters into this      Guarantee. A similar guarantee agreement may also be executed by other      parties pursuant to the Agreement, but the execution and enforceability of      such other guarantee agreements shall not be a condition to the      effectiveness or enforceability of this  Guarantee. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| a)   | the      due and punctual payment by the Borrower of any and all sums which are now      or at any time hereafter will be payable by the Borrower under or in      respect of the Finance Documents and the Swap Agreement in accordance with      the terms and provisions thereof (including, without limitation,      principal, interest, default interest, legal fees and other fees, Break      Costs, transaction and enforcement costs and any other costs, expenses,      Taxes and Tax indemnities, currency indemnities and any other indemnities,      claims for damages and any other costs and expenses in respect of any      Event of Default or any other breach by the Borrower under the Finance      Documents or any Swap Agreement); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the      due and punctual performance by the Borrower of all of the Borrower’s      obligations under or in respect of the Finance Documents and any Swap      Agreement; and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | to      indemnify each Finance Party and the Swap Bank immediately upon the      Agent’s first written demand against any loss, liability, costs and      expenses suffered, incurred or paid by that Finance Party or the Swap Bank      if any obligation of the Guarantor is or becomes unenforceable, invalid or      illegal, |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2.3   | No      limitation on number of demands |
|-----------------|-----------------------------------------|

| 2.4   | Maximum      guarantee liability |
|-----------------|----------------------------------|

| 3   | SURVIVAL      OF THE GUARANTOR’S LIABILITY |
|---------------|--------------------------------------------------|

| 3.1   | Continuing      guarantee |
|-----------------|---------------------------|

| 3.2   | No      discharge |
|-----------------|-------------------|

| a)   | any      total or partial invalidity, irregularity, illegality, unenforceability,      imperfection or avoidance of or any defect in any security granted by, or      the obligation of the Borrower, the Finance Parties, the Swap Bank or any      other person under the Finance Documents, any Swap Agreement or any other      document or security; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | any      time, waiver, consent or other indulgence granted to the Borrower or any      other person or any composition or arrangement made by any Finance Party,      the Swap Bank or any other person with the Borrower or any other      person; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | any      increase or reduction of the amount of the Loan, or variation of the terms      and conditions for its repayment (including without limitation, the rate      and/or method of calculation of interest payable on the    Loan); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | any      amendment, modification, replacement, supplement, variation, compromise,      extension or renewal of any Finance Document or any Swap Agreement or any      right against any security over any assets of the Borrower or any other      person; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | any      refusal or neglect to take up or perfect or enforce or any release,      indulgence or other relief granted under any Finance Document or any Swap      Agreement or any rights against or any security over any assets of the      Borrower or any other person or any failure to realize the full value of      any security; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | any      transfer, assignment, assumption or novation of rights and obligations      under the Finance Documents by the Borrower, a Lender or any other      person; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | any      incapacity or lack of power, authority or legal personality of or      dissolution or change in the members or status of the Borrower, a Lender,      the Swap Bank or any other person; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | any      corporate reorganisation, reconstruction, amalgamation, dissolution,      merger, acquisition or any other alteration in the corporate existence or      structure of any of the Finance Parties, the Swap Bank, the Borrower or      any other person; or |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)   | any      insolvency or similar proceedings concerning the Borrower, a Lender, the      Swap Bank or any other person. |
|----------------|-----------------------------------------------------------------------------------------------------------------------|

| 3.3   | Waiver |
|-----------------|--------|

| a)   | §      62 (1) (a) (to be notified of any security the giving of which was a      precondition for the advance of the Loan, but which has not been validly      granted or has lapsed); |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | §      63 (1) - (2) (to be notified of any Event of Default under the Agreement      or any Swap Agreement and to be kept informed  thereof); |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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

| d)   | §      63 (4) (to be notified of the Borrower’s bankruptcy proceedings or debt      reorganisation proceedings and/or any application for the      latter); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)   | §      65 (3) (that the consent of the Guarantor is required for the Guarantor to      be bound by amendments to the Agreement and any Swap Agreement that may be      detrimental to its interest); |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | §      66 (1) - (2) (that the Guarantor shall be released from liabilities      hereunder if security which was given, or the giving of which was a      precondition for the advance of the Loan, is released by any of the      Finance Parties without the consent of the  Guarantor); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | §      66 (3) (that the Guarantor shall be released from its liabilities      hereunder if, without its consent, security the giving of which was a      precondition for the advance of the Loan or the execution of the      Guarantee, was not validlygranted); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h)   | §      67 (2) (about reduction of the Guarantor’s liabilities      hereunder); |
|----------------|-------------------------------------------------------------------------------------------|

| i)   | §      67 (4) (that the Guarantor’s liabilities hereunder shall lapse after ten      (10) years, as the Guarantor shall remain liable hereunder as long as any      amount is outstanding under the Agreement, any Swap Agreement or the      Security Documents); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j)   | §      70 (as the Guarantor shall have no right of subrogation into the rights of      the Finance Parties and the Swap Bank under the Agreement, any Swap      Agreement or the Security Documents until and unless the Finance Parties      and the Swap Bank shall have received all amounts due or to become due to      them under the Agreement, any Swap Agreement and the Security      Documents); |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k)   | §      71 (as the Finance Parties and the Swap Bank shall have no liability first      to make demand upon or seek to enforce remedies against the Borrower or      any other security provided in respect of the Borrower’s liabilities under      the Agreement and/or any Swap Agreement and/or the Security Documents      before seeking to enforce the security created  hereunder); |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l)   | §      72 (as all interest and default interest due under the Agreement and/or      any Swap Agreement and/or the Security Documents shall be secured      hereunder); |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| m)   | §      73 (1) - (2) (as all costs and expenses related to a default under the      Agreement and/or the Swap Agreement and/or the Security Documents shall be      secured hereunder); and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 3.4   | Reinstatement |
|-----------------|---------------|

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

| b)   | the      Finance Parties and the Swap Bank shall be entitled to recover the value      or amount of that security or payment from the Guarantor, as if such      payment, discharge, avoidance or reduction had not    occurred. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | UNDERTAKINGS |
|---------------|--------------|

| a)   | it      undertakes to comply with and perform all such obligations and covenants,      undertakings and representations with specifically relates to the      Guarantor in the Agreement, including (but not limited to) the financial      covenants set out in Clause 20 (Financial covenants) of the Agreement and      the obligation to deliver a Compliance Certificate as set out in Clause      19.2 (Compliance Certificate) of theAgreement; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | following      receipt of a notice from the Agent of the occurrence of any Event of      Default, the Guarantor will not make a demand for any claim of moneys due      to the Guarantor from the Borrower or any other guarantor, or exercise any      other right or remedy to which the Borrower or any other guarantor are      entitled to in respect of such moneys unless and until all moneys due and      payable by the Borrower have been irrevocably paid in  full; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | if      the Borrower or any other guarantor becomes the subject of an insolvency      proceeding or shall be wound up or liquidated, the Guarantor shall not      (unless so instructed by the Agent and then only on condition that the      Guarantor holds the benefit of any claim in such insolvency or liquidation      to pay any amounts recovered thereunder to the Agent) make any claim in      such insolvency, winding-up or liquidation until all the Outstanding      Indebtedness owing or due has been irrevocably paid in    full; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | if      the Guarantor being in breach of litra b) and c)  above receives      or recovers any money pursuant to such exercise, claim or proof as therein      referred to, such moneys shall be held by the Guarantor for the Agent to      apply the same as if they were money received or recovered by the Agent      under this Guarantee; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5   | REPRESENTATIONS      AND WARRANTIES |
|---------------|-------------------------------------|

| a)   | the      Guarantor is duly organised and validly existing as a private limited      liability company under the laws of Liberia and has the corporate power      and authority to own its assets and carry on its business as it is      presently being conducted in each jurisdiction in which it owns assets or      carry on business; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | the      Guarantor has the power to enter into, perform and deliver, and has taken      all necessary actions to authorise its entry into, performance and      delivery of this Guarantee; and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | the      Guarantee constitutes the legal, valid and binding obligations of the      Guarantor, enforceable against the Guarantor in accordance with its terms      and will be so treated in any relevant courts and this Guarantee is in      proper form for enforcement in suchcourts. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | ENFORCEMENT |
|---------------|-------------|

| 6.1   | Immediate      recourse |
|-----------------|-------------------------|

| 6.2   | No      right of recourse and no security |
|-----------------|-------------------------------------------|

| 6.3   | No      subrogation in Finance Parties’ or Swap Bank’s  security |
|-----------------|------------------------------------------------------------------------------|

| 6.4   | Action |
|-----------------|--------|

| 6.5   | Knowledge      of the Agreement and additionalsecurity |
|-----------------|--------------------------------------------------------|

| a)   | it      has received a copy of and has full knowledge of the terms and provisions      of the Agreement including, but not limited to the cross-default provision      therein, and that it has been informed of the security which is to be      granted in respect of the amounts outstanding under the Agreement and as      listed in Clause 17 (Security) of theAgreement; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | it      has been informed by the Borrower that no Event of Default under the      Agreement has occurred as per today;and |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

| c)   | this      Guarantee is in addition to and is not in any way prejudiced by any other      guarantee or security now or subsequently held by any Finance Party or the      Swap Bank as security for the Borrower’s obligations under the Agreement      and any Swap Agreement(s). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | ASSIGNMENT |
|---------------|------------|

| 8   | EXPENSES |
|---------------|----------|

| 9   | MISCELLANEOUS |
|---------------|---------------|

| 9.1   | No      implied waivers |
|-----------------|-------------------------|

| 9.2   | Separable      provisions |
|-----------------|---------------------------|

| 9.3   | Borrower      as agent for the Guarantor |
|-----------------|------------------------------------------|

| 9.4   | Law      and jurisdiction |
|-----------------|---------------------------|

| 9.4.1   | Governing      law |
|-------------------|--------------------|

| 9.4.2   | Main      jurisdiction |
|-------------------|------------------------|

| 9.4.3   | Alternative      jurisdiction |
|-------------------|-------------------------------|

| a)   | to      commence proceedings against the Guarantor or its assets both in any court      in Norway and any other jurisdiction;and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------|

| b)   | to      commence enforcement proceedings in any jurisdiction concurrently with or      in addition to proceedings in Norway or without commencing proceedings in      Norway. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | NOTICES |
|----------------|---------|

| 10.1   | Service      of process |
|------------------|-------------------------|

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

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

----

----

----