----

| CLAUSE NO. |                                | PAGE      NO. |
|------------|-------------------------------------|---------------|
|       |                                |          |
| 1          | INTERPRETATION                      | 1             |
|       |                                |          |
| 2          | FACILITY                            | 14            |
|       |                                |          |
| 3          | DRAWDOWN                            | 14            |
|       |                                |          |
| 4          | INTEREST                            | 15            |
|       |                                |          |
| 5          | INTEREST      PERIODS               | 16            |
|       |                                |          |
| 6          | DEFAULT      INTEREST               | 17            |
|       |                                |          |
| 7          | REPAYMENT      AND PREPAYMENT       | 18            |
|       |                                |          |
| 8          | CONDITIONS      PRECEDENT           | 20            |
|       |                                |          |
| 9          | REPRESENTATIONS      AND WARRANTIES | 21            |
|       |                                |          |
|       |                                |          |
| 10         | GENERAL      UNDERTAKINGS           | 23            |
|       |                                |          |
| 11         | CORPORATE      UNDERTAKINGS         | 26            |
|       |                                |          |
| 12         | INSURANCE                           | 27            |
|       |                                |          |
| 13         | SHIP      COVENANTS                 | 32            |
|       |                                |          |
| 14         | SECURITY      COVER                 | 36            |
|       |                                |          |
| 15         | PAYMENTS      AND CALCULATIONS      | 37            |
|       |                                |          |
| 16         | APPLICATION      OF RECEIPTS        | 38            |
|       |                                |          |
| 17         | APPLICATION      OF EARNINGS        | 37            |
|       |                                |          |
| 18         | EVENTS      OF DEFAULT              | 40            |
|       |                                |          |
| 19         | FEES      AND EXPENSES              | 44            |
|       |                                |          |
| 20         | INDEMNITIES                         | 45            |
|       |                                |          |
| 21         | NO      SET-OFF OR TAX DEDUCTION    | 47            |
|       |                                |          |
| 22         | ILLEGALITY,      ETC                | 48            |
|       |                                |          |
| 23         | INCREASED      COSTS                | 48            |
|       |                                |          |
| 24         | SET      OFF                        | 49            |

----

| CLAUSE      NO. |   | PAGE      NO. |
|-----------------|--------|---------------|

| 25                  | TRANSFERS      AND CHANGES IN LENDING OFFICES                   | 50     |
|---------------------|-----------------------------------------------------------------|--------|
|                |                                                            |   |
| 26                  | VARIATIONS      AND WAIVERS                                     | 50     |
|                |                                                            |   |
| 27                  | NOTICES                                                         | 51     |
|                |                                                            |   |
| 28                  | JOINT      AND SEVERAL LIABILITY                                | 52     |
|                |                                                            |   |
| 29                  | SUPPLEMENTAL                                                    | 53     |
|                |                                                            |   |
| 30                  | LAW      AND JURISDICTION                                       | 53     |
|                |                                                            |   |
| SCHEDULE      1     | DRAWDOWN      NOTICE                                            | 55     |
|                |                                                            |   |
| SCHEDULE      2     | CONDITION      PRECEDENT DOCUMENTS                              | 57     |
|                |                                                            |   |
| SCHEDULE      3     | AMOUNT      OF EACH INSTALMENT UNDER EACH SHIPBUILDING CONTRACT | 62     |
|                |                                                            |   |
| SCHEDULE      4     | MANDATORY      COSTS                                            | 63     |
|                |                                                            |   |
| EXECUTION      PAGE | 65                                                              |

----

| (1) | TYLER NAVIGATION INC.      and PASEDENA NAVIGATION      INC., each being a corporation incorporated in the Republic of the      Marshall Islands and whose registered office is at Trust Company Complex,      Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 as joint      and several Borrowers;      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | THE GOVERNOR AND COMPANY OF THE      BANK OF SCOTLAND acting through its office at Pentland House, 8      Lochside Avenue, Edinburgh EH12 9DJ, Scotland as Lender. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A) | The      Lender has agreed to make available to the Borrowers a facility of up to      US$70,000,000 in two Tranches (each in 6 Advances) each in an amount not      exceeding the lesser of (a) US$35,000,000 and (b) 75% of the Fair Market      Value of each Ship as at its Delivery Date, for the purpose of      part-financing the Contract Price of the Ships which are to be constructed      by the Builder for, and purchased by, the  Borrowers. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | The      Lender may enter into interest rate swap transactions with the Borrowers      from time to time to hedge the Borrowers’ exposure under this Agreement to      interest rate fluctuations. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | “Advance”  means      the principal amount of each borrowing by the Borrowers under this      Agreement; |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | “Approved      Flag”  means, in relation to a Ship, the Marshall Islands      flag or such other flag as the Lender may, in its sole and absolute      discretion, approve as the flag on which a Ship shall be      registered; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Approved Flag      State”  means, in relation to a Ship, the Republic of the      Marshall Islands or any other country in which the Lender may, in relation      to a Ship, in its sole and absolute discretion, approve that a Ship be      registered; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “ApprovedManager’s      Undertaking”  means, in relation to each Ship, a letter      of undertaking executed by the Approved Manager in favour of the Lender in      the terms required by the Lender agreeing certain matters in relation to      the Approved Manager and subordinating the rights of the Approved Manager      against such Ship and the Borrower which is the owner thereof to the      rights of the Lender under the Finance Documents, in such form as the      Lender may approve or require; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | “Availability      Period”  means the period commencing on the date of this      Agreement and ending on: |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | 31      August 2010 (or such later date as the Lender may agree with the      Borrowers, which agreement shall not be unreasonably withheld in relation      to any permissible delay under a Shipbuilding Contract);  or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | “Borrower”  means      each of Pasedena and Tyler and, in the plural, means all of      them; |
|--------|---------------------------------------------------------------------------------------------------------------------|

|   | “Builder”  means      Hyundai Mipo Dockyard Co. Ltd., a corporation organised and existing under      the laws of the Republic of Korea, with its principal office at 1381      Bangeo-Dong, Dong-Ku, Ulsan, Korea; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Business      Day”  means a day on which banks are open in London,      Athens, Piraeus and (in relation to any payment to be made to the Builder)      Korea, and in respect of a day on which a payment is required to be made      under a Finance Document, also in New York City  ; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Commitment”  means      the sum of up to $70,000,000 as such amount may be reduced, cancelled or      terminated in accordance with thisAgreement; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Contractual Currency”      has the meaning given in Clause20.4; |
|--------|------------------------------------------------------------------------------|

|   | “Corporate      Guarantee”  means the guarantee to be given by the      Corporate Guarantor, in such form as the Lender may approve or      require; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Corporate      Guarantor”  means Omega Navigation Enterprises, Inc., a      corporation incorporated in The Republic of the Marshall Islands whose      registered office is at Trust Company Complex, Ajeltake Road, Ajeltake      Island, Majuro, Marshall Islands MH96960; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Deferred      Interest”  means the interest on the first two Advances      under each Tranche accruing from the Drawdown Date of each such Advance up      until the Drawdown Date of the third Advance under each      Tranche; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Delivery      Advance”  means, in relation to a Ship, the final Advance      in respect of each Tranche, the amount of which shall be calculated in      accordance with Clause 3.2(e); |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Delivery      Date”  means, in relation to a Ship, the date on which      title to and possession of that Ship is transferred from the Builder to      the relevant Borrower; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

|   | “Dollars” and “$”  means the      lawful currency for the time being of the United States of      America; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Drawdown      Date”  means, in relation to an Advance, the date      requested by the Borrowers for an Advance to be made, or (as the context      requires) the date on which such Advance is actually  made; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Drawdown      Notice”  means a notice in the form set out in Schedule 1      (or in any other form which the Lender approves or reasonably      requires); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Earnings”  means,      in relation to a Ship, all moneys whatsoever which are now, or later      become, payable (actually or contingently) to the Borrower owning that      Ship or the Lender and which arise out of the use or operation of that      Ship, including (but not limitedto): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all      freight, hire and passage moneys, compensation payable to the Borrower      owning that Ship or the Lender in the event of requisition of that 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      that Ship; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | “Environmental      Claim”  means: |
|--------|----------------------------------------------------------|

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

|   | and      “claim” means a      claim for damages, compensation, fines, penalties or any other payment of      any kind whether or not similar to the foregoing; an order or direction to      take, or not to take, certain action or to desist from or suspend certain      action; and any form of enforcement or regulatory action, including the      arrest or attachment of anyasset; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | “Environmental      Incident”  means: |
|--------|-------------------------------------------------------------|

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

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

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

|   | “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; |
|--------|------------------------------------------------------------------------------------------------------------------------|

|   | “Fair Market Value”      means, in respect of each Ship, the market value thereof determined from      time to time in accordance with Clause14.4; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Finance      Documents”  means: |
|--------|--------------------------------------------------------|

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

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

|   | (c) | the      Pre Delivery Security Assignments; |
|--------|-----|---------------------------------------------|

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

|   | (e) | the      Master Agreement Security Deed; |
|--------|-----|------------------------------------------|

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

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

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

|   | (i) | the      Approved Manager’s Undertakings;and |
|--------|-----|----------------------------------------------------|

|   | (j) | any      other document (whether creating a Security Interest or not) which is      executed at any time by any Borrower or 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 |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | “Financial      Indebtedness”  means, in relation to a person (the “debtor”),  a      liability of the debtor: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | “General      Assignment”  means, in relation to a Ship, a general      assignment of the Earnings, the Insurances and any Requisition      Compensation of such Ship, in such form as the Lender may approve or      require; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Hull      2190”  means the 37,000 dwt product tanker with Hull No.      2190 which is to be constructed by the Builder for, and purchased by,      Pasedena under the Hull 2190 Shipbuilding  Contract; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Hull 2190 Refund      Guarantee”  means the irrevocable and unconditional      guarantee number M0902-706-LG-00300 dated 21 June 2007 issued by the      Refund Guarantor in favour of Pasedena pursuant to the Hull 2190      Shipbuilding Contract; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Hull 2189 Shipbuilding      Contract”  means the Shipbuilding Contract dated 15 June      2007 between the Builder and Tyler for the construction by the Builder of      Hull 2189 and its purchase by Tyler (as supplemented from time to      time); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | “Hull 2190 Shipbuilding      Contract”  means the Shipbuilding Contract dated 15 June      2007 made between the Builder and Pasedena for the construction by the      Builder of Hull 2190 and its purchase by Pasedena (as supplemented from      time to time); |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Insurances”  means,      in relation to a Ship: |
|--------|------------------------------------------------------------------------|

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

|   | “Interest Period” means,      in relation to an Advance, a period determined in accordance with Clause      5; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | (a) | The      Governor and Company of the Bank of Scotland, acting through its office at      Pentland House, 8 Lochside Avenue, Edinburgh EH12 9DJ, Scotland (or though      another branch notified to the Lender under Clause 25.6) or its direct or      indirect successor; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a      direct or indirect assignee of such bank or financial institution or of a      successor of it; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (c) | a      direct or indirect successor of an assignee such as its mentioned in (b),      unless any of the foregoing has assigned all its rights, and novated all      its obligations and liabilities, under the Finance    Department; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 Telerate Service or such other page as may replace REUTERS 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 for the purpose of displaying British Bankers’ Association      Interest Settlement Rates for  Dollars);  or |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum      determined by the Lender to be the arithmetic mean (rounded upwards, if      necessary, to the nearest one-sixteenth of one per cent.) of the rates per      annum at which deposits in Dollars are offered to leading banks by other      leading banks in the London Interbank Market at or about 11.00 a.m.      (London time) on the second Business Day prior to the commencement of that      Interest Period for a period equal to that Interest Period and for      delivery on the first Business Day ofit; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Loan”  means      the principal amount for the time being outstanding under this      Agreement; |
|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | “Major      Casualty”  means, in relation to a Ship, any casualty to      the Ship in respect of which the claim or the aggregate of the claims      against all insurers, before adjustment for any relevant franchise or      deductible, exceeds $250,000 or the equivalent in any other      currency; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Margin”  means,      in relation to a Tranche: |
|--------|-----------------------------------------------------------------------|

|   | (a) | from      the date of this Agreement up to the date of payment of the third      instalment under each Shipbuilding Contract, one point one two five per      cent (1.125%) per annum; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | from      the date of payment of the third instalment under each Shipbuilding      Contract up to the date of payment of the fifth instalment under each      Shipbuilding Contract, one point one per cent (1.1%) per      annum; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | from      the date of payment of the fifth instalment under each Shipbuilding      Contract up to the date of payment of the sixth instalment under each      Shipbuilding Contract, one point zero five per cent (1.05%) per annum;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | from      the date of delivery of each Ship under each Shipbuilding Contract, zero      point eight five per cent (0.85%) perannum; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | “Negotiation Period” has      the meaning given in Clause4.7; |
|--------|---------------------------------------------------------------------------|

----

|   | “Pasedena” means Pasedena      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, Marshall Islands MH      96960; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Payment Currency” has      the meaning given in Clause 20.4; |
|--------|---------------------------------------------------------------------------|

|   | “Permitted Security      Interests” means: |
|--------|--------------------------------------------------------|

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

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

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

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

|   | (e) | liens      for master’s disbursements incurred in the ordinary course of trading and      any other lien arising by operation of law or otherwise in the ordinary      course of the operation, repair or maintenance of a Ship, provided such      liens do not secure amounts more than 30 days overdue (unless the      overdue amount is being contested by the relevant Borrower in good faith      by appropriate steps) and subject, in the case of liens for repair or      maintenance, toClause 13.13(g); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | any      Security Interest created in favour of a plaintiff or defendant in any      action of the court or tribunal before whom such action is brought as      security for costs and expenses where a Borrower is prosecuting or      defending such action in good faith by appropriate steps;    and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | “Pertinent Jurisdiction”,      in relation to a company, means: |
|--------|-----------------------------------------------------------------------------|

|   | (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 |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | “Potential Event of      Default”  means an event or circumstance which, with the      giving of any notice, the lapse of time, a determination of the Lender      and/or the satisfaction of any other condition, would constitute an Event      of Default; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Pre Delivery Security      Assignment”  means, in relation to a Shipbuilding      Contract and a Refund Guarantee, an assignment of such Shipbuilding      Contract and of such Refund Guarantee, in such form as the Lender may      approve or require; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Refund      Guarantor”  means Korea Export Import Bank (“KEXIM”) acting through      its office at 16-1, Yoido-Dong, Yeongdeungpo-Gu, Seoul 150-996,      Korea; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Relevant Person” has the      meaning given in Clause 18.7; |
|--------|--------------------------------------------------------------------------|

|   | “Repayment      Date”  means a date on which a repayment is required to      be made under Clause 7; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | “Requisition      Compensation”  includes all compensation or other moneys      payable by reason of any act or event such as is referred to in paragraph      (b) of the definition of “TotalLoss”; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Retention      Account”  means an account in the name of the Borrowers      with the Lender in Glasgow designated “Tyler Navigation Inc./Pasedena      Navigation Inc. - Retention Account”, or any other account (with that or      another office of the Lender or with a bank or financial institution other      than the Lender) which is designated by the Lender as the Retention      Account for the purposes of thisAgreement; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Secured      Liabilities”  means all liabilities which the Borrowers,      the Security Parties or any of them have, at the date of this Agreement or      at any later time or times, under or by virtue of the Finance Documents or      any judgment relating to the Finance Documents; and for this purpose,      there shall be disregarded any total or partial discharge of these      liabilities, or variation of their terms, which is effected by, or in      connection with, any bankruptcy, liquidation, arrangement or other      procedure under the insolvency laws of any  country; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Security      Interest”  means: |
|--------|--------------------------------------------------------|

|   | (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      rights of the plaintiff under an action in rem in which the      vessel concerned has been arrested or a writ has been issued or similar      step taken; 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 (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 financial institution; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Security      Party”  means the Corporate Guarantor, the Approved      Manager and any other person (except the Lender) who, as a surety or      mortgagor, as a party to any subordination or  priorities |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | “Security      Period”  means the period commencing on the date of this      Agreement and ending on the date on which the Lender notifies the      Borrowers and the Security Partiesthat: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (c) | no      Borrower nor any Security Party has any future or contingent liability      under Clause 19, 20 or 21 below 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 a 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; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Shipbuilding      Contract”  means each of the Hull 2189 Shipbuilding      Contract and the Hull 2190 Shipbuilding Contract and, in the plural, means      all of them; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (b) | any      expropriation, confiscation, requisition or acquisition of a Ship, whether      for full consideration, a consideration less than her 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 one year without any      right to an extension; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      condemnation of a Ship by any tribunal or by any person or person claiming      to be a tribunal; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (d) | any      arrest, capture, seizure or detention of a Ship (including any hijacking      or theft) unless she is within 30 days redelivered to the full control of      the Borrower owning such Ship; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Total Loss      Date”  means, in relation to a  Ship: |
|--------|------------------------------------------------------------------------------|

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

|   | (b) | in      the case of a constructive, compromised, agreed or arranged total loss of      a 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 owning such Ship, with such Ship's insurers in which the      insurers agree to treat such 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; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Tranche      A”  means the aggregate of the six Advances to be made      available by the Lender to the Borrowers to assist Tyler in its      acquisition of Hull 2189; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Tranche      B”  means the aggregate of the six Advances to be made      available by the Lender to the Borrowers to assist Pasedena in its      acquisition of Hull 2190; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Tranche”  means      either of Tranche A or Tranche B, and in the plural means all of them;      and |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | “Tyler” means Tyler      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, Marshall Islands MH      96960. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | “approved”  means,      for the purposes of Clause 12, approved in writing by the      Lender; |
|--------|----------------------------------------------------------------------------------------------------------------------|

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

|   | “company” includes any      partnership, joint venture and unincorporated  association; |
|--------|-----------------------------------------------------------------------------------------------------|

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

|   | “document” includes a      deed; also a letter, fax or telex; |
|--------|---------------------------------------------------------------------------|

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

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

|   | “law” includes any form      of delegated legislation, any order or decree, any treaty or international      convention and any regulation or resolution of the Council of the European      Union, the European Commission, the United Nations or its Security      Council; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “legal or administrative      action” means any legal proceeding or arbitration and any      administrative or regulatory action or  investigation; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | “liability” includes      every kind of debt or liability (present or future, certain or      contingent), whether incurred as principal or surety or      otherwise; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “months”  shall      be construed in accordance with Clause1.3; |
|--------|---------------------------------------------------------------------------------------|

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

|   | “parent      company”  has the meaning given in Clause      1.4; |
|--------|----------------------------------------------------------------------------------------|

|   | “person”  includes      any company; any state, political sub-division of a state and local or      municipal authority; and any international  organisation; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | “protection and indemnity      risks”  means the usual risks covered by a protection and      indemnity association managed in London, including pollution risks and the      proportion (if any) of any sums payable to any other person or persons in      case of collision which are not recoverable under the hull and machinery      policies by reason of the incorporation therein of clause 1 of the      Institute Time Clauses (Hulls)(1/10/83) or clause 8 of the Institute Time      Clauses (Hulls) (1/11/1995) or the Institute Amended Running Down Clause      (1/10/71) or any equivalentprovision; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “subsidiary”  has      the meaning given in Clause 1.4; |
|--------|-------------------------------------------------------------------------------|

|   | “tax”  includes      any present or future tax, duty, impost, levy or charge of any kind which      is imposed by any state, any political sub-division of a state or any      local or municipal authority (including any such imposed in connection      with exchange controls), and any connected penalty, interest or fine;      and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 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      attached 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. |
|-----|------------------------------|

| (a) | In      this Agreement: |
|-----|-------------------------|

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

|   | (ii) | 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; and |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | words      denoting the singular number shall include the plural and vice      versa. |
|--------|-------|---------------------------------------------------------------------------------------|

| (b) | Clauses      1.1 to 1.4 and paragraph (a) of this Clause 1.5 apply unless the contrary      intention appears. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (c) | References      in Clause 1.1 to a document being in the form of a particular Appendix      include references to that form with any modifications to that form which      the Lender approves or reasonablyrequires. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The      clause headings shall not affect the interpretation of this      Agreement. |
|-----|--------------------------------------------------------------------------------------|

----

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

| 2.1 | Amount of      facility.  Subject to the other provisions of this      Agreement, the Lender shall make available to the Borrowers a loan      facility of up to $70,000,000 in two Tranches (each in six Advances), each      in an amount not exceeding the lesser of (a) $35,000,000 and (b) 75% of      the Fair Market Value of the relevant Ship as at its Delivery      Date. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Purpose of      Loan.  Each 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      Borrowers may request an Advance to be made by ensuring that the Lender      receives a completed Drawdown Notice not later than 11.00 a.m. (London      time) 3 Business Days prior to the intended Drawdown  Date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (b) | the      amount of the first two Advances in respect of each Tranche shall not      exceed 90% of the amount of the first and second instalments under each      Shipbuilding Contract as stated in Schedule 3 hereto, together with      accrued interest on drawings hereunder up to payment of the third      instalment under each ShipbuildingContract; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      amount of the third and fourth Advances of each Tranche shall not exceed      80% of the amount of the third and fourth instalments under each      Shipbuilding Contract, as stated in Schedule 3  hereto; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      amount of the fifth Advance of each Tranche shall not exceed 62.5% of the      amount of the fifth instalment under each Shipbuilding Contract, as stated      in Schedule 3 hereto; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | the      amount of each Tranche shall not exceed the lesser of (i) $35,000,000 and      (ii) 75% of the Fair Market Value of the Ship financed by such Tranche      (calculated as at the Delivery Date of the relevant  Ship); |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | the      aggregate amount of the Tranches shall not exceed $70,000,000;      and |
|-----|----------------------------------------------------------------------------------|

| (g) | the      Borrowers have complied with the provisions of Clause 8.1 with respect to      the relevant Advance. |
|-----|---------------------------------------------------------------------------------------------------------------|

| 3.3 | Drawdown Notice      irrevocable.  A Drawdown Notice must be signed by a      director or other authorised person of each 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 provisions of this Agreement,      the Lender shall on each Drawdown Date pay to the Borrowers the amount of      the relevant Advance; and that payment to the Borrowers shall be made to      the account which the Borrowers specify in the Drawdown      Notice. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

| 4.1 | Payment of normal      interest.  Subject to Clause 4.2 and to the other      provisions of this Agreement, interest on each Advance in respect of each      Interest Period shall be paid by the Borrowers on the last day of that      Interest Period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Payment of Deferred      Interest.  The accrued Deferred Interest for each Tranche      will be due and payable by the Borrowers to the Lender as      follows: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      Deferred Interest for Tranche A on the Delivery Date for Hull 2189;      and |
|-----|---------------------------------------------------------------------------------------|

| (b) | the      Deferred Interest for Tranche B on the Delivery Date for Hull      2190. |
|-----|-----------------------------------------------------------------------------------|

| 4.3 | Normal rate of      interest.  Subject to the provisions of this Agreement,      the rate of interest on each Advance in respect of an Interest Period      shall be the aggregate of (i) the applicable Margin, (ii) the Mandatory      Costs (if any) and (iii) LIBOR for that Interest  Period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | 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. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Notification of market      disruption.  The Lender shall promptly notify the      Borrowers if for any reason the Lender is unable to obtain Dollars in the      London Interbank Market in order to fund an Advance or the Loan during any      Interest Period, stating the circumstances which have caused such notice      to be given. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | Suspension of      drawdown.  If the Lender's notice under Clause 4.5 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. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.7 | Negotiation of alternative rate      of interest.  If the Lender’s notice under Clause 4.5 is      served after an Advance or the Loan is made available, the Borrowers and      the Lender shall use reasonable endeavours to agree, within the 30 days      after the date on which the Lender serves its notice under Clause 4.5 (the      “Negotiation      Period”), an alternative interest rate or (as the case may be) an      alternative basis for the Lender to fund or continue to fund the Advance      or the Loan during the Interest Period  concerned. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.8 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.9 | 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 relevant Advance or the Loan plus the      applicable Margin and the Mandatory Costs (if any); 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.10 | Notice of      prepayment.  If the Borrowers do not agree with an      interest rate set by the Lender under Clause 4.9, the Borrowers may give      the Lender not less than 15 Business Days' notice of their intention to      prepay the relevant Advance or the Loan at the end of the interest period      set by the Lender. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.11 | Prepayment; termination of      Commitments. A notice under Clause 4.10 shall be irrevocable and on      the last Business Day of the interest period set by the Lender, the      Borrowers shall prepay (without premium or penalty) the Loan together with      accrued interest thereon at the applicable rate plus the applicable Margin      and the Mandatory Costs (if any). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.12 | Application of      prepayment.  The provisions of Clause 7 shall apply in      relation to the prepayment. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| 4.13 | Interest Rate Hedging.      The Borrowers shall enter into interest rate hedging arrangements pursuant      to the Master Agreement to fix the interest rate relative to at least 50%      of the amount of the Loan, following drawdown of the Delivery Advance with      respect to the last Ship to be delivered. Unless the Lender agrees      otherwise, any such hedging arrangements shall be from floating rate to      fixed rate only and shall not (i) exceed the amount of the Loan or (ii)      extend beyond the final RepaymentDate. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5.1 | Commencement of Interest      Periods.  The first Interest Period applicable to an      Advance shall commence on the Drawdown Date for 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 in respect of each Advance shallbe: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

----

| 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 in relation to the relevant Tranche shall end on that Repayment      Date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Non-availability of matching      deposits for Interest Period selected.  If, after the      Borrowers have selected an Interest Period longer than 3 months, the      Lender notifies the Borrowers by 11.00 a.m. (London time) on the second      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.  The Borrowers shall pay interest in      accordance with the following provisions of this Clause 6 on any amount      payable by the Borrowers under any Finance Document which the Lender or      the other designated payee does not receive on or before the relevant      date, that is: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 6.2 | Default rate of      interest.  Interest shall accrue on an overdue amount      from (and including) the relevant date until the date of actual payment      (as well after as before judgment) at the rate per annum determined by the      Lender to be two per cent. (2%)above: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 6.3 | Calculation of default rate of      interest.  The rates referred to in Clause 6.2      are: |
|-----|--------------------------------------------------------------------------------------------------------|

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

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

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

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

----

| 6.4 | Notification of interest      periods and default rates.  The Lender shall promptly      notify the Borrowers of each interest rate determined by the Lender under      Clause 6.3 and of each period selected by the Lender for the purposes of      paragraph (b) of that Clause; but this shall not be taken to imply that      the Borrowers are liable to pay such interest only with effect from the      date of the Lender's notification. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5 | Payment of accrued default      interest.  Subject to the other provisions of this      Agreement, any interest due under this Clause shall be paid on (i) the      last day of the period by reference to which it was determined and (ii)      the date on which any principal amount in respect of which it is accruing      is paid. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.6 | Compounding of default      interest.  Any such interest which is not paid at the end      of the period by reference to which it was determined shall thereupon be      compounded. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7.1 | Amount of repayment      instalments.  The Borrowers shall repay each Tranche by      forty (40) equal consecutive quarterly instalments of Five hundred and six      thousand seven hundred and fifty Dollars ($506,750) each and by a balloon      payment of fourteen million seven hundred and thirty thousand Dollars      ($14,730,000). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a) | The      first instalment in respect of Tranche A shall be repaid on the date      falling three (3) months after the Drawdown Date of the Delivery Advance      for Hull 2189, each subsequent instalment shall be repaid at three monthly      intervals thereafter and the balloon payment for Tranche A shall be repaid      on the date falling on the tenth anniversary of the Drawdown Date for the      Delivery Advance for Hull 2189. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The      first instalment in respect of Tranche B shall be repaid on the next      succeeding repayment date for Tranche A following the Drawdown Date of the      Delivery Advance for Hull 2190, each subsequent instalment shall be repaid      at three monthly intervals thereafter and the balloon payment for Tranche      B shall be repaid on the date falling on the tenth anniversary of the      Drawdown Date for the Delivery Advance for Hull  2190. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | If      the amount of either Tranche drawdown hereunder is less than $35,000,000      then the amount of the relevant repayment instalments and the amount of      the balloon payment shall be reduced pro rata by the amount of such      difference. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7.4 | Voluntary      prepayment.  Subject to the following conditions, the      Borrowers may prepay the whole or part of a Tranche on the last day of an      Interest Period in respect thereof. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a) | a      partial prepayment shall be in the minimum amount of one million Dollars      ($1,000,000) or a multiple thereof; |
|-----|--------------------------------------------------------------------------------------------------------------------------|

----

| (b) | the      Lender has received from the Borrowers at least one month’s prior written      notice specifying the amount to be prepaid and the date on which the      prepayment is to be made (such date shall be the last day of an Interest      Period of the relevant Tranche); |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      Borrowers have provided evidence satisfactory to the Lender that any      consent required by any Borrower or any Security Party in connection with      the prepayment has been obtained and remains in force, and that any      requirement relevant to this Agreement which affects any Borrower or any      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 Borrowers on the      date for prepayment specified in the prepayment  notice. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7 | Mandatory      prepayment.  The Borrowers shall be obliged to cancel the      relevant portion of the Commitment and/or to prepay the relevant portion      of the Loan specified in Clause7.8: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | if      a Ship is sold (which sale shall be subject to the prior written consent      of the Lender) or becomes a TotalLoss: |
|-----|------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | (i) | any      of the events specified in Article XI of a Shipbuilding Contract or any      other default by a Borrower or the Builder under any Shipbuilding      Contract, giving a right of rescission or termination of the Shipbuilding      Contract either to the relevant Borrower and/or the    Builder; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any      Shipbuilding Contract or any Refund Guarantee is cancelled, terminated,      rescinded or suspended or otherwise ceases to remain in force for any      reason (other than by way of expiry in accordance with its terms);      or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any      Shipbuilding Contract is materially 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) | any      Ship has not for any reason been delivered to and accepted by the relevant      Borrower under the relevant Shipbuilding Contract by the date falling 210      days after the applicable scheduled Delivery Date referred to in Article      VII of each Shipbuilding Contract, |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.8 | Amount of Mandatory      Prepayment. The relevant portion of the Commitment to be cancelled      and the relevant portion of the Loan to be prepaid in the circumstances      contemplated in Clause 7.7 is: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | if      paragraph (a) of Clause 7.7applies: |
|-----|---------------------------------------------|

|   | (i) | if      prior to the delivery of a Ship, the Advances made in relation to such      Ship shall be prepaid in full and the undrawn Advances for such Ship shall      be cancelled; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if      after delivery of a Ship, the Tranche relating to such Ship shall be      prepaid in full; |
|--------|------|----------------------------------------------------------------------------------------------------|

| (b) | if      paragraph (b) of Clause 7.7 applies, the Advances made in relation to such      Ship shall be prepaid in full and the undrawn Advances for such Ship shall      be cancelled. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.9 | 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 relating to the relevant      Tranche, together with any sums payable under Clause 20.1(b) but without      premium or penalty. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.10 | Application of partial      prepayment.  Each partial prepayment made pursuant to      Clause 7.4 or any other provisions of this Agreement, shall be applied pro      rata against the repayment instalments (including the balloon payment)      specified in Clause 7.1. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.11 | No      reborrowing.  Other than in respect of repayments of      Deferred Interest pursuant to Clause 4.2, no amount prepaid or repaid may      be reborrowed. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.12 | Unwinding of Designated      Transactions.  On or prior to any repayment, cancellation      or prepayment under this Clause 7 or any other provision of this      Agreement, the Borrowers shall either (a) provide such additional security      to the Lender in respect of continuing Designated Transactions as shall be      acceptable to the Lender in its sole and absolute discretion or (b)      reverse, offset, unwind or otherwise terminate wholly or partially the      continuing Designated Transactions so that the notional principal amount      of the continuing Designated Transactions thereafter remaining does not      and will not in the future (taking into account the scheduled      amortisation) exceed the aggregate amount of the Loan as reducing from      time to time thereafter pursuant to Clause7.1. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 8.1 | Documents, fees and no      default.  The Lender's obligation to contribute to an      Advance is, in addition to the conditions set out in Clause 3.2, subject      to the following conditionsprecedent: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | that,      on or before the date of signing of this Agreement, the Lender receives      the documents described in Part A of Schedule 2 in form and substance      satisfactory to the Lender and itslawyers; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | that,      on or before the Drawdown Date of the first Advance of each Tranche, the      Lender receives the documents described in Part B of Schedule 2 in      relation to the relevant Ship, in form and substance satisfactory to the      Lender and its lawyers; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | that,      on or before the Drawdown Date of the second Advance of each Tranche, the      Lender receives the documents described in Part C of Schedule 2 in      relation to the relevant Ship, in form and substance satisfactory to the      Lender and its lawyers; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d) | that,      on or before the Drawdown Date of the third Advance of each Tranche, the      Lender receives the documents described in Part D of Schedule 2 in      relation to the relevant Ship, in form and substance satisfactory to the      Lender and its lawyers; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | that,      on or before the Drawdown Date of the fourth Advance of each Tranche, the      Lender receives the documents described in Part E of Schedule 2 in      relation to the relevant Ship, in form and substance satisfactory to the      Lender and its lawyers; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | that,      on or before the Drawdown Date of the fifth Advance of each Tranche, the      Lender receives the documents described in Part F of Schedule 2 in      relation to the relevant Ship, in form and substance satisfactory to the      Lender and its lawyers; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | that,      on or before the Drawdown Date of the Delivery Advance of each Tranche,      the Lender receives the documents described in Part G of Schedule 2 in      relation to the relevant Ship, in form and substance satisfactory to the      Lender and its lawyers; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | that,      on or before the service of the first Drawdown Notice in respect of each      Tranche, the Lender receives any fees payable pursuant to Clause 19.1 and      has received payment of the expenses referred to in Clause      19.2; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (ii) | the      representations and warranties in Clause 9 and those of the Borrowers or      any Security Party which are set out in the other Finance Documents would      be true and not misleading if repeated on each of those dates with      reference to the circumstances thenexisting; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | none      of the circumstances contemplated by Clause 4.5 has occurred and is      continuing; |
|--------|-------|------------------------------------------------------------------------------------------------|

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

| (k) | 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 reasonably request by notice to the      Borrowers prior to the relevant DrawdownDate. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Waiver 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 Borrowers shall ensure that those conditions      are satisfied within 5 Business days after the relevant Drawdown Date (or      such longer period as the Lender mayspecify). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 9.2 | Status.  Each      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.  Each Borrower has an authorised share capital      divided into 500 registered shares with a par value of $0.01 each, all of      which shares have been issued fullypaid. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.4 | Corporate      power.  Each Borrower has the corporate capacity, and has      taken all corporate action and obtained all consents necessary for      it: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      execute the Shipbuilding Contract to which it is a party, to purchase and      pay for the relevant Ship under the relevant Shipbuilding Contract and      register such Ship in its name under the Approved  Flag; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c) | to      borrow under this Agreement and to make all the payments contemplated by,      and to comply with, those FinanceDocuments. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| 9.5 | Consents in      force.  All the consents referred to in Clause 10.4      remain in force and nothing has occurred which makes any of them liable to      revocation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.6 | Legal validity; effective      Security Interests.  The Finance Documents to which each      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      that Borrower's legal, valid and binding obligations enforceable against      that Borrower in accordance with their respective terms;    and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 9.7 | No third party Security      Interests.  Without limiting the generality of Clause      9.6, at the time of the execution and delivery of each Finance      Document: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 9.8 | No      conflicts.  The execution by each Borrower of each      Finance Document to which it is a party, and the borrowing by that      Borrower of the Loan, and its compliance with each Finance Document to      which it is a party will not involve or lead to a contravention      of: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

| 9.9 | No withholding      taxes.  All payments which each Borrower is liable to      make under the Finance Documents to which it is a party may be made      without deduction or withholding for or on account of any tax payable      under any law of any PertinentJurisdiction. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.10 | No      default.  No Event of Default or Potential Event of      Default has occurred and iscontinuing. |
|------|-------------------------------------------------------------------------------------------------------------------|

| 9.11 | Information.  All      information which has been provided in writing by or on behalf of the      Borrowers or any Security Party to the Lender in connection with any      Finance Document satisfied the requirements of Clause 10.5; all audited      and unaudited 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 any of the Borrowers from      that disclosed in the latest of thoseaccounts. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.12 | No      litigation.  No legal or administrative action involving      any Borrower (including action relating to any alleged or actual breach of      the ISM Code or the ISPS Code) has been commenced or taken or, to any      Borrower’s knowledge, is likely to be commenced or  taken. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.13 | Validity and completeness of      Shipbuilding Contracts/RefundGuarantees. |
|------|----------------------------------------------------------------------------|

| (a) | The      copies of the Shipbuilding Contracts delivered to the Lender before the      date of this Agreement are true and complete  copies; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | each      Shipbuilding Contract constitutes valid, binding and enforceable      obligations of the Builder and the relevant Borrower respectively in      accordance with its terms and each Refund Guarantee constitutes valid,      binding and enforceable obligations of the Refund Guarantor in accordance      with its terms; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | no      amendments or additions to any of the Shipbuilding Contracts or any of the      Refund Guarantees have been agreed (other than as disclosed to the Lender      prior to the date of this Agreement) nor have the Borrowers or the Builder      or the Refund Guarantor waived any of their respective rights under the      Shipbuilding Contracts and RefundGuarantees. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Borrowers, the Builder or a third party in      connection with the purchase by each Borrower of the Ship owned by it,      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      Borrowers are in compliance with Clauses 10.2, 10.4, 10.9 and      10.13. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.16 | Taxes      paid.  Each Borrower has paid all taxes applicable to, or      imposed on or in relation to that Borrower, its business or the Ship owned      by it. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.17 | ISM Code and ISPS Code      compliance.  All requirements of the ISM Code and the      ISPS Code as they relate to the Borrowers, the Approved Manager and the      Ships have been complied with. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.18 | No Money      Laundering.  Without prejudice to the generality of      Clause 2.3, in relation to the borrowing by each of the Borrowers of the      Loan, the performance and discharge of their respective obligations and      liabilities under the Finance Documents, and the transactions and other      arrangements effected or contemplated by the Finance Documents to which      each of the Borrowers is a party, each of the Borrowers confirms that (i)      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 |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| 10.1 | General.  Each      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.  Each Borrowerwill: |
|------|------------------------------------------------------------|

| (a) | hold      the legal title to, and own the entire beneficial interest in the Ship      owned by it, 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 except for Permitted Security Interests;      and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | not      create or permit to arise any Security Interest (except for Permitted      Security Interests) over any other asset, present or    future. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | No disposal of      assets.  No Borrower will 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 (other than, in the case of      sale of a Ship, pursuant to the provisions of Clauses 7.7 and 7.8);      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, unless in the ordinary course of business or to the extent      that the same would not have a material adverse effect on the financial      position of such Borrower. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | No other liabilities or      obligations to be incurred.  No Borrower will incur any      liability or obligation except (i) liabilities and obligations under the      Shipbuilding Contract and the Finance Documents to which it is a party,      (ii)  any funds borrowed from any shareholders of a Borrower,      which funds shall only be borrowed with the prior written consent of the      Lender and shall be fully subordinated on terms acceptable to the Lender      and (iii) liabilities or obligations incurred in the ordinary course of      its business of operating and chartering the Ship owned by    it. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Information provided to be      accurate.  All financial and other information which is      provided in writing by or on behalf of a 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.  Each Borrower will send to the      Lender: |
|------|------------------------------------------------------------------------------------------------|

| (a) | as      soon as possible, but in no event later than 120 days after the end of      each financial year of each Borrower, the annual audited accounts for such      financial year of each Borrower, duly certified by an international firm      of accountants acceptable to theLender; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | as      soon as possible, but in no event later than 45 days after the end of each      of the three-month periods during each financial year of each Borrower,      the quarterly management accounts of each Borrower, certified as to their      correctness by the finance director of the relevant    Borrower; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | as      soon as possible, but in no event later than 120 days after the end of      each financial year of the Corporate Guarantor, the annual audited      accounts of the Corporate Guarantor for such financial year, duly      certified by an international firm of accountants acceptable to the      Lender; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | as      soon as possible, but in no event later than 45 days after the end of each      of the three-month periods during each financial year of the Corporate      Guarantor, the quarterly management accounts of the Corporate Guarantor,      certified as to their correctness by the chief financial officer of the      Corporate Guarantor. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | Form of financial      statements.  All financial statements (audited and      unaudited) delivered under Clause 10.6will: |
|------|--------------------------------------------------------------------------------------------------------------------------------------|

| (a) | be      prepared in accordance with all applicable laws and either international      accounting standards or generally accepted accounting principles in the      United States of America consistentlyapplied; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c) | fully      disclose or provide for all significant liabilities of each of the      Borrowers or (as the case may be) the Corporate  Guarantor. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 | Consents.  Each      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      that Borrower to perform its obligations under any Finance Document or      Shipbuilding Contract to which it isparty; |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.9 | Maintenance of Security      Interests.  Each 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) above, at its own cost, promptly      register, file, record or enrol any Finance Document with any court or      authority in all Pertinent Jurisdictions, pay any stamp, registration or      similar tax in all Pertinent Jurisdictions in respect of any Finance      Document, give any notice or take any other step which, in the opinion of      the Lender, is or has become necessary or desirable for any Finance      Document to be valid, enforceable or admissible in evidence or to ensure      or protect the priority of any Security Interest which it      creates. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10 | Notification of      litigation.  Each Borrower will provide the Lender with      details of any legal or administrative action involving that Borrower, any      Security Party, the Approved Manager or the Ship owned by that Borrower,      its Earnings or its Insurances as soon as such action is instituted or it      becomes apparent to that Borrower that it is likely to be instituted,      unless it is clear that the legal or administrative action cannot be      considered material in the context of any Finance  Document. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.11 | No amendment to Shipbuilding      Contracts.  No Borrower will agree to any material      amendment, change of price or material supplement to the Shipbuilding      Contract to which it is a party or any of its provisions, without the      prior written consent of theLender. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 | Principal place of      business.  Each Borrower will maintain its place of      business, and keep its corporate documents and records, at the address      stated at the commencement of this Agreement; and no Borrower will      establish, or do anything as a result of which it would be deemed to have,      a place of business in the United Kingdom or the United States of      America. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Confirmation of no      default.  Each Borrower will, within 2 Business Days      after service by the Lender of a written request, serve on the Lender a      notice which is signed by 2 directors of that Borrower and      which: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.14 | Notification of      default.  Each Borrower will notify the Lender as soon as      that Borrower becomes aware of: |
|-------|-------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.15 | Provision of further      information.  Each Borrower will, as soon as practicable      after receiving the request, provide the Lender with any additional      financial or other informationrelating: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      that Borrower, the Ship owned by it, the Insurances or the Earnings;      or |
|-----|--------------------------------------------------------------------------------------|

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

| 10.16 | Translation of      documents.  If the Lender so requires in respect of any      of the documents referred to in this Clause 10, the Borrowers will provide      a certified English translation prepared by a translator approved by the      Lender. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 | Treasury      Services.  No Borrower shall, and shall procure that no      Security Party (other than the Corporate Guarantor) shall, enter into any      treasury related contract with a bank or financial institution without      first asking for quotes for such services or requirements from the      Lender. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18 | Ownership.  Each      Borrower shall ensure that, without the prior written consent of the      Lender, there shall be no change in the legal and beneficial ownership of      any Borrower throughout the Security Period, and shall procure that at all      times during the Security Period the Corporate Guarantor shall remain the      owner of 100% of the shares in eachBorrower. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| 11.1 | General.  Each      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.  Each 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.  No Borrower  will: |
|------|-----------------------------------------------------------|

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

| (b) | effect      any form of redemption, purchase or return of share capital;      or |
|-----|----------------------------------------------------------------------------------|

| (c) | without      the prior written consent of the Lender, provide any form of credit or      financial assistance or issue any guarantee to any person, or enter into      any transaction with or involving such a person, except credit or      financial assistance or guarantees provided to companies within the same      beneficial or ultimate beneficial ownership as the Borrowers on an arm’s      length basis in the normal course ofbusiness; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | without      the prior written consent of the Lender, open or maintain any account with      any bank or financial institution except accounts with the Lender for the      purposes of the Finance Documents; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (f) | acquire      any shares or other securities other than US or UK Treasury bills and      certificates of deposit issued by major North American or European banks,      or enter into any transaction in a derivative (other than to hedge the      Borrowers’ exposure to interest rate fluctuations in the context of this      Agreement, in accordance with a pre-agreed hedging strategy) or make any      other capital investment; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (h) | without      the prior written consent of the Lender, incur any other Financial      Indebtedness except indebtedness to companies within the same beneficial      or ultimate beneficial ownership as the Borrowers on a fully subordinated      basis. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | Dividends.  For      the avoidance of doubt, the Borrowers may pay dividends on an annual basis      during the Security Period provided (i) all debt service has been met      pursuant to the terms of this Agreement and (ii) no Event of Default or      Potential Event of Default has occurred or would occur as a result of any      such payment. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| 12.2 | Maintenance of obligatory      insurances.  Each Borrower shall keep the Ship owned by      it insured at the expense of that Borrower  against: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | war      risks (including war protection and indemnity liabilities);      and |
|-----|-------------------------------------------------------------------------------|

| (c) | protection      and indemnity risks (including cover for oil pollution liability risks);      and |
|-----|---------------------------------------------------------------------------------------------------|

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

| 12.3 | Terms of obligatory      insurances.  Each Borrower shall effect such      insurances: |
|------|--------------------------------------------------------------------------------------------------|

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

| (b) | in      the case of fire and usual marine risks and war risks, in an amount on an      agreed value basis at least the greater of (i) the market value of the      Ship owned by it and (ii) an amount which, when aggregated with the      insured value of the other Ship at the relevant time subject to a      Mortgage, is equal to or greater than 120% of the amount of the Loan and      the Hedging Exposure; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 (with the international group of      protection and indemnity clubs) and the international marine insurance      market (currently $1,000,000,000); |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (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,      each Borrower shall procure that the obligatory insurances      shall: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | name      the Lender as sole 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 |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (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 Borrowers fail to do so;      and |
|-----|----------------------------------------------------------------------------------------------|

| (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.  Each 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 that Borrower      proposes to renew that insurance and of the proposed terms of renewal;      and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in      case of any substantial change in insurance cover, obtain the Lender’s      approval to the matters referred to in paragraph (i)  above; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | at      least 14 days before the expiry of any obligatory insurance, renew the      insurance; 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.  Each Borrower shall ensure that all      approved brokers provide the Lender with copies of all policies relating      to the obligatory insurances which they effect or renew and of a letter or      letters or undertaking in a form required by the Lender and including      undertakings by the approved brokersthat: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| 12.7 | Copies of certificates of      entry.  Each Borrower shall ensure that any protection      and indemnity and/or war risks associations in which the Ship owned by it      is entered provides the Lenderwith: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | where      required to be issued under the terms of insurance/indemnity provided by      the Ship’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 that Borrower in relation to it’s 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 that  Ship. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.8 | Deposit of original      policies.  Each 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.  Each 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.  Each      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.  No Borrower shall employ the Ship owned by      it, nor permit her to be employed, outside the cover provided by any      obligatory insurances. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.12 | Compliance with terms of      insurances.  No Borrower shall 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 thereunder repayable in whole or in part; and,      in particular: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | each      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) above)      ensure that the obligatory insurances are not made subject to any      exclusions or qualifications to which the Lender has not given its prior      approval; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

| 12.13 | Alteration to terms of      insurances.  No Borrower shall either make or agree to      any alteration to the terms of any obligatory insurance or waive any right      relating to any obligatory insurance without the prior written consent of      the Lender. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.14 | Settlement of      claims.  No Borrower shall settle, compromise or abandon      any claim under any obligatory insurance for Total Loss or for a Major      Casualty, and shall do all things necessary and provide all documents,      evidence and information to enable the 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.  Each Borrower shall provide the Lender,      at the time of each such communication, copies of all written      communications between that Borrowerand: |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 12.16 | Provision of      information.  In addition, each 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, |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | and      the Borrowers shall, forthwith upon demand, indemnify the Lender in      respect of all fees and other expenses incurred by or for the account of      the Lender in      connection with any such report as is referred to in paragraph (a)      above. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.17 | Mortgagees’ interest,      additional perils.  The Lender shall be entitled from      time to time to effect, maintain and renew a mortgagee’s interest      additional perils insurance and a mortgagees’ interest marine insurance in      an amount equal to not less than 120% of the amount of the Loan      and |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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      any Borrower or any 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 Borrowers may be subject), and may appoint      insurance consultants in relation to this review at the cost of the      Borrowers. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 12.20 | Compliance with      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 a Ship to remain at any      safe port or to proceed to and remain at any safe port designated by the      Lender until the Borrowers implement 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.  Each      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 relevant Shipbuilding      Contract) except as the Lender may otherwise  permit. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | Ship's name and      registration.  Each Borrower shall keep the Ship owned by      it registered in its name under the 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 that Ship without the prior written consent of the    Lender. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | Repair and      classification.  Each Borrower shall keep the Ship owned      by it in a good and safe condition and state of  repair: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | so      as to maintain such Ship with the highest classification available for      vessels of the same age, type and specification as such Ship with Lloyd’s      Register of Shipping (or such other first class classification society as      may be approved by the Lender), free of outstanding recommendations and      conditions affecting such Ship’s class;and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 13.4 | Modification.  No      Borrower shall make any modification or repairs to, or replacement of, any      Ship or equipment installed on her which would or might materially alter      the structure, type or performance characteristics of that Ship or      materially reduce her value. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5 | Removal of      parts.  No Borrower shall remove any material part of any      Ship, or any item of equipment installed on, any 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 relevant      Ship the property of the relevant Borrower and subject to the security      constituted by the relevant Mortgage Provided that a Borrower      may install equipment owned by a third party if the equipment can be      removed without any risk of damage to the Ship owned by  it. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.6 | Surveys.  Each      Borrower shall submit the Ship owned by it 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. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.7 | Inspection.  Each      Borrower shall permit the Lender (by surveyors or other persons appointed      by it for that purpose) to board the Ship owned by it at all reasonable      times to inspect her condition or to satisfy themselves about proposed or      executed repairs and shall afford all proper facilities for such      inspections.  Provided that the relevant Ship is found to be in      satisfactory condition, the cost of such inspections shall be borne by the      Borrowers not more than once per Ship peryear. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.8 | Prevention of and release from      arrest.  Each 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 owned by it, the Earnings or the      Insurances; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | and,      forthwith upon receiving notice of the arrest of the Ship owned by it, or      of her detention in exercise or purported exercise of any lien or claim,      that Borrower shall procure her release by providing bail or otherwise as      the circumstances may require. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.9 | Compliance with laws      etc.  Each Borrowershall: |
|------|---------------------------------------------------------------|

| (a) | comply,      or procure compliance with the ISM Code, the ISPS Code, all Environmental      Laws and all other laws or regulations relating to the Ship owned by it,      its ownership, operation and management or to the business of that      Borrower (including, without limitation, the obtaining of all relevant      certificates of financial responsibility and any other matters required      for entering United States territorial waters or calling at any United      States Port); |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c) | in      the event of hostilities in any part of the world (whether war is declared      or not), not cause or permit the Ship owned by it to enter or trade to any      zone which is declared a war zone by any government or by the Ship's war      risks insurers unless the prior written consent of the Lender      has |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.10 | Provision of      information.  Each Borrower shall promptly provide the      Lender with any information which the Lender requests      regarding: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| (e) | its      compliance, the Approved Manager’s compliance or the compliance of the      Ship owned by that Borrower with the ISMCode |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | and,      upon the Lender's request, provide copies of any current charter relating      to the Ship owned by it and of any current charter guarantee, and copies      of the ISM Code and ISPS Codedocumentation. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.11 | Notification of certain      events.  Each Borrower shall immediately notify the      Lender 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 owned by it has become or is, by      the passing of time or otherwise, likely to become a Total      Loss; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

|   | and      that Borrower shall keep the Lender advised in writing on a regular basis      and in such detail as the Lender shall require of that Borrower's, the      Approved Manager’s or any other person's response to any of those events      or matters. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.12 | Restrictions on chartering,      appointment of managers, etc.  No Borrower shall without      the prior written consent of the Lender (such consent not to be      unreasonably withheld): |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | let      the Ship owned by it on demise charter for any  period; |
|-----|------------------------------------------------------------------|

----

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

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

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

| (e) | appoint      a manager of the Ship owned by it 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 owned by it; |
|-----|--------------------------------------------------|

| (g) | put      the Ship owned by it into the possession of any person for the purpose of      work being done upon her in an amount exceeding or likely to exceed the      Majority Casualty amount unless that person has first given to the Lender      and in terms satisfactory to it a written undertaking not to exercise any      lien on that Ship or her Earnings for the cost of such work or otherwise;      or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | change      the flag on which its Ship is registered or the classification society      with which its Ship is classed. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| 13.13 | Notice of      Mortgage.  Each Borrower shall keep the Mortgage      registered against the Ship owned by it as a valid first priority      mortgage, carry on board that Ship a certified copy of the relevant      Mortgage and place and maintain in a conspicuous place in the navigation      room and the Master's cabin of that Ship a framed printed notice stating      that that Ship is mortgaged by that Borrower to the  Lender. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.14 | Sharing of      Earnings.   No Borrower shall enter into any      agreement or arrangement for the sharing of any Earnings, other than      pursuant to time charters notified to and agreed by the Lender in writing      prior to entering into the same. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.15 | Ownership.  Each      of the Borrowers shall procure that there shall be no change in the legal      or beneficial ownership of the shares in any of the Borrowers throughout      the Security Period. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.16 | Approved      Manager.  If, in the opinion of the Lender, the Approved      Manager’s performance level falls below that expected of a prudent ship      manager (for example, without limiting the generality of the foregoing,      due to excessive off-hire periods in respect of a Ship), then the      Borrowers undertake to replace such Approved Manager (forthwith upon being      requested to do so by the Lender) with such other company as shall be      acceptable to the Lender in its solediscretion. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.17 | ISPS      Code.  Each of the Borrowers shall comply with the ISPS      Code and in particular, without limitation,  shall: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

| 13.18 | Time Charter      Assignment.  If any Borrower enters into any time charter      in respect of its Ship which is of twelve (12) months or more in duration,      or is capable of exceeding twelve (12) months in duration, the relevant      Borrower shall, at the request of the Lender, execute in favour of the      Lender an assignment and notice of assignment (and shall use its best      endeavours to obtain acknowledgement of the same by the relevant      charterer) of such time charter in such form and on such terms as the      Lender may require, and shall deliver to the Lender such other documents      equivalent to those referred to at paragraphs 3, 4 and 5 of Part A of      Schedule 2 hereof as the Lender mayrequire. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.19 | No freight derivatives.      No Borrower shall enter into or agree to enter into without the      consent of the Lender any freight derivatives or any other instruments      which have the effect of hedging forward exposure to freight      derivatives. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.20 | General and administrative      costs.  Each Borrower shall procure that (and, if      required, shall provide evidence to demonstrate that) all general and      administrative costs incurred in the ownership and operation of each Ship      are subordinated in full to the debt service obligations of the Borrowers      under this Agreement, to the extent permitted under applicable      laws. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 14.1 | Provision of additional      security cover; prepayment of Loan.  Each Borrower      undertakes with the Lender that, if (after the Delivery Date of the second      Ship under the relevant Shipbuilding Contract) the Lender notifies the      Borrowers that: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      aggregate Fair Market Value (determined as provided below) of the Ships      subject to a Mortgage; plus |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (b) | the      net realisable value of any additional security previously provided under      this Clause 14; |
|-----|---------------------------------------------------------------------------------------------------------|

|   | is      below one hundred and twenty five per cent. (125%) of the amount of the      Loan and the Hedging Exposure, the Borrowers will, within 1 month after      the date on which the Lender's notice is served,  either: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 which consists of either (a) cash pledged to the Lender or      (b) a Security Interest (including, but not limited to, a first priority      mortgage over another vessel), covering such asset or assets and      documented in such terms as the Lender may approve or require;      or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | prepay      in accordance with Clause 7 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 Borrowers’      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 Borrowers’ liabilities under the Finance      Documents. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 14.4 | Valuation of      Ships.  The Fair Market Value of a Ship shall be      obtained: |
|------|---------------------------------------------------------------------------------------------|

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

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

| (c) | by      taking the average of two written valuations prepared by two reputable      sale and purchase ship brokers appointed by the  Lender; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | showing      the value of the relevant Ship as at the date of, or at a date no earlier      than 10 days prior to, suchvaluations; |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 14.5 | Value of additional vessel      security.  The net realisable value of any additional      security which is provided under Clause 14.2 and which consists of a      Security Interest over a vessel shall be that shown either by way of a      valuation complying with the requirements of Clause 14.3 or by a valuation      from an independent sale and purchase shipbroker approved or appointed by      the Lender (and on the basis of a sale for prompt delivery for cash on      normal arm’s length commercial terms as between a willing seller and      willing buyer, free of charter or other contract of      employment). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 14.7 | Provision of      information.  The Borrowers 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 Borrowers fail 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 it) considersprudent. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8 | Payment of valuation      expenses.  Without prejudice to the generality of the      Borrowers’ obligations under Clauses 19.2, 19.3 and 20.3, the Borrowers      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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.9 | Frequency of      valuations.  The Lender shall be entitled to obtain a      valuation of each Ship at any time during the Security Period, provided      that the costs and expenses of such shall only be borne by the Borrowers      twice per year per Ship (in the absence of the occurrence of an Event of      Default). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

|   | (ii) | 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 |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 15.2 | Payment on non-Business      Day.  If any payment by any 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 accounts showing the      amounts owing to it by the Borrowers and each Security Party under the      Finance Documents and all payments in respect of those amounts made by the      Borrowers and any Security Party. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.5 | Accounts prima facie      evidence.  If any accounts maintained under Clause 15.4      show an amount to be owing by the Borrowers or a Security Party to the      Lender, those accounts shall be prima facie evidence that that amount is      owing to the Lender. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (i) | first,      in or towards satisfaction pro rata of all amounts then due and payable to      the Lender under the Finance Documents other than those amounts referred      to at paragraphs (ii), (iii) and (iv) (including, but without limitation,      all amounts payable by the Borrowersunder |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | secondly,      in or towards satisfaction pro rata of any and all amounts of interest or      default interest payable to the Lender under the Finance      Documents; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | thirdly,      in or towards satisfaction pro rata of the Loan;  and |
|--------|-------|---------------------------------------------------------------------|

|   | (iv) | fourthly,      in payment to the Lender of amounts then due and payable in respect of any      Designated Transactions; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

| (b) | SECONDLY:      in retention of an amount equal to any amount not then due and payable      under any Finance Document but which the Lender, by notice to the      Borrowers 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 Clause 16.1(a); and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 16.2 | Variation of order of      application. The Lender may by notice to the Borrowers 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      overriden.  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 any Borrower or any Security      Party. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 17.1 | Payment and application of      Earnings.  Each 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 owned by      it are paid to the Earnings Account relating to that  Ship. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2 | Monthly      retentions.  Each Borrower undertakes with the Lender to      ensure that, throughout the Security Period commencing on the date falling      one month after the Drawdown Date of the Delivery Advance for the first      Ship to be delivered and on the same day in each subsequent month, there      is transferred to the Retention Account out of the Earnings received in      the Earnings Accounts during the preceding calendar  month: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | the      relevant fraction of the amount of interest accruing on the Loan which is      payable on the next due date for payment of interest under this Agreement      (increased or reduced to the extent necessary to take account of all      Designated Transactions thenoperative). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17.3 | Shortfall in      Earnings.  If the aggregate Earnings received in the      Earnings Accounts are insufficient at any time for the required amount to      be transferred to the Retention Account under Clause 17.2, the Borrowers      shall make up the amount of the insufficiency on demand from the Lender;      but, without thereby prejudicing the Lender's right to make such demand at      any time, the Lender may, if so authorised by the Lender, permit the      Borrowers to make up all or part of the insufficiency by increasing the      amount of any transfer under Clause 17.2 from the Earnings received in the      next or subsequent months. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4 | Application of      retentions.  Until an Event of Default or a Potential      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 in      accordance with Clause 15.1 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 on the Retention Account. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.6 | Release of accrued      interest.  Interest accruing under Clause 17.5 on the      Retention Account shall be released to the Borrowers 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.  Each Borrower shall  promptly: |
|------|----------------------------------------------------------------------|

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

| 17.8 | Debits for expenses      etc.  The Lender shall be entitled (but not obliged) from      time to time to debit any Earnings Accounts 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 | Borrowers’ 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 Borrowers to make payments of principal and interest on      the due dates; or |
|-----|----------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| (c) | any      breach by any Borrower or any Security Party occurs of any provision of a      Finance Document (other than a breach covered by paragraphs (a) or (b)      above) if, in the opinion of the Lender, such default is capable of      remedy, and such default continues unremedied 5 Business Days after      written notice from the Lender requesting action to remedy the same;      or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | (subject      to any applicable grace period specified in the Finance Documents) any      breach by any Borrower or any 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, a      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 in respect of a sum of, or      sums aggregating, $250,000 or more or the equivalent in another currency      unless such execution, attachment, arrest, sequestration or distress is      being contested in good faith and on substantial grounds and is discussed      or withdrawn within thirty (30) days of the occurrence thereof;      or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (v) | 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 a 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 |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | 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 |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | 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 |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | 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), (vi) or      (vii) above; or |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| (j) | any      consent necessary to enable any Borrower to own, operate or charter the      Ship owned by it or to enable any Borrower or any Security Party to comply      with any provision which the Lender considers material of a Finance      Document or a 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      legal or beneficial ownership of any of the shares in any of the Borrowers      or in the ultimate control of the voting rights attaching to any of those      shares; 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      of the Ships is not delivered by the Builder to the relevant Borrower      under the relevant Shipbuilding Contract by the date falling 210 days      after the scheduled delivery date of such Ship referred to in Article VII      of each Shipbuilding Contract; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o) | a      default occurs under any time charter of any Ship or under the management      agreement with respect to any Ship; |
|-----|---------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (ii) | any      accident or other event involving any of the Ships or another vessel      owned, chartered or operated by a Relevant  Person, |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | in      the light of which the Lender considers that there is a significant risk      that any Borrower or any Security Party is, or will later become, unable      to discharge its liabilities under the Finance Documents to which it is a      party 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 Borrowers a notice stating that the Commitment and all other      obligations of the Lender to the Borrowers under this Agreement are      terminated; and/or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | serve      on the Borrowers 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) | serve      on the Borrowers a notice declaring that an Event of Default has occurred      and reserving all rights of the Lender under this Agreement and all the      Finance Documents; and/or |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | 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      Commitment.  On the service of a notice under paragraph      (a)(i) of Clause 18.2, the Commitment and all other obligations of the      Lender to the Borrowers under this Agreement shall    terminate. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 18.5 | Multiple notices; action      without notice.  The Lender may serve notices under      paragraphs (a) (i) and (ii) of Clause 18.2 simultaneously or on different      dates and it may take any action referred to in that Clause 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’s      Liability.  Neither the Lender nor any receiver or      manager appointed by it shall have any liability to any Borrower or any      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 | Relevant      Persons.  In this Clause 18 “a Relevant Person” means      any Borrower, the Corporate Guarantor and any other Security Party and,      for the purposes of Clause 18.1 (g), any charterer of a    Ship. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.8 | 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 Borrowers shall pay to the    Lender: |
|------|--------------------------------------------------------------------------------------------|

| (a) | on      the Drawdown Date of the first Advance, a non-refundable arrangement fee      of $280,000; and |
|-----|--------------------------------------------------------------------------------------------------------|

| (b) | quarterly      in arrears (and on the last day of the Availability Period) during the      period from (and including) the date of this Agreement to the earlier of      (i) the final Drawdown Date and (ii) the last day of the Availability      Period, a commitment fee at the rate of 0.30% per annum on the undrawn      amount of the Commitment from time totime. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Costs of negotiation,      preparation etc.  The Borrowers 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 variations,      amendments, enforcement etc.  The Borrowers 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 such security; |
|-----|----------------------------------------------------------------------------------------------------------------------------|

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

| 19.4 | Documentary      taxes.  The Borrowers 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 liabilities and expenses      resulting from any failure or delay by the Borrowers (or any of them) to      pay such a tax. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5 | Certification of      amounts.  A notice which is signed by two officers of the      Lender, which states that a specified amount, or aggregate amount, is due      to the 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, save for manifest      error, be prima facie evidence that the amount, or aggregate amount, is      due. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 20.1 | Indemnities regarding borrowing      and repayment of Loan.  The Borrowers shall fully      indemnify the Lender on its demand in respect of all expenses, liabilities      and losses which are 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 relevant 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 Borrowers to make payment of any      amount due under a Finance Document on the due date or, if so payable, on      demand (after giving credit for any default interest paid by the Borrowers      on the amount concerned under Clause6); |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      occurrence and/or continuance of an Event of Default or a Potential Event      of Default and/or the acceleration of repayment of the 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 liability, expense 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 that part which the Lender      determines is fairly attributable to this Agreement of the amount of the      liabilities, expenses or losses (including losses of prospective profits)      incurred by it in terminating, or otherwise in connection with, a number      of transactions of which this Agreement isone. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3 | Miscellaneous      indemnities.  The Borrowers shall fully indemnify the      Lender 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; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20.4 | Currency      indemnity.  If any sum due from any Borrower or any      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 any Borrower or any Security Party,      whether in its liquidation, any arrangement involving it or otherwise;      or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 20.5 | Application to Master      Agreement.  For the avoidance of doubt, Clause 20.4 does      not apply in respect of sums due from the Borrowers to the Lender under or      in connection with the Master Agreement as to which sums the provisions of      section 8(c) (Contractual Currency) of the Master Agreement shall      apply. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.6 | Certification of      amounts.  A notice which is signed by an officer 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 Borrowers 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 a Borrower is      required by law to make. |
|-----|-------------------------------------------------------------------------------------------------------------------|

| 21.2 | Grossing-up for      taxes.  If a Borrower is required by law to make a tax      deduction from any payment: |
|------|------------------------------------------------------------------------------------------------------------------------|

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

| (b) | that      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 1 month after making any tax deduction,      the Borrower concerned 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.5 | Application to Master      Agreement.  For the avoidance of doubt, Clause 21 does      not apply in respect of sums due from the Borrowers to the Lender under or      in connection with the Master Agreement as to which sums the provisions of      section 2(d) (Deduction or Withholding for Tax) of the Master Agreement      shall apply. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 22.2 | Prepayment; termination of      Commitment.  On the Lender notifying the Borrowers under      Clause 22.1, the Commitment 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 Borrowers shall      prepay the Loan in accordance with Clause7. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 23.1 | Increased      costs.  This Clause 23 applies if the Lender notifies the      Borrowers 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      or having taken an assignment of rights under 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; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 23.3 | Notice of      prepayment.  If the Borrowers are not willing to continue      to compensate the Lender for the increased cost under Clause 23.2, the      Borrowers 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; termination of      Commitment.  A notice under Clause 23.3 shall be      irrevocable and on the date specified in its notice of intended      prepayment, the Borrowers shall prepay (without premium or penalty) the      Loan, together with accrued interest thereon at the applicable rate plus      the applicable Margin plus the Mandatory Costs (if  any). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Borrowers or any of them at any      office in any country of the Lender in or towards satisfaction of any sum      then due from the Borrowers or any of them 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 Borrowers or      any of them; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (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 it is entitled      (whether under the general law or anydocument). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Borrowers or any of      them. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 25.1 | Transfer by the      Borrowers.  No Borrower may, without the consent of the      Lender: |
|------|-----------------------------------------------------------------------------------------------------|

| (a) | transfer      any of its rights or obligations under any Finance Document;      or |
|-----|------------------------------------------------------------------------------------|

| (b) | enter      into any merger, de-merger or other reorganisation, or carry out any other      act, as a result of which any of its rights or liabilities would vest in,      or pass to, another person. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Assignment by Lender.      The Lender may assign all or any of the rights and interests which      it has under or by virtue of the Finance Documents without the consent of      the Borrowers. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 of 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 or      amount. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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, or any notice to, the Borrowers      or any Security Party; 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 it. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Borrowers, any Security Party or their affairs under or      in connection with any Finance Document, provided that the potential      assignee or sub-participant shall first have executed a confidentiality      agreement in relation thereto. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

| 26 | VARIATIONS      AND WAIVERS |
|----|-----------------------------|

| 26.1 | Variations, waivers etc. by      Lender.  Subject to Clause 26.2, 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 Borrowers, by 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 Clauses 26.1 and 26.2, 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 behalf of it) shall result in the      Lender (or any person acting on behalf of it) being taken to have varied,      waived, suspended or limited, or being precluded (permanently or      temporarily) from enforcing, relying on or  exercising: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 27.1 | 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      a Borrower: | c/o                                                                                                                                                                         | Omega      Navigation Enterprises Inc. |
|--------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|
|   |                | 24      Kanigos Street                                                                                                                                                      |
|   |                | Kastella                                                                                                                                                                    |
|   |                | Piraeus                                                                                                                                                                     |
|   |                | Greece                                                                                                                                                                      |
|   |                | Fax      No:  +30 210      [                      ] |
|   |                | Attn:      Charilaos Loukopoulos, Executive VicePresident                                                                                                                   |

----

| (b)    | to      the Lender: | The      Governor and Company of the Bank of Scotland |
|--------|---------------------|-------------------------------------------------------|
|   |                | Pentland      House                                   |
|   |                | 8      Lochside Avenue                                |
|   |                | Edinburgh      EH12 9DJ                               |
|   |                | Scotland                                              |
|   |                | Fax      No:  +44 131 658 3220              |

| 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 27.3 and 27.4 do not apply if the      recipient of a notice notifies the sender within one 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 “notice” includes any demand,      consent, authorisation, approval, instruction, waiver or other      communication. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 28 | JOINT      AND SEVERAL LIABILITY |
|----|----------------------------------|

| 28.1 | General.  All      liabilities and obligations of the Borrowers under this Agreement shall,      whether expressed to be so or not, be several and, if and to the extent      consistent with Clause 28.2, joint. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.2 | No impairment of Borrowers’      obligations.  The liabilities and obligations of a      Borrower shall not be impaired by: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 28.3 | Principal      debtors.  Each Borrower declares that it is and will,      throughout the Security Period, remain a principal debtor for all amounts      owing under this Agreement and the Finance Documents and no Borrower shall      in any circumstances be construed to be a surety for the obligations of      any other Borrower under thisAgreement. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.4 | Subordination.  Subject      to Clause 28.5, during the Security Period, no Borrower    shall: |
|------|----------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 28.5 | Borrower's required      action.  If during the Security Period, the Lender, by      notice to a Borrower, requires it to take any action referred to in      paragraphs (a) to (d) of Clause 28.4, in relation to any other Borrower,      that Borrower shall take that action as soon as practicable after      receiving the Lender's notice. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 29.1 | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 29.3 | 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.4 | Counterparts.  A      Finance Document may be executed in any number of      counterparts. |
|------|------------------------------------------------------------------------------------------------------|

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

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

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

| 30.3 | Choice of forum for the      exclusive benefit of the Lender.  Clause 30.2 is for the      exclusive benefit of the Lender 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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.4 | Process      agent.  Each Borrower irrevocably appoints Hill Dickinson      LLP at their office for the time being, presently at Irongate House,      Duke’s Place, London EC3A 7HX, England (attn: Electra Panayotopoulos), to      act as its agent to receive and accept on its behalf any process or other      document relating to any proceedings in the English courts which are      connected with this Agreement. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.5 | Lender’s rights      unaffected.  Nothing in this Clause 30 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 1 | We      refer to the loan agreement (the “Loan Agreement”)      dated                    2007      and made between (i) ourselves as Borrowers and (2) yourselves as Lender      in connection with a facility of up to US$70,000,000. Terms defined in the      Loan Agreement have their defined meanings when used in this Drawdown      Notice. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | We      request to borrow an Advance asfollows: |
|---|-------------------------------------------------|

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

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

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

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

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

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

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

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

| 5 | [We      authorise you to deduct from the Advance the amount of all accrued      arrangement and commitment fees payable pursuant to Clause      19.1]. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 1. | A      duly executed original of each Predelivery Security Assignment (and all      notices and acknowledgements required thereunder) and of the Corporate      Guarantee. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 4. | The      original of any power of attorney under which any Finance Document      referred to at 1 above is executed on behalf of a Borrower or the      Corporate Guarantor. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 6. | Copies      of each of the Shipbuilding Contracts and of all documents signed or      issued by the Borrowers or the Builder (or any of them) under or in      connection with them, together with evidence of authorisation with respect      to the execution thereof by theBuilder. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Originals      of each of the Refund Guarantees, together with evidence of authorisation      with respect to the execution thereof by the Refund    Guarantor. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | All      documentation required by the Lender in respect of any Borrower or      Security Party pursuant to the Lender’s “Know your customer” requirements,      together with such other documents or evidence as the Lender may      reasonably require with respect to money laundering      regulations. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Evidence      satisfactory to the Lender in its sole discretion regarding the ownership      structure with respect to theShips. |
|----|----------------------------------------------------------------------------------------------------------------------------------|

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

| 11. | Favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the laws of the Marshall Islands and such other relevant      jurisdictions as the Lender mayrequire. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | 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. | A      duly receipted invoice from the Builder with respect to the payment by the      relevant Borrower of the first instalment due under Article X2(a) of the      Shipbuilding Contract relating to the Relevant  Ship. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | An      invoice from the Builder showing all sums due and payable to the Builder      pursuant to Article X2(b) of the Shipbuilding Contract relating to the      Relevant Ship. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | An      invoice from the Builder showing all sums due and payable to the Builder      pursuant to Article X2(c) of the relevant Shipbuilding Contract upon      commencement of steel cutting for the Relevant  Ship. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | A      stage certificate issued by the Builder and countersigned by the      classification society approved by the Lender and in a form acceptable to      the Lender, confirming that steel cutting of the Relevant Ship has been      carried out to the satisfaction of such classification      society. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | An      invoice from the Builder showing all sums due and payable to the Builder      pursuant to Article X2(d) of the relevant Shipbuilding Contract upon      keel-laying of the Relevant Ship. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Written      confirmation from the relevant Borrower and the Approved Manager (if      appointed) that they have irrevocably accepted and approved the building      works which have been completed on the Relevant Ship up to the date of her      keel-laying. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | A      stage certificate issued by the Builder and countersigned by the      classification society approved by the Lender and in a form acceptable to      the Lender, confirming that keel-laying of the Relevant Ship has been      carried out to the satisfaction of such classification      society. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | PART      F |
|--------|-------------|

|   | The      following are the documents referred to in Clause  8.1(f): |
|--------|---------------------------------------------------------------------|

| 1. | An      invoice from the Builder showing all sums due and payable to the Builder      pursuant to Article X2(e) of the relevant Shipbuilding Contract upon      launching of the Relevant Ship. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Written      confirmation from the relevant Borrower and the Approved Manager (if      appointed) that they have irrevocably accepted and approved the building      works which have been completed on the Relevant Ship up to the date of her      launching. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | A      stage certificate issued by the Builder and countersigned by the      classification society approved by the Lender and in a form acceptable to      the Lender, confirming that launching of the Relevant Ship has been      carried out to the satisfaction of such classification      society. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | A      duly executed original of the Mortgage and the General Assignment (and of      each document to be delivered under each of them) in respect of the      Relevant Ship, the Accounts Pledge, the Master Agreement and the Master      Agreement Security Deed. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (a) | the      Relevant Ship is in all respects ready to be delivered by the Builder to,      and accepted by, the relevant Borrower under the relevant Shipbuilding      Contract subject only to payment of the delivery instalment and that upon      such payment the builder’s certificate, bill of sale and other documents      to be delivered by the Builder to the relevant Borrower upon delivery of      the Relevant Ship to that Borrower will be so  delivered; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Relevant Ship will on its Delivery Date be definitively and permanently      registered in the name of the relevant Borrower under the Approved      Flag; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Relevant Ship will on its Delivery Date be in the absolute and      unencumbered ownership of the relevant Borrower save as contemplated by      the Finance Documents; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      Relevant Ship will on its Delivery Date be classed with the highest      available class with Lloyds Register of Ships (or equivalent) free of all      overdue recommendations and conditions of such Classification      Society; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      Mortgage in respect of the Relevant Ship has been executed by the relevant      Borrower and has been, or will immediately following drawdown of the      Delivery Advance for such Ship be, registered against the Relevant Ship as      a valid first priority ship mortgage in accordance with the laws of the      Approved Flag State; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the      Relevant Ship will on its Delivery Date be insured in accordance with the      provisions of this Agreement and all requirements therein in respect of      insurances have been complied with. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (a) | the      Approved Manager’s Undertaking in respect of the Relevant Ship, together      with a copy of the ship management agreement for the Relevant      Ship; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | copies      of the Document of Compliance and Safety Management Certificate and      ISSC; |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (c) | copies      of such other ISM Code or ISPS Code documentation as the Lender may by      written notice to the relevant Borrower have requested not later than 2      days before the relevant Drawdown Date, certified as true and complete in      all material respects by the relevant Borrower and the Approved      Manager. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Valuations      of the Relevant Ship addressed to the Lender, prepared in accordance with      Clause 14 and in a form satisfactory to the  Lender. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The      originals of any mandates or other documents required in connection with      the opening or operation of the Earnings Accounts and the Retention      Account. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | A      favourable opinion from an independent insurance consultant appointed by      the Lender on such matters relating to the insurances for the Relevant      Ship as the Lender may require, and at the cost and expense of the      Borrowers. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | A      certified true copy of any time charter for the Relevant Ship in excess of      twelve months, in a form and substance and with a charterer acceptable to      the Lender in its sole discretion. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | Satisfactory,      in the opinion of the Lender, Approved Flag State and classification      society records as the Lender may request in respect of the Relevant      Ship. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Evidence      satisfactory to the Lender that there has been no material adverse change      in the financial condition of any Borrower or the Corporate Guarantor      which could materially affect the Lender’s agreement to make available the      Delivery Advance relating to the RelevantShip. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                 |   | Hull      2189 |       |   | Hull      2190 |   |
|----------------------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|
| First      Instalment(already      paid)                        |   | $              | 4,423,500  |   |           | $      | 4,423,500 |   |
| Second      Instalment(six      months after Contract signing)  |   | $              | 4,423,500  |   |           | $      | 4,423,500 |   |
| Third      Instalment(on      steel cutting)                         |   | $              | 8,847,000  |   |           | $      | 8,847,000 |   |
| Fourth      Instalment(on      keel-laying)                     |   | $              | 8,847,000  |   |           | $      | 8,847,000 |   |
| Fifth      Instalment(on      launching)                             |   | $              | 8,847,000  |   |           | $      | 8,847,000 |   |
| Delivery      Instalment                                             |   | $              | 8,847,000  |   |           | $      | 8,847,000 |   |
| Total                                                                |   | $              | 44,235,000 |   |           | $      | 44,235,000 |   |

----

| 1. | Mandatory      Costs are an addition to the interest rate to compensate the Lender for      the cost of compliance with (a) the requirements of the Bank of England      and/or the Financial Services Authority (or, in either case, any other      authority which replaces all or any of its functions) or (b) the      requirements of the European CentralBank. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | On      the first day of each Interest Period (or as soon as possible thereafter)      the Lender shall calculate, as a percentage rate, a rate (the “Additional      Cost Rate”) in accordance with the paragraphs set out    below. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | If      the Lender is lending from an office in a Participating Member State, the      Additional Cost Rate will be the percentage certified by the Lender to be      its reasonable determination of the cost of complying with the minimum      reserve requirements of the European Central Bank in respect of loans made      from that office. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | If      the Lender is lending from an office in the United Kingdom the Additional      Cost Rate will be calculated by the Lender as  follows: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if      the Loan is denominated in poundssterling: |
|--------|-----|----------------------------------------------------|

|   | AB      + C ( B - D) + E x 0.01 |           per cent. per annum |
|--------|---------------------------------|---------------------------------------------------|
|   | 100      - (A + C)              |

|   | (b) | if      the Loan is denominated in any currency other than pounds      sterling: |
|--------|-----|----------------------------------------------------------------------------------|

|   | E      x 0.01 |           per cent. per annum |
|--------|---------------|---------------------------------------------------|
|   | 300           |

|   | A | is      the percentage of Eligible Liabilities (assuming these to be in excess of      any stated minimum) which the Lender is from time to time required to      maintain as an interest free cash ratio deposit with the Bank of England      to comply with cash ratiorequirements. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B | is      the percentage rate of interest (excluding the applicable Margin and the      Mandatory Costs and any additional rate of interest specified in Clause 6)      payable for the relevant Interest Period on the  Loan. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C | is      the percentage (if any) of Eligible Liabilities which the Lender is      required from time to time to maintain as interest bearing Special      Deposits with the Bank of England. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D | is      the percentage rate per annum payable by the Bank of England to the Lender      on interest bearing SpecialDeposits. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------|

|   | E | is      designed to compensate the Lender for amounts payable under the Fees Rules      and is calculated by the Lender as being the average of the Fee Tariffs      applicable to the Lender for that financial year and expressed in pounds      per £1,000,000 of the Tariff Base of theLender. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | For      the purposes of this Schedule: |
|----|-----------------------------------------|

|   | (a) | “Eligible Liabilities”      and “Special      Deposits” have the meanings given to them from time to time under      or pursuant to the Bank of England Act 1998 or (as may be appropriate) by      the Bank of England; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | “Fees Rules” means the      rules on periodic fees contained in the FSA Supervision Manual or such      other law or regulation as may be in force from time to time in respect of      the payment of fees fro the acceptance of  deposits; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | “Fee Tariffs” means the      fee tariffs specified in the Fees Rules under the activity group A.1      Deposit acceptors (ignoring any minimum fee or zero rated fee required      pursuant to the Fees Rules but taking into account any applicable discount      rate); and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | “Tariff Base” has the      meaning given to it in, and will be calculated in accordance with, the      Fees Rules. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

| 6. | In      application of the above formulae, A, B, C and D will be included in the      formulae as percentages (i.e. 5 per cent. will be included in the formula      as 5 and not as 0.05). A negative result obtained by subtracting D from B      shall be taken as zero. The resulting figures shall be rounded to four      decimal places. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Any      determination by the Lender pursuant to this Schedule in relation to a      formula, the Mandatory Costs, an Additional Cost Rate or any amount      payable to the Lender shall, in the absence of manifest error, be      conclusive and binding on the Lender and the  Borrowers. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | The      Lender may from time to time, after consultation with the Borrowers,      determine any amendments which are required to be made to this Schedule in      order to comply with any change in law, regulation or any requirements      from time to time imposed by the Bank of England, the Financial Services      Authority or the European Central Bank (or, in any case, any other      authority which replaces all or any of its functions) and any such      determination shall, in the absence of manifest error, be conclusive and      binding on the Lender and theBorrowers. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| BORROWERS                     |   |   |
|-------------------------------|--------|--------|
|                          |   |   |
| SIGNEDby                      | )      |   |
| for      and on behalf of     | )      |   |
| TYLER      NAVIGATION INC.    | )      |   |
| in      the presence of:      | )      |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
| SIGNEDby                      | )      |   |
| for      and on behalf of     | )      |   |
| PASEDENA      NAVIGATION INC. | )      |   |
| in      the presence of:      | )      |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
| LENDER                        |   |   |
|                          |   |   |
| SIGNEDby                      | )      |   |
| for      and on behalf of     | )      |   |
| THE      GOVERNOR AND         | )      |   |
| COMPANY      OF THE BANK      | )      |   |
| OF      SCOTLAND              | )      |   |
| in      the presence of:      | )      |   |

----