----

----

|   |   |
|--------|--------|

| 1 | INTERPRETATION  | 4 |
|---|----------------------|---|

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

| 3 | POSITION      OF THE LENDERS AND SWAP BANK  | 15 |
|---|--------------------------------------------------|----|

| 4 | DRAWDOWN  | 15 |
|---|----------------|----|

| 5 | INTEREST                              | 16 |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|----|

| 6 | INTEREST      PERIODS  | 18 |
|---|-----------------------------|----|

| 7 | DEFAULT      INTEREST  | 18 |
|---|-----------------------------|----|

| 8 | REPAYMENT      AND PREPAYMENT  | 19 |
|---|-------------------------------------|----|

| 9 | CONDITIONS      PRECEDENT  | 21 |
|---|---------------------------------|----|

| 10 | REPRESENTATIONS      AND WARRANTIES  | 22 |
|----|-------------------------------------------|----|

| 11 | GENERAL      UNDERTAKINGS  | 24 |
|----|---------------------------------|----|

| 12 | CORPORATE      UNDERTAKINGS  | 27 |
|----|-----------------------------------|----|

| 13 | INSURANCE  | 28 |
|----|-----------------|----|

| 14 | SHIP      COVENANTS  | 32 |
|----|---------------------------|----|

| 15 | SECURITY      COVER  | 35 |
|----|---------------------------|----|

| 16 | PAYMENTS      AND CALCULATIONS  | 36 |
|----|--------------------------------------|----|

| 17 | APPLICATION      OF RECEIPTS  | 38 |
|----|------------------------------------|----|

| 18 | APPLICATION      OF EARNINGS AND SWAP PAYMENTS  | 39 |
|----|------------------------------------------------------|----|

| 19 | EVENTS      OF DEFAULT  | 40 |
|----|------------------------------|----|

| 20 | FEES      AND EXPENSES  | 45 |
|----|------------------------------|----|

| 21 | INDEMNITIES  | 46 |
|----|-------------------|----|

| 22 | NO      SET-OFF OR TAX DEDUCTION  | 48 |
|----|----------------------------------------|----|

| 23 | ILLEGALITY,      ETC  | 48 |
|----|----------------------------|----|

| 24 | INCREASED      COSTS  | 49 |
|----|----------------------------|----|

| 25 | SET-OFF  | 50 |
|----|---------------|----|

| 26 | TRANSFERS      AND CHANGES IN LENDING OFFICES  | 51 |
|----|-----------------------------------------------------|----|

| 27 | VARIATIONS      AND WAIVERS  | 54 |
|----|-----------------------------------|----|

| 28 | NOTICES  | 55 |
|----|---------------|----|

| 29 | SUPPLEMENTAL  | 56 |
|----|--------------------|----|

| 30 | LAW      AND JURISDICTION  | 57 |
|----|---------------------------------|----|

|   | SCHEDULE      1  LENDERS AND      COMMITMENTS                                                                                                                                                                                                                            59 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SCHEDULE      2  DRAWDOWN      NOTICE                                                                                                                                                                                                                                              60 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SCHEDULE      3  CONDITION PRECEDENT      DOCUMENTS                                                                                                                                                                                                                   61 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SCHEDULE      4  TRANSFER      CERTIFICATE                                                                                                                                                                                                                                             64 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SCHEDULE      5  PUT      CONTRACTS                                                                                                                                                                                                                                                      68 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | EXECUTION      PAGES                                                                                                                                                                                                                                                                             69 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (1)   | SACHEM SHIPPING LTD., a      corporation incorporated in the Republic of the Marshall Islands whose      registered office is at Trust Company Complex, Ajeltake Island, PO Box      1405, Majuro, Marshall Islands (the “Borrower”); |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | THE BANKS AND FINANCIAL      INSTITUTIONS  listed in Schedule 1, as Lenders; |
|-----------------|----------------------------------------------------------------------------------------|

| (3)   | DVB BANK AG, as Swap    Bank; |
|-----------------|-------------------------------|

| (4)   | DVB GROUP MERCHANT BANK (ASIA)      LTD., as Arranger; |
|-----------------|--------------------------------------------------------|

| (5)   | DVB GROUP MERCHANT BANK (ASIA)      LTD., as Agent;    and |
|-----------------|------------------------------------------------------------|

| (6)   | DVB GROUP MERCHANT BANK (ASIA)      LTD., as Security      Trustee. |
|-----------------|---------------------------------------------------------------------|

| (A)   | The      Lenders have agreed to make available to the Borrower a facility of up to      the lesser of (i) 75 per cent. of the Fair Market Value of the Bahamas      flag vessel m.v. “SACHEM” and (ii) $30,000,000 for the purpose of      re-financing part of the conversion costs of such ship and the Borrower’s      indebtedness in connection with the Existing  Facility. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | The      Swap Bank has agreed to enter into interest rate swap transactions with      the Borrower from time to time to hedge the Borrower’s exposure under this      Agreement to interest ratefluctuations. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C)   | The      Lenders and the Swap Bank have agreed to share pari passu in the security      to be granted to the Security Trustee pursuant to this      Agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 1.1   | Definitions.  Subject      to Clause 1.5, in this Agreement: |
|-----------------|------------------------------------------------------------------------|

| (a)   | 22      May 2008 (or such later date as the Agent may, with the authorisation of      the Majority Lenders, agree with the Borrower);  or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if      earlier, the date on which the Total Commitments are fully borrowed,      cancelled or terminated; |
|-----------------|------------------------------------------------------------------------------------------------------------|

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

| (b)   | its      purpose is the hedging of the Borrower’s exposure under this Agreement to      fluctuations in LIBOR arising from the funding of the Loan (or any part      thereof) for a period expiring no later than the final Repayment      Date. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | except      to the extent that they fall within paragraph  (b): |
|-----------------|-----------------------------------------------------------------|

| (i)   | all      freight, hire and passage moneys; |
|-----------------|--------------------------------------------|

| (ii)   | compensation      payable to the Borrower or the Security Trustee in the event of      requisition of the Ship for hire; |
|------------------|--------------------------------------------------------------------------------------------------------------------------|

| (iii)   | remuneration      for salvage and towage services; |
|-------------------|----------------------------------------------------|

| (iv)   | demurrage      and detention moneys; |
|------------------|--------------------------------------|

| (v)   | damages      for breach (or payments for variation or termination) of any charterparty      or other contract for the employment of the Ship;  and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | if      and whenever the Ship is employed on terms whereby any moneys falling      within paragraphs (a)(i) to (vi) 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 the  Ship; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| (a)   | this      Agreement; |
|-----------------|----------------------|

| (b)   | the      Agency and Trust Agreement; |
|-----------------|--------------------------------------|

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

| (d)   | the      Mortgage; |
|-----------------|--------------------|

| (e)   | the      Deed of Covenant; |
|-----------------|----------------------------|

| (f)   | the      Account Security Deed; |
|-----------------|---------------------------------|

| (g)   | the      Time Charter Assignment; |
|-----------------|-----------------------------------|

| (h)   | the      Shares Pledge; |
|-----------------|-------------------------|

| (i)   | the      Put Contracts Assignment; |
|-----------------|------------------------------------|

| (j)   | the      Charterparty Assignment; |
|-----------------|-----------------------------------|

| (k)   | the      fee letters referred to in Clause 20.1;and |
|-----------------|-----------------------------------------------------|

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

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

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

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

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

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

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

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

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

|   | (a) | the      rate per annum equal to the offered quotation for deposits in Dollars for      a period equal to, or as near as possible equal to, that period which      appears on REUTERS BBA Page LIBOR 01 at or about 11.00 a.m. (London time)      on the Quotation Date for that period (and, for the purposes of this      Agreement, “REUTERS BBA Page LIBOR 01” means the display designated as      “Page 01” on the REUTERS Service or such other page as may replace      Page 01 on that service for the purpose of displaying rates      comparable to that rate or on such other service as may be nominated by      the British Bankers’ Association as the information vendor for the purpose      of displaying British Bankers’ Association Interest Settlement Rates for      Dollars); or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum      determined by the Agent to be the arithmetic mean (rounded upwards, if      necessary, to the nearest one-sixteenth of one per cent.) of the rates per      annum notified to the Agent by each Reference Bank as the rate at which      deposits in Dollars are offered to that Reference Bank by leading banks in      the London Interbank Market at that Reference Bank’s request at or about      11.00 a.m. (London time) on the Quotation Date for that period for a      period equal to that period and for delivery on the first Business Day of      it; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | before      the Loan has been made, Lenders whose Commitments total 66.66 per cent. of      the Total Commitments; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| (b)   | after      the Loan has been made, Lenders whose Contributions total 66.66 per cent.      of the Loan; |
|-----------------|--------------------------------------------------------------------------------------------------------|

|   | “Margin”  means      1.25 per cent. per annum; |
|--------|----------------------------------------------------------------------|

| (a)   | any      liabilities or obligations incurred by the Borrower in connection with the      operation, maintenance, insurance and registration of the Ship (excluding      dry docking and special survey expenses);and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      liabilities or obligations incurred by the Borrower by way of statutory      expenses in connection with the day to day operations or business of the      Borrower, |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| (e)   | liens      for master’s disbursements incurred in the ordinary course of trading and      any other lien arising by operation of law or otherwise in the ordinary      course of the operation, repair or maintenance of the Ship, provided such      liens do not secure amounts more than 30 days overdue (unless the      overdue amount is being contested by the Borrower in good faith by      appropriate steps) and subject, in the case of liens for repair or      maintenance, toClause 14.13(g); |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (b)   | any      policy or contract of insurance contemplated by or referred to in Clause      13 or any other provision of this Agreement or another Finance      Document; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| (c)   | a      country in which the company has the centre of its main interests or in      which the company’s central management and control is or has recently been      exercised; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

19.9

8

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

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

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

| (a)   | all      amounts which have become due for payment by the Borrower or any Security      Party under the Finance Documents and the Master Agreement have been      paid; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c)   | neither      the Borrower nor any Security Party has any future or contingent liability      under Clause 20, 21 or 22 or any other provision of this Agreement or      another Finance Document or the Master Agreement;  and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      Agent, the Security Trustee and the Majority Lenders do not consider that      there is a significant risk that any payment or transaction under a      Finance Document or the Master Agreement would be set aside, or would have      to be reversed or adjusted, in any present or possible future bankruptcy      of the Borrower or a Security Party or in any present or possible future      proceeding relating to a Finance Document or the Master Agreement or any      asset covered (or previously covered) by a Security Interest created by a      Finance Document; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | any      arrest, capture, seizure or detention of the Ship (including any hijacking      or theft) unless it is within 1 month redelivered to the Borrower’s full      control; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 1.2   | Construction of certain      terms.  In thisAgreement: |
|-----------------|------------------------------------------------------------------|

| 1.3   | Meaning of      “month”.  A period of one or more “months” ends on the day      in the relevant calendar month numerically corresponding to the day of the      calendar month on which the period started (“the numerically corresponding      day”), but: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 1.4   | Meaning of      “subsidiary”.  A company (S) is a subsidiary of another      company (P) if: |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 1.5   | General      Interpretation.  In this  Agreement: |
|-----------------|-------------------------------------------------------------|

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

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

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

| (d)   | Clauses      1.1 to 1.5 apply unless the contrary intention  appears. |
|-----------------|-----------------------------------------------------------------------|

| 1.6   | Headings.  In      interpreting a Finance Document or any provision of a Finance Document,      all clause, sub-clause and other headings in that and any other Finance      Document shall be entirelydisregarded. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2.1   | Amount of      facility.  Subject to the other provisions of this      Agreement, the Lenders shall make available to the Borrower a loan      facility not exceeding the lesser of (i) $30,000,000 and (ii) 75 per cent.      of the Fair Market Value of the Ship as at the Drawdown    Date. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2   | Lenders’ participations in      Loan.  Subject to the other provisions of this Agreement,      each Lender shall participate in the Loan in the proportion which, as at      the Drawdown Date, its Commitment bears to the Total      Commitments. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3   | Purpose of      Loan.  The Borrower undertakes with each Creditor Party      to use the Loan only for the purpose stated in the preamble to this      Agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | POSITION      OF THE LENDERS AND SWAP BANK |
|---------------|--------------------------------------------|

| 3.1   | Interests      several.  The rights of the Lenders and of the Swap Bank      under this Agreement and under the Master Agreement are      several. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2   | Individual right of      action. Each Lender and the Swap Bank shall be entitled to sue for      any amount which has become due and payable by the Borrower to it under      this Agreement or under the Master Agreement without joining the Agent,      the Security Trustee, any other Lender or (as the case may be) the Swap      Bank as additional parties in theproceedings. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3   | Proceedings requiring Majority      Lender consent. Except as provided in Clause 3.2, neither any      Lender nor the Swap Bank may commence proceedings against the Borrower or      any Security Party in connection with a Finance Document or the Master      Agreement without the prior consent of the Majority    Lenders. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4   | Obligations      several.  The obligations of the Lenders under this      Agreement and of the Swap Bank under the Master Agreement are several; and      a failure of a Lender to perform its obligations under this Agreement or a      failure of the Swap Bank to perform its obligations under the Master      Agreement shall not result in: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      obligations of the other Lenders or Swap Bank being increased;      nor |
|-----------------|----------------------------------------------------------------------------------|

| (b)   | the      Borrower, any Security Party, any other Lender or the Swap Bank being      discharged (in whole or in part) from its obligations under any Finance      Document or under the MasterAgreement, |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | DRAWDOWN |
|---------------|----------|

| 4.1   | Request for advance of      Loan.  Subject to the following conditions, the Borrower      may request the Loan to be made by ensuring that the Agent receives a      completed Drawdown Notice not later than 11.00 a.m. (Singapore time) 3      Business Days prior to the intended Drawdown  Date. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2   | Availability.  The      conditions referred to in Clause 4.1 arethat: |
|-----------------|---------------------------------------------------------------------------------|

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

| (b)   | the      Loan shall be drawn in one amountonly. |
|-----------------|-------------------------------------------------|

| 4.3   | Notification to Lenders of      receipt of a Drawdown Notice.  The Agent shall promptly      notify the Lenders that it has received a Drawdown Notice and shall inform      each Lender of: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      amount of the Loan and the DrawdownDate; |
|-----------------|---------------------------------------------------|

| (b)   | the      amount of that Lender’s participation in the Loan;  and |
|-----------------|------------------------------------------------------------------------|

| (c)   | the      duration of the first InterestPeriod.7 |
|-----------------|-------------------------------------------------|

| 4.4   | Drawdown Notice      irrevocable.  A Drawdown Notice must be signed by a      director or an authorised attorney-in-fact of the Borrower; and once      served, a Drawdown Notice cannot be revoked without the prior consent of      the Agent, acting on the authority of the Majority  Lenders. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5   | Lenders to make available      Contributions.  Subject to the provisions of this      Agreement, each Lender shall, on and with value on the Drawdown Date, make      available to the Agent for the account of the Borrower the amount due from      that Lender under Clause 2.2. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6   | Disbursement of      Loan.  Subject to the provisions of this Agreement, the      Agent shall on the Drawdown Date pay to the Borrower the amounts which the      Agent receives from the Lenders under Clause 4.5; and that payment to the      Borrower shall be made: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      the account which the Borrower specifies in the Drawdown Notice;      and |
|-----------------|-----------------------------------------------------------------------------------|

| (b)   | in      the like funds as the Agent received the payments from the      Lenders. |
|-----------------|----------------------------------------------------------------------------------|

| 4.7   | Disbursement of Loan to third      party.  The payment by the Agent under Clause 4.6 to the      Borrower or any third party named in the Drawdown Notice and agreed by the      Agent shall constitute the making of the Loan and the Borrower shall at      that time become indebted, as principal and direct obligor, to each Lender      in an amount equal to that Lender’s  Contribution. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | INTEREST |
|---------------|----------|

| 5.1   | Payment of normal      interest.  Subject to the provisions of this Agreement,      interest on the Loan in respect of each Interest Period shall be paid by      the Borrower on the last day of that Interest  Period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2   | Normal rate of      interest.  Subject to the provisions of this Agreement,      the rate of interest on the Loan in respect of an Interest Period shall be      the aggregate of the Margin and LIBOR for that Interest      Period. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3   | Payment of accrued      interest.  In the case of an Interest Period longer than      3 months, accrued interest shall be paid every 3 months during that      Interest Period and on the last day of that Interest    Period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4   | Notification of Interest      Periods and rates of normal interest.  The Agent shall      notify the Borrower and each Lenderof: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | each      rate of interest; and |
|-----------------|---------------------------------|

| (b)   | the      duration of each Interest Period, |
|-----------------|--------------------------------------------|

| 5.5   | Obligation of Reference Banks      to quote.  A Reference Bank which is a Lender shall use      all reasonable efforts to supply the quotation required of it for the      purposes of fixing a rate of interest under this  Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6   | Absence of quotations by      Reference Banks.  If any Reference Bank fails to supply a      quotation, the Agent shall determine the relevant LIBOR on the basis of      the quotations supplied by the other Reference Bank or Banks; but if 2 or      more of the Reference Banks fail to provide a quotation, the relevant rate      of interest shall be set in accordance with the following provisions of      this Clause 5. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7   | Market      disruption.  The following provisions of this Clause 5      apply if: |
|-----------------|---------------------------------------------------------------------------------------------|

| (a)   | no      rate is quoted on Reuters BBA Page LIBOR O1 and the Reference Banks do      not, before 1.00 p.m. (London time) on the Quotation Date for an Interest      Period, provide quotations to the Agent in order to fix LIBOR;      or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | at      least 1 Business Day before the start of an Interest Period, Lenders      having Contributions together amounting to more than 50 per cent. of the      Loan (or, if the Loan has not been made, Commitments amounting to more      than 50 per cent. of the Total Commitments) notify the Agent that LIBOR      fixed by the Agent would not accurately reflect the cost to those Lenders      of funding their respective Contributions (or any part of them) during the      Interest Period in the London Interbank Market at or about 11.00 a.m.      (London time) on the Quotation Date for the Interest Period;      or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | at      least 1 Business Day before the start of an Interest Period, the Agent is      notified by a Lender (the “Affected Lender”) that      for any reason it is unable to obtain Dollars in the London Interbank      Market in order to fund its Contribution (or any part of it) during the      Interest Period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8   | Notification of market      disruption.  The Agent shall promptly notify the      Borrower, each of the Lenders and the Swap Bank stating the circumstances      falling within Clause 5.7 which have caused its notice to be      given. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.9   | Suspension of      drawdown.  If the Agent’s notice under Clause 5.8 is      served before the Loan is made: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| (a)   | in      a case falling within Clauses 5.7(a) or (b), the Lenders’ obligations to      make the Loan; and |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (b)   | in      a case falling within Clause 5.7(c), the Affected Lender’s obligation to      participate in the Loan, |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| 5.10   | Negotiation of alternative rate      of interest.  If the Agent’s notice under Clause 5.8 is      served after the Loan is made, the Borrower, the Agent, the Lenders or (as      the case may be) the Affected Lender and the Swap Bank shall use      reasonable endeavours to agree, within the 30 days after the date on which      the Agent serves its notice under Clause 5.8 (the “Negotiation Period”), an      alternative interest rate or (as the case may be) an alternative basis for      the Lenders or (as the case may be) the Affected Lender to fund or      continue to fund their or its Contribution during the Interest Period      concerned. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.11   | Application of agreed      alternative rate of interest.  Any alternative interest      rate or an alternative basis which is agreed during the Negotiation Period      shall take effect in accordance with the terms  agreed. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.12   | Alternative rate of interest in      absence of agreement.  If an alternative interest rate or      alternative basis is not agreed within the Negotiation Period, and the      relevant  circumstances are continuing at the end of the      Negotiation Period, then the Agent shall, with the agreement of each      Lender or (as the case may be) the Affected Lender, set an interest period      and interest rate representing the cost of funding of the Lenders or (as      the case may be) the Affected Lender in Dollars or in any available      currency of their or its Contribution plus the Margin; and the procedure      provided for by this Clause 5.12 shall be repeated if the relevant      circumstances are continuing at the end of the interest period so set by      the Agent. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.13   | Notice of      prepayment.  If the Borrower does not agree with an      interest rate set by the Agent under Clause 5.12, the Borrower may give      the Agent not less than 15 Business Days’ notice of its intention to      prepay at the end of the interest period set by the  Agent. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.14   | Prepayment; termination of      Commitments.  A notice under Clause 5.13 shall be      irrevocable; the Agent shall promptly notify the Lenders or (as the case      may require) the Affected Lender of the Borrower’s notice of intended      prepayment; and: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | on      the date on which the Agent serves that notice, the Total Commitments or      (as the case may require) the Commitment of the Affected Lender shall be      cancelled; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | on      the last Business Day of the interest period set by the Agent, the      Borrower shall prepay (without premium or penalty) the Loan or, as the      case may be, the Affected Lender’s Contribution, together with accrued      interest thereon at the applicable rate plus the  Margin. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.15   | Application of      prepayment.  The provisions of Clause 8 shall apply in      relation to the prepayment. |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

| 6   | INTEREST      PERIODS |
|---------------|-----------------------|

| 6.1   | Commencement of Interest      Periods.  The first Interest Period shall commence on the      Drawdown Date and each subsequent Interest Period shall commence on the      expiry of the preceding InterestPeriod. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2   | Duration of normal Interest      Periods.  Subject to Clauses 6.3 and 6.4, each Interest      Period shall be: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| (a)   | 3,      6 or 9 months as notified by the Borrower to the Agent not later than      11.00 a.m. (Singapore time) 5 Business Days before the commencement of the      Interest Period; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | 3      months, if the Borrower fails to notify the Agent by the time specified in      paragraph (a); or |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (c)   | such      other period as the Agent may, with the authorisation of the Majority      Lenders, agree with the Borrower. |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| 6.3   | Duration of Interest Periods      for repayment instalments.  In respect of an amount due      to be repaid under Clause 8 on a particular Repayment Date, an Interest      Period shall end on that RepaymentDate. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4   | Non-availability of matching      deposits for Interest Period selected.  If, after the      Borrower has selected and the Lenders have agreed an Interest Period      longer than 3 months, any Lender notifies the Agent by 11.00 a.m. (London      time) on the third Business Day before the commencement of the Interest      Period that it is not satisfied that deposits in Dollars for a period      equal to the Interest Period will be available to it in the London      Interbank Market when the Interest Period commences, the Interest Period      shall be of 3 months. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | DEFAULT      INTEREST |
|---------------|-----------------------|

| 7.1   | Payment of default interest on      overdue amounts.  The Borrower shall pay interest in      accordance with the following provisions of this Clause 7 on any amount      payable by the Borrower under any Finance Document which the Agent, the      Security Trustee or the other designated payee does not receive on or      before the relevant date, that is: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | if      such amount has become immediately due and payable under Clause 19.4, the      date on which it became immediately due and  payable. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2   | Default rate of      interest.  Interest shall accrue on an overdue amount      from (and including) the relevant date until the date of actual payment      (as well after as before judgment) at the rate per annum determined by the      Agent to be 2 per cent. above: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | in      the case of an overdue amount of principal, the higher of the rates set      out at Clauses 7.3(a) and (b); or |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      the case of any other overdue amount, the rate set out at Clause      7.3(b). |
|-----------------|---------------------------------------------------------------------------------------|

| 7.3   | Calculation of default rate of      interest.  The rates referred to in Clause 7.2      are: |
|-----------------|--------------------------------------------------------------------------------------------------------|

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

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

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

| (ii)   | if      the Agent (after consultation with the Reference Banks) determines that      Dollar deposits for any such period are not being made available to any      Reference Bank by leading banks in the London Interbank Market in the      ordinary course of business, a rate from time to time determined by the      Agent by reference to the cost of funds to the Reference Banks from such      other sources as the Agent (after consultation with the Reference Banks)      may from time to time determine. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4   | Notification of interest      periods and default rates.  The Agent shall promptly      notify the Lenders and the Borrower of each interest rate determined by      the Agent under Clause 7.3 and of each period selected by the Agent for      the purposes of paragraph (b) of that Clause; but this shall not be taken      to imply that the Borrower is liable to pay such interest only with effect      from the date of the Agent’snotification. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5   | Payment of accrued default      interest.  Subject to the other provisions of this      Agreement, any interest due under this Clause shall be paid on the last      day of the period by reference to which it was determined; and the payment      shall be made to the Agent for the account of the Creditor Party to which      the overdue amount is due. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6   | Compounding of default      interest.  Any such interest which is not paid at the end      of the period by reference to which it was determined shall thereupon be      compounded. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7   | Application to Master      Agreement.  For the avoidance of doubt, this Clause 7      does not apply to any amount payable under the Master Agreement in respect      of any continuing Designated Transaction as to which section 2(e) (Default      Interest; Other Amounts) of the Master Agreement shall    apply. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | REPAYMENT      AND PREPAYMENT |
|---------------|-------------------------------|

| 8.1   | Amount of repayment      instalments.  The Borrower shall repay the Loan by 16      consecutive quarterly instalments asfollows: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | instalments      1 to 4 each in the amount of$2,500,000; |
|-----|----------------------------------------------------------|

| (b) | instalments      5 to 8 each in the amount of$2,000,000; |
|-----|----------------------------------------------------------|

| (c) | instalments      9 to 12 each in the amount of$1,500,000; |
|-----|-----------------------------------------------------------|

| (d) | instalments      13 to 16 each in the amount of $1,000,000;and |
|-----|----------------------------------------------------------------|

| (e) | a      “balloon” of $2,000,000 payable together with the final such quarterly      instalment. |
|-----|------------------------------------------------------------------------------------------------------------|

| 8.2   | Repayment      Dates.  The first instalment shall be repaid on the date      falling 3 months after the Drawdown Date and the last instalment on the      date falling 48 months after the DrawdownDate. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3   | Final Repayment      Date.  On the final Repayment Date, the Borrower shall      additionally pay to the Agent for the account of the Creditor Parties all      other sums then accrued or owing under any Finance    Document. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4   | Voluntary      prepayment.  Subject to the following conditions, the      Borrower may prepay the whole or any part of the Loan on the last day of      an Interest Period. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5   | Conditions for voluntary      prepayment.  The conditions referred to in Clause 8.4 are      that: |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (a)   | a      partial prepayment shall be $250,000 or a multiple of      $250,000; |
|-----------------|-----------------------------------------------------------------------------|

| (b)   | the      Agent has received from the Borrower at least 30 days’ prior written      notice (or such other period as may be agreed between the Borrower and the      Majority Lenders) specifying the amount to be prepaid and the date on      which the prepayment is to be made; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d)   | that      the Borrower has complied with Clause 8.12 on or prior to the date of      prepayment. |
|-----------------|--------------------------------------------------------------------------------------------------|

| 8.6   | Effect of notice of      prepayment.  A prepayment notice may not be withdrawn or      amended without the consent of the Agent, given with the authorisation of      the Majority Lenders, and the amount specified in the prepayment notice      shall become due and payable by the Borrower on the date for prepayment      specified in the prepayment notice. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.7   | Notification of notice of      prepayment.  The Agent shall notify the Lenders promptly      upon receiving a prepayment notice, and shall provide any Lender which so      requests with a copy of any document delivered by the Borrower under      Clause 8.5(c). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.8   | Mandatory      prepayment.  The Borrower  shall: |
|-----------------|------------------------------------------------------------|

| (a)   | be      obliged to prepay the whole of the Loan, and to comply with Clause 8.12,      if the Ship is sold or becomes a TotalLoss: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

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

| (ii)   | in      the case of a Total Loss, on the earlier of the date falling 90 days after      the Total Loss Date and the date of receipt by the Security Trustee of the      proceeds of insurance relating to such Total Loss;  and |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      the event that the Time Charterer commits any breach of the Time Charter      and for so long as such breach is continuing, prepay a portion of the Loan      on each Calculation Date in an amount equal to the Cash Available for      Sweep. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.9   | Amounts payable on      prepayment.  A prepayment shall be made together with      accrued interest (and any other amount payable under Clause 20, Clause 21      or otherwise) in respect of the amount prepaid and, if the prepayment is      not made on the last day of an Interest Period together with any sums      payable under Clause 21.1(b) but without premium or    penalty. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.10   | Application of partial      prepayment.  Each partial prepayment shall be applied      against the repayment instalments specified in Clause 8.1 (including the      “balloon” instalment) in inverse order of  maturity. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.11   | No      reborrowing.  No amount prepaid may be      reborrowed. |
|------------------|---------------------------------------------------------------------------|

| 8.12   | Unwinding of Designated      Transactions.  On or prior to any repayment or prepayment      of the Loan under this Clause 8 or any other provision of this Agreement,      the Borrower shall wholly or partially reverse, offset, unwind or      otherwise terminate one or more of the continuing Designated Transactions      so that the notional principal amount of the continuing Designated      Transactions thereafter remaining does not and will not in the future      (taking into account the scheduled amortisation) exceed the amount of the      Loan as reducing from time to time thereafter pursuant to Clause      8.1. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9   | CONDITIONS      PRECEDENT |
|---------------|---------------------------|

| 9.1   | Documents, fees and no      default.  Each Lender’s obligation to contribute to the      Loan is subject to the following conditions  precedent: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | that,      on or before service of the Drawdown Notice, the Borrower enters into one      or more Designated Transactions on terms in all respects approved by the      Agent such that in respect of not less than 50 per cent. of the facility      amount of $30,000,000, its exposure to interest rate fluctuations is      hedged for the duration of the SecurityPeriod; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | that,      on or before the service of the Drawdown Notice, the Agent receives the      documents described in Part A of Schedule 3 in form and substance      satisfactory to the Agent and itslawyers; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | that,      on the Drawdown Date but prior to the advance of the Loan, the Agent      receives or is satisfied that it will receive on the advance of the Loan      the documents described in Part B of Schedule 3 in form and substance      satisfactory to it and its lawyers; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | that,      on or before the service of the Drawdown Notice, the Agent receives the      arrangement fee referred to in Clause 20.1 and the first instalment of the      annual agency fee referred to in Clause 20.1;  and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (i)   | no      Event of Default or Potential Event of Default has occurred or would      result from the borrowing of theLoan; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the      representations and warranties in Clause 10.1 and those of the Borrower or      any Security Party which are set out in the other Finance Documents would      be true and not misleading if repeated on each of those dates with      reference to the circumstances then existing;  and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | none      of the circumstances contemplated by Clause 5.7 has occurred and is      continuing; and |
|-------------------|----------------------------------------------------------------------------------------------------|

| (f)   | that,      if the ratio set out in Clause 15.1 were applied immediately following the      making of the Loan, the Borrower would not be obliged to provide      additional security or prepay part of the Loan under that      Clause; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 9.2   | Waiver of conditions      precedent.  If the Majority Lenders, at their discretion,      permit the Loan to be borrowed before certain of the conditions referred      to in Clause 9.1 are satisfied, the Borrower shall ensure that those      conditions are satisfied within 5 Business Days after the Drawdown Date      (or such longer period as the Agent may, with the authorisation of the      Majority Lenders, specify). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | REPRESENTATIONS      AND WARRANTIES |
|----------------|-------------------------------------|

| 10.1   | General.  The      Borrower represents and warrants to each Creditor Party as      follows. |
|------------------|-------------------------------------------------------------------------------------------------------|

| 10.2   | Status.  The      Borrower is duly incorporated and validly existing and in good standing      under the laws of the Republic of the Marshall  Islands. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3   | Share capital and      ownership.  The Borrower has an authorised share capital      of $1,000.00 divided into 1,000 registered shares of $1.00 each, all of      which shares have been issued fully paid, and the legal title and      beneficial ownership of all those shares is held, free of any Security      Interest or other claim, by the Shareholder which is itself the      wholly-owned subsidiary of theGuarantor. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4   | Corporate      power.  The Borrower has the corporate capacity, and has      taken all corporate action and obtained all consents necessary for      it: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      execute the Conversion Contract, to pay for the Ship under the Conversion      Contract and register or (as the case may be) maintain the registration of      the Ship in its name under Bahamasflag; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c)   | to      borrow under this Agreement, to enter into Designated Transactions under      the Master Agreement and to make all the payments contemplated by, and to      comply with, the Finance Documents to which the Borrower is a party and      the Master Agreement. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5   | Consents in      force.  All the consents referred to in Clause 10.4      remain in force and nothing has occurred which makes any of them liable to      revocation. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6   | Legal validity; effective      Security Interests.  The Finance Documents to which the      Borrower is a party and the Master Agreement, do now or, as the case may      be, will, upon execution and delivery (and, where applicable, registration      as provided for in the FinanceDocuments): |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.7   | No third party Security      Interests.  Without limiting the generality of Clause      10.6, at the time of the execution and delivery of each Finance      Document: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.8   | No      conflicts.  The execution by the Borrower of each Finance      Document and the Master Agreement, and the borrowing by the Borrower of      the Loan, and its compliance with each Finance Document and the Master      Agreement will not involve or lead to a contravention  of: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 10.9   | No withholding      taxes.  All payments which the Borrower is liable to make      under the Finance Documents may be made without deduction or withholding      for or on account of any tax payable under any law of any Pertinent      Jurisdiction. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10   | No      default.  No Event of Default or Potential Event of      Default has occurred. |
|-------------------|--------------------------------------------------------------------------------------------------|

| 10.11   | Information.  All      information which has been provided in writing by or on behalf of the      Borrower or any Security Party to any Creditor Party in connection with      any Finance Document satisfied the requirements of Clause 11.5; all      audited and unaudited accounts which have been so provided satisfied the      requirements of Clause 11.7; and there has been no material adverse change      in the financial position or state of affairs of the Borrower from that      disclosed in the latest of thoseaccounts. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12   | No      litigation.  No legal or administrative action involving      the Borrower (including action relating to any alleged or actual breach of      the ISM Code or the ISPS Code) has been commenced or taken or, to the      Borrower’s knowledge, is likely to be commenced or taken which, in either      case, would be likely to have a material adverse effect on the Borrower’s      financial position orprofitability. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13   | No rebates      etc.  There is no agreement or understanding to allow or      pay any rebate, premium, commission, discount or other benefit or payment      (howsoever described) to the Borrower, the Builder or a third party in      connection with the conversion of the Ship for the Borrower, other than as      disclosed to the Lenders in writing on or prior to the date of this      Agreement. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14   | Compliance with certain      undertakings.  At the date of this Agreement, the      Borrower is in compliance with Clauses 11.2, 11.4, 11.9 and      11.14. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15   | Taxes      paid.  The Borrower has paid all taxes applicable to, or      imposed on or in relation to the Borrower, its business or the      Ship. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16   | ISM Code and ISPS Code      Compliance.  All requirements of the ISM Code and the      ISPS Code as they relate to the Borrower, the Approved Manager and the      Ship have been complied with. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17   | No money      laundering.  Without prejudice to the generality of      Clause 2.3, in relation to the borrowing by      the Borrower of the Loan, the performance and discharge of its obligations      and liabilities under the Finance Documents, and the transactions and      other arrangements affected or contemplated by the Finance Documents to      which the Borrower is a party, the Borrower confirms (i) that it is acting      for its own account;  (ii) that it will use the proceeds of the      Loan for its own benefit, under its full responsibility and exclusively      for the purposes specified in this Agreement;  and (iii) that      the foregoing will not involve or lead to a contravention of any law,      official requirement or other regulatory measure or procedure implemented      to combat “money laundering” (as defined in Article 1 of Directive      (91/308) EEC) of the Council of the European  Communities). |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | GENERAL      UNDERTAKINGS |
|----------------|---------------------------|

| 11.1   | General.  The      Borrower undertakes with each Creditor Party to comply with the following      provisions of this Clause 11 at all times during the Security Period      except as the Agent may, with the authorisation of the Majority Lenders,      otherwise permit in writing. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2   | Title; negative      pledge.  The Borrowerwill: |
|------------------|-----------------------------------------------------------|

| (a)   | hold      the legal title to, and own the entire beneficial interest in the Ship,      the Insurances and Earnings, free from all Security Interests and other      interests and rights of every kind, except for those created by the      Finance Documents and the effect of assignments contained in the Finance      Documents and except for Permitted Security Interests;  and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 11.3   | No disposal of      assets.  The Borrower will not transfer, lease or      otherwise dispose of: |
|------------------|------------------------------------------------------------------------------------------------------------|

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

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

(a)
14.3

| 11.4   | No other liabilities or      obligations to be incurred.  The Borrower will not incur      any liability or obligation except: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | liabilities      and obligations under the Conversion Contract and the Finance Documents to      which it is a party; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (b)   | liabilities      or obligations reasonably incurred in the ordinary course of operating and      chartering the Ship; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (c)   | Designated      Transactions entered into in accordance with Clause  9.1(a), |
|-----------------|------------------------------------------------------------------------------|

| 11.5   | Information provided to be      accurate.  All financial and other information which is      provided in writing by or on behalf of the Borrower under or in connection      with any Finance Document will be true and not misleading and will not      omit any material fact orconsideration. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6   | Provision of financial      statements.  The Borrower will send to the      Agent: |
|------------------|----------------------------------------------------------------------------------------------|

| (a)   | as      soon as possible as available but not later than one hundred fifty (150)      days after the end of each fiscal year of the Borrower, complete copies of      the financial reports of the Borrower, all in reasonable detail, which      shall include at least the balance sheet of the Borrower as of the end of      such year and the related statements of income and sources and uses of      funds for such year, and such reports may be unaudited, but shall be      certified to be true and complete by the chief financial officer of the      Borrower; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | as      soon as available but not later than seventy-five (75) days after the end      of each of the first three 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 Borrower; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | as      soon as available but not later than one hundred fifty (150) 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 by an      accounting firm; acceptable to theAgent; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | as      soon as available but not later than seventy-five (75) days after the end      of the first three quarters of each fiscal year of the Guarantor, a      quarterly interim consolidated balance sheet of the Guarantor and the      related consolidated profit and loss statements and sources and uses of      funds all in reasonable detail, which shall be audited reports prepared by      an accounting firm acceptable to theAgent; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | within      ten (10) days of the Borrower’s 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 such      party; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | 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 its business as the Agent may from time to time request,      certified to be true and complete by the chief financial officer of the      relevant party. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7   | Form of financial      statements.  All accounts (audited and unaudited)      delivered under Clause 11.6 will: |
|------------------|---------------------------------------------------------------------------------------------------------------------------|

| (a)   | be      prepared in accordance with all applicable laws and GAAP consistently      applied; |
|-----------------|---------------------------------------------------------------------------------------------|

| (b)   | give      a true and fair view of the state of affairs of the Borrower or, as the      case may be, the Guarantor and its Subsidiaries at the date of those      accounts and of its profit for the period to which those accounts relate;      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | fully      disclose or provide for all significant liabilities of the Borrower or, as      the case may be, the Guarantor and its  Subsidiaries. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.8   | Shareholder and creditor      notices.  The Borrower will send the Agent, at the same      time as they are despatched, copies of all communications which are      despatched to the Shareholder or the Borrower’s creditors or any class of      them. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.9   | Consents.  The      Borrower will maintain in force and promptly obtain or renew, and will      promptly send certified copies to the Agent of, all consents      required: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | for      the Borrower to continue to own and operate the  Ship, |
|-----------------|-----------------------------------------------------------------|

| 11.10   | Maintenance of Security      Interests.  The Borrowerwill: |
|-------------------|----------------------------------------------------------------------|

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

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

| 11.11   | Notification of      litigation.  The Borrower will provide the Agent with      details of any legal or administrative action involving the Borrower, any      Security Party, the Approved Manager or the Ship, the Earnings or the      Insurances as soon as such action is instituted or it becomes apparent to      the Borrower that it is likely to be instituted, unless it is clear that      the legal or administrative action cannot be considered material in the      context of any Finance Document. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.12   | No amendment to Master      Agreement.  The Borrower will not agree to any material      amendment or supplement to, or waive or fail to enforce, the Master      Agreement or any of its provisions. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.13   | Principal place of      business.  The Borrower will maintain its place of      business, and keep its corporate documents and records in Bermuda; and the      Borrower will not establish, or do anything as a result of which it would      be deemed to have, a place of business in any country other than Bermuda,      or a registered office in any country other than the Republic of the      Marshall Islands. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.14   | Confirmation of no      default.  The Borrower will, within 2 Business Days after      service by the Agent of a written request, serve on the Agent a notice      which is signed by 2 directors of the Borrower and  which: |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 11.15   | Notification of      default.  The Borrower will notify the Agent as soon as      the Borrower becomes aware of: |
|-------------------|----------------------------------------------------------------------------------------------------------------------------|

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

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

| 11.16   | Provision of further      information.  The Borrower will, as soon as practicable      after receiving the request, provide the Agent with any additional      financial or other informationrelating: |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      the Borrower, the Ship, the Earnings or the Insurances;  or |
|-----------------|---------------------------------------------------------------------|

| (b)   | to      any other matter relevant to, or to any provision of, a Finance      Document, |
|-----------------|----------------------------------------------------------------------------------------|

| 11.17   | Provision of copies and      translation of documents.  The Borrower will supply the      Agent with a sufficient number of copies of the documents referred to      above to provide 1 copy for each Creditor Party; and if the Agent so      requires in respect of any of those documents, the Borrower will provide a      certified English translation prepared by a translator approved by the      Agent. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.18   | “Know your customer”      checks.  If: |
|-------------------|--------------------------------------------------------------|

| (a)   | the      introduction of or any change in (or in the interpretation, administration      or application of) any law or regulation made after the date of this      Agreement; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      change in the status of the Borrower or any Security Party after the date      of this Agreement; or |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (c)   | a      proposed assignment or transfer by a Lender of any of its rights and      obligations under this Agreement to a party that is not a Lender prior to      such assignment or transfer, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12   | CORPORATE      UNDERTAKINGS |
|----------------|-----------------------------|

| 12.1   | General.  The      Borrower also undertakes with each Creditor Party to comply with the      following provisions of this Clause 12 at all times during the Security      Period except as the Agent may, with the authorisation of the Majority      Lenders, otherwise permit inwriting. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2   | Maintenance of      status.  The Borrower will maintain its separate      corporate existence and remain in good standing under the laws of the      Republic of the Marshall Islands. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3   | Negative      undertakings.  The Borrower will  not: |
|------------------|----------------------------------------------------------------|

| (a)   | carry      on any business other than the ownership, chartering and operation of the      Ship; or |
|-----------------|----------------------------------------------------------------------------------------------------|

| (b)   | pay      any dividend or make any other form of distribution save to the      Shareholder or effect any form of redemption, purchase or return of share      capital; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (d)   | open      or maintain any account with any bank or financial institution except the      Earnings Account, or such other account as may be agreed accounts with the      Agent and the Security Trustee for the purposes of the Finance      Documents; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (f)   | acquire      any shares or other securities other than US or UK Treasury bills and      certificates of deposit issued by major North American or European banks,      or enter into any transaction in a derivative other than Designated      Transactions pursuant to Clause 9.1(a);or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13   | INSURANCE |
|----------------|-----------|

| 13.1   | General.  The      Borrower also undertakes with each Creditor Party to comply with the      following provisions of this Clause 13 at all times during the Security      Period from and including the Delivery Date except as the Agent may, with      the authorisation of the Majority Lenders, otherwise permit in      writing. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2   | Maintenance of obligatory      insurances.  The Borrower shall keep the Ship insured at      the expense of the Borroweragainst: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | protection      and indemnity risks (including freight, demurrage and      defence); |
|-----------------|--------------------------------------------------------------------------------------|

| (d)   | risk      of loss of Earnings; and |
|-----------------|------------------------------------|

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

| 13.3   | Terms of obligatory      insurances.  The Borrower shall effect such      insurances: |
|------------------|-------------------------------------------------------------------------------------------------|

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

| (b)   | in      the case of fire and usual marine risks and war risks, in an amount on an      agreed value basis at least the greater of (i) 125% of the aggregate of      the Loan and the Swap Exposure and (ii) the market value of the      Ship; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d)   | in      relation to protection and indemnity risks in respect of the Ship’s full      tonnage; |
|-----------------|------------------------------------------------------------------------------------------------------|

| (e)   | in      the case of risk of loss of Earnings insurance, in an amount of at      least:- |
|-----------------|-----------------------------------------------------------------------------------------|

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

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

| 13.4   | Further protections for the      Creditor Parties.  In addition to the terms set out in      Clause 13.3, the Borrower shall procure that the obligatory insurances      shall: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (d)   | provide      that such obligatory insurances shall be primary without right of      contribution from other insurances which may be carried by the Security      Trustee or any other Creditor Party;and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | provide      that the Security Trustee may make proof of loss if the Borrower fails to      do so. |
|-----------------|----------------------------------------------------------------------------------------------------|

| 13.5   | Renewal of obligatory      insurances.  The Borrower  shall: |
|------------------|------------------------------------------------------------------------|

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

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

| (ii)   | obtain      the Security Trustee’s approval to the matters referred to in paragraph      (i); |
|------------------|-----------------------------------------------------------------------------------------------------|

| (b)   | at      least 14 days (or such other period as the Borrower and the Security      Trustee may agree) before the expiry of any obligatory insurance, renew      that obligatory insurance in accordance with the Security Trustee’s      approval pursuant to paragraph (a);and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13.6   | Copies of policies; letters of      undertaking.  The Borrower shall ensure that all approved      brokers provide the Security Trustee with pro forma copies of all policies      relating to the obligatory insurances which they are to effect or renew      and of a letter or letters or undertaking in a form required by the      Security Trustee and including undertakings by the approved brokers      that: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | they      will have endorsed on each policy, immediately upon issue, a loss payable      clause and a notice of assignment complying with the provisions of Clause      13.4; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | they      will hold such policies, and the benefit of such insurances, to the order      of the Security Trustee in accordance with the said loss payable      clause; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 13.7   | Copies of certificates of      entry.  The Borrower shall ensure that any protection and      indemnity and/or war risks associations in which the Ship is entered      provides the Security Trustee with: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 13.8   | Deposit of original      policies.  The Borrower shall ensure that all policies      relating to obligatory insurances are deposited with the approved brokers      through which the insurances are effected or  renewed. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.9   | Payment of      premiums.  The Borrower shall punctually pay all premiums      or other sums payable in respect of the obligatory insurances and produce      all relevant receipts when so required by the Security      Trustee. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.10   | Guarantees.  The      Borrower shall ensure that any guarantees required by a protection and      indemnity or war risks association are promptly issued and remain in full      force and effect. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.11   | Compliance with terms of      insurances.  The Borrower shall neither do nor omit to do      (nor permit to be done or not to be done) any act or thing which would or      might render any obligatory insurance invalid, void, voidable or      unenforceable or render any sum payable under an obligatory insurance      repayable in whole or in part; and, in  particular: |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Borrower shall take all necessary action and comply with all requirements      which may from time to time be applicable to the obligatory insurances,      and (without limiting the obligation contained in Clause 13.6(c)) ensure that the obligatory insurances      are not made subject to any exclusions or qualifications to which the      Security Trustee has not given its prior  approval; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Borrower shall not make any changes relating to the classification or      classification society or manager or operator of the Ship approved by the      underwriters of the obligatoryinsurances; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d)   | the      Borrower shall not employ the Ship, nor allow it to be employed, otherwise      than in conformity with the terms and conditions of the obligatory      insurances, without first obtaining the consent of the insurers and      complying with any requirements (as to extra premium or otherwise) which      the insurers specify. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.12   | Alteration to terms of      insurances.  The Borrower shall neither make nor agree to      any alteration to the terms of any obligatory insurance nor waive any      right relating to any obligatoryinsurance. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.13   | Settlement of      claims.  The Borrower shall not settle, compromise or      abandon any claim under any obligatory insurance for Total Loss or for a      Major Casualty, and shall do all things necessary and provide all      documents, evidence and information to enable the Security Trustee to      collect or recover any moneys which at any time become payable in respect      of the obligatory insurances. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.14   | Provision of copies of      communications.  The Borrower shall provide the Security      Trustee, at the time of each such communication, copies of all written      communications between the Borrowerand: |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 13.15   | Provision of      information.  In addition, the Borrower shall promptly      provide the Security Trustee (or any persons which it may designate) with      any information which the Security Trustee (or any such designated person)      requests for the purpose of: |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | effecting,      maintaining or renewing any such insurances as are referred to in Clause      13.16 or dealing with or considering any matters relating to any such      insurances; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.16   | Mortgagee’s interest and      additional perils insurance.  The Security Trustee shall      be entitled from time to time to effect, maintain and renew a mortgagee’s      interest additional perils insurance and a mortgagee’s interest marine      insurance in such amounts, on such terms, through such insurers and      generally in such manner as the Security Trustee  may from time      to time consider appropriate and the Borrower shall upon demand fully      indemnify the Security Trustee in respect of all premiums and other      expenses which are incurred in connection with or with a view to      effecting, maintaining or renewing any such insurance or dealing with, or      considering, any matter arising out of any such  insurance. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14   | SHIP      COVENANTS |
|----------------|---------------------|

| 14.1   | General.  The      Borrower also undertakes with each Creditor Party to comply with the      following provisions of this Clause 14 at all times during the Security      Period from and including the Delivery Date except as the Agent, with the      authorisation of the Majority Lenders, may otherwise permit in      writing. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2   | Ship’s name and      registration.  The Borrower shall keep the Ship      registered in its name as a Bahamas Ship at the port of Nassau; shall not      do, omit to do or allow to be done anything as a result of which such      registration might be cancelled or imperilled; and shall not change the      name or port of registry of theShip. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3   | Repair and      classification.  The Borrower shall keep the Ship in a      good and safe condition and state ofrepair: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | so      as to maintain the Ship’s present class (namely “100 A1 BC SHC ESP LI”      with Lloyd’s Register) free of recommendations and conditions;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 14.4   | Modification.  The      Borrower shall not make any modification or repairs to, or replacement of,      the Ship or equipment installed on the Ship which would or might      materially alter the structure, type or performance characteristics of the      Ship or materially reduce itsvalue. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5   | Removal of      parts.  The Borrower shall not remove any material part      of the Ship, or any item of equipment installed on, the Ship unless the      part or item so removed is forthwith replaced by a suitable part or item      which is in the same condition as or better condition than the part or      item removed, is free from any Security Interest or any right in favour of      any person other than the Security Trustee and becomes on installation on      the Ship the property of the Borrower and subject to the security      constituted by the Mortgage and the Deed of Covenant Provided that the      Borrower may install equipment owned by a third party if the equipment can      be removed without any risk of damage to the  Ship. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6   | Surveys.  The      Borrower shall submit the Ship regularly to all periodical or other      surveys which may be required for classification purposes and, if so      required by the Security Trustee, provide the Security Trustee with copies      of all survey reports. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7   | Inspection.  The      Borrower shall permit the Security Trustee (by surveyors or other persons      appointed by it for that purpose) with reasonable prior notice to board      the Ship at all reasonable times to inspect its condition or to satisfy      themselves about proposed or executed repairs and shall afford all proper      facilities for such inspections |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8   | Prevention of and release from      arrest.  The Borrower shall promptly      discharge: |
|------------------|----------------------------------------------------------------------------------------------------|

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

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

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

| 14.9   | Compliance with laws      etc.  The Borrowershall: |
|------------------|--------------------------------------------------------------|

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

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

| (c)   | in      the event of hostilities in any part of the world (whether war is declared      or not), not cause or permit the Ship to enter or trade to any zone which      is declared a war zone by any government or by the Ship’s war risks      insurers unless the prior written consent of the Security Trustee has been      given and the Borrower has (at its expense) effected any special,      additional or modified insurance cover which the Security Trustee may      require. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10   | Provision of      information.  The Borrower shall promptly provide the      Security Trustee with any information which any Creditor Party reasonably      requests regarding: |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Ship, its employment, position andengagements; |
|-----------------|---------------------------------------------------------|

| (b)   | the      Earnings and payments and amounts due to the Ship’s master and      crew; |
|-----------------|------------------------------------------------------------------------------------------|

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

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

| (e)   | the      Borrower’s, the Approved Manager’s or the Ship’s compliance with the ISM      Code and the ISPS Code, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| 14.11   | Notification of certain      events.  The Borrower shall immediately notify the      Security Trustee by fax, confirmed forthwith, by letter  of: |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| (f)   | any      Environmental Claim made against the Borrower or in connection with the      Ship, or any EnvironmentalIncident; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

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

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

| 14.12   | Restrictions on chartering,      appointment of managers etc.  The Borrower shall      not: |
|-------------------|-------------------------------------------------------------------------------------------------------|

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

| (b)   | save      for the Time Charter, enter into any time or consecutive voyage charter in      respect of the Ship for a term which exceeds, or which by virtue of any      optional extensions may exceed, 12 months unless the Borrower has executed      in favour of and delivered to, the Security Trustee a perfected Charter      Assignment in respect of the Borrower’s rights under such      charter; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (f)   | de-activate      or lay up the Ship; or |
|-----------------|-----------------------------------------|

| (g)   | put      the Ship into the possession of any person for the purpose of work being      done upon her in an amount exceeding or likely to exceed $250,000 (or the      equivalent in any other currency) unless the Security Trustee shall have      been given prior written evidence (satisfactory to the Security Trustee)      that adequate reserves have been set aside by the Borrower to meet the      cost of such work. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.13   | Notice of      Mortgage.  The Borrower shall keep the Mortgage      registered against the Ship as a valid first priority mortgage, carry on      board the Ship a certified copy of the Mortgage and place and maintain in      a conspicuous place in the navigation room and the Master’s cabin of the      Ship a framed printed notice stating that the Ship is mortgaged by the      Borrower to the Security Trustee. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.14   | Sharing of      Earnings.  The Borrower shall not enter into any      agreement or arrangement for the sharing of any  Earnings. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 14.15   | ISPS      Code.  The Borrower shall comply with the ISPS Code and      in particular, without limitation,shall: |
|-------------------|---------------------------------------------------------------------------------------------------------------------------|

| (a)   | procure      that the Ship and the company responsible for the Ship’s compliance with      the ISPS Code comply with the ISPS Code;and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | maintain      for the Ship an ISSC; and |
|-----------------|-----------------------------------------|

| (c)   | notify      the Agent immediately in writing of any actual or threatened withdrawal,      suspension, cancellation or modification of the  ISSC. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 15   | SECURITY      COVER |
|----------------|---------------------|

| 15.1   | Minimum required security      cover.  Clause 15.2 applies if the Agent notifies the      Borrower that: |
|------------------|--------------------------------------------------------------------------------------------------------------------|

| (a)   | the      market value (determined as provided in Clause 15.3) of the Ship;      plus |
|-----------------|--------------------------------------------------------------------------------------|

| (b)   | the      net realisable value of any additional security previously provided under      this Clause 15, |
|-----------------|---------------------------------------------------------------------------------------------------------|

| 15.2   | Provision of additional      security; prepayment.  If the Agent serves a notice on      the Borrower under Clause 15.1, the Borrower shall, within 2 weeks, (or      such other period as is mutually agreed between the Agent and the      Borrower) after the date on which the Agent’s notice is served,      either: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | prepay      such part (at least) of the Loan as will eliminate the      shortfall. |
|-----------------|------------------------------------------------------------------------------------|

| 15.3   | Valuation of      Ship.  The market value of the Ship at any date is that      shown by a valuation prepared: |
|------------------|-------------------------------------------------------------------------------------------------------------------------|

| (a)   | as      at a date not more than 14 dayspreviously; |
|-----------------|----------------------------------------------------|

| (b)   | by      an Approved Broker which the Agent has approved or appointed for the      purpose; |
|-----------------|--------------------------------------------------------------------------------------------|

| (c)   | with      or without physical inspection of the Ship (as the Agent may      require); |
|-----------------|---------------------------------------------------------------------------------------|

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

| (e)   | after      deducting the estimated amount of the usual and reasonable expenses which      would be incurred in connection with thesale. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 15.4   | Value of additional vessel      security.  The net realisable value of any additional      security which is provided under Clause 15.2 and which consists of a      Security Interest over a vessel shall be that shown by a valuation      complying with the requirements of Clause15.3. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.5   | Valuations      binding.  Any valuation under Clause 15.2, 15.3 or 15.4      shall be binding and conclusive as regards the Borrower, as shall be any      valuation which the Majority Lenders make of any additional security which      does not consist of or include a Security  Interest. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.6   | Provision of      information.  The Borrower shall promptly provide the      Agent and any shipbroker or expert acting under Clause 15.3 or 15.4 with      any information which the Agent or the shipbroker or expert may request      for the purposes of the valuation; and, if the Borrower fails to provide      the information by the date specified in the request, the valuation may be      made on any basis and assumptions which the shipbroker or the Majority      Lenders (or the expert appointed by them) consider  prudent. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.7   | Payment of valuation      expenses.  Without prejudice to the generality of the      Borrower’s obligations under Clauses 20.2, 20.3 and 21.3, the Borrower      shall, on demand, pay the Agent the amount of the fees and expenses of any      shipbroker or expert instructed by the Agent under this Clause and all      legal and other expenses incurred by any Creditor Party in connection with      any matter arising out of thisClause. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.8   | Application of      prepayment.  Clause 8 shall apply in relation to any      prepayment pursuant to Clause15.2(b). |
|------------------|-------------------------------------------------------------------------------------------------------------------------------|

| 16   | PAYMENTS      AND CALCULATIONS |
|----------------|--------------------------------|

| 16.1   | Currency and method of      payments.  All payments to be made by the Lenders or by      the Borrower under a Finance Document shall be made to the Agent or to the      Security Trustee, in the case of an amount payable to  it: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | in      the case of an amount payable by a Lender to the Agent or by the Borrower      to the Agent or any Lender, to the account of the Agent at HSBC Bank USA, New York (Swift:      MRMDUS33) for credit of DVB Group Merchant Bank (Asia) Ltd (Swift:      DVKBSGSG) (Account No. 000.305.189), or to such other account with      such other bank as the Agent may from time to time notify to the Borrower      and the other Creditor Parties; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | in      the case of an amount payable to the Security Trustee, to such account as      it may from time to time notify to the Borrower and the other Creditor      Parties. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2   | Payment on non-Business      Day.  If any payment by the Borrower under a Finance      Document would otherwise fall due on a day which is not a Business      Day: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 16.3   | Basis for calculation of      periodic payments.  All interest and any other payments      under any Finance Document which are of an annual or periodic nature shall      accrue from day to day and shall be calculated on the basis of the actual      number of days elapsed and a 360 dayyear. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4   | Distribution of payments to      Creditor Parties.  Subject to Clauses 16.5, 16.6 and      16.7: |
|------------------|------------------------------------------------------------------------------------------------------------|

| (a)   | any      amount received by the Agent under a Finance Document for distribution or      remittance to a Lender, the Swap Bank or the Security Trustee shall be      made available by the Agent to that Lender, the Swap Bank or, as the case      may be, the Security Trustee by payment, with funds having the same value      as the funds received, to such account as the Lender and the Swap Bank or      the Security Trustee may have notified to the Agent not less than 5      Business Days previously; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | amounts      to be applied in satisfying amounts of a particular category which are due      to the Lenders and/or the Swap Bank generally shall be distributed by the      Agent to each Lender and the Swap Bank pro rata to the amount in that      category which is due to it. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.5   | Permitted deductions by      Agent.  Notwithstanding any other provision of this      Agreement or any other Finance Document, the Agent may, before making an      amount available to a Lender or the Swap Bank, deduct and withhold from      that amount any sum which is then due and payable to the Agent from that      Lender or the Swap Bank under any Finance Document or any sum which the      Agent is then entitled under any Finance Document to require that Lender      or the Swap Bank to pay on demand. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6   | Agent only obliged to pay when      monies received.  Notwithstanding any other provision of      this Agreement or any other Finance Document, the Agent shall not be      obliged to make available to the Borrower or any Lender or the Swap Bank      any sum which the Agent is expecting to receive for remittance or      distribution to the Borrower or that Lender or the Swap Bank until the      Agent has satisfied itself that it has received that  sum. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7   | Refund to Agent of monies not      received.  If and to the extent that the Agent makes      available a sum to the Borrower or a Lender or the Swap Bank, without      first having received that sum, the Borrower or (as the case may be) the      Lender or the Swap Bank concerned shall, on  demand: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | refund      the sum in full to the Agent; and |
|-----------------|-----------------------------------------------|

| (b)   | pay      to the Agent the amount (as certified by the Agent) which will indemnify      the Agent against any funding or other loss, liability or expense incurred      by the Agent as a result of making the sum available before receiving      it. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.8   | Agent may assume      receipt.  Clause 16.7 shall not affect any claim which      the Agent has under the law of restitution, and applies irrespective of      whether the Agent had any form of notice that it had not received the sum      which it made available. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.9   | Creditor Party      accounts.  Each Creditor Party shall maintain accounts      showing the amounts owing to it by the Borrower and each Security Party      under the Finance Documents and all payments in respect of those amounts      made by the Borrower and any SecurityParty. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10   | Agent’s memorandum      account.  The Agent shall maintain a memorandum account      showing the amounts advanced by the Lenders and all other sums owing to      the Agent, the Security Trustee and each Lender from the Borrower and each      Security Party under the Finance Documents and all payments in respect of      those amounts made by the Borrower and any Security  Party. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.11   | Accounts prima facie      evidence.  If any accounts maintained under Clauses 16.9      and 16.10 show an amount to be owing by the Borrower or a Security Party      to a Creditor Party, those accounts shall be prima facie evidence that      that amount is owing to that CreditorParty. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17   | APPLICATION      OF RECEIPTS |
|----------------|------------------------------|

| 17.1   | Normal order of      application.  Except as any Finance Document may      otherwise provide, any sums which are received or recovered by any      Creditor Party under or by virtue of any Finance Document after service of      notice on the Borrower under Clause 19.2(a)(i) or (ii) shall be      applied: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (i)   | first,      in or towards satisfaction pro rata of all amounts then due and payable to      the Creditor Parties under the Finance Documents other than those amounts      referred to at paragraphs (ii) and (iii) (including, but without      limitation, all amounts payable by the Borrower under Clauses 20, 21 and      22 of this Agreement or by the Borrower or any Security Party under any      corresponding or similar provision in any other Finance Document or in the      Master Agreement); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | secondly,      in or towards satisfaction pro rata of any and all amounts of interest or      default interest payable to the Creditor Parties under the Finance      Documents  and the Master Agreement (and, for this purpose, the      expression “interest” shall include      any net amount which the Borrower shall have become liable to pay or      deliver under section 2(e) (Obligations) of the Master Agreement but shall      have failed to pay or deliver to the Swap Bank at the time of application      or distribution under this Clause 17);      and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | SECONDLY:      in retention of an amount equal to any amount not then due and payable      under any Finance Document or the Master Agreement but which the Agent, by      notice to the Borrower, the Security Parties and the other Creditor      Parties, states in its opinion will or may become due and payable in the      future and, upon those amounts becoming due and payable, in or towards      satisfaction of them in accordance with the provisions of Clause 17.1(a);      and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 17.2   | Variation of order of      application.  The Agent may, with the authorisation of      the Majority Lenders and the Swap Bank, by notice to the Borrower, the      Security Parties and the other Creditor Parties provide for a different      manner of application from that set out in Clause 17.1 either as regards a specified sum or sums      or as regards sums in a specified category or  categories. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3   | Notice of variation of order of      application.  The Agent may give notices under Clause 17.2 from time to time; and such a notice may be      stated to apply not only to sums which may be received or recovered in the      future, but also to any sum which has been received or recovered on or      after the third Business Day before the date on which the notice is      served. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4   | Appropriation rights      overridden.  This Clause 17      and any notice which the Agent gives under Clause 17.2 shall override any right of appropriation      possessed, and any appropriation made, by the Borrower or any Security      Party. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18   | APPLICATION      OF EARNINGS AND SWAP PAYMENTS |
|----------------|------------------------------------------------|

| 18.1   | Payment of Earnings and Swap      Payments.  The Borrower undertakes with each Creditor      Party to ensure that, throughout the Security  Period; |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | subject      only to the provisions of the Deed of Covenant, the Time Charter      Assignment and any Charter Assignment, all the Earnings are paid to the      Earnings Account; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all      payments by the Swap Bank to the Borrower under each Designated      Transaction are paid to the EarningsAccount, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| 18.2   | Application of Earnings and      Swap Payments.  Until an Event of Default or a Potential      Event of Default occurs, the Agent shall on each Repayment Date and on      each due date for the payment of interest under this Agreement be entitled      to instruct the Account Bank to remit to it for out of the Earnings      Account distribution to the Lenders in accordance with Clause 16.4 so much      of the then balance on the Earnings Account as  equals: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      repayment instalment due on that Repayment Date;  or |
|-----------------|---------------------------------------------------------------|

| (b)   | the      amount of interest payable on that interest payment  date; |
|-----------------|---------------------------------------------------------------------|

| 18.3   | Location of      account.  The Borrower shall  promptly: |
|------------------|--------------------------------------------------------------------|

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

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

| 18.4   | Expenses      etc.  The Agent shall be entitled (but not obliged), from      time to time to instruct the Account Bank to remit funds from the Earnings      Account without prior notice in order to discharge any amount due and      payable under Clause 20 or 21 to a Creditor Party or payment of which any      Creditor Party has become entitled to demand under Clause 20 or      21. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.5   | Borrower’s obligations      unaffected.  The provisions of this Clause 18 (as      distinct from a distribution effected under Clause 18.2) do not      affect: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      liability of the Borrower to make payments of principal and interest on      the due dates; or |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (b)   | any      other liability or obligation of the Borrower or any Security Party under      any Finance Document. |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| 19   | EVENTS      OF DEFAULT |
|----------------|------------------------|

| 19.1   | Events of      Default.  An Event of Default occurs  if: |
|------------------|--------------------------------------------------------------------|

| (a)   | the      Borrower or any Security Party fails to pay when due any sum payable under      a Finance Document; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| (b)   | any      breach occurs of Clause 9.2, 11.2, 11.3, 12.2, 12.3 or 15.2; or |
|-----------------|--------------------------------------------------------------------------|

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

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

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

| (f)   | any      of the following occurs in relation to any Financial Indebtedness of a      Relevant Person (except Product Transport and BHOBO) and in the case of      the Guarantor in respect of $250,000 or more or, as regards Financial      Indebtedness arising under different documents or transactions, an      aggregate amount of $250,000 ormore: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any      Financial Indebtedness of such Relevant Person is not paid when due;      or |
|-----------------|---------------------------------------------------------------------------------------|

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

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

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

| (v)   | any      Security Interest securing any Financial Indebtedness of such Relevant      Person becomes unenforceable; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (g)   | any      of the following occurs in relation to a Relevant  Person: |
|-----------------|---------------------------------------------------------------------|

| (i)   | a      Relevant Person becomes, in the opinion of the Majority Lenders, unable to      pay its debts as they fall due; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any      assets of a Relevant Person are subject to any form of execution,      attachment, arrest, sequestration or distress in respect of a sum of, or      sums aggregating, $100,000 and in the case of the Guarantor in respect of      $250,000 or more or the equivalent in another currency;  or |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | any      administrative or other receiver is appointed over any asset of a Relevant      Person; or |
|-------------------|-----------------------------------------------------------------------------------------------------|

| (iv)   | any      assets of a Relevant Person are subject to any form of execution,      attachment, arrest, sequestration or distress in respect of a sum of, or      sums aggregating, $250,000 and in the case of the Guarantor or $100,000 in      the case of any other Relevant Person or more or the equivalent in another      currency; or |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | any      administrative or other receiver is appointed over any asset of a Relevant      Person; or |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (vi)   | an      administrator is appointed (whether by the court or otherwise) in respect      of a Relevant Person; or |
|------------------|-----------------------------------------------------------------------------------------------------------------|

| (vii)   | any      formal declaration of bankruptcy or any formal statement to the effect      that a Relevant Person is insolvent or likely to become insolvent is made      by a Relevant Person or by the directors of a Relevant Person or, in any      proceedings, by a lawyer acting for a Relevant Person;  or |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii)   | a      provisional liquidator is appointed in respect of a Relevant Person, a      winding up order is made in relation to a Relevant Person or a winding up      resolution is passed by a Relevant Person;or |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix)   | a      resolution is passed, an administration notice is given or filed, an      application or petition to a court is made or presented or any other step      is taken by (aa) a Relevant Person, (bb) the members or directors of a      Relevant Person, (cc) a holder of Security Interests which together relate      to all or substantially all of the assets of a Relevant Person, or (dd) a      government minister or public or regulatory authority of a Pertinent      Jurisdiction for or with a view to the winding up of that or another      Relevant Person or the appointment of a provisional liquidator or      administrator in respect of that or another Relevant Person, or that or      another Relevant Person ceasing or suspending business operations or      payments to creditors, save that this paragraph does not apply to a fully      solvent winding up of a Relevant Person other than the Borrower, the      Shareholder or the Guarantor which is, or is to be, effected for the      purposes of an amalgamation or reconstruction previously approved by the      Majority Lenders and effected not later than 3 months after the      commencement of the winding up; or |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (x)   | an      administration notice is given or filed, an application or petition to a      court is made or presented or any other step is taken by a creditor of a      Relevant Person (other than a holder of Security Interests which together      relate to all or substantially all of the assets of a Relevant Person) for      the winding up of a Relevant Person or the appointment of a provisional      liquidator or administrator in respect of a Relevant Person in any      Pertinent Jurisdiction, unless the proposed winding up, appointment of a      provisional liquidator or administration is being contested in good faith,      on substantial grounds and not with a view to some other insolvency law      procedure being implemented instead and either (aa) the application or      petition is dismissed or withdrawn within 30 days of being made or      presented, or (bb) within 30 days of the administration notice being given      or filed, or the other relevant steps being taken, other action is taken      which will ensure that there will be no administration and (in both cases      (aa) or (bb)) the Relevant Person will continue to carry on business in      the ordinary way and without being the subject of any actual, interim or      pending insolvency law procedure;or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xi)   | a      Relevant Person or its directors take any steps (whether by making or      presenting an application or petition to a court, or submitting or      presenting a document setting out a proposal or proposed terms, or      otherwise) with a view to obtaining, in relation to that or another      Relevant Person, any form of moratorium, suspension or deferral of      payments, reorganisation of debt (or certain debt) or arrangement with all      or a substantial proportion (by number or value) of creditors or of any      class of them or any such moratorium, suspension or deferral of payments,      reorganisation or arrangement is effected by court order, by the filing of      documents with a court, by means of a contract or in any other way at all;      or |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xii)   | any      meeting of the members or directors, or of any committee of the board or      senior management, of a Relevant Person is held or summoned for the      purpose of considering a resolution or proposal to authorise or take any      action of a type described in paragraphs (iv) to (ix) or a step      preparatory to such action, or (with or without such a meeting) the      members, directors or such a committee resolve or agree that such an      action or step should be taken or should be taken if certain conditions      materialise or fail to materialise;or |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xiii)   | in      a Pertinent Jurisdiction other than England, any event occurs, any      proceedings are opened or commenced or any step is taken which, in the      opinion of the Majority Lenders is similar to any of the      foregoing. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (i)   | the      Guarantor ceases to maintain the listing of its shares on the main board      of the Stock Exchange of Oslo or New York or does anything, or omits to do      anything, which could result in the trading of its shares being suspended      for any continuous period of 14 days or more;or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | the      guarantor suspends trading on its shares on the American Stock Exchange      and/or the Oslo Stock Exchange; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

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

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

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

| (l)   | any      consent necessary to enable the Borrower to own, operate or charter the      Ship or to enable the Borrower or any Security Party to comply with any      provision which the Majority Lenders consider material of a Finance      Document is not granted, expires without being renewed, is revoked or      becomes liable to revocation or any condition of such a consent is not      fulfilled; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)   | it      appears to the Majority Lenders that, without their prior consent, a      change has occurred or probably has occurred after the date of this      Agreement in the ultimate beneficial ownership of any of the shares in the      Borrower or the Shareholder or in the ultimate control of the voting      rights attaching to any of those shares;or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (o)   | the      security constituted by a Finance Document is in any way imperilled or in      jeopardy including, withoutlimitation; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Ship is arrested or detained in exercise or purported exercise of any lien      or claim and is not released therefrom within 10 days of such arrest or      detention; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | a      second or subsequent mortgage is registered against the Ship without the      prior written consent of all the Lenders;or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

| (p)   | an      Event of Default (as defined in section 14 of the Master Agreement)      occurs; or |
|-----------------|---------------------------------------------------------------------------------------------|

| (q)   | the      Master Agreement is terminated, cancelled, suspended, rescinded or revoked      or otherwise ceases to remain in full force and effect for any reason      except with the consent of the Agent, acting with the authorisation of the      Majority Lenders; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r)   | any      breach by the Time Charterer (which the Majority Lenders consider      material) occurs under the Time Charter;or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (s)   | the      Time Charter is terminated, cancelled, suspended, rescinded or revoked or      otherwise ceases to remain in full force and effect for any reason except      with the consent of the Agent, acting with the authorisation of the      Majority Lenders; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (u)   | any      change occurs in the social and/or political situation in the country in      which the Ship is registered or in which the Borrower or the Guarantor is      incorporated or has its principal place of  business. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2   | Actions following an Event of      Default.  On, or at any time after, the occurrence of an      Event of Default: |
|------------------|------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Agent may, and if so instructed by the Majority Lenders, the Agent      shall: |
|-----------------|-----------------------------------------------------------------------------------------|

| (i)   | serve      on the Borrower a notice stating that the Commitments and all other      obligations of each Lender to the Borrower under this Agreement are      cancelled; and/or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (iii)   | take      any other action which, as a result of the Event of Default or any notice      served under paragraph (i) or (ii), the Agent and/or the Lenders are      entitled to take under any Finance Document or any applicable law;      and/or |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Security Trustee may, and if so instructed by the Agent, acting with the      authorisation of the Majority Lenders, the Security Trustee shall take any      action which, as a result of the Event of Default or any notice served      under paragraph (a) (i) or (ii), the Security Trustee, the Agent and/or      the Lenders and/or the Swap Bank are entitled to take under any Finance      Document or any applicable law. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3   | Termination of      Commitments.  On the service of a notice under Clause      19.2(a)(i), the Commitments and all other obligations of each Lender to      the Borrower under this Agreement shall be  cancelled. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4   | Acceleration of      Loan.  On the service of a notice under Clause      19.2(a)(ii), the Loan, all accrued interest and all other amounts accrued      or owing from the Borrower or any Security Party under this Agreement and      every other Finance Document shall become immediately due and payable or,      as the case may be, payable ondemand. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5   | Multiple notices; action      without notice.  The Agent may serve notices under      Clauses 19.2(a)(i) and (ii) simultaneously or on different dates and it      and/or the Security Trustee may take any action referred to in Clause 19.2      if no such notice is served or simultaneously with or at any time after      the service of both or either of suchnotices. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.6   | Notification of Creditor      Parties and Security Parties.  The Agent shall send to      each Lender, the Swap Bank, the Security Trustee and each Security Party a      copy or the text of any notice which the Agent serves on the Borrower      under Clause 19.2; but the notice shall become effective when it is served      on the Borrower, and no failure or delay by the Agent to send a copy or      the text of the notice to any other person shall invalidate the notice or      provide the Borrower or any Security Party with any form of claim or      defence. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.7   | Creditor Party rights      unimpaired.  Nothing in this Clause shall be taken to      impair or restrict the exercise of any right given to individual Lenders      or the Swap Bank under a Finance Document, the Master Agreement or the      general law; and, in particular, this Clause is without prejudice to      Clause 3.1. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.8   | Exclusion of Creditor Party      liability.  No Creditor Party, and no receiver or manager      appointed by the Security Trustee, shall have any liability to the      Borrower or a Security Party: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 19.9   | Relevant      Persons.  In this Clause 19,      a “Relevant      Person” means the Borrower, a Security Party, Product Transport and      BHOBO. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.10   | Interpretation.  In      Clause 19.1(f) references to an event of      default or a termination event include any event, howsoever described,      which is similar to an event of default in a facility agreement or a      termination event in a finance lease; and in Clause 19.1(g) “petition” includes an      application. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.11   | Position of Swap      Bank.  Neither the Agent nor the Security Trustee shall      be obliged, in connection with any action taken or proposed to be taken      under or pursuant to the foregoing provisions of this Clause 19, to have      any regard to the requirements of the Swap Bank except to the extent that      the Swap Bank is also a Lender. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20   | FEES      AND EXPENSES |
|----------------|------------------------|

| 20.1   | Arrangement and agency      fees.  The Borrower shall pay to the    Agent: |
|------------------|--------------------------------------------------------------------------------------|

| (a)   | on      the earlier of the date of this Agreement and 30 July 2008, an arrangement      fee in the amount and manner agreed in writing between the Agent and the      Borrower; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | on      the date of this Agreement and on each anniversary thereof during the      Security Period, an annual agency fee in the amount and manner agreed in      writing between the Agent and theBorrower. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2   | Costs of negotiation,      preparation etc.  The Borrower shall pay to the Agent on      its demand the amount of all expenses incurred by the Agent or the      Security Trustee in connection with the negotiation, preparation,      execution or registration of any Finance Document or any related document      or with any transaction contemplated by a Finance Document or a related      document. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3   | Costs of variations,      amendments, enforcement etc.  The Borrower shall pay to      the Agent, on the Agent’s demand, for the account of the Creditor Party      concerned, the amount of all expenses incurred by a Creditor Party in      connection with: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | the      valuation of any security provided or offered under Clause 15 or any other      matter relating to such security;or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

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

| 20.4   | Documentary      taxes.  The Borrower shall promptly pay any tax payable      on or by reference to any Finance Document, and shall, on the Agent’s      demand, fully indemnify each Creditor Party against any claims, expenses,      liabilities and losses resulting from any failure or delay by the Borrower      to pay such a tax. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.5   | Certification of      amounts.  A notice which is signed by 2 officers of a      Creditor Party, which states that a specified amount, or aggregate amount,      is due to that Creditor Party under this Clause 20 and which indicates      (without necessarily specifying a detailed breakdown) the matters in      respect of which the amount, or aggregate amount, is due shall be prima      facie evidence that the amount, or aggregate amount, is    due. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21   | INDEMNITIES |
|----------------|-------------|

| 21.1   | Indemnities regarding borrowing      and repayment of Loan.  The Borrower shall fully      indemnify the Agent and each Lender on the Agent’s demand and the Security      Trustee on its demand in respect of all claims, expenses, liabilities and      losses which are made or brought against or incurred by that Creditor      Party, as result of or in connectionwith: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Loan not being borrowed on the date specified in the Drawdown Notice for      any reason other than a default by the Lender claiming the      indemnity; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c)   | any      failure (for whatever reason) by the Borrower to make payment of any      amount due under a Finance Document on the due date or, if so payable, on      demand (after giving credit for any default interest paid by the Borrower      on the amount concerned under Clause7); |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      occurrence of an Event of Default or a Potential Event of Default and/or      the acceleration of repayment of the Loan under Clause  19; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2   | Breakage      costs.  Without limiting its generality, Clause 21.1      covers any claim, expense, liability or loss, including a loss of a      prospective profit, incurred by aLender: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | in      terminating, or otherwise in connection with, any interest and/or currency      swap or any other transaction entered into (whether with another legal      entity or with another office or department of the Lender concerned) to      hedge any exposure arising under this Agreement or that part which the      Lender concerned determines is fairly attributable to this Agreement of      the amount of the liabilities, expenses or losses (including losses of      prospective profits) incurred by it in terminating, or otherwise in      connection with, a number of transactions of which this Agreement is      one. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3   | Miscellaneous      indemnities.  The Borrower shall fully indemnify each      Creditor Party severally on their respective demands in respect of all      claims, expenses, liabilities and losses which may be made or brought      against or incurred by a Creditor Party, in any country, as a result of or      in connection with: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      action taken, or omitted or neglected to be taken, under or in connection      with any Finance Document by the Agent, the Security Trustee or any other      Creditor Party or by any receiver appointed under a Finance Document;      or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 21.4   | Currency      indemnity.  If any sum due from the Borrower or any      Security Party to a Creditor Party under a Finance Document or under any      order or judgment relating to a Finance Document has to be converted from      the currency in which the Finance Document provided for the sum to be paid      (the “Contractual      Currency”) into another currency (the “Payment Currency”) for      the purpose of: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 21.5   | Application to Master      Agreement.  For the avoidance of doubt, Clause 21.4 does      not apply in respect of sums due from the Borrower to the Swap Bank under      or in connection with the Master Agreement as to which sums the provisions      of section 8 (Contractual Currency) of the Master Agreement shall      apply. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.6   | Certification of      amounts.  A notice which is signed by 2 officers of a      Creditor Party, which states that a specified amount, or aggregate amount,      is due to that Creditor Party under this Clause 21 and which indicates      (with reasonably specific breakdown of detail) the matters in respect of      which the amount, or aggregate amount, is due shall be prima facie      evidence that the amount, or aggregate amount, is  due. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.7   | Sums deemed due to a      Lender.  For the purposes of this Clause 21, a sum      payable by the Borrower to the Agent or the Security Trustee for      distribution to a Lender shall be treated as a sum due to that      Lender. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22   | NO      SET-OFF OR TAX DEDUCTION |
|----------------|----------------------------------|

| 22.1   | No      deductions.  All amounts due from the Borrower under a      Finance Document shall be paid: |
|------------------|---------------------------------------------------------------------------------------------------------------|

| (a)   | without      any form of set-off, cross-claim or condition;  and |
|-----------------|------------------------------------------------------------------|

| (b)   | free      and clear of any tax deduction except a tax deduction which the Borrower      is required by law to make. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| 22.2   | Grossing-up for      taxes.  If the Borrower is required by law to make a tax      deduction from any payment: |
|------------------|--------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Borrower shall notify the Agent as soon as it becomes aware of the      requirement; |
|-----------------|-----------------------------------------------------------------------------------------------|

| (b)   | the      Borrower shall pay the tax deducted to the appropriate taxation authority      promptly, and in any event before any fine or penalty arises;      and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      amount due in respect of the payment shall be increased by the amount      necessary to ensure that each Creditor Party receives and retains (free      from any liability relating to the tax deduction) a net amount which,      after the tax deduction, is equal to the full amount which it would      otherwise have received. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.3   | Evidence of payment of      taxes.  Within 1 month after making any tax deduction,      the Borrower shall deliver to the Agent documentary evidence satisfactory      to the Agent that the tax had been paid to the appropriate taxation      authority. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.4   | Exclusion of tax on overall net      income.  In this Clause 22 “tax deduction” means any      deduction or withholding for or on account of any present or future tax      except tax on a Creditor Party’s overall net  income. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.5   | Application to Master      Agreement.  For the avoidance of doubt, Clause 22 does      not apply in respect of sums due from the Borrower to the Swap Bank under      or in connection with the Master Agreement as to which sums the provisions      of section 2(d) (Deduction or Withholding for Tax) of the Master Agreement      shall apply. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23   | ILLEGALITY,      ETC |
|----------------|----------------------|

| 23.1   | Illegality.  This      Clause 23 applies if a Lender (the “Notifying Lender”)      notifies the Agent that it has become, or will with effect from a      specified date, become: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 23.2   | Notification of      illegality.  The Agent shall promptly notify the      Borrower, the Security Parties, the Security Trustee and the other Lenders      of the notice under Clause 23.1 which the Agent receives from the      Notifying Lender. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3   | Prepayment; termination of      Commitment.  On the Agent notifying the Borrower under      Clause 23.2, the Notifying Lender’s Commitment shall terminate; and      thereupon or, if later, on the date specified in the Notifying Lender’s      notice under Clause 23.1 as the date on which the notified event would      become effective the Borrower shall prepay the Notifying Lender’s      Contribution in accordance with Clause8. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.4   | Mitigation.  If      circumstances arise which would result in a notification under Clause 23.1      then, without in any way limiting the rights of the Notifying Lender under      Clause 23.3, the Notifying Lender shall use reasonable endeavours to      transfer its obligations, liabilities and rights under this Agreement and      the Finance Documents to another office or financial institution not      affected by the circumstances but the Notifying Lender shall not be under      any obligation to take any such action if, in its opinion, to do would or      might: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 24   | INCREASED      COSTS |
|----------------|----------------------|

| 24.1   | Increased      costs.  This Clause 24      applies if a Lender (the “Notifying Lender”)      notifies the Agent that the Notifying Lender considers that as a result      of: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      introduction or alteration after the date of this Agreement of a law or an      alteration after the date of this Agreement in the manner in which a law      is interpreted or applied (disregarding any effect which relates to the      application to payments under this Agreement of a tax on the Lender’s      overall net income); or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | complying      with any regulation (including any which relates to capital adequacy or      liquidity controls or which affects the manner in which the Notifying      Lender allocates capital resources to its obligations under this      Agreement) which is introduced, or altered, or the interpretation or      application of which is altered, after the date of this      Agreement, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.2   | Meaning of “increased      costs”.  In this Clause 24,      “increased costs”      means, in relation to a NotifyingLender: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | an      additional or increased cost incurred as a result of, or in connection      with, the Notifying Lender having entered into, or being a party to, this      Agreement or having taken an assignment of rights under this Agreement, of      funding or maintaining its Commitment or Contribution or performing its      obligations under this Agreement, or of having outstanding all or any part      of its Contribution or other unpaidsums; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | a      reduction in the amount of any payment to the Notifying Lender under this      Agreement or in the effective return which such a payment represents to      the Notifying Lender or on itscapital; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | an      additional or increased cost of funding all or maintaining all or any of      the advances comprised in a class of advances formed by or including the      Notifying Lender’s Contribution or (as the case may require) the      proportion of that cost attributable to the Contribution;    or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | a      liability to make a payment, or a return foregone, which is calculated by      reference to any amounts received or receivable by the Notifying Lender      under this Agreement; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | but      not an item attributable to a change in the rate of tax on the overall net      income of the Notifying Lender (or a parent company of it) or an item      covered by the indemnity for tax in Clause 21.1 or by Clause 22 or an item      arising directly out of the implementation or application of or compliance      with the “International Convergence of Capital Measurement and Capital      Standards, a Revised Framework” published by the Basel Committee on      Banking Supervision in June 2004, in the form existing on the date of this      Agreement (“Basel      II”) or any other law or regulation which implements Basel II      (whether such implementation, application or compliance is by a      government, regulator, Creditor Party or any of its      affiliates). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3   | Notification to Borrower of      claim for increased costs.  The Agent shall promptly      notify the Borrower and the Security Parties of the notice which the Agent      received from the Notifying Lender under Clause  24.1. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.4   | Payment of increased      costs.  The Borrower shall pay to the Agent, on the      Agent’s demand, for the account of the Notifying Lender the amounts which      the Agent from time to time notifies the Borrower that the Notifying      Lender has specified to be necessary to compensate the Notifying Lender      for the increased cost. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.5   | Notice of      prepayment.  If the Borrower is not willing to continue      to compensate the Notifying Lender for the increased cost under Clause      24.4, the Borrower may give the Agent not less than 14 days’ notice of its      intention to prepay the Notifying Lender’s Contribution at the end of an      Interest Period. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.6   | Prepayment; termination of      Commitment.  A notice under Clause 24.5 shall be      irrevocable; the Agent shall promptly notify the Notifying Lender of the      Borrower’s notice of intended prepayment;and: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | on      the date on which the Agent serves that notice, the Commitment of the      Notifying Lender shall be cancelled;and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (b)   | on      the date specified in its notice of intended prepayment, the Borrower      shall prepay (without premium or penalty) the Notifying Lender’s      Contribution, together with accrued interest thereon at the applicable      rate plus the Margin. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.7   | Application of      prepayment.  Clause 8 shall apply in relation to the      prepayment. |
|------------------|-----------------------------------------------------------------------------------------------------|

| 25   | SET-OFF |
|----------------|---------|

| 25.1   | Application of credit      balances.  Each Creditor Party may without prior      notice: |
|------------------|----------------------------------------------------------------------------------------------------|

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

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

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

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

| (iii)   | enter      into any other transaction or make any entry with regard to the credit      balance which the Creditor Party concerned considers      appropriate. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2   | Existing rights      unaffected.  No Creditor Party shall be obliged to      exercise any of its rights under Clause 25.1; and those rights shall be      without prejudice and in addition to any right of set-off, combination of      accounts, charge, lien or other right or remedy to which a Creditor Party      is entitled (whether under the general law or any    document). |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.3   | Sums deemed due to a      Lender.  For the purposes of this Clause 25, a sum      payable by the Borrower to the Agent or the Security Trustee for      distribution to, or for the account of, a Lender shall be treated as a sum      due to that Lender; and each Lender’s proportion of a sum so payable for      distribution to, or for the account of, the Lenders shall be treated as a      sum due to such Lender. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.4   | No Security      Interest.  This Clause 25 gives the Creditor Parties a      contractual right of set-off only, and does not create any equitable      charge or other Security Interest over any credit balance of the      Borrower. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26   | TRANSFERS      AND CHANGES IN LENDING OFFICES |
|----------------|-----------------------------------------------|

| 26.1   | Transfer by      Borrower.  The Borrower may not, without the consent of      the Agent, given on the instructions of the Lenders transfer any of its      rights, liabilities or obligations under any Finance    Document. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.2   | Transfer by a      Lender.  Subject to Clause 26.4, a Lender (the “Transferor Lender”) may      at any time, without needing the consent of the Borrower or any Security      Party, cause: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | its      rights in respect of all or part of its Contribution;  or |
|-----------------|--------------------------------------------------------------------|

| (b)   | its      obligations in respect of all or part of its Commitment;  or |
|-----------------|-----------------------------------------------------------------------|

| (c)   | a      combination of (a) and (b), |
|-----------------|------------------------------------|

| 26.3   | Transfer Certificate, delivery      and notification.  As soon as reasonably practicable      after a Transfer Certificate is delivered to the Agent, it shall (unless      it has reason to believe that the Transfer Certificate may be      defective): |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | sign      the Transfer Certificate on behalf of itself, the Borrower, the Security      Parties, the Security Trustee, each of the other Lenders and the Swap      Bank; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | on      behalf of the Transferee Lender, send to the Borrower and each Security      Party letters or faxes notifying them of the Transfer Certificate and      attaching a copy of it; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | send      to the Transferee Lender copies of the letters or faxes sent under      paragraph (b), |
|-----------------|--------------------------------------------------------------------------------------------------|

| 26.4   | Effective Date of Transfer      Certificate.  A Transfer Certificate becomes effective on      the date, if any, specified in the Transfer Certificate as its effective      date  Provided      that it is signed by the Agent under Clause 26.3 on or before that      date. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.5   | No transfer without Transfer      Certificate.  No assignment or transfer of any right or      obligation of a Lender under any Finance Document is binding on, or      effective in relation to, the Borrower, any Security Party, the Agent or      the Security Trustee unless it is effected, evidenced or perfected by a      Transfer Certificate. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.6   | Lender re-organisation; waiver      of Transfer Certificate.  However, if a Lender enters      into any merger, de-merger or other reorganisation as a result of which      all its rights or obligations vest in a successor, the Agent may, if it      sees fit, by notice to the successor and the Borrower and the Security      Trustee waive the need for the execution and delivery of a Transfer      Certificate; and, upon service of the Agent’s notice, the successor shall      become a Lender with the same Commitment and Contribution as were held by      the predecessor Lender. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.7   | Effect of Transfer      Certificate.  A Transfer Certificate takes effect in      accordance with English law asfollows: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      the extent specified in the Transfer Certificate, all rights and interests      (present, future or contingent) which the Transferor Lender has under or      by virtue of the Finance Documents are assigned to the Transferee Lender      absolutely, free of any defects in the Transferor Lender’s title and of      any rights or equities which the Borrower or any Security Party had      against the Transferor Lender; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Transferor Lender’s Commitment is discharged to the extent specified in      the Transfer Certificate; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Transferee Lender becomes a Lender with the Contribution previously held      by the Transferor Lender and a Commitment of an amount specified in the      Transfer Certificate; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      Transferee Lender becomes bound by all the provisions of the Finance      Documents which are applicable to the Lenders generally, including those      about pro-rata sharing and the exclusion of liability on the part of, and      the indemnification of, the Agent and the Security Trustee and, to the      extent that the Transferee Lender becomes bound by those provisions (other      than those relating to exclusion of liability), the Transferor Lender      ceases to be bound by them; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | any      part of the Loan which the Transferee Lender advances after the Transfer      Certificate’s effective date ranks in point of priority and security in      the same way as it would have ranked had it been advanced by the      transferor, assuming that any defects in the transferor’s title and any      rights or equities of the Borrower or any Security Party against the      Transferor Lender had not existed; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | the      Transferee Lender becomes entitled to all the rights under the Finance      Documents which are applicable to the Lenders generally, including but not      limited to those relating to the Majority Lenders and those under Clause      5.7 and Clause 20, and to the extent that the Transferee Lender becomes      entitled to such rights, the Transferor Lender ceases to be entitled to      them; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | in      respect of any breach of a warranty, undertaking, condition or other      provision of a Finance Document or any misrepresentation made in or in      connection with a Finance Document, the Transferee Lender shall be      entitled to recover damages by reference to the loss incurred by it as a      result of the breach or misrepresentation, irrespective of whether the      original Lender would have incurred a loss of that kind or      amount. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.8   | Maintenance of register of      Lenders.  During the Security Period the Agent shall      maintain a register in which it shall record the name, Commitment,      Contribution and administrative details (including the lending office)      from time to time of each Lender holding a Transfer Certificate and the      effective date (in accordance with Clause 26.4) of the Transfer      Certificate; and the Agent shall make the register available for      inspection by any Lender, the Security Trustee and the Borrower during      normal banking hours, subject to receiving at least 3 Business Days’ prior      notice. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.9   | Reliance on register of      Lenders.  The entries on that register shall, in the      absence of manifest error, be conclusive in determining the identities of      the Lenders and the amounts of their Commitments and Contributions and the      effective dates of Transfer Certificates and may be relied upon by the      Agent and the other parties to the Finance Documents for all purposes      relating to the Finance Documents. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.10   | Authorisation of Agent to sign      Transfer Certificates.  The Borrower, the Security      Trustee, each Lender and the Swap Bank irrevocably authorises the Agent to      sign Transfer Certificates on itsbehalf. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.11   | Registration      fee.  In respect of any Transfer Certificate, the Agent      shall be entitled to recover a registration fee of $1,000 from the      Transferor Lender or (at the Agent’s option) the Transferee      Lender. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.12   | Sub-participation; subrogation      assignment.  A Lender may sub-participate all or any part      of its rights and/or obligations under or in connection with the Finance      Documents without the consent of, or any notice to, the Borrower, any      Security Party, the Agent or the Security Trustee; and the Lenders may      assign, in any manner and terms agreed by the Majority Lenders, the Agent      and the Security Trustee, all or any part of those rights to an insurer or      surety who has become subrogated tothem. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.13   | Disclosure of      information.  A Lender may disclose to a potential      Transferee Lender or sub-participant or howsoever as required of it any      information which the Lender has received in relation to the Borrower, any      Security Party or their affairs under or in connection with any Finance      Document. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.14   | Change of lending      office.  A Lender may change its lending office by giving      notice to the Agent and the change shall become effective on the later      of: |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      date on which the Agent receives the notice;and |
|-----------------|----------------------------------------------------------|

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

| 26.15   | Notification.  On      receiving such a notice, the Agent shall notify the Borrower and the      Security Trustee; and, until the Agent receives such a notice, it shall be      entitled to assume that a Lender is acting through the lending office of      which the Agent last had notice. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.16   | Replacement of Reference      Bank.  If any Reference Bank ceases to be a Lender or is      unable on a continuing basis to supply quotations for the purposes of      Clause 5 then, unless the Borrower, the Agent and the Majority Lenders      otherwise agree, the Agent, acting on the instructions of the Majority      Lenders, and after consulting the Borrower, shall appoint another bank      (whether or not a Lender) to be a replacement Reference Bank; and, when      that appointment comes into effect, the first-mentioned Reference Bank’s      appointment shall cease to beeffective. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27   | VARIATIONS      AND WAIVERS |
|----------------|-----------------------------|

| 27.1   | Variations, waivers etc. by      Majority Lenders.  Subject to Clause 27.2, a document      shall be effective to vary, waive, suspend or limit any provision of a      Finance Document, or any Creditor Party’s rights or remedies under such a      provision or the general law, only if the document is signed, or      specifically agreed to by fax, by the Borrower, by the Agent on behalf of      the Majority Lenders, by the Agent and the Security Trustee in their own      rights, and, if the document relates to a Finance Document to which a      Security Party is party, by that SecurityParty. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.2   | Variations, waivers etc.      requiring agreement of all Lenders.  However, as regards      the following, Clause 27.1 applies as if the words “by the Agent on behalf      of the Majority Lenders” were replaced by the words “by or on behalf of      every Lender and the Swap Bank”: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | a      change in the Margin or in the definition of  LIBOR; |
|-----------------|-------------------------------------------------------------|

| (b)   | a      change to the date for, the amount of, any payment of principal, interest,      fees, or other sum payable under thisAgreement; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | a      change to any Lender’s Commitment; |
|-----------------|-------------------------------------------------|

| (d)   | an      extension of Availability Period; |
|-----------------|-------------------------------------------|

| (e)   | a      change to the definition of “Majority Lenders” or      “Finance      Documents”; |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| (f)   | a      change to the preamble or to Clause 2, 3, 4, 5.1, 17, 18 or      30; |
|-----------------|-----------------------------------------------------------------------------|

| (g)   | a      change to this Clause 27; |
|-----------------|----------------------------------|

| (h)   | any      release of, or material variation to, a Security Interest, guarantee,      indemnity or subordination arrangement set out in a Finance Document;      and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any      other change or matter as regards which this Agreement or another Finance      Document expressly provides that each Lender’s consent is      required. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.3   | Exclusion of other or implied      variations.  Except for a document which satisfies the      requirements of Clauses 27.1 and 27.2, no document, and no act, course of      conduct, failure or neglect to act, delay or acquiescence on the part of      the Creditor Parties or any of them (or any person acting on behalf of any      of them) shall result in the Creditor Parties or any of them (or any      person acting on behalf of any of them) being taken to have varied,      waived, suspended or limited, or being precluded (permanently or      temporarily) from enforcing, relying on or  exercising: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 28   | NOTICES |
|----------------|---------|

| 28.1   | General.  Unless      otherwise specifically provided, any notice under or in connection with      any Finance Document shall be given by letter or fax and references in the      Finance Documents to written notices, notices in writing and notices      signed by particular persons shall be construed    accordingly. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.2   | Addresses for      communications.  A notice by letter or fax shall be      sent: |
|------------------|---------------------------------------------------------------------------------------------|

| (a)   | to      the      Borrower:                                                      Sachem      Shipping Ltd. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | to      a Lender:At the address below its name in Schedule 1 or (as the case may      require) in the relevant TransferCertificate. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | to      the Swap Bank:DVB Bank AG |
|-----------------|-----------------------------------|

|   | Germany |
|--------|---------|

|   | Fax      No: (49) 069 975 04444 |
|--------|---------------------------------|

| (d)   | to      the      Agent:                                                      DVB      Group Merchant Bank (Asia) Ltd.                              77      Robinson Road #30-02, SIA Building |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | to      the Security      Trustee:                                                      DVB      Group Merchant Bank (Asia) Ltd. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.3   | Effective date of      notices.  Subject to Clauses 28.4 and    28.5: |
|------------------|---------------------------------------------------------------------------------|

| (a)   | a      notice which is delivered personally or posted shall be deemed to be      served, and shall take effect, at the time when it is delivered;      and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | a      notice which is sent by fax shall be deemed to be served, and shall take      effect, 2 hours after its transmission is  completed. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 28.4   | Service outside business      hours.  However, if under Clause 28.3 a notice would be      deemed to be served: |
|------------------|---------------------------------------------------------------------------------------------------------------------------|

| (a)   | on      a day which is not a business day in the place of receipt;    or |
|-----------------|--------------------------------------------------------------------------|

| (b)   | on      such a business day, but after 5 p.m. local  time, |
|-----------------|------------------------------------------------------------|

| 28.5   | Illegible      notices.  Clauses 28.3 and 28.4 do not apply if the      recipient of a notice notifies the sender within 1 hour after the time at      which the notice would otherwise be deemed to be served that the notice      has been received in a form which is illegible in a material      respect. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.6   | Valid      notices.  A notice under or in connection with a Finance      Document shall not be invalid by reason that its contents or the manner of      serving it do not comply with the requirements of this Agreement or, where      appropriate, any other Finance Document under which it is served      if: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 28.7   | Electronic      communication.  Any communication to be made between the      Agent and a Lender under or in connection with the Finance Documents may      be made by electronic mail or other electronic means, if the Agent and the      relevant Lender: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | agree      that, unless and until notified to the contrary, this is to be an accepted      form of communication; |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (b)   | notify      each other in writing of their electronic mail address and/or any other      information required to enable the sending and receipt of information by      that means; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | notify      each other of any change to their respective addresses or any other such      information supplied to them. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| 28.8   | English      language.  Any notice under or in connection with a      Finance Document shall be inEnglish. |
|------------------|----------------------------------------------------------------------------------------------------------------------|

| 28.9   | Meaning of      “notice”.  In this Clause 28, “notice” includes any      demand, consent, authorisation, approval, instruction, waiver or other      communication. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29   | SUPPLEMENTAL |
|----------------|--------------|

| 29.1   | Rights cumulative,      non-exclusive.  The rights and remedies which the Finance      Documents give to each Creditor Partyare: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 29.2   | Severability of      provisions.  If any provision of a Finance Document is or      subsequently becomes void, unenforceable or illegal, that shall not affect      the validity, enforceability or legality of the other provisions of that      Finance Document or of the provisions of any other Finance      Document. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.3   | Counterparts.  A      Finance Document may be executed in any number of      counterparts. |
|------------------|------------------------------------------------------------------------------------------------------|

| 29.4   | Third party      rights.  A person who is not a party to this Agreement      has no right under the Contracts (Rights of Third Parties) Act 1999 to      enforce or to enjoy the benefit of any term of this    Agreement. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.5   | Disclosure of      information.  Without prejudice to Clause 26.13 the      Borrower irrevocably authorises each Creditor Party to give, divulge and      reveal from time to time information and details relating to its accounts,      the Finance Documents, the Master Agreement and the facilities granted      pursuant thereto to any authorities, each Creditor Party’s head office,      branches and affiliates, any other parties to the Finance Documents or the      Master Agreement and any person regarding any funding, operational      arrangement or other transaction in relation thereto, including without      limitation, for purposes in connection with any enforcement or assignment      or transfer of any of the Creditor Parties’ rights and      obligations. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30   | LAW      AND JURISDICTION |
|----------------|---------------------------|

| 30.1   | English      law.  This Agreement shall be governed by, and construed      in accordance with, English law. |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

| 30.2   | Exclusive English      jurisdiction.  Subject to Clause 30.3, the courts of      England shall have exclusive jurisdiction to settle any disputes which may      arise out of or in connection with this  Agreement. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.3   | Choice of forum for the      exclusive benefit of Creditor Parties.  Clause 30.2 is      for the exclusive benefit of the Creditor Parties, each of which reserves      the rights: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      commence proceedings in relation to any matter which arises out of or in      connection with this Agreement in the courts of any country other than      England and which have or claim jurisdiction to that matter;      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | to      commence such proceedings in the courts of any such country or countries      concurrently with or in addition to proceedings in England or without      commencing proceedings in England. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.4   | Process      agent.  The Borrower irrevocably appoints Ince & Co      at its registered office for the time being, presently at International      House, 1 St Katherine's Way, London E1W 1AY, England, to act as its agent      to receive and accept on its behalf any process or other document relating      to any proceedings in the English courts which are connected with this      Agreement. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.5   | Creditor Party rights      unaffected.  Nothing in this Clause 30 shall exclude or      limit any right which any Creditor Party may have (whether under the law      of any country, an international convention or otherwise) with regard to      the bringing of proceedings, the service of process, the recognition or      enforcement of a judgment or any similar or related matter in any      jurisdiction. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.6   | Meaning of      “proceedings”.  In this Clause 30, “proceedings” means      proceedings of any kind, including an application for a provisional or      protective measure. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Lender                                   | Lending      Office                               | Commitment      (US Dollars) |
|------------------------------------------|---------------------------------------------------|------------------------------|
| DVB      Group Merchant Bank (Asia) Ltd. | 77      Robinson Road #30-02Singapore      068896 | 30,000,000                   |

----

| 1   | We      refer to the loan agreement (the “LoanAgreement”) dated [l] April 2008 and      made between ourselves, as Borrower, the Lenders referred to therein, DVB      Bank AG as Swap Bank and yourselves as Arranger, as Agent and as Security      Trustee in connection with a facility of up to      US$30,000,000.   Terms defined in the Loan Agreement have      their defined meanings when used in this Drawdown  Notice. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a)   | Amount:      US$[l]; |
|-----------------|----------------------|

| (b)   | Drawdown      Date: [l]; |
|-----------------|--------------------------|

| (c)   | Duration      of the first Interest Period shall be [l] months;      and |
|-----------------|--------------------------------------------------------------------------|

| (d)   | Payment      instruction : [l]. |
|-----------------|---------------------------------|

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

| (a)   | the      representations and warranties in Clause 10 of the Loan Agreement would      remain true and not misleading if repeated on the date of this notice with      reference to the circumstances now existing;and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | no      Event of Default or Potential Event of Default has occurred or will result      from the borrowing of the Loan. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

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

| 5   | We      authorise you to deduct the arrangement fee referred to in Clause 20 from      the amount of the Loan. |
|---------------|----------------------------------------------------------------------------------------------------------------|

----

9.1(a)

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

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

| 3   | Copies      of resolutions of the directors and, if required by the Majority Lenders      for the purposes of the legal opinions below, the shareholders of the      Borrower and each Security Party authorising the execution of each of the      Finance Documents to which the Borrower or that Security Party is a party      and, in the case of the Borrower, authorising named officers to give the      Drawdown Notice and other notices under this Agreement and ratifying the      execution of the ConversionContract. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 7   | A      valuation of the Ship, addressed to the Agent and the Lenders, stated to      be for the purposes of this Agreement and dated not earlier than 14 days      before the Drawdown Date, from an independent London sale and purchase      shipbroker selected by the Agent which shows a value for the Ship of not      less than 75 per cent. of the TotalCommitments. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | A      survey report addressed to the Agent and the Lenders, stated to be for the      purposes of this Agreement and dated not earlier than 30 days before the      Drawdown Date from an independent marine surveyor selected by the Agent in      respect of the physical condition of theShip. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9   | Copies      of the Conversion Contract and of all documents signed or issued by the      Borrower or the Builder (or both of them) under or in connection with      it. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | Documentary      evidence that the agent for service of process named in Clause 30 has      accepted its appointment. |
|----------------|-----------------------------------------------------------------------------------------------------------------------|

| 11   | All      documents which may be required by the Lenders in respect of the Borrower      and each Security Party in order to complete their “know your customer”      due diligence exercise and confirmation from the Agent that the Lenders      have completed such due diligence exercise and found to the same to be      satisfactory. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12   | If      the Agent so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Agent. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

9.1(b)

| 1   | A      duly executed original of the Mortgage, the Deed of Covenant, the Deed of      Release and of the Time Charter Assignment (and of each document to be      delivered by each of them). |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a)   | the      Ship has been unconditionally delivered by the Builder to, and accepted      by, the Borrower under the Conversion Contract, and the full conversion      price payable under the Conversion Contract (in addition to the part to be      financed by the Loan) has been duly paid (or, to the extent that any funds      remained to be paid to the Builder, that such funds are available to make      such payment); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c)   | the      Ship is in the absolute and unencumbered ownership of the Borrower save as      contemplated by the FinanceDocuments; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      Ship maintains the class 100 A1 BC SHC ESP L1 with Lloyd’s Register free      of all recommendations and qualifications of such Classification      Society; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | the      Ship maintains class certification in the form and substance acceptable to      the Agent; |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (f)   | documentary      evidence that all amounts which are or have become due have been paid to      the Builder in accordance with the terms of the Conversion      Contract; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | the      Ship has been unconditionally delivered by the Borrower to, and accepted      by, the Time Charterer under the TimeCharter; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (a)   | a      letter of undertaking executed by the Approved Manager in favour of the      Agent in the terms required by the Agent agreeing certain matters in      relation to the management of the Ship and subordinating the rights of the      Approved Manager against the Ship and the Borrower to the rights of the      Creditor Parties under the Finance Documents;  and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 4   | Favourable      legal opinions from lawyers appointed by the Agent on such matters      concerning the laws of the Bahamas, the Marshall Islands, Bermuda and      Liberia and such other relevant jurisdictions as the Agent may      require. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | Evidence      that the Existing Facility has been or will, simultaneously with      disbursement of the Loan, be repaid infull. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------|

| 6   | A      favourable opinion from an independent insurance consultant acceptable to      the Agent on such matters relating to the insurances for the Ship as the      Agent may require. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | If      the Agent so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Agent. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| To: | DVB GROUP MERCHANT BANK (ASIA)      LTD. for itself and for and on behalf of the Borrower, each      Security Party, the Security Trustee, each Lender and the Swap Bank, as      defined in the Loan Agreement referred tobelow. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1   | This      Certificate relates to a Loan Agreement (“the “Agreement”) dated [l] and made between      (1) Sachem Shipping Ltd. (the “Borrower”), (2) the      banks and financial institutions named therein as Lenders, (3) DVB Bank AG      as Swap Bank, (4) DVB Group Merchant Bank (Asia) Ltd. as Arranger, (5) DVB      Group Merchant Bank (Asia) Ltd. as Agent and (6) DVB Group Merchant Bank      (Asia) Ltd. as Security Trustee for a loan facility of up to      $30,000,000. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | In      this Certificate, terms defined in the Agreement shall, unless the      contrary intention appears, have the same meanings when used in this      Certificate and: |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | The      effective date of this Certificate is [l] Provided that this      Certificate shall not come into effect unless it is signed by the Agent on      or before that date. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | [The      Transferor assigns to the Transferee absolutely all rights and interests      (present, future or contingent) which the Transferor has as Lender under      or by virtue of the Agreement and every other Finance Document in relation      to [l] per      cent. of its Contribution, which percentage represents $[l]. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | [By      virtue of this Certificate and Clause 26 of the Agreement, the Transferor      is discharged [entirely from its Commitment which amounts to $[l]] [from [l] per cent. of its      Commitment, which percentage represents $[l]] and the      Transferee acquires a Commitment of $[l].] |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | The      Transferee undertakes with the Transferor and each of the Relevant Parties      that the Transferee will observe and perform all the obligations under the      Finance Documents which Clause 26 of the Agreement provides will become      binding on it upon this Certificate taking  effect. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | The      Agent, at the request of the Transferee (which request is hereby made)      accepts, for the Agent itself and for and on behalf of every other      Relevant Party, this Certificate as a Transfer Certificate taking effect      in accordance with Clause 26 of theAgreement. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | The      Transferor: |
|---------------|----------------------|

| (a)   | warrants      to the Transferee and each Relevant Partythat: |
|-----------------|--------------------------------------------------------------|

| (i)   | the      Transferor has full capacity to enter into this transaction and has taken      all corporate action and obtained all consents which are required in      connection with this transaction;and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | this      Certificate is valid and binding as regards the  Transferor; |
|------------------|------------------------------------------------------------------------|

| (b)   | warrants      to the Transferee that the Transferor is absolutely entitled, free of      encumbrances, to all the rights and interests covered by the assignment in      paragraph 4; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | undertakes      with the Transferee that the Transferor will, at its own expense, execute      any documents which the Transferee reasonably requests for perfecting in      any relevant jurisdiction the Transferee’s title under this Certificate or      for a similar purpose. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9   | The      Transferee: |
|---------------|----------------------|

| (a)   | confirms      that it has received a copy of the Agreement and each of the other Finance      Documents; |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (b)   | agrees      that it will have no rights of recourse on any ground against either the      Transferor, the Agent, the Security Trustee, any Lender or the Swap Bank      in the event that: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any      of the Finance Documents prove to be invalid or    ineffective; |
|-----------------|--------------------------------------------------------------------------|

| (ii)   | the      Borrower or any Security Party fails to observe or perform its      obligations, or to discharge its liabilities, under any of the Finance      Documents; |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | it      proves impossible to realise any asset covered by a Security Interest      created by a Finance Document, or the proceeds of such assets are      insufficient to discharge the liabilities of the Borrower or any Security      Party under any of the FinanceDocuments; |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | agrees      that it will have no rights of recourse on any ground against the Agent,      the Security Trustee, any Lender or the Swap Bank in the event that this      Certificate proves to be invalid orineffective; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | warrants      to the Transferor and each Relevant Partythat: |
|-----------------|--------------------------------------------------------------|

| (i)   | it      has full capacity to enter into this transaction and has taken all      corporate action and obtained all consents which it needs to take or      obtain in connection with this transaction;and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | that      this Certificate is valid and binding as regards the      Transferee; |
|------------------|---------------------------------------------------------------------------------|

| (e)   | confirms      the accuracy of the administrative details set out below regarding the      Transferee. |
|-----------------|-------------------------------------------------------------------------------------------------------|

| 10   | The      Transferor and the Transferee each undertake with the Agent and the      Security Trustee severally, on demand, fully to indemnify the Agent and/or      the Security Trustee in respect of any claim, proceeding, liability or      expense (including all legal expenses) which they or either of them may      incur in connection with this Certificate or any matter arising out of it,      except such as are shown to have been mainly and directly caused by the      gross and culpable negligence or dishonesty of the Agent’s or the Security      Trustee’s own officers oremployees. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | The      Transferee shall repay to the Transferor on demand so much of any sum paid      by the Transferor under paragraph 10 as exceeds one-half of the amount      demanded by the Agent or the Security Trustee in respect of a claim,      proceeding, liability or expense which was not reasonably foreseeable at      the date of this Certificate; but nothing in this paragraph shall affect      the liability of each of the Transferor and the Transferee to the Agent or      the Security Trustee for the full amount demanded by  it. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note: | This      Transfer Certificate alone may not be sufficient to transfer a      proportionate share of the Transferor’s interest in the security      constituted by the Finance Documents in the Transferor’s or Transferee’s      jurisdiction.  It is the responsibility of each Lender to      ascertain whether any other documents are required for this      purpose. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Put      Contract No. | Trade      Date  | Put      Counterparty            | Period      (calendar year) | Strike      Price (per day) | Fraction      of Day | Total      Days |
|-----------------------|------------------|----------------------------------|-----------------------------|-----------------------------|----------------------|-----------------|
|                  |             |                             |                        |                        |                 |            |
|                  |             |                             |                        |                        |                 |            |
| 1                     | 12      Oct 07   | Goldman      Sachs International | 2008                        | 67,000                      | 0.25                 | 91.50           |
| 2                     | 10      Sep 07   | Goldman      Sachs International | 2008                        | 55,000                      | 0.25                 | 91.50           |
| 3                     | 06      Nov 07   | Goldman      Sachs International | 2009                        | 48,000                      | 0.25                 | 91.25           |
| 4                     | 12      Oct 07   | Goldman      Sachs International | 2009                        | 44,000                      | 0.25                 | 91.25           |
| 5                     | 25      Sep 07   | Goldman      Sachs International | 2009                        | 39,000                      | 0.25                 | 91.25           |
| 6                     | 10      Sep 07   | Goldman      Sachs International | 2009                        | 40,000                      | 0.25                 | 91.25           |
| 7                     | 20      Aug 2007 | HSH      Nordbank AG             | 2008                        | 48,000                      | -                    | 183             |

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