----

| Clause |                                          | Page   |
|--------|-----------------------------------------------|--------|
|   |                                          |   |
| 1      | INTERPRETATION                                | 1      |
|   |                                          |   |
| 2      | FACILITY                                      | 12     |
|   |                                          |   |
| 3      | DRAWDOWN                                      | 12     |
|   |                                          |   |
| 4      | INTEREST                                      | 13     |
|   |                                          |   |
| 5      | INTEREST      PERIODS                         | 14     |
|   |                                          |   |
| 6      | DEFAULT      INTEREST                         | 15     |
|   |                                          |   |
| 7      | REPAYMENT      AND PREPAYMENT                 | 15     |
|   |                                          |   |
| 8      | CONDITIONS      PRECEDENT                     | 17     |
|   |                                          |   |
| 9      | REPRESENTATIONS      AND WARRANTIES           | 18     |
|   |                                          |   |
| 10     | GENERAL      UNDERTAKINGS                     | 20     |
|   |                                          |   |
| 11     | CORPORATE      UNDERTAKINGS                   | 22     |
|   |                                          |   |
| 12     | INSURANCE                                     | 23     |
|   |                                          |   |
| 13     | SHIP      COVENANTS                           | 28     |
|   |                                          |   |
| 14     | SECURITY      COVER                           | 31     |
|   |                                          |   |
| 15     | PAYMENTS      AND CALCULATIONS                | 33     |
|   |                                          |   |
| 16     | APPLICATION      OF RECEIPTS                  | 33     |
|   |                                          |   |
| 17     | APPLICATION      OF EARNINGS                  | 34     |
|   |                                          |   |
| 18     | EVENTS      OF DEFAULT                        | 35     |
|   |                                          |   |
| 19     | FEES      AND EXPENSES                        | 38     |
|   |                                          |   |
| 20     | INDEMNITIES                                   | 39     |
|   |                                          |   |
| 21     | NO      SET-OFF OR TAX DEDUCTION              | 41     |
|   |                                          |   |
| 22     | ILLEGALITY,      ETC                          | 41     |
|   |                                          |   |
| 23     | INCREASED      COSTS                          | 42     |
|   |                                          |   |
| 24     | SET      OFF                                  | 43     |
|   |                                          |   |
| 25     | TRANSFERS      AND CHANGES IN LENDING OFFICES | 43     |
|   |                                          |   |

----

| 26                                         | VARIATIONS      AND WAIVERS | 44     |
|--------------------------------------------|-----------------------------|--------|
|                                       |                        |   |
| 27                                         | NOTICES                     | 44     |
|                                       |                        |   |
| 28                                         | SUPPLEMENTAL                | 46     |
|                                       |                        |   |
| 29                                         | LAW      AND JURISDICTION   | 46     |
|                                       |                        |   |
| EXECUTION      PAGE                        | 48                          |
|                                       |                        |
| SCHEDULE      1  DRAWDOWN NOTICE | 49                          |
|                                       |                        |
| SCHEDULE      2                            | 50                          |
|                                       |                        |
| CONDITION      PRECEDENT DOCUMENTS         | 50                          |

----

| (1) | SUNRAY NAVIGATION INC.,      a corporation incorporated in the Republic of the Marshall Islands whose      registered office is at Trust Company Complex, Ajeltake Road, Ajeltake      Island, Majuro, MH 96960 , Republic of the Marshall Islands (the “Borrower”);      and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | NATIONAL BANK OF GREECE S.A.      acting through its branch at 2 Bouboulinas Street & Akti      Miaouli, 185 35 Piraeus, Greece (the “Lender”) |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | “Advance” means the      principal amount of each borrowing by the Borrower under this Agreement      being:  |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | an      amount of up to $3,981,150 to be made available to the Borrower for the      purpose of refinancing part of the first instalment paid pursuant to the      Shipbuilding Contract (the “First      Advance”); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an      amount of up to $3,981,150 to be made available to the Borrower for the      purpose of part-financing the second instalment payable pursuant to the      Shipbuilding Contract (the “Second      Advance”); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | an      amount of up to $7,077,600 to be made available to the Borrower for the      purpose of part-financing the third instalment payable pursuant to the      Shipbuilding Contract upon steel-cutting of the Ship (the “Third      Advance”); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | an      amount of up to $7,077,600 to be made available to the Borrower for the      purpose of part-financing the fourth instalment payable pursuant to the      Shipbuilding Contract upon keel-laying of the Ship (the “Fourth      Advance”); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | an      amount of up to $5,529,375 to be made available to the Borrower for the      purpose of part-financing the fifth instalment payable pursuant to the      Shipbuilding Contract upon launching of the Ship (the “Fifth Advance”);      and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | an      amount of up to $5,529,375 to be made available to the Borrower for the      purpose of part-financing the sixth instalment payable pursuant to the      Shipbuilding Contract upon delivery of the Ship (the “Sixth      Advance”), |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | the      earlier of (A) 29 April 2011 and (B) the Delivery Date in respect of the      Ship; |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (b) | if      earlier, the date on which the Lender’s obligation to make the Loan is      cancelled or terminated; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

----

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

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

|   | (c) | if      and whenever the Ship is employed on terms whereby any moneys falling      within paragraphs (a) or (b) are pooled or shared with any other person      (which may only be effected with the prior consent of the Lender in      accordance with Clause 13.15), 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 who owns the Ship 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      who owns the Ship 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; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Environmental      Law”  means any law relating to pollution or protection      of the environment, to the carriage of Environmentally Sensitive Material      or to actual or threatened releases of Environmentally Sensitive      Material;  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Environmentally Sensitive      Material”  means oil, oil products and any other      substance (including any chemical, gas or other hazardous or noxious      substance) which is (or is capable of being or becoming) polluting, toxic      or hazardous;  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Event of      Default”  means any of the events or circumstances      described in Clause 18.1; |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

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

|   | (b) | the      Retention Account Pledge; |
|--------|-----|------------------------------------|

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

|   | (d) | the      Predelivery Security Assignment; |
|--------|-----|-------------------------------------------|

|   | (e) | the      Mortgage; |
|--------|-----|--------------------|

|   | (f) | the      General Assignment; |
|--------|-----|------------------------------|

|   | (g) | any      Charterparty Assignments; and |
|--------|-----|----------------------------------------|

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

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

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

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

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

|   | (e) | under      any foreign exchange transaction, any interest or currency swap or      any other kind of derivative transaction entered into by the debtor or, if      the agreement under |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | which      any such transaction is entered into requires netting of mutual      liabilities, the liability of the debtor for the net amount;      or |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | “ISM Code”      means: |
|--------|------------------------------------|

|   | (a) | ‘The      International Management Code for the Safe Operation of Ship and for      Pollution Prevention’, currently known or referred to as the ‘ISM Code’,      adopted by the Assembly of the International Maritime Organisation by      Resolution A.741(18) on 4 November 1993 and incorporated on 19 May 1994      into chapter IX of the International Convention for the Safety of Life at      Sea 1974 (SOLAS 1974); and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      further resolutions, circulars, codes, guidelines, regulations and      recommendations which are now or in the future issued by or on behalf of      the International Maritime Organisation or any other entity with      responsibility for implementing  the ISM Code, including without      limitation, the ‘Guidelines on implementation or administering of the      International Safety Management (ISM) Code by Administrations’ produced by      the International Maritime Organisations pursuant to Resolution A.788(19)      adopted on 25 November 1995, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | as      the same may be amended, supplemented or replaced from time to      time; |
|--------|-----------------------------------------------------------------------------------|

|   | “ISM Code Documentation”      includes, in relation to the Ship: |
|--------|------------------------------------------------------------------------------|

|   | (a) | the      document of compliance (DOC) and safety management certificate (SMC)      issued pursuant to the ISM Code in relation to the Ship within the periods      specified by the ISM Code; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      other documents and data which are relevant to the ISM SMS and its      implementation and verification which the Lender may require;      and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | any      other documents which are prepared or which are otherwise relevant to      establish and maintain the Ship’s compliance or the compliance of the      Borrower, with the ISM Code which the Lender may  require; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “ISM SMS” means the      safety management system for the Ship which is required to be developed,      implemented and maintained under the ISMCode; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “ISPS      Code”  means the “International Code for the Security of      Ships and of Port Facilities” as adopted on 12 December 2002 by resolution      2 of the Conference of Contracting Governments to the International      Convention for the Safety of Life at Sea,1974; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Lender”  means      the National Bank Of Greece S.A. acting through its branch at 2      Bouboulinas Street & Akti Miaouli, 185 35 Piraeus,    Greece; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      rate per annum equal to the offered quotation for deposits in Dollars for      a period equal to, or as near as possible equal to, the relevant Interest      Period which appears on Reuters BBA Page LIBOR 01 at or about 11.00 a.m.      (London time) on the second Business Day prior to the commencement of that      Interest Period (and, for the purposes of this Agreement, “Reuters BBA      Page LIBOR 01” means the display designated as “Reuters BBA Page LIBOR 01”      on the Reuters Money News Service or such other page as may replace BBA      Page LIBOR 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      (rounded upwards, if necessary, to the nearest one-sixteenth of one per      cent.) at which deposits in Dollars are offered to the Reference Bank by      leading banks in the London Interbank Market at the request of the      Reference Bank at or about 11.00 a.m. (London time) on the Quotation Date      for that Interest Period for a period equal to that Interest Period and      for delivery on the first Business Day ofit; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in      relation to all Advances during the period commencing on the Drawdown Date      of the First Advance  and ending on the Drawdown Date of the      Sixth Advance, 0.90 per cent. per  annum;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | at      all times after the Drawdown Date of the Sixth Advance, in respect of that      part of the Loan which is constituted by (i) the repayment instalments      referred to in clause 7.1(a), 0.90 per cent. per annum and (ii) the      Balloon Instalment, 1 per cent. perannum; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | “Pertinent      Document”  means: |
|--------|---------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

|   | “Pertinent      Matter”  means: |
|--------|-------------------------------------------------------|

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

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

----

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

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

----

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

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

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

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

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

|   | (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; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | 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; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | 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; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (e) | 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 Lender shall make available to the Borrower a loan facility      of up to $33,176,250 divided into sixAdvances. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Purpose of      Loan.  The Borrower undertakes with the Lender to use      each Advance only for the purpose stated in the preamble to this      Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | DRAWDOWN |
|---|----------|

| 3.1 | Request for      Advance.  Subject to the following conditions, the      Borrower may request an Advance to be made by ensuring that the Lender      receives a completed Drawdown Notice not later than 11.00 a.m. (Athens      time) 3 Business Days prior to the intended Drawdown  Date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Availability.  The      conditions referred to in Clause 3.1 are  that: |
|-----|----------------------------------------------------------------------------------------|

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

| (b) | the      amount of each Advance shall notexceed: |
|-----|--------------------------------------------------|

|   | (i) | in      the case of the First Advance, an amount up to $3,981,150 to be made      available to the Borrower for the purpose of refinancing  part      of the first instalment paid pursuant to the Shipbuilding      Contract; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in      the case of the Second Advance, an amount up to $3,981,150 to be made      available to the Borrower for the purpose of part-financing the second      instalment payable on the date falling 180 days after the date of the      Shipbuilding Contract pursuant to the Shipbuilding    Contract; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | in      the case of the Third Advance, an amount up to $7,077,600 to be made      available to the Borrower for the purpose of part-financing the third      instalment payable pursuant to the Shipbuilding Contract upon      steel-cutting of the Ship; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | in      the case of the Fourth Advance, an amount up to $7,077,600 to be made      available to the Borrower for the purpose of part-financing the fourth      instalment payable pursuant to the Shipbuilding upon the laying of the      first keel block of the Ship; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | in      the case of the Fifth Advance, an amount up to $5,529,375 to be made      available to the Borrower for the purpose of part-financing the fifth      instalment payable pursuant to the Shipbuilding Contract upon launching of      the Ship; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | in      the case of the Sixth Advance, an amount up to $5,529,375 to be made      available to the Borrower for the purpose, of part-financing the sixth      instalment payable pursuant to the Shipbuilding Contract upon delivery of      the Ship, |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Drawdown Notice      irrevocable.  A Drawdown Notice must be signed by a an      authorised person of the Borrower; and once served, a Drawdown Notice      cannot be revoked without the prior consent of the  Lender. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Disbursement of      Advance.  Subject to the terms of this Agreement, the      Lender shall on each Drawdown Date make available the relevant Advance to      the Borrower by paying the proceeds thereof to the Builder which the      Borrower specifies in the Drawdown Notice (save for the First Advance      which shall be made available to the Borrower in accordance with Clause      3.2(b)(i)), and the Borrower hereby unconditionally and irrevocably      authorises the Lender to make such payment on its  behalf. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | Disbursement of Advance to      third party.  The payment by the Lender under      Clause 3.4 to the Builder shall constitute the making of an Advance      and the Borrower shall at that time become indebted, as principal and      direct obligor, to the Lender in an amount equal to that      Advance. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | INTEREST |
|---|----------|

| 4.1 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | 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 (a) the applicable Margin and (b) LIBOR for that Interest      Period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | 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. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Notification of market      disruption.  The Lender shall promptly notify the      Borrower if no rate is quoted on Reuters BBA page LIBOR01 or if for any      reason both the Lender and the Reference Bank is unable to obtain Dollars      in the London Interbank Market in order to fund the Loan (or any part of      it) or an Advance during any Interest Period, stating the circumstances      which have caused such notice to begiven. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Suspension of      drawdown.  If the Lender's notice under Clause 4.4      is served before an Advance is made, the Lender's obligation to make that      Advance shall be suspended while the circumstances referred to in the      Lender's notice continue. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | Negotiation of alternative rate      of interest.  If the Lender’s notice under      Clause 4.4 is served after an Advance is made, the Borrower and the      Lender shall use reasonable endeavoursto |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.7 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.8 | 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 Lender shall set an interest period and interest rate      representing the cost of funding of the Lender in Dollars or in any      available currency of the Loan plus the applicable Margin; and the      procedure provided for by this Clause 4.8 shall be repeated if the      relevant circumstances are continuing at the end of the interest period so      set by the Lender. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.9 | Notice of      prepayment.  If the Borrower does not agree with an      interest rate set by the Lender under Clause 4.8, the Borrower may      give the Lender not less than 15 Business Days' notice of its intention to      prepay at the end of the interest period set by the  Lender. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.10 | Prepayment.  A      notice under Clause 4.9 shall be irrevocable; and on the last      Business Day of the interest period set by the Lender, the Borrower shall      prepay (without premium or penalty) the Loan, together with accrued      interest thereon at the applicable rate plus the applicable      Margin. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.11 | Application of      prepayment.  The provisions of Clause 7 shall apply      in relation to the prepayment. |
|------|----------------------------------------------------------------------------------------------------------------------------|

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

| 5.1 | Commencement of Interest      Periods.  The first Interest Period applicable to each      Advance shall commence on the Drawdown Date relative to that Advance and      each subsequent Interest Period shall commence on the expiry of the      preceding Interest Period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Duration of normal Interest      Periods.  Subject to Clauses 5.3 and 5.4, each      Interest Period shall be: |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (a) | 1,      3, 6, 9 or 12 months as notified by the Borrower to the Lender not later      than 11.00 a.m. (Athens time) 3 Business Days before the commencement of      the Interest Period; or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | in      the case of the first Interest Period applicable to the second and each      subsequent Advance, a period ending on the last day of the then current      Interest Period for that Advance, whereupon all of the Advances shall be      consolidated and treated as a singleAdvance; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d) | such      other period as the Lender may agree with the  Borrower. |
|-----|--------------------------------------------------------------------|

| 5.3 | Duration of Interest Periods      for repayment instalments.  In respect of an amount due      to be repaid under Clause 7 on a particular Repayment Date, an      Interest Period shall end on that Repayment  Date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Non-availability of matching      deposits for Interest Period selected.  If, after the      Borrower has selected and the Lender has agreed an Interest Period longer      than 3 months, the Lender notifies the Borrower by 11.00 a.m. (Athens      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 duration. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | DEFAULT      INTEREST |
|---|-----------------------|

| 6.1 | Payment of default interest on      overdue amounts.  If the Borrower fails to pay any sum      (including, without limitation, any sum payable pursuant to this Clause      6.1) on its due date for payment under any of the Finance Documents, the      Borrower shall pay interest on such sum on demand from the due date up to      the date of actual payment (as well after as before judgment) at a rate      determined by the Lender, on the due date for payment and thereafter on 30      June and 31 December in each calendar year.  Each of such      periods for the calculation of interest (other than the first, which shall      commence on the due date for payment) shall commence on the last day of      the preceding period.  The rate of interest applicable to each      such period shall be the aggregate (as determined by the Lender) of (a)      three per cent. (3%) per annum  and (b) LIBOR for such period.      Such interest shall be due and payable on 30 June and 31 December in each      calendar year and each such day shall, for the purposes of this Agreement,      be treated as the final day of an Interest Period in respect of that      amount. The Borrower hereby specifically acknowledges and agrees that the      rate of default interest payable pursuant to this Clause 6.1 on any amount      which is not paid on its due date shall be the aggregate (as determined by      the Lender ) of (a) three per cent. (3%) per annum and (b) LIBOR for the      relevant period and that such interest shall also be determined and      payable on 30 June and 31 December in each calendar year.  If,      for the reasons specified in Clause 4.4, the Lender is unable to determine      a rate in accordance with the foregoing provisions of this Clause 6.1,      interest on any sum not paid on its due date for payment shall be      calculated at a rate determined by the Lender to be three per cent. (3%)      per annum above the  cost of funds to the  Lender. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | REPAYMENT      AND PREPAYMENT |
|---|-------------------------------|

| 7.1 | Amount of repayment      instalments.  The Borrower shall repay the Loan      by: |
|-----|---------------------------------------------------------------------------------------------|

| (a) | 40      equal consecutive three-monthly instalments of $497,650, each;      and |
|-----|---------------------------------------------------------------------------------|

| (b) | a      balloon instalment of $13,270,250 (the “Balloon      Instalment”), |
|-----|---------------------------------------------------------------------------------------|

| 7.2 | Repayment      Dates.  The first repayment instalment of in respect of      the Loan shall be repaid the earlier of (i) on the date falling 3 months      after the Drawdown Date of the Sixth Advance and (ii) 29 July 2011 and      each subsequent repayment instalment shall be repaid at 3-monthly      intervals thereafter and the last repayment instalment, together with the      Balloon Instalment, shall be repaid on the date falling on the earlier of      (a) the tenth anniversary of the Drawdown Date of the Sixth Advance and      (b) the Final Maturity Date. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Final Repayment      Date.  On the final Repayment Date, the Borrower shall      additionally pay to the Lender for the account of the Lender all other      sums then accrued or owing under any Finance  Document. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | 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 without penalty or premium pursuant to Clause      7.8. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | Conditions for voluntary      prepayment.  The conditions referred to in      Clause 7.4 are that: |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (a) | a      partial prepayment shall be $100,000 or a multiple thereof or any other      amount mutually agreed between the Borrower and the  Lender; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      Lender has received from the Borrower at least 10 days’ prior written      notice 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 Lender that any consent      required by the Borrower or any other 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      other Security Party has been compliedwith. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6 | Effect of notice of      prepayment.  A prepayment notice may not be withdrawn or      amended without the consent of the Lender 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7 | Mandatory      prepayment.  The Borrower shall be obliged to prepay the      whole of the Loan: |
|-----|-----------------------------------------------------------------------------------------------------------|

| (a) | if      the Borrower transfers, assigns or novates its rights and/or obligations      under the Shipbuilding Contract to which it is a party or enters into an      agreement before the Delivery Date, on or before the date on which such      transfer, assignment or novation takes effect or, as the case may be, the      date on which the agreement to sell the Ship becomes effective;      or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | if      the Ship is sold, on or before the date on which the sale is completed by      delivery of the Ship to the buyer;or |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (c) | if      the Ship becomes a Total Loss, on the earlier of the date falling 180 days      after the Total Loss Date and the date of receipt by the Lender of the      proceeds of insurance relating to such Total Loss;  or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | if      any of the following occurs, on demand by the  Lender: |
|-----|----------------------------------------------------------------|

|   | (i) | any      of the events specified in Article XI of the Shipbuilding Contract occurs;      or |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (ii) | either      the Shipbuilding Contract or the Refund Guarantee is cancelled,      terminated, rescinded or suspended or otherwise ceases to remain in force      for any reason; or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      Shipbuilding Contract is amended or varied without the prior written      consent of the Lender except for any such amendment or variation as is      permitted by this Agreement or any other relevant Finance Document;      or |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the      Ship has not for any reason been delivered to, and accepted by, the      Borrower under the Shipbuilding Contract by the end of the Availability      Period; or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | there      is a change in the ultimate beneficial legal ownership or control of the      Borrower from that disclosed to the Lender on or before the date of this      Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.8 | Amounts payable on      prepayment.  A prepayment shall be made together with      accrued interest (and any other amount payable under Clause 20 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 20.1(b) but without premium or  penalty. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.9 | Application of partial      prepayment.  Each partial prepayment shall be applied      pro-rata against the then outstanding repayment instalments referred to in      Clause 7.1 and the BalloonInstalment. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.10 | No      reborrowing.  No amount prepaid may be      reborrowed. |
|------|---------------------------------------------------------------------------|

----

| 8 | CONDITIONS      PRECEDENT |
|---|---------------------------|

| 8.1 | Documents, fees and no      default.  Each Lender’s obligation to make available a      Advance is subject to the following conditions  precedent: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | that,      on or before service of the Drawdown Notice in respect of the First      Advance, the Lender receives the documents described in Part A of Schedule      2 in form and substance satisfactory to it and its  lawyers; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | that,      on or before the Drawdown Date in respect of each of the Second, Third,      Fourth and Fifth Advances, the Lender receives the documents described in      Part B of Schedule 2 in a form and substance satisfactory to it and its      lawyers; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | that      on or before the Drawdown Date in respect of the Sixth Advance, the Lender      receives the documents described in Part C of Schedule 2 (save for the      documents described in paragraphs 1 and 2 in Part C of Schedule 2 which      shall be delivered by the Borrower to the Lender on the Delivery      Date),  in a form and substance satisfactory to it and its      lawyers; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | that,      on or before service of each Drawdown Notice the Lender has received all      accrued commitment commission due and payable pursuant to Clause      19.1; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | that,      on or before service of the Drawdown Notice in respect of the first      Advance, the Lender has received the arrangement fee referred to in Clause      19.1; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (ii) | the      representations and warranties in Clause 9.1 and those of the      Borrower or any other 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; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (iv) | there      has been no material adverse change in the financial position, state of      affairs or prospects of the Borrower, any other Security Party or any      member of the Group, in the light of which the Lender considers that there      is a significant risk that the Borrower or any other Security Party will      later become, unable to discharge its liabilities under the Finance      Documents to which it is a party as they fall due;  and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | that,      if the ratio set out in Clause 14.1 were applied immediately      following the making of the Sixth Advance, the Borrower would not be      obliged to provide additional security or prepay part of the Loan under      that Clause; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 8.2 | Waivers of conditions      precedent.  If the Lender, at its discretion, permits an      Advance to be borrowed before certain of the conditions referred to in      Clause 8.1 are satisfied, the Borrower shall ensure that those      conditions are satisfied within 5 Business Days after the relevant      Drawdown Date (or such longer period as the Lender may      specify). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9 | REPRESENTATIONS      AND WARRANTIES |
|---|-------------------------------------|

| 9.1 | General.  The      Borrower represents and warrants to the Lender as  follows. |
|-----|------------------------------------------------------------------------------------------|

| 9.2 | Status.  The      Borrower is duly incorporated and validly existing and in good standing      under the laws of the Republic of the Marshall  Islands. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | Share capital and      ownership.  The Borrower has an authorised share capital      divided into 500 registered shares of $0.01 each, all of which shares have      been issued in registered form and the legal title and beneficial      ownership of all those shares is held free of any Security Interest or      other claim by the CorporateGuarantor. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.4 | 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 Shipbuilding Contract and any addenda  thereto; |
|-----|---------------------------------------------------------------------|

| (b) | to      purchase and pay for the Ship and register the Ship in its name under an      Approved Flag; |
|-----|------------------------------------------------------------------------------------------------------|

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

| (d) | to      borrow under this Agreement and to make all the payments contemplated by,      and to comply with, those Finance Documents to which the Borrower is a      party. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5 | Consents in      force.  All the consents referred to in Clause 9.4      remain in force and nothing has occurred which makes any of them liable to      revocation. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.6 | Legal validity; effective      Security Interests.  The Finance Documents to which the      Borrower is a party, do now or, as the case may be, will, upon execution      and delivery (and, where applicable, registration as provided for in the      Finance Documents): |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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, |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.7 | No third party Security      Interests.  Without limiting the generality of      Clause 9.6, 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 or any other interest, right      or claim over, in or in relation to any asset to which any such Security      Interest, by its terms, relates. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.8 | No      conflicts.  The execution by the Borrower of each Finance      Document and the borrowing by the Borrower of the Loan, and the Borrower’s      compliance with each Finance Document 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. |
|-----|---------------------------------------------------------------------------------------------------------------------|

----

| 9.9 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.10 | No      default.  No Event of Default has occurred and is      continuing. |
|------|--------------------------------------------------------------------------------------|

| 9.11 | Information.  All      information which has been provided in writing by or on behalf of the      Borrower or any other Security Party to the Lender in connection with any      Finance Document satisfied the requirements of Clause 10.5; all      accounts which have been so provided satisfied the requirements of      Clause 10.7; and there has been no material adverse change in the      financial position or state of affairs of either the Borrower or any      member of the Group which may (in the opinion of the Lender) affect the      ability of the Borrower or any other Security Party to comply with the      terms of and/or perform its obligations under this Agreement and the      Financial Documents. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.12 | No      litigation.  No legal or administrative action involving      the Borrower (including, without limitation, any action relating to any      alleged or actual breach of the ISM Code and the ISPS Code and/or any      action relating to the Shipbuilding Contract to which it is a party) 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 or      profitability. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.13 | Validity and completeness of      Shipbuilding Contract. The Shipbuilding Contract constitutes valid,      binding and enforceable obligations of the Builder and the Borrower      respectively in accordance with its terms;and: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      copy of the Shipbuilding Contract delivered to the Lender before the date      of this Agreement is a true and complete copy;  and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | no      amendments or additions to the Shipbuilding Contract have been agreed nor      has the Borrower waived any of its rights under the Shipbuilding      Contract. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.14 | 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 purchase of the Ship, other than as disclosed to the      Lender in writing on or prior to the date of this    Agreement. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.15 | Compliance with certain      undertakings.  At the date of this Agreement, the      Borrower is in compliance with Clauses 10.2, 10.4, 10.9 and      10.13. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.16 | Taxes      paid.  The Borrower has paid all taxes applicable to, or      imposed on or in relation to the Borrower, its business or the      Ship. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.17 | ISO 9002.  The      Borrower will, once it is required to do so by law, obtain ISO 9002      certification. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| 9.18 | 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.19 | No money      laundering.  Without prejudice to the generality of      Clause 2.2, 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 effected 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      contravention of any |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10 | GENERAL      UNDERTAKINGS |
|----|---------------------------|

| 10.1 | General.  The      Borrower undertakes with the Lender to comply with the following      provisions of this Clause 10 at all times during the Security Period,      except as the Lender may otherwisepermit. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | 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      Document; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | not      create or permit to arise any Security Interest over any other asset,      present or future; and |
|-----|------------------------------------------------------------------------------------------------------------|

| (c) | procure      that its liabilities under the Finance Documents to which it is party do      and will rank at least pari passu with all other present and future      insecured liabilities, except for Liabilities which are mandatorily      preferred by law. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | 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 if any such debt or debts exceeds in any calendar year,      $200,000 (or the equivalent in any other currency) in      aggregate. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | No other liabilities or      obligations to be incurred.  The Borrower will not incur      any liability or obligation, including, without limitation, any Financial      Indebtedness, except liabilities and obligations under the Shipbuilding      Contract and the Finance Documents which it is a party and liabilities or      obligations reasonably incurred in the ordinary course of operating and      chartering the Ship. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | Provision of financial      statements.  The Borrower will send (or procure there are      sent) to the Lender: |
|------|---------------------------------------------------------------------------------------------------------------------------|

| (a) | as      soon as possible, but in no event later than 6 months after the end of      each financial year of the Borrower, its audited individual      accounts; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | promptly      following the request of the Lender, the audited consolidated financial      statements of the Group; and |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (c) | upon      receipt of the Lender’s request, information with respect to the financial      standing, commitments, operations and performance of the Borrower, the      other members of the Group and theShip. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | Form of financial      statements.  All accounts delivered under      Clause 10.6 will: |
|------|--------------------------------------------------------------------------------------------------------|

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

----

| (b) | give      a true and fair view of the state of affairs of the Borrower or, as the      case may be, the Group at the date of those financial statements and of      their 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 Group. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| 10.8 | Shareholder and creditor      notices.  In case of an Event of Default, the Borrower      will send the Lender, at the same time as they are despatched, copies of      all communications which are despatched to the Borrower’s shareholders or      creditors or any class of them. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9 | Consents.  The      Borrower will maintain in force and promptly obtain or renew, and will      promptly send certified copies to the Lender of, all consents      required: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | for      the Borrower to perform its obligations under any Finance Document and the      Shipbuilding Contract; |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (b) | for      the validity or enforceability of any Finance Document and the      Shipbuilding Contract; |
|-----|-----------------------------------------------------------------------------------------------------|

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

| 10.10 | 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 may be or 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 | Notification of      litigation.  The Borrower will provide the Lender with      details of any legal or administrative action involving the Borrower, any      other Security Party, 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. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 | No amendment to Shipbuilding      Contracts.  The Borrower will not agree to any amendment,      variation or supplement to, or waive or fail to enforce, the Shipbuilding      Contract or any of the provisionsthereof. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Principal place of      business.  The Borrower will maintain its place of      business, and keep its corporate documents and records, at the address      stated at Clause 27.2(a); and 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 the Republic of the Marshall Islands and/or Greece. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 | Confirmation of no      default.  The Borrower will, within 3 Business Days after      service by the Lender of a written request, serve on the Lender a notice      which is signed by 2 directors of the Borrower and  which: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| 10.15 | Notification of      default.  The Borrower will notify the Lender as soon as      it becomes aware of: |
|-------|-------------------------------------------------------------------------------------------------------------------|

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

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

| 10.16 | Ownership.  The      Borrower shall procure that there is no change in the legal or beneficial      ownership of the shares in the Borrower throughout the Security Period, or      any change in the management of theBorrower. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 | Provision of further      information.  The Borrower will, as soon as practicable      after receiving the request, provide the Lender with any additional      financial or other information relatingto: |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | which      may be requested by the Lender at anytime. |
|-----|-------------------------------------------------------|

| 11 | CORPORATE      UNDERTAKINGS |
|----|-----------------------------|

| 11.1 | General.  The      Borrower also undertakes with the Lender to comply with the following      provisions of this Clause 11 at all times during the Security Period      except as the Lender may otherwisepermit. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Negative      undertakings.  The Borrower will  not: |
|------|----------------------------------------------------------------|

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

| (b) | without      the Lender’s prior written consent in case an Event of Default has      occurred, pay any dividend or make any other form of distribution 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; |
|--------|------|---------------------------------------------------------------------------------------------------------|

|   | (iii) | or      enter into any transaction with or involving such a person or company on      terms which are, in any respect, less favourable to the Borrower than      those which it could obtain in a bargain made at arms’    length; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | other      than the Earnings Account and the Retention Account, open or maintain any      account with any bank or financial institution except accounts with the      Lender for the purposes of the Finance  Documents; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

| (h) | acquire      any vessel other than the Ship. |
|-----|----------------------------------------------|

| 12 | INSURANCE |
|----|-----------|

| 12.1 | General.  The      Borrower also undertakes with the Lender to comply with the following      provisions of this Clause 12 at all times during the Security Period      (after the Ship has been delivered to it under the Shipbuilding Contract      or under any other applicable agreement) except as the Lender may      otherwise permit. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Maintenance of obligatory      insurances.  The Borrower shall keep the Ship insured at      its expense against: |
|------|-----------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 12.3 | 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 of at least the greater of (i) an amount equal to 130      per cent. of the Loan and (ii) the Market Value of the Ship;      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 (currently$1,000,000,000); |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 12.4 | Further protections for the      Lender.  In addition to the terms set out in      Clause 12.3, the Borrower shall procure that the obligatory      insurances shall: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | whenever      the Lender requires name (or be amended to name) the Lender as additional      named assured for its rights and interests, warranted no operational      interest and with full waiver of rights of subrogation against the Lender,      but without the Lender thereby being liable to  pay |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

| (d) | provide      that the insurers shall waive, to the fullest extent permitted by English      law, their entitlement (if any) (whether by statute, common law, equity,      or otherwise) to be subrogated to the rights and remedies of the Lender in      respect of any rights or interests (secured or not) held by or available      to the Lender in respect of the Secured Liabilities, until the Secured      Liabilities shall have been fully repaid and discharged, except that the      insurers shall not be restricted by the terms of this paragraph (d) from      making personal claims against persons (other than the Borrower or the      Lender) in circumstances where the insurers have fully discharged their      liabilities and obligations under the relevant obligatory      insurances; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (f) | provide      that the Lender may make proof of loss if the Borrower fails to do      so; |
|-----|------------------------------------------------------------------------------------------|

| (g) | provide      that if any obligatory insurance is cancelled, or if any substantial      change is made in the coverage which adversely affects the interest of the      Lender, or if any obligatory insurance is allowed to lapse for non-payment      of premium, such cancellation, charge or lapse shall not be effective with      respect to the Lender for 30 days (or 7 days in the case of war risks)      after receipt by the Lender of prior written notice from the insurers of      such cancellation, change or lapse. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5 | Renewal of obligatory      insurances.  The Borrower  shall: |
|------|------------------------------------------------------------------------|

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

|   | (i) | notify      the Lender 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) | in      case of any substantial change in the obligatory insurance, obtain the      Lender's approval to the matters referred to in paragraph    (i); |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | at      least 14 days before the expiry of any obligatory insurance, renew that      obligatory insurance in accordance with the Lender's approval pursuant to      paragraph (a); and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 12.6 | Copies of policies; letters of      undertaking.  The Borrower shall ensure that all approved      brokers provide the Lender 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 Lender 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 12.4; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| (d) | they      will notify the Lender in writing, 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 Lender of the terms of the instructions;and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | they      will not set off against any sum recoverable in respect of a claim      relating to the Ship 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 (including, without      limitation, any fleet lien), 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      Lender. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7 | 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 Lender 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      Lender; |
|-----|---------------------------------------------------------------------------------------------|

| (c) | where      required to be issued under the terms of insurance/indemnity provided by      the Borrower's protection and indemnity association, a certified copy of      each United States of America voyage quarterly declaration (or other      similar document or documents) made by the Borrower in relation to the      Ship in accordance with the requirements of such protection and indemnity      association; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | 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. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.8 | 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.9 | 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  Lender. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.10 | 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. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.11 | Restrictions on      employment.  The Borrower shall not employ the Ship, nor      permit her to be employed, outside the cover provided by any obligatory      insurances. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.12 | Compliance with terms of      insurances.  The Borrower shall not do or omit to do (or      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 12.7 (c)) ensure that the obligatory insurances are not      made subject to any exclusions or qualifications to which the Lender has      not given its prior approval; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | 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 Lender 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.13 | 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. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.14 | 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 the Borrower shall do all things necessary and provide      all documents, evidence and information to enable the Lender to collect or      recover any moneys which at any time become payable in respect of the      obligatory insurances. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.15 | Provision of copies of      communications.  The Borrower shall provide the Lender,      at the time of each such communication, copies of all written      communications between itself and: |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | (i) | 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. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.16 | Provision of      information.  In addition, the Borrower shall promptly      provide the Lender (or any persons which it may designate) with any      information which the Lender (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 12.17 below or dealing with or considering any matters      relating to any such insurances; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.17 | Mortgagee's interest and      additional perils insurances.  The Lender shall be      entitled from time to time to effect, maintain and renew all or any of the      following insurances in such |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a) | a      mortgagee's interest marine insurance in relation to the Ship in an amount      equal to 115 per cent. of the Loan providing for the indemnification of      the Lender for any losses under or in connection with any Finance Document      which directly or indirectly result from loss of or damage to the Ship or      a liability of the Ship or of the Borrower, being a loss or damage which      is prima facie covered by an obligatory insurance but in respect of which      there is a non-payment (or reduced payment) by the underwriters by reason      of, or on the basis of an allegationconcerning: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      act or omission on the part of the Borrower, of any operator, charterer,      manager or sub-manager of the Ship or of any officer, employee or Lender      of the Borrower or of any such person, including any breach of warranty or      condition or any non-disclosure relating to such obligatory      insurance; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any      act or omission, whether deliberate, negligent or accidental, or any      knowledge or privity of the Borrower, any other person referred to in      paragraph (i) above, or of any officer, employee or agent of the Borrower      or of such a person, including the casting away or damaging of the Ship      and/or the Ship being unseaworthy;and/or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any      other matter capable of being insured against under a mortgagee's interest      marine insurance policy whether or not similar to the      foregoing; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | a      mortgagee's interest additional perils policy in relation to each Ship in      an amount equal to 115 per cent. of the Loan, providing for the      indemnification of the Lender against, among other things, any possible      losses or other consequences of any Environmental Claim, including the      risk of expropriation, arrest or any form of detention of the Ship, the      imposition of any Security Interest over the Ship and/or any other matter      capable of being insured against under a mortgagee's interest additional      perils policy whether or not similar to the  foregoing, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | and      the Borrower shall upon demand fully indemnify the Lender 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.18 | Review of insurance      requirements.  The Lender shall be entitled to review the      requirements of this Clause 12 from time to time in order to take account      of any changes in circumstances after the date of this Agreement which      are, in the opinion of the Lender, significant and capable of affecting      the Borrower or the Ship and its or their insurance (including, without      limitation, changes in the availability or the cost of insurance coverage      or the risks to which the Borrower may be subject), and may appoint      insurance consultants in relation to this review at the cost of the      Borrower. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.19 | Modification of insurance      requirements.  The Lender shall notify the Borrower of      any proposed modification under Clause 12.18 to the requirements of this      Clause 12 which the Lender consider appropriate in the circumstances, and      such modification shall take effect on and from the date it is notified in      writing to the Borrower as an amendment to this Clause 12 and shall bind      the Borrower accordingly. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.20 | Compliance with mortgagee's      instructions.  The Lender shall be entitled (without      prejudice to or limitation of any other rights which it may have or      acquire under any Finance Document) to require the Ship to remain at any      safe port or to proceed to and remain at any safe port designated by the      Lender until the Borrower implements any amendments to the terms of the      obligatory insurances and any operational changes required as a result of      a notice served under Clause 12.19. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13 | SHIP      COVENANTS |
|----|---------------------|

| 13.1 | General.  The      Borrower also undertakes with the Lender to comply with the following      provisions of this Clause 13 at all times during the Security Period      (after the Ship has been delivered to it under the Shipbuilding Contract      or under any other applicable agreement) except as the Lender may      otherwise permit in writing (in the case of Clause 13.13 such permission      not to be unreasonably withheld). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | Ship’s name and      registration.  The Borrower shall keep the Ship      registered in its name under an Approved Flag; shall not 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 the      Ship. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | 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 with the classification specified in Article I,      4(a) of the Shipbuilding Contract with American  Bureau of      Shipping or any other classification society, approved by the Lender,      which is a member of IACS, free of outstanding or overdue recommendations      and conditions of such classification society affecting the Ship’s class;      and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | so      as to comply with all laws and regulations applicable to vessels      registered at ports in the relevant Approved Flag State 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, the ISPS Code and the ISM Code      Documentation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4 | Classification society      undertaking.  The Borrower shall instruct the      classification society referred to in Clause 13.3 (and procure that      the classification society undertakes with the  Lender): |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      send to the Lender, following receipt of a written request from the      Lender, certified true copies of all original class records held by the      classification society in relation to theShip; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | to      allow the Lender (or its agents), at any time and from time to time, to      inspect the original class and related records of the Borrower and the      Ship at the offices of the classification society and to take copies of      them; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | to      notify the Lender immediately in writing if the classification      society: |
|-----|--------------------------------------------------------------------------------------|

|   | (i) | receives      notification from the Borrower or any other person that the Ship’s      classification society is to be changed;or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | becomes      aware of any facts or matters which may result in or have resulted in a      change, suspension, discontinuance, withdrawal or expiry of the Ship’s      class under the rules or terms and conditions of the Borrower’s or the      Ship’s membership of the classificationsociety; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | following      receipt of a written request from theLender: |
|-----|-------------------------------------------------------------|

|   | (i) | to      confirm that the Borrower is not in default of any of its contractual      obligations or liabilities to the classification society and, without      limiting the foregoing, that it has paid in full all fees or other charges      due and payable to the classification society;  or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if      the Borrower is in default of any of its contractual obligations or      liabilities to the classification society, to specify to the Lender in      reasonable detail the facts and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.5 | 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.6 | 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 Lender and becomes on installation on the Ship      the property of the Borrower and subject to the security constituted by      the Mortgage 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.7 | 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 Lender, provide the Lender with copies of all survey      reports and shall allow the Lender’s representatives to conduct a      comprehensive inspection of the Ship’s records when and if required by the      Lender. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.8 | Inspection.  The      Borrower shall permit the Lender (by surveyors or other persons appointed      by it for that purpose) to board the Ship at all reasonable times (during      the pre-delivery and post-delivery period) to inspect its condition or to      satisfy themselves about proposed or executed repairs and shall afford all      proper facilities for such inspections, and all costs and expenses in      relation thereto shall be for the account of the  Borrower. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.9 | 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, |
|-----|--------------------------------------------------------------------------------------------------|

| 13.10 | Compliance with laws      etc.  The Borrowershall: |
|-------|--------------------------------------------------------------|

| (a) | comply,      or procure compliance with the ISM Code, the ISPS Code, SOLAS, MARPOL 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      and the Approved Manager; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 its 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 Lender has been given and the      Borrower has (at its expense) effected any special, additional or modified      insurance cover which the Lender mayrequire. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.11 | Provision of      information.  The Borrower shall promptly provide the      Lender with any information which it 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; |
|-----|--------------------------------|

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

| 13.12 | Notification of certain      events.  The Borrower shall immediately notify the Lender      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 recommendation made by any insurer or classification      society or by any competent authority which is not immediately complied      with; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | any      arrest or detention of the Ship, any exercise or purported exercise of any      lien on the Ship or its 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; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13.13 | Restrictions on chartering,      appointment of managers etc.  The Borrower shall      not: |
|-------|-------------------------------------------------------------------------------------------------------|

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

| (b) | enter      into any time or consecutive voyage charter in respect of the Ship for a      term which is equal to or exceeds, or which by virtue of any optional      extensions may exceed, 12 months; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 that person has first given to      the Lender and in terms satisfactory to it a written undertaking not to      exercise any lien on the Ship or the Earnings for the cost of such work or      for any other reason. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.14 | Notice of      Mortgage.  The Borrower shall keep the relevant 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 Lender. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.15 | Sharing of      Earnings.   The Borrower shall  not: |
|-------|---------------------------------------------------------------------|

| (a) | enter      into any agreement or arrangement for the sharing of any      Earnings; |
|-----|------------------------------------------------------------------------------------|

| (b) | enter      into any agreement or arrangement for the postponement of any date on      which any Earnings are due; the reduction of the amount of any Earnings or      otherwise for the release or adverse alteration of any right of the      Borrower to any Earnings; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | enter      into any agreement or arrangement for the release of, or adverse      alteration to, any guarantee or Security Interest relating to any      Earnings. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.16 | Charterparty      Assignment.  If the Borrower enters into any time charter      (such charter to be in form and substance in all respects acceptable to      the Lender) in respect of the Ship after the date of delivery thereof to      the Borrower and which is of 12 or more months in duration, or is capable      of exceeding 12 or more months in duration, the Borrower shall at the      request of the Lender execute in favour of the Lender (and register, if      applicable) a Charterparty Assignment in respect of such charter in such      form and on such terms as the Lender may require, and shall deliver to the      Lender any documents in relation thereto which the Lender may      require. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | SECURITY      COVER |
|----|---------------------|

| 14.1 | Required security      cover.  The Borrower hereby undertakes that if (after the      Ship has been delivered to it under the Shipbuilding Contract), and so      often as, the aggregate of: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      Market Value of the Ship; and |
|-----|----------------------------------------|

| (b) | the      net realisable value of any additional security for the time being      actually provided to the Lender pursuant to this Clause  14, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| 14.2  | Meaning of additional      security.  In Clause 14.1 “security” means a      Security Interest over an asset or assets (whether securing the Borrower’s      liabilities under the Finance Documents or a guarantee in respect of those      liabilities), or a guarantee, letter of credit or other security in      respect of the Borrower’s liabilities under the Finance      Documents.  |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3 | Requirement for additional      documents.  The Borrower shall not be deemed to have      complied with Clause 14.1 (i) above until the Lender has received in      connection with the additional security certified copies of documents      referred to in paragraphs 3, 4 and 5 of Schedule 2, Part A below and such      legal opinions in terms acceptable to the Lender from such lawyers as they      may select. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4 | Valuation of      Ship.  The Market Value of the Ship at any date is that      shown by the average of valuations prepared by two independent sale and      purchase shipbrokers selected by the Lender, each such valuation to be      prepared: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | on      the basis of a sale for prompt delivery for cash on normal arm's length      commercial terms as between a willing seller and a willing buyer on a      charter free basis; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in      Dollars; and |
|-----|----------------------|

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

| 14.5 | Value of additional      security.  The net realisable value of any additional      security which is provided under Clause 14.1 and which consists of a      Security Interest over a vessel shall be that shown by a valuation      complying with the requirements of Clause14.4. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6 | Valuations      binding.  Any valuation under Clause 14.1(i), 14.4 or      14.5 shall be binding and conclusive as regards the Borrower, as shall be      any valuation which the Lender makes of a security which does not consist      of or include a Security Interest. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7 | Frequency of      valuations.  The Borrower acknowledges and agrees that      the Lender may commission valuations of the Ship at such times as the      Lender shall deem necessary and in any event not less often than once      during each 12 month period of the Security  Period. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8 | Provision of      information.  The Borrower shall promptly provide the      Lender and any shipbroker or expert acting under Clause 14.4 or 14.5 with      any information which the Lender 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 Lender (or      the expert appointed by them) considerprudent. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.9 | Payment of valuation      expenses.  Without prejudice to the generality of the      Borrower’s obligations under Clauses 19.2, 19.3 and 20.3, the Borrower      shall, on demand, pay the Lender the amount of the fees and expenses of      any shipbroker or expert instructed by the Lender under this Clause and      all legal and other expenses incurred by the Lender in connection with any      matter arising out of this Clause. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15 | PAYMENTS      AND CALCULATIONS |
|----|--------------------------------|

| 15.1 | Currency and method of      payments.  All payments to be made by the Borrower to the      Lender under a Finance Document shall be made to the    Lender: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | to      the account of the Lender with Citibank N.A., New York, NY, USA (Account      No 10928312 under reference “Sunray Navigation Inc. - for Shipping      Branch), or to such other account with such other bank as the Lender may      from time to time notify to theBorrower. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2 | 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; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | Basis for calculation of      periodic payments.  All interest and commitment fee 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 day      year. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4 | Lender      accounts.  The Lender shall maintain an account or      accounts showing the amounts advanced by the Lender and all other sums      owing to the 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 other SecurityParty. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.5 | Accounts prima facie      evidence.  If the account maintained under      Clauses 15.4 shows an amount to be owing by the Borrower or a      Security Party to the Lender, that account shall be prima facie evidence      that that amount is owing to theLender. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16 | APPLICATION      OF RECEIPTS |
|----|------------------------------|

| 16.1 | Normal order of      application.  Except as any Finance Document may      otherwise provide, any sums which are received or recovered by the Lender      under or by virtue of any Finance Document shall be    applied: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | FIRSTLY:      in or towards the payment of expenses and all sums other than principal or      interest which may be owing to the Lender under the Finance      Documents; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | SECONDLY:      in or towards the payment of any arrears of interest owing to the Lender      hereunder; |
|-----|---------------------------------------------------------------------------------------------------------|

| (c) | THIRDLY:      in or towards the payment of any other sums of money due to the Lender      under the Finance Documents; |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (d) | FOURTHLY:      in or towards the repayment of the Loan (whether the same is due and      payable or not); |
|-----|-----------------------------------------------------------------------------------------------------------|

----

| (e) | FIFTHLY:      following the occurrence of an Event of Default, in retention of an amount      equal to any amount not then due and payable under any Finance Document      but which the Lender, by notice to the Borrower and the Security Parties,      states in its opinion 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 this Clause;      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | SIXTHLY:      the balance (if any) shall be paid as the Borrower shall direct in writing      to the Lender. |
|-----|--------------------------------------------------------------------------------------------------------------|

| 16.2 | Variation of order of      application.  The Lender may, by notice to the Borrower      and the Security Parties, provide for a different manner of application      from that set out in Clause 16.1 either as regards a specified sum or      sums or as regards sums in a specified category or    categories. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | Notice of variation of order of      application.  The Lender may give notices under      Clause 16.2 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4 | Appropriation rights      overridden.  This Clause 16 and any notice which the      Lender gives under Clause 16.2 shall override any right of      appropriation possessed, and any appropriation made, by the Borrower or      any other Security Party. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17 | APPLICATION      OF EARNINGS |
|----|------------------------------|

| 17.1 | Payment of      Earnings.  The Borrower undertakes with the Lender to      ensure that, throughout the Security Period (subject only to the      provisions of the relevant General Assignment), all the Earnings of the      Ship are paid to the EarningsAccount. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2 | Monthly      retentions.  The Borrower undertakes with the Lender to      ensure that, on the day falling 1 month after the Drawdown Date of the      Sixth Advance and on the same day in each subsequent month, there is      transferred to the Retention Account out of the aggregate Earnings      received in the Earnings Account during the preceding calendar      month: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | one-third      of the amount of each repayment instalment falling due under Clause 7.1(a)      on the next Repayment Date; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      relevant fraction of the aggregate amount of interest on the Loan which is      payable on the next due date for payment of interest under this      Agreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3 | Shortfall in      Earnings.  If the aggregate Earnings received in the      Earnings Account are insufficient in any month for the required amount to      be transferred to the Retention Account under Clause 17.2, the Borrower      shall make up the amount of the insufficiency on demand from the      Lender. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4 | Application of      retentions.  Until an Event of Default occurs, the Lender      shall on each Repayment Date and on each due date for the payment of      interest under this Agreement apply so much of the then balance on the      Retention Account as equals: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| 17.5 | Interest accrued on Retention      Account.  Any credit balance on the Retention Account      shall bear interest at the rate from time to time offered by the Lender to      its customers for Dollar deposits of similar amounts and for periods      similar to those for which such balances appear to the Lender likely to      remain the Retention Account. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.6 | Release of accrued      interest.  Interest accruing under Clause 17.5 shall be      released to the Borrower on each Repayment Date unless an Event of Default      has occurred or the then credit balance on the Retention Account is less      than what would have been the balance had the full amount required by      Clause 17.2 (and Clause 17.3, if applicable) been transferred in that and      each previous month. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.7 | Location of      accounts.  The Borrower shall  promptly: |
|------|---------------------------------------------------------------------|

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

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

| 17.8 | Debits for expenses      etc.  The Lender shall be entitled (but not obliged) from      time to time to debit the Earnings Account without prior notice in order      to discharge any amount due and payable under Clause 19 or 20 to the      Lender or payment of which the Lender has become entitled to demand under      Clause 19 or 20. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.9 | Borrower’s obligations      unaffected.  The provisions of this Clause 17 (as      distinct from a distribution effected under Clause 17.4) 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 other Security Party      under any Finance Document. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| 18 | EVENTS      OF DEFAULT |
|----|------------------------|

| 18.1 | Events of      Default.  An Event of Default occurs  if: |
|------|--------------------------------------------------------------------|

| (a) | the      Borrower or any other Security Party fails to pay when due or (if so      payable) on demand within 3 Business Days of such demand and any sum      payable under a Finance Document or under any document relating to a      Finance Document; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any      breach occurs of Clause 8.2, 10.2, 10.3, 10.16, 11.2, 11.3 or 14.1 or      Clause 11.15 (financial covenants) of the Corporate Guarantee;      or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d) | any      breach by the Borrower or any other Security Party occurs of any provision      of a Finance Document (other than a breach covered by paragraphs (a), (b)      or (c) above); or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

|   | (i) | any      Financial Indebtedness of a Relevant Person is not paid when due or, if so      payable, on demand; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (ii) | any      Financial Indebtedness of a 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 a 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 a 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 a Relevant Person      becomes enforceable; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

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

|   | (i) | a      Relevant Person becomes, in the opinion of the Lender, 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 or any form of freezing      order; or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (iv) | a      Relevant Person makes any formal declaration of bankruptcy or any formal      statement to the effect that it is insolvent or likely to become      insolvent, or a winding up or administration order is made in relation to      a Relevant Person, or the members or directors of a Relevant Person pass a      resolution to the effect that it should be wound up, placed in      administration or cease to carry on business, save that this paragraph      does not apply to a fully solvent winding up of a Relevant Person other      than the Borrower or the Corporate Guarantor which is, or is to be,      effected for the purposes of an amalgamation or reconstruction previously      approved by the Lender and effected not later than 3 months after the      commencement of the winding up; or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | a      petition is presented in any Pertinent Jurisdiction for the winding up or      administration, or the appointment of a provisional liquidator, of a      Relevant Person unless the petition is being contested in good faith and      on substantial grounds and is dismissed or withdrawn within 30 days of the      presentation of the petition; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | a      Relevant Person petitions a court, or presents any proposal for, any form      of judicial or non-judicial suspension or deferral of payments,      reorganisation of its debt (or certain of its debt) or arrangement with      all or a substantial proportion (by number or value) of its creditors or      of any class of them or any such suspension or deferral of payments,      reorganisation or arrangement is effected by court order, contract or      otherwise; or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (vii) | any      meeting of the members or directors of a Relevant Person is summoned for      the purpose of considering a resolution or proposal to authorise or take      any action of a type described in paragraphs (iii), (iv), (v) or (vi)      above; or |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | in      a Pertinent Jurisdiction other than England, any event occurs or any      procedure is commenced which, in the opinion of the Lender, is similar to      any of the foregoing; or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| (j) | any      official consent necessary to enable the Borrower to own, operate or      charter the Ship or to enable the Borrower or any other Security Party to      comply with any provision which the Lender considers material of a Finance      Document or the Shipbuilding Contract 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 |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | it      appears to the Lender that, without its prior consent, a change has      occurred or probably has occurred after the date of this Agreement in the      ownership of any of the shares in the Borrower or any other Security Party      or in the ultimate control of the voting rights attaching to any of those      shares or in the management of the Borrower;or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (n) | 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, the Corporate Guarantor or the Group;  or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

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

|   | in      the light of which the Lender considers that there is a significant risk      that the Borrower or any other Security Party is, or will later become,      unable to discharge its liabilities under the Finance Documents as they      fall due. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | Actions following an Event of      Default.  On, or at any time after, the occurrence of an      Event of Default: |
|------|------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      Lender may: |
|-----|----------------------|

|   | (i) | serve      on the Borrower a notice stating that the obligations of the Lender to the      Borrower under this Agreement are terminated;  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) above, the Lender is entitled to take      under any Finance Document or any applicable law;  and/or |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      Lender may take any action which, as a result of the Event of Default or      any notice served under paragraph (a) (i) or (ii) above, the Lender is      entitled to take under any Finance Document or any applicable      law. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | Termination of      obligations.  On the service of a notice under      Clause 18.2(a), all the obligations of the Lender to the Borrower      under this Agreement shallterminate. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4 | Acceleration of      Loan.  On the service of a notice under      Clause 18.2(b), the Loan, all accrued interest and all other amounts      accrued or owing from the Borrower or any other Security Party under this      Agreement and every other Finance Document shall become immediately due      and payable or, as the case may be, payable on  demand. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.5 | Multiple notices; action      without notice.  The Lender may serve notices under      Clause 18.2 (a) and (b) simultaneously or on different dates and it      may take any action referred to in Clause 18.2 if no such notice is served      or simultaneously with or at any time after the service of both or either      of such notices. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.6 | Exclusion of Lender      liability.  Neither the Lender nor any receiver or      manager appointed by the Lender, 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; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.7 | Interpretation.  In      Clause 18.1(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 18.1(g) “petition” includes an      application. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19 | FEES      AND EXPENSES |
|----|------------------------|

| 19.1 | Arrangement and commitment      fees.  The Borrower shall pay to the    Lender: |
|------|-------------------------------------------------------------------------------------------|

| (a) | on      the date of this Agreement a non-refundable arrangement fee of $66,350;      and |
|-----|------------------------------------------------------------------------------------------|

| (b) | quarterly      in arrears during the period from (and including) date of this Agreement      to the earlier of (i) the Drawdown Date in respect of the Sixth Advance      and (ii) the last day of the Availability Period and on the last day of      that period, a non-refundable commitment fee equal to 0.20 per cent. per      annum of the undrawn amount of theLoan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.2 | Costs of negotiation,      preparation etc.  The Borrower shall pay to the Lender on      its demand the amount of all expenses incurred by the Lender 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. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3 | Costs of variation, amendments,      enforcement etc.  The Borrower shall pay to the Lender,      on the Lender’s demand, the amount of all expenses incurred by the Lender      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 Lender under or in connection with a Finance      Document, or any request for such a consent or  waiver; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d) | the      opinions of the independent insurance consultant referred to in paragraph      7 of Part C of Schedule 2; or |
|-----|-----------------------------------------------------------------------------------------------------------------------|

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

|   | There      shall be recoverable under paragraph (e) the full amount of all legal      expenses, whether or not such as would be allowed under rules of court or      any taxation or other procedure carried out under such    rules.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4 | Documentary      taxes.  The Borrower shall promptly pay any tax payable      on or by reference to any Finance Document, and shall, on the Lender’s      demand, fully indemnify the Lender against any claims, expenses,      liabilities and losses resulting from any failure or delay by the Borrower      to pay such a tax. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5 | Certification of      amounts.  A notice which is signed by an authorised      officer of the Lender, which states that a specified amount, or aggregate      amount, is due to that Lender under this Clause 19 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. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20 | INDEMNITIES |
|----|-------------|

| 20.1 | Indemnities regarding borrowing      and repayment of Loan.  The Borrower shall fully      indemnify the Lender on its demand in respect of all claims, expenses,      liabilities and losses which are made or brought against or incurred by      the Lender, or which the Lender reasonably and with due diligence      estimates that it will incur, as a result of or in connection      with: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (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 underClause 6; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      occurrence and/or continuance of an Event of Default and/or the      acceleration of repayment of the Loan under  Clause 18, |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | and      in respect of any tax (other than tax on its overall net income) for which      the Lender is liable in connection with any amount paid or payable to the      Lender (whether for its own account or otherwise) under any Finance      Document.  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | Breakage      costs.  Without limiting its generality, Clause 20.1      covers any claim, expense, liability or loss incurred by the      Lender: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 20.3 | Miscellaneous      indemnities.  The Borrower shall fully indemnify the      Lender on its respective demands in respect of all claims, demands,      proceedings, liabilities, taxes, losses and expenses of every kind (“liability items”) which      may be made or brought against, or incurred by, the Lender in any country,      in relation to: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | any      other event, matter or question which occurs or arises at any time during      the Security Period and which has any connection with, or any bearing on,      any Finance Document, any payment or other transaction relating to a      Finance Document or any asset covered (or previously covered) by a      Security Interest created (or intended to be created) by a Finance      Document, |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | other      than liability items which are shown to have been caused by the gross      negligence or the wilful misconduct of the Lender's or (as the case may      be) the Lender’s own officers oremployees.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Without      prejudice to its generality, this Clause 20.3 covers any claims, expenses,      liabilities and losses which arise, or are asserted, under or in      connection with any law relating to safety at sea, the ISM Code, the ISPS      Code, or any Environmental law.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.4 | Currency      indemnity.  If any sum due from the Borrower or any other      Security Party to the Lender 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 other 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, |
|-----|--------------------------------------------|

|   | the      Borrower shall indemnify the Lender against the loss arising when the      amount of the payment actually received by the Lender is converted at the      available rate of exchange into the Contractual  Currency.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      this Clause 20.4, the “available rate of      exchange” means the rate at which the Lender is able at the opening      of business (London time) on the Business Day after it receives the sum      concerned to purchase the Contractual Currency with the Payment      Currency.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | This      Clause 20.4 creates a separate liability of the Borrower which is      distinct from its other liabilities under the Finance Documents and which      shall not be merged in any judgment or order relating to those other      liabilities.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.5 | Certification of      amounts.  A notice which is signed by two authorised      officers of the Lender, which states that a specified amount, or aggregate      amount, is due to the Lender 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 | NO      SET-OFF OR TAX DEDUCTION |
|----|----------------------------------|

| 21.1 | 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. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| 21.2 | 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 Lender 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; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      amount due in respect of the payment shall be increased by the amount      necessary to ensure that the Lender 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. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3 | Evidence of payment of      taxes.  Within one month after making any tax deduction,      the Borrower shall deliver to the Lender documentary evidence satisfactory      to the Lender that the tax had been paid to the appropriate taxation      authority. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4 | Exclusion of tax on overall net      income.  In this Clause 21 “tax deduction” means any      deduction or withholding for or on account of any present or future tax      except tax on the Lender's overall netincome. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22 | ILLEGALITY,      ETC |
|----|----------------------|

| 22.1 | Illegality.  This      Clause 22 applies if the Lender notifies the Borrower 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, |
|-----|--------------------------------------------------------|

|   | for      the Lender to maintain or give effect to any of its obligations under this      Agreement in the manner contemplated by this Agreement or any of the      Finance Documents.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.2  | Notification and effect of      illegality.  On the Lender notifying the Borrower under      Clause 22.1, the Lender's obligation to make any further Advance      available to the Borrower shall terminate; and thereupon or, if later, on      the date specified in the Lender's notice    under   |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Clause 22.1 as the date on which the notified event would      become effective the Borrower shall prepay the Loan in full in accordance      with Clause 7.  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.3 | Mitigation.  If      circumstances arise which would result in a notification under      Clause 22.1 then, without in any way limiting the rights of the      Lender under Clause 22.3, the 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 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. |
|-----|---------------------------------------------------------------------------------------------------|

| 23 | INCREASED      COSTS |
|----|----------------------|

| 23.1 | Increased      costs.  This Clause 23 applies if the Lender notifies the      Borrower that it considers that as a resultof: |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

| (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) | the      effect of complying with any regulation (including any which relates to      capital adequacy or liquidity controls or which affects the manner in      which the 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, |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | is      that the Lender (or a parent company of it) has incurred or will incur an      “increased cost”, that is to say: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | an      additional or increased cost incurred as a result of, or in connection      with, the Lender having entered into, or being a party to, this Agreement      of funding or maintaining the Loan or performing its obligations under      this Agreement, or of having outstanding all or any part of the Loan or      other unpaid sums; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (iii) | 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      Loan or (as the case may require) the proportion of that cost attributable      to the Loan; or |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | but      not an item attributable to a change in the rate of tax on the overall net      income of the Lender (or a parent company of it) or an item covered by the      indemnity for tax in Clause 20.1 or by Clause  21. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      the purposes of this Clause 23.1 the Lender may in good faith allocate or      spread costs and/or losses among its assets and liabilities (or any class      thereof) on such basis as it considers  appropriate.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 23.2 | Payment of increased      costs.  The Borrower shall pay to the Lender, on the      Lender's demand, for the account of the Lender the amounts which the      Lender from time to time notifies the Borrower that it has specified to be      necessary to compensate the Lender for the increased  cost. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | Notice of      prepayment.  If the Borrower is not willing to continue      to compensate the Lender for the increased cost under Clause 23.2, the      Borrower may give the Lender not less than 14 days' notice of their      intention to prepay the Loan at the end of an Interest    Period. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.4 | Prepayment.  A      notice under Clause 23.3 shall be irrevocable and on the date specified in      its notice of intended prepayment, the Borrower shall prepay (without      premium or penalty) the Loan, together with accrued interest thereon at      the applicable rate plus the applicableMargin. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.5 | Application of      prepayment.  Clause 7 shall apply in relation to the      prepayment. |
|------|-----------------------------------------------------------------------------------------------------|

| 24 | SET-OFF |
|----|---------|

| 24.1 | Application of credit      balances.  The Lender 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 the Lender in or towards satisfaction of any sum then due from      the Borrower to the Lender under any of the Finance Documents;      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 24.2 | Existing rights      unaffected.  The Lender shall not be obliged to exercise      any of its rights under Clause 24.1; 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 the Lender is      entitled (whether under the general law or any  document). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3 | No Security      Interest.  This Clause 24 gives the Lender 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25 | TRANSFERS      AND CHANGES IN LENDING OFFICES |
|----|-----------------------------------------------|

| 25.1 | Transfer by      Borrower.  The Borrower may not transfer any of its      rights, liabilities or obligations under any Finance    Document. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Assignment by      Lender.  The Lender may assign or transfer all or any of      the rights and interests which it has under or by virtue of the Finance      Documents by giving notice to theBorrower. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.3 | Rights of      assignee.  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, a      direct or indirect assignee of any of the Lender's rights or interests      under or by virtue of the Finance Documents shall be entitled to recover      damages by reference to the loss incurred by that assignee as a result of      the breach or misrepresentation irrespective of whether the Lender would      have incurred a loss of that kind oramount. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 25.4 | Sub-participation; subrogation      assignment.  The 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 the Borrower and the Lender may      assign, in any manner and terms agreed by it, all or any part of those      rights to an insurer or surety who has become subrogated to      them. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.5 | Disclosure of      information.  The Lender may disclose to a potential      assignee or sub-participant any information which the Lender has received      in relation to the Borrower, any other Security Party or their affairs      under or in connection with any Finance Document, unless the information      is clearly of a confidentialnature. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.6 | Change of lending      office.  The Lender may change its lending office by      giving notice to the Borrower and the change shall become effective on the      later of: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      date on which the Borrower 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 | VARIATIONS      AND WAIVERS |
|----|-----------------------------|

| 26.1 | Variations, waivers etc. by      Lender.  A document shall be effective to vary, waive,      suspend or limit any provision of a Finance Document, or the Lender's      rights or remedies under such a provision or the general law, only if the      document is signed, or specifically agreed to by fax or telex, by the      Borrower and the Lender and, if the document relates to a Finance Document      to which a Security Party is party, by that Security  Party. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.2 | Exclusion of other or implied      variations.  Except for a document which satisfies the      requirements of Clause 26.1, no document, and no act, course of      conduct, failure or neglect to act, delay or acquiescence on the part of      the Lender (or any person acting on its behalf) shall result in the Lender      (or any person acting on its behalf) being taken to have varied, waived,      suspended or limited, or being precluded (permanently or temporarily) from      enforcing, relying on orexercising: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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; |
|-----|----------------------------------------------------------------------------------------|

|   | and      there shall not be implied into any Finance Document any term or condition      requiring any such provision to be enforced, or such right or remedy to be      exercised, within a certain or reasonabletime  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 27.1 | 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.2 | Addresses for      communications.  A notice shall be  sent: |
|------|------------------------------------------------------------------------|

| (a) | to      the Borrower: | 24      Kaningos St. |   |
|-----|-----------------------|----------------------|--------|

|   | Piraeus |
|--------|---------|

|   | Greece |
|--------|--------|

----

|   | Attention      of: | Charilaos      Loukopoulos - Executive VicePresident |
|--------|--------------------|------------------------------------------------------|

|   | Fax      No: +30 210 422 0230 |
|--------|-------------------------------|

| (b)    | to      the Lender: | The      National Bank of Greece  S.A. |   |
|--------|---------------------|--------------------------------------------------|--------|
|   |                | 2      Bouboulinas Street & Akti Miaouli     |   |
|   |                | 185      35 Piraeus                              |   |
|   |                | Greece                                           |   |
|   |                |                                             |   |
|   |                | Fax      No: +30 210 414 4120                    |   |

|   | or      to such other address as the relevant party may notify the Lender or, if      the relevant party is the Lender, the Borrower, the Lender and the      Security Parties.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.3 | Effective date of      notices.  Subject to Clauses 27.4 and      27.5: |
|------|----------------------------------------------------------------------------------------|

| (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; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 27.4 | Service outside business      hours.  However, if under Clause 27.3 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; |
|-----|------------------------------------------------------------|

|   | the      notice shall (subject to Clause 27.5) be deemed to be served, and      shall take effect, at 9 a.m. on the next day which is such a business      day.  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.5 | Illegible      notices.  Clauses 27.4 and 27.4 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.6 | 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.7 | English      language.  Any notice under or in connection with a      Finance Document shall be inEnglish. |
|------|----------------------------------------------------------------------------------------------------------------------|

| 27.8 | Meaning of      “notice”.  In this Clause 27 “notice” includes any      demand, consent, authorisation, approval, instruction, waiver or other      communication. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 28 | SUPPLEMENTAL |
|----|--------------|

| 28.1 | Rights cumulative,      non-exclusive.  The rights and remedies which the Finance      Documents give to the Lender are: |
|------|------------------------------------------------------------------------------------------------------------------------------------|

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

| 28.2 | 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. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.3 | Counterparts.  A      Finance Document may be executed in any number of      counterparts. |
|------|------------------------------------------------------------------------------------------------------|

| 28.4 | 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 | LAW      AND JURISDICTION |
|----|---------------------------|

| 29.1 | English      law.  This Agreement shall be governed by, and construed      in accordance with, English law. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| 29.2 | Exclusive English      jurisdiction.  Subject to Clause 29.3, the courts of      England shall have exclusive jurisdiction to settle any disputes which may      arise out of or in connection with this  Agreement. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.3 | Choice of forum for the      exclusive benefit of the Lender.  Clause 29.2 is for the      exclusive benefit of the Lender, each of which reserves the      right: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | No      Borrower shall commence any proceedings in any country other than England      in relation to a matter which arises out of or in connection with this      Agreement.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.4 | Process      Agent.  The Borrower irrevocably appoints Hill Dickinson      Services Limited at its office for the time being, presently at Irongate      House, 7 Duke’s Place, London EC3A 7LP, 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.5 | Lender’s rights      unaffected.  Nothing in this Clause 29 shall exclude or      limit any right which the Lender 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.6 | Meaning of      “proceedings”.  In this Clause 29, “proceedings” means      proceedings of any kind, including an application for a provisional or      protective measure. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| BORROWER                          |   |   |   |
|-----------------------------------|--------|--------|--------|
|                              |   |   |   |
| SIGNEDby                          | )      |   |   |
| for      and on behalf of         | )      |   |   |
| SUNRAY      NAVIGATION INC.       | )      |   |   |
| in      the presence of:          | )      |   |   |
|                              |   |   |   |
|                              |   |   |   |
|                              |   |   |   |
|                              |   |   |   |
|                              |   |   |   |
| LENDER                            |   |   |   |
|                              |   |   |   |
| SIGNEDby                          | )      |   |   |
| for      and on behalf of         | )      |   |   |
| NATIONAL      BANK OF GREECE S.A. | )      |   |   |
| in      the presence of:          | )      |   |   |

----

| 1 | We      refer to the loan agreement (the “Loan Agreement”)      dated              2007      and made between ourselves, as Borrower, and yourselves, as Lender, in      connection with a facility of up to $33,176,250.  Terms defined      in the Loan Agreement have their defined meanings when used in this      Drawdown Notice. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | We      request to borrow the [l]Advance as      follows: |
|---|-----------------------------------------------------------|

| (a) | Amount      of Advance:  $[l]. |
|-----|------------------------------------------|

| (b) | Drawdown      Date:  [                       ]      200[l]. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d) | Payment      instructions : account of [l] and numbered      [l] with      [l] of [l]. |
|-----|----------------------------------------------------------------------------------------|

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

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

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

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

| 5 | We      authorise you to deduct from the amount of the Advance all accrued but      unpaid fees payable pursuant to Clause19.1. |
|---|---------------------------------------------------------------------------------------------------------------------------------|

----

| 1 | A      duly executed original of this Agreement, the Corporate Guarantee and the      Predelivery Security Assignment (and of each document required to be      delivered pursuant thereto). |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 3 | Copies      of resolutions of the shareholders and directors of the Borrower and each      Security Party authorising the execution of each of the Finance Documents      referred to at paragraph 1 above to which the Borrower and that Security      Party is a party and, in the case of the Borrower, authorising named      officers to give the Drawdown Notices and other notices under this      Agreement and ratifying the execution of the Shipbuilding Contract or the      Refund Guarantee. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | The      original of any power of attorney under which any Finance Document      referred to at paragraph 1 above is executed on behalf of the Borrower and      each Security Party. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 6 | Copies      of the Shipbuilding Contract and of all documents signed or issued by the      Borrower or the Builder (or any of them) under or in connection with the      Shipbuilding Contract, each to be in a form acceptable to the      Lender. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | The      original Refund Guarantee, to be in a form and on terms acceptable to the      Lender and its legal advisers. |
|---|------------------------------------------------------------------------------------------------------------------------|

| 8 | A      duly issued invoice from the Builder showing all sums due and payable to      the Builder pursuant to Article X, 2(a) of the Shipbuilding      Contract. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | Documentary      evidence that the full amount of the instalment payable pursuant to      Article X, 2(a) of the Shipbuilding Contract has been paid to and received      by the Builder. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | A      Material Adverse Charge Warranty Letter duly signed by the Borrower and      the Corporate Guarantor. |
|----|--------------------------------------------------------------------------------------------------------------|

| 11 | Evidence      that the Borrower is a wholly owned subsidiary of the Corporate      Guarantor. |
|----|-----------------------------------------------------------------------------------------------|

| 12 | Documentary      evidence that the agent for service of process named in Clause 29 has      accepted its appointment. |
|----|-----------------------------------------------------------------------------------------------------------------------|

| 13 | Favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the laws of the Republic of the Marshall Islands and the      Republic of South Korea and such other relevant jurisdictions as the      Lender may require. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | If      the Lender so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Lender. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1 | Documentary      evidence that the steel of the Ship has been cut (in the case of the Third      Advance) the keel of the Ship has been laid (in the case of the Fourth      Advance) or that the Ship has been launched (in the case of the Fifth      Advance). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | A      duly issued invoice from the Builder showing all sums due and payable to      the Builder pursuant to the Shipbuilding Contract in respect of the      instalment payable pursuant to Article X, 2(c) of the Shipbuilding      Contract, upon the steel-cutting of the Ship (in the case of the the Third      Advance), Article X, 2(d) upon the keel-laying of the Ship (in the case of      the Fourth Advance) or Article X, 2(e) upon launching of the Ship (in the      case of the Fifth Advance) (as the case maybe). |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Stage      certificates issued by such classification society as the Lender may      approve in a form acceptable to the Lender, confirming that the building      works carried out up to and including the steel-cutting of the Ship (in      the case of the Third Advance), the keel-laying of the Ship (in the case      of the Fourth Advance) or launching of the Ship (in the case of the Fifth      Advance) (as the case may be) have been completed to the satisfaction of      such classification society; |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Documentary      evidence that the full amount of the relevant instalment due under Article      X, 2(b) (in the case of the Second Advance),  Article X, 2(c)      (in the case of the Third Advance), Article X 2(d) (in the case of the      Fourth Advance) and Article X, 2(e) (in the case of the Fifth Advance) of      the Shipbuilding Contract (in addition to the part to be financed by the      relevant Advance) has been dulypaid. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | A      Material Adverse Change Warranty Letter duly signed by the      Borrower. |
|---|----------------------------------------------------------------------------------|

| 6 | Except      in the case of the First Advance and the Second Advance written      confirmation from the Borrower and the Approved Manager that they have      irrevocably accepted and approved the building works which have been      completed on the Ship up to the date of her steel-cutting, keel-laying or      launching as the case may be. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | A      duly executed original of each of the Mortgage, the Retention Account      Pledge, the General Assignment and any Charterparty Assignment (and of      each document to be delivered pursuant to 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 Shipbuilding Contract, and the full purchase price      payable under the Shipbuilding Contract (in addition to the part (if any)      to be financed by the Sixth Advance) has been duly paid, together with a      copy of each of the documents to be delivered by the Builder to the      Borrower under the Shipbuilding Contract (including but not limited to,      the Builder’s certificate, the bill of sale, the commercial invoice and      the protocol of delivery andacceptance); |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      Ship is definitively and permanently registered in the name of the      Borrower under an Approved Flag; |
|-----|-------------------------------------------------------------------------------------------------------------------|

----

| (c) | the      Ship is in the absolute and unencumbered ownership of the Borrower save as      contemplated by the Finance Documents to which the Borrower is a      party; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      Ship maintains the classification specified in Clause 13.3(b) with      American  Bureau of Shipping or any other classification      society, approved by the Lender, which is a member of IACS, free of any      outstanding or overdue recommendations and conditions of such      classification society affecting the Ship’s  class; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | the      Mortgage has been duly registered against the Ship as a valid first      preferred or priority ship mortgage in accordance with the laws of the      applicable Approved Flag State; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | 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 | A      duly issued invoice from the Builder showing all sums due and payable to      the Builder pursuant to Article X, 2(f) of the Shipbuilding Contract upon      delivery of the Ship. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Evidence      that the part of the instalment payable pursuant to Article X, 2(f) of the      Shipbuilding Contract which is not to be financed by the Sixth Advance has      been remitted by the Lender to theBuilder. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Documents      establishing that the Ship will, as from the relevant Delivery Date, be      managed by the Approved Manager on terms acceptable to the Lender,      together with: |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      Approved Manager’s Undertaking in relation to the Ship duly signed by the      Approved Manager and the Material Adverse Change Warranty Letter duly      signed by the Borrower; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | copies      of the Approved Manager’s document of compliance (DOC) and the safety      management certificate (SMC) in respect of the Ship referred to in      paragraph (a) of the definition of the ISM Code Documentation certified as      true and in effect by the Borrower and the Approved Manager;      and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | a      copy of the International Ship Security Certificate in respect of the Ship      certified as true and in effect by the Borrower and the Approved      Manager. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Two      valuations of the Ship (at the cost of the Borrower), each from an      independent sale and purchase shipbroker appointed by the Lender dated not      earlier than 10 days before the Drawdown Date of the Sixth Advance      applicable to the Ship and prepared in accordance with Clause      14.4. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Favourable      opinions from an independent insurance consultant acceptable to the Lender      on such matters relating to the insurances for the Ship as the Lender may      require. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | Favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the laws of the applicable Approved Flag State and such other      relevant jurisdictions as the Lender may  require. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | The      originals of any mandates or other documents required in connection with      the opening of operation of the Earnings Account and the Retention      Account. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|