| Dated      26 March 2008                                                                                                                          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   |
| SUPPLEMENTAL      AGREEMENTrelating      to aTerm      Loan andRevolving      Credit Facilityof      originally US$545,656,899.82provided      by |   |
|                                                                                                                                              |
|                                                                                                                                              |
|                                                                                                                                              |
|                                                                                                                                              |
|                                                                                                                                              |
|                                                                                                                                    |   |
| THE      ROYAL BANK OF SCOTLAND plc                                                                                                               | (1)    |
|   to                                                                                                                          |   |
| TOP      SHIPS INC.                                                                                                                               | (2)    |
|                                                                                                                                              |   |

----

| Clause                                                      |                                   | Page   |
|-------------------------------------------------------------|----------------------------------------|--------|
|                                                   |                                   |   |
| 1                                                           | Definitions                            | 1      |
|                                                        |                                   |   |
| 2                                                           | Agreement      of the Bank             | 2      |
|                                                        |                                   |   |
| 3                                                           | Amendments      to Principal Agreement | 2      |
|                                                        |                                   |   |
| 4                                                           | Representations      and warranties    | 2      |
|                                                        |                                   |   |
| 5                                                           | Conditions                             | 4      |
|                                                        |                                   |   |
| 6                                                           | Security      Documents                | 5      |
|                                                        |                                   |   |
| 7                                                           | Expenses                               | 5      |
|                                                        |                                   |   |
| 8                                                           | Miscellaneous      and notices         | 5      |
|                                                        |                                   |   |
| 9                                                           | Law      and jurisdiction              | 5      |
|                                                        |                                   |
| Schedule      1 Form of Supplemental Letter                 | 7                                      |
|                                                        |                                   |
| Schedule      2 Form of Mortgage Addendum                   | 8                                      |
|                                                        |                                   |
| Part      (a) Dauntless Mortgage Addendum                   | 9                                      |
|                                                        |                                   |
| Part      (b) loannis P Mortgage Addendum                   | 10                                     |
|                                                        |                                   |
| Schedule      3 Form of Amended and Restated Loan Agreement | 11                                     |

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| (1)   | TOP SHIPS INC. (formerly      known as Top Tankers Inc.) with its principal place of business at 1, Vas.      Sofias & Meg. Alexandrou Str., 151 24 Maroussi, Greece (the "Borrower");      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | THE ROYAL BANK OF SCOTLAND plc,      acting for the purposes of this Agreement through its office at the      Shipping Business Centre, 5-10 Great Tower Street, London, EC3P 3HX,      England (the "Bank"). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | this      Agreement is supplemental to a facilities agreement dated 1 November 2005      (the "Original      Agreement")      made between (1) the Borrower and (2) the Bank as supplemented and      amended by a first supplemental agreement dated 21 December 2006 (the      "First Supplemental      Agreement")      and a second supplemental agreement dated 22 January 2008 (the      "Second Supplemental Agreement"),      each made between (1) the Borrower and (2) the Bank (the Original      Agreement as supplemented and amended by the First Supplemental Agreement      and the Second Supplemental Agreement and as further supplemented and      amended from time to time, the "Principal Agreement")      pursuant to which the Bank agreed to make a term loan facility of      up to $195,656,899.82 and a revolving credit facility of up to      $350,000,000 available to the Borrower upon the terms and conditions set      out in the Principal Agreement; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | pursuant      to clause 2.4 of the Principal Agreement the Borrower has requested that a      part of Facility B be drawndown for the purposes of financing part of the      second contract instalments payable under the Contracts relating to the      Additional Ships which are newbuildings with hull numbers 5-1025, S-1026,      S-1027, S-1029, S-1031 and S-1033 (the "Newbuildings");      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C)   | the      Bank has agreed to the Borrower's request to make available six Advances      under Facility B (one Advance per Newbuilding) each in the amount of      $5,000,000 subject to the terms of the Principal Agreement including,      without limitation, the satisfaction of all relevant conditions precedent      and subject to the amendment of the Principal Agreement in the manner set      out in this Agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.1  | The      Bank, relying upon the representations and warranties on the part of the      Borrower contained      in clause 4, agrees with the Borrower that, subject to the terms and      conditions of this Agreement and in particular, but without prejudice to      the generality of the foregoing, fulfilment on or before 26 March 2008 of      the conditions contained in clause 5 the Bank agrees to the amendment of      the Principal Agreement on the terms set out in clause      3. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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| 5.1.5 | evidence      that the Borrower and each of the other Security Parties have obtained all      consents and authorisations necessary to enable each of them to enter into      this Agreement (in the case of the Borrower) and the Supplemental Letters      (in the case of the Security Parties) and all documents and other      instruments to be executed by each of them in connection therewith or      pursuant thereto; |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1.6 | evidence      that the Borrower, each Owner and the Manager are in good standing under      the laws of the MarshallIslands; |
|-------|------------------------------------------------------------------------------------------------------------------------------|

| 5.1.7 | evidence      that the Mortgage Addenda have been properly and validly executed and      registered against the relevant Ship through the  Registry; |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1,8 | a      legal opinion in relation to the laws of the Marshall Islands in favour of      the Bank confirming (inter alia) the due execution of this Agreement, the      Supplemental Letters and the Mortgage Addenda;  and |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1.9 | an      original or certified true copy of a letter from the Borrower's agent for      receipt of service of proceedings accepting its appointment under this      Agreement as the Borrower's processagent. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2    | General      conditions precedent                                                                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                  |
|   | The      agreement of the Bank referred to in clause 2 shall be further subject      to:                                                                                                              |
|   |                                                                                                                                                                                                  |
| 5.2.1  | the      representations and warranties in clause 4 being true and correct on the      Effective Date as if each was made with respect to the facts and      circumstances existing at such time; and |
|   |                                                                                                                                                                                                  |
| 5.2.2  | no      Default having occurred and continuing on the Effective    Date.                                                                                                                              |

----

| 5.3                                         | Waiver      of conditions precedent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                        | The      conditions specified in this clause 5 are inserted solely for the benefit      of the Bank and may be waived by the Bank in whole or in part with or      without conditions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 6                                           | Security      Documents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                        | The      Borrower further acknowledges and agrees, for the avoidance of doubt,      that:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 6.1.1                                       | each      of the Security Documents to which it is a party, and its respective      obligations thereunder, shall remain in full force and effect      notwithstanding the amendments made to the Principal Agreement by this      Agreement; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 6.1.2                                       | with      effect from the Effective Date, references to "the Agreement" or "the Loan      Agreement" in any of the Security Documents to which each is a party shall      henceforth be reference to the Principal Agreement as amended by this      Agreement and as from time to time hereafter amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|             7 | Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                        | The      Borrower hereby undertakes to pay all legal and other expenses or      disbursements incurred by the Bank in the negotiation, preparation and      execution of this Agreement and in connection with the fulfilment of the      conditions specified in clause 5,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|             8 | Miscellaneous      and notices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 8.1                                         | Notices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                        | The      provisions of clause 16.1 of the Principal Agreement shall extend and      apply to the giving or making of notices or demands hereunder as if the      same were expressly stated herein.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 8.2                                         | Third      Party Rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                        | No      term of this Agreement shall be enforceable pursuant to the Contracts      (Rights of Third Parties) Act 1999 by a person who is not a party to this      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 8.3                                         | Counterparts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                        | This      Agreement may be executed in any number of counterparts and by the      different parties on separate counterparts, each of which when so executed      and delivered shall be an original but all counterparts shall together      constitute one and the same instrument.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9                                           | Law      and jurisdiction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.1                                         | Law                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                        | This      Agreement shall be governed by, and construed in accordance with, English      law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 9.2                                         | Submission      to jurisdiction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                        | The      Borrower agrees, for the benefit of the Bank, that any legal action or      proceedings arising out of or in connection with this Agreement against      the Borrower or any of its assets may be brought in the English courts.      The Borrower irrevocably and unconditionally submits to the jurisdiction      of such courts and irrevocably designates, appoints and empowers Top      Tankers (U.K.) Limited at present of 8 Duke Street, London W1 U 3EW,      England to receive for it and on its behalf, service of process issued out      of the English courts in any such legal action or proceedings. The      submission to such jurisdiction shall not (and shall not be construed so      as to) limit the right of the Bank to take proceedings against the      Borrowerin |

----

|   | the      courts of any other competent jurisdiction nor shall the taking of      proceedings in any one or more jurisdictions preclude the taking of      proceedings in any other jurisdiction, whether concurrently or      not.                              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                            |
|   | The      parties further agree that only the courts of England and not those of any      other State shall have jurisdiction to determine any claim which the      Borrower may have against the Bank arising out of or in connection with      this Agreement. |

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| Private      & Confidential                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| As      amended and restated by a Supplemental Agreement dated 26 March      2008 Dated      1 November 2005_____________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                   TOP SHIPS INC.                             (1)and                                                                          THE ROYAL BANK OF SCOTLAND      plc                                                                (2)  |

|                                                                    ____________________________ FACILITIES AGREEMENTTerm      Loan andRevolving      Credit Facilityof      originally US$545,656,899.82_____________________________                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1  | Purpose      and definitions                       | 1  |
|----|----------------------------------------------------|----|
| 2  | The      Facilities                                | 15 |
| 3  | Interest      and Interest Periods                 | 18 |
| 4  | Repayment,      prepayment and reborrowing         | 20 |
| 5  | Commitment      commission, fees and expenses      | 24 |
| 6  | Payments      and taxes; accounts and calculations | 25 |
| 7  | Representations      and warranties                | 26 |
| 8  | Undertakings                                       | 31 |
| 9  | Conditions                                         | 43 |
| 10 | Events      of Default                             | 45 |
| 11 | Indemnities                                        | 49 |
| 12 | Unlawfulness      and increased costs              | 50 |
| 13 | Security      and set off                          | 51 |
| 14 | Accounts                                           | 52 |
| 15 | Assignment,      transfer and lending office       | 54 |
| 16 | Notices      and other matters                     | 55 |
| 17 | Governing      law and jurisdiction                | 56 |

| Schedule      1 Part 1 - Initial Ships |   | 57 |
|----------------------------------------|--------|----|

|   | Part      1 - Initial Ships                                       | 57 |
|--------|-------------------------------------------------------------------|----|
|   | Part      2 - Additional Ship Selection Criteria                  | 59 |
|   | Part      3 - Maximum amount of Intra-Group Loan per Initial Ship | 60 |
|   | Part      4 - Details of Initial Owners                           | 61 |

| Schedule      2 Form of Drawdown Notice                                                        |   | 62 |
|------------------------------------------------------------------------------------------------|--------|----|
| Schedule      3 Documents and evidence required as conditions precedent to the      Commitment |   | 63 |
| Schedule      4 Additional Cost                                                                |   | 72 |
| Schedule      5 Form of Compliance Certificate                                                 |   | 73 |
| Schedule      6 Master Swap Agreement and Novation Agreement                                   |   | 74 |
| Schedule      7 Form of Master Swap Agreement Security Deed                                    |   | 75 |
| Schedule      8 Form of Intra-Group Loan Agreements                                            |   | 76 |
| Schedule      9 Form of Assignment of Intra-Group Loan Agreements                              |   | 77 |
| Schedule      10 Form of Owner’s Guarantee                                               |   | 78 |
| Schedule      11 Forms of Mortgages                                                            |   | 79 |

|   | Part      1 - Form of Cyprus Mortgage                    | 79 |
|--------|----------------------------------------------------------|----|
|   | Part      2 - Form of Liberian/Marshall Islands Mortgage | 80 |

| Schedule      12 Form of Deed of Covenant     |   | 81 |
|-----------------------------------------------|--------|----|
| Schedule      13 Forms of General Assignments |   | 82 |

|   | Part      1 - Form of Cyprus General Assignment                   | 82 |
|--------|-------------------------------------------------------------------|----|
|   | Part      2 - Form of Liberian/Marshall Island General Assignment | 83 |

| Schedule      14 Form of Operating Accounts Charge   |   | 84 |
|------------------------------------------------------|--------|----|
| Schedule      15 Form of Manager’s Undertaking |   | 85 |

----

| (1)   | TOP SHIPS INC. as      borrower (the “Borrower”);      and |
|-----------------|------------------------------------------------------------------------|

| (2)   | THE ROYAL BANK OF SCOTLAND      plc as bank (the “Bank”). |
|-----------------|-----------------------------------------------------------------------|

| 1   | Purpose      and definitions |
|---------------|------------------------------|

| 1.1   | Purpose |
|-----------------|---------|

| 1.2   | Definitions |
|-----------------|-------------|

----

| (a)   | in      relation to an Initial Ship, the classification set out in Part 1 of      Schedule 1; and |
|-----------------|--------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to any Additional Ship, the highest class available to vessels of      its type with the relevant Classification  Society, |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | in      relation to an Initial Ship, the classification society set out in Part 1      of Schedule 1; and |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to any Additional Ship, a classification society which is a      member of the International Association of Classification      Societies, |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)   | in      relation to any second-hand Additional Ship, the memorandum of agreement      or other contract for the sale and purchase of such Ship (to be in a form      and substance satisfactory to the Bank) made or (as the context may      require) to be made, between the Seller of such Ship and the relevant      Owner as buyer of such Ship; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to any Additional Ship which is a newbuilding, a shipbuilding      contract made between the relevant Builder of such Additional Ship and the      relevant Additional Owner of that Additional Ship and/or the relevant      Seller of that Additional Ship (to be in a form and substance satisfactory      to the Bank) and as the same may subsequently be supplemented and/or      amended, |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)   | in      relation to Facility A, the period from and including the date of this      Agreement and ending on the Termination Date relative to Facility A;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to Facility B, the period from and including the date of this      Agreement and ending on the Termination Date relative to Facility      B, |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)   | any      and all enforcement, clean-up, removal or other governmental or regulatory      action or order or claim instituted or made pursuant to any Environmental      Law or resulting from a Spill; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      claim made by any other person relating to a  Spill; |
|-----------------|---------------------------------------------------------------|

| (a)   | from      any Fleet Vessel; or |
|-----------------|--------------------------------|

| (b)   | from      any other vessel in circumstanceswhere: |
|-----------------|---------------------------------------------------|

| (i)   | any      Fleet Vessel or its owner, operator or manager may be liable for      Environmental Claims arising from the Spill (other than Environmental      Claims arising and fully satisfied before the date of this Agreement);      and/or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any      Fleet Vessel may be arrested or attached in connection with any such      Environmental Claims; |
|------------------|----------------------------------------------------------------------------------------------------------|

| (a)   | in      connection with the construction of an Additional Ship, all reasonable      pre-delivery costs up to the Delivery Date of such Additional Ship which      have been approved by the Bank in its sole  discretion; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | in      connection with the acquisition of an Additional Ship from a Seller, the      deposit payable in respect of such Additional Ship pursuant to the      relevant Contract in an amount approved by the Bank;  and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | all      interest paid by the Borrower on the relevant Advance under clause 3 of      this Agreement up to the Delivery Date of such Additional      Ship; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | in      relation to an Initial Ship, the flag state set out in Part 1 of Schedule      1 or      such other state or territory designated in writing by the Bank, at the      request of the Borrower or an Owner, as being the “Flag State” of that      Owner’s Ship for the purposes of the Security Documents;  or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to an Additional Ship any of the flag states as set out in Part 1      of Schedule 1, or such other state or territory designated in writing by      the Bank, at the request of the Borrower or the Owner, as being the “Flag State” of that      Owner’s Ship for the purposes of the Security  Documents; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|   | (a) | up      until 26 March 2008 the margin listed in the following table which shall      be adjusted at each Margin SetDate: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

| Facility        | Loan/Security      ValueRatio | Margin |
|-----------------|-------------------------------|--------|
| Facility      A | ≤      60%              | 0.875% |
| Facility      B | ≤      60%              | 0.85%  |
| Loan            | >60%                       | 1.0%   |

----

| (a)   | in      relation to an Initial Owner and the Borrower, the accounts with account      numbers as set out in Part 1 of Schedule 1;and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to any Additional Owner, accounts of the Borrower and such Owner      opened or (as the context may require) to be opened by the Borrower and      such Owner with the Bank |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (a)   | in      relation to Facility A, 30 November 2005 and each of the dates falling at      six (6) monthly intervals thereafter up to and including the Final      Repayment Date relative to Facility A;and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      relation to Facility B, 30 November 2008 and each of the dates falling at      three (3) monthly intervals thereafter up to and including the Final      Repayment Date relative to FacilityB; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)   | in      relation to Dauntless,      Endless,      Faithful,      Faultless,      Limitless, Noiseless, Priceless,      Taintless      and Timeless      V.Ships Management Limited of Eaglehurst, Belmont Hill, Douglas, Isle of      Man; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | in      relation to Doubtless,      Flawless,      Spotless      and Vanguard,      Hanseatic Shipping Co. Ltd of 284, Archbishop Makarios III Avenue,      Limassol, Cyprus; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      relation to Soundless      and Topless,      Top Tanker Management Inc. with its registered address at Trust Company      Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands      MH96960, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | in      relation to Facility A, 14 November 2005;and |
|-----------------|------------------------------------------------------|

| (b)   | in      relation to Facility B, the earlier of (i) the date which falls ten (10)      years after the date of this Agreement and (ii) the Final Repayment      Date; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | from      1 November 2005 up until 2 August 2006 the aggregate amount of three      hundred and fifty million Dollars  ($350,000,000); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | from      3 August 2006 up until 19 March 2008 the aggregate amount of one hundred      and fifty eight million Dollars ($158,000,000);  and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | from      26 March 2008 the aggregate amount of one hundred and twenty three million      Dollars ($123,000,000) at the date of this  Agreement, |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | as      the same may be reduced on each ReductionDate; |
|--------|--------------------------------------------------------|

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

| (b)   | the      Compulsory Acquisition of such Ship;or |
|-----------------|-------------------------------------------------|

| (c)   | the      hijacking, theft, condemnation, capture, seizure, arrest, detention or      confiscation of such Ship (other than where the same amounts to the      Compulsory Acquisition of such Ship) by any Government Entity, or by      persons acting or purporting to act on behalf of any Government Entity,      unless such Ship be released and restored to the relevant Owner from such      hijacking, theft, condemnation, capture, seizure, arrest, detention or      confiscation within fifteen (15) days after the occurrence      thereof; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.3   | Headings |
|-----------------|----------|

| 1.4   | Construction      of certain terms |
|-----------------|------------------------------------|

| 1.4.1   | references      to clauses and Schedules are to be construed as references to      clauses of, and Schedules to, this Agreement and references to      this Agreement include itsSchedules; |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.2   | references      to (or to any specified provision of) this Agreement or any other document      shall be construed as references to this Agreement, that provision or that      document as in force for the time being and as amended in accordance with      the terms thereof, or, as the case may be, with the agreement of the      relevant parties; |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.3   | references      to a “regulation”      include any present or future regulation, rule, directive, requirement,      request or guideline (whether or not having the force of law) of any      agency, authority, central bank or government department or any      self-regulatory or other national or supra-national    authority; |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.4   | words      importing the plural shall include the singular and vice      versa; |
|-------------------|---------------------------------------------------------------------------------|

| 1.4.5   | references      to a time of day are to Londontime; |
|-------------------|-----------------------------------------------------|

| 1.4.6   | references      to a person shall be construed as references to an individual, firm,      company, corporation, unincorporated body of persons or any Government      Entity; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.7   | references      to a “guarantee”      include references to an indemnity or other assurance against financial      loss including, without limitation, an obligation to purchase assets or      services as a consequence of a default by any other person to pay any      Indebtedness and “guaranteed” shall be      construed accordingly; and |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4.8   | references      to any enactment shall be deemed to include references to such enactment      as re-enacted, amended or extended. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------|

----

| 1.5   | Contracts      (Rights of Third Parties) Act 1999 |
|-----------------|---------------------------------------------------|

| 2   | The      Facilities |
|---------------|---------------------|

| 2.1   | Agreement      to lend |
|-----------------|------------------------|

| (a)   | a      Dollar term loan facility in an aggregate amount equal to the Total      Facility A Commitment; and |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (b)   | a      Dollar revolving credit and term loan facility in an aggregate amount      equal to the Total Facility BCommitment, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      the aggregate principal sum of originally up to five hundred and forty      five million six hundred and fifty six thousand eight hundred and ninety      nine Dollars and eighty two cents ($545,656,899.82) and from 26 March 2008      up to one hundred and twenty three million Dollars      ($123,000,000). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2   | Drawdown |
|-----------------|----------|

| 2.3   | Facility      A |
|-----------------|-----------------|

| 2.3.1   | Facility      A shall be made in one Advance on a Banking Day falling within the      Drawdown Period. |
|-------------------|--------------------------------------------------------------------------------------------------------|

| 2.3.2   | Facility      A shall be made available solely for the purpose set out in      1.1(i). |
|-------------------|----------------------------------------------------------------------------------------|

| 2.3.3   | The      Advance constituting Facility A shall be made in accordance with      clause 6.2 and the maximum amount of such Advance shall be      $195,656,899.82 or such other amount as may be agreed by the      Bank. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3.4   | The      Advance constituting Facility A (together with the Advance constituting      the Initial Revolving Amount) shall be applied in refinancing each Initial      Ship in the amount set out alongside that Initial Ship in Part 3 of      Schedule 1. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4   | Facility      B |
|-----------------|-----------------|

| 2.4.1   | Each      Advance of Facility B may only be made on Banking Days falling during the      Drawdown Period and the amount of each Advance of Facility B shall,      subject to the following provisions of this clause 2.4, be for such amount      as is specified in the Drawdown Notice of that  Advance. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4.2   | The      Initial Revolving Amount of Facility B shall be made available in one      Advance solely for the purpose set out in 1.1(ii)(a) and shall be advanced      at the same time as the Advance constituting Facility A and shall when      aggregated with Facility A refinance the entire amount outstanding under      the Existing Loan Agreement. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.4.3   | Each      Advance of Facility B shall be made solely for the purpose set out in      clause 1.1(ii). |
|-------------------|------------------------------------------------------------------------------------------------------|

| 2.4.4   | Each      Advance constituting part of Facility B shall be made in accordance with      clause 6.2 but so that: |
|-------------------|----------------------------------------------------------------------------------------------------------------------|

| (i)   | Facility      B shall never exceed $350,000,000 up until 26 March 2008 and thereafter      shall never exceed $123,000,000;and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the      Initial Revolving Amount shall be up to $144,000,000 or such other amount      as agreed by the Bank. |
|------------------|----------------------------------------------------------------------------------------------------------------|

| 2.4.5   | No      part of Facility B (other than the Initial Revolving Amount to be made      available with the Advance constituting Facility A) shall be made      available unless the vessel which the relevant Additional Owner intends to      acquire using the relevant intra-group loan from the Borrower has been      approved by the Bank in its sole discretion as an Additional Ship, which      approval may only be granted by the Bank if the relevant vessel has met      all the Additional Ship Selection Criteria.  In relation to the      acquisition by an Additional Owner of a vessel the Borrower shall be      required to follow the procedure set outbelow: |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | if      the Borrower wishes to drawdown any part of Facility B the Borrower shall      first send to the Bank a request (the “Request”) which shall      include the information described below and, if so required by the      Bank, a copy of the inspection report for the relevant    vessel; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | where      the Request relates to a second-hand vessel, the Request shall include the      following information: |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (c)   | where      the Request relates to a vessel which is a newbuilding, the Request shall      include the following information: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

----

| 2.4.6   | With      respect to any vessel to be financed under Facility B, the Bank will use      its best efforts to respond to any Request as soon as possible but in any      event within five (5) Banking Days of the receipt of the      Request. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4.7   | No      Advance of Facility B shall: |
|-------------------|--------------------------------------|

| (a)   | exceed      whichever shall be the lesser of (i) the Contract Price of the Additional      Ship to be financed by way of such Advance of Facility B and (ii) the Fair      Market Value of the Additional Ship to be financed by way of such Advance      of Facility B and in the case where the Additional Ship is a newbuilding,      the Expected Project Costs approved by the Bank in its sole discretion;      nor |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)          | be      applied in financing any Additional Ship which has not been approved by      the Bank as an Additional Ship (the “Approval”) in accordance      with clauses 2.4.5 and 2.4.6. |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4.8   | In      relation to an Additional Ship which is a newbuilding, Contract Instalment      Advances and a Delivery Date Advance for that Additional Ship shall be in      sums of up to the amounts set out in the relevant Contract and applied in      or towards payment of the instalment of the Contract Price for that      Additional Ship and may be made on any Banking Day falling within the      Drawdown Period relative to Facility B up to and in the case of the      Delivery Date Advance upon the Delivery Date for that Additional Ship      subject to the relevant instalment of the Contract Price for that      Additional Ship having become due and payable by the relevant Owner under      such Contract. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4.9   | Any      Advance constituting a Contract Instalment Advance or a Delivery Date      Advance shall be applied in paying such relevant instalment of the      relevant Contract Price and shall be paid by the Bank to the relevant      Builder or, as the case may be, Seller and any Advance which is to be      applied in meeting Expected Project Costs approved by the Bank in its sole      discretion shall be paid by the Bank to the credit of the relevant      Operating Account as appropriate. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4.19   | Each      Advance of Facility B shall be subjectto: |
|--------------------|-----------------------------------------------------|

| (a)        | the      ratio of the Loan to the Fair Market Value of all the Mortgaged Ships not      exceeding 75% both prior to and immediately following the drawdown of the      relevant Advance of Facility B; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      aggregate of all Advances of Facility B drawndown at any relevant time      never exceeding the Total Facility B Commitment;  and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      making of such Advance of Facility B not resulting in the Security Value      being less than the SecurityRequirement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| 2.4.11   | The      parties hereby agree that from 26 March 2008 Facility A is cancelled and      no further Advances shall be made under Facility B other than those      Advances that the Bank has agreed to make for the purposes of financing      part of the second contract instalments payable under the Contracts      relating to the Additional Ships which are newbuildings with hull numbers      S-1025, S-1026, S-1027, S-1029, S-1031 and S-1033 (the “Newbuildings”). Subject      to the terms of this Agreement the Bank has agreed to make available one      Advance per Newbuilding each in the maximum sum of five million Dollars      ($5,000,000). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5   | Amount      of Advance |
|-----------------|------------------------|

----

| 2.6   | Expected      Project Costs |
|-----------------|-----------------------------|

| 2.7   | Availability |
|-----------------|--------------|

| 2.8   | Termination      of Commitment |
|-----------------|--------------------------------|

| 2.8.1   | If      the Commitment is not drawn down in full by the end of the Drawdown      Period, the undrawn Commitment shall thereupon be automatically      cancelled. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.8.2   | The      Borrower shall upon three (3) Banking Days’ notice to the Bank be entitled      to permanently reduce or terminate any undrawn portion of Facility B      (being five million Dollars ($5,000,000) or any larger sum which is an      integral multiple of five million Dollars ($5,000,000)) without premium or      penalty. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9   | Application      of proceeds |
|-----------------|------------------------------|

| 3   | Interest      and Interest Periods |
|---------------|------------------------------------|

| 3.1   | Normal      interest rate |
|-----------------|---------------------------|

| 3.1.1   | Subject      to paragraph (i) of Part 5 of the Schedule to the Master Swap Agreement,      the Borrower shall pay interest on Facility A, Facility B or, as the case      may be the Loan in respect of each Interest Period relating thereto on      each Interest Payment Date (or, in the case of Interest Periods of more      than three (3) months, by instalments, the first instalment three (3)      months from the commencement of the Interest Period and the subsequent      instalments at intervals of three (3) months or, if shorter, the      period from the date of the preceding instalment until the Interest      Payment Date relative to such Interest Period) at the rate per annum      determined by the Bank to be the aggregate of (a) the relevant Margin, (b)      the Additional Cost and (c) LIBOR for such Interest  Period. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1.2   | For      the purposes of this clause 3, the Bank shall on each Margin Set Date,      following the Bank’s determination of the Security Value, which      determination shall as between the Bank and the Borrower be conclusive,      advise the Borrower of the Margin payable in respect of Facility A,      Facility B or, as the case may be, the Loan during each quarter commencing      from the relevant Margin Set Date. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2   | Selection      of Interest Periods |
|-----------------|------------------------------------|

----

| 3.3   | Determination of      Interest Periods |
|-----------------|---------------------------------------------|

| 3.3.1   | the      initial Interest Period in respect of the Advance constituting Facility A      and the Advance constituting the Initial Revolving Amount shall commence      on the date Facility A and the Advance constituting the Initial Revolving      Amount under the Loan Agreement are made and each subsequent Interest      Period of Facility A and the Advance constituting the Initial Revolving      Amount shall commence on the last day of the previous Interest Period      relating to Facility A and the Advance constituting the Initial      Revolving Amount; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3.2   | the      initial Interest Period in respect of each Advance of Facility B (after      the Advance constituting the Initial Revolving Amount) shall commence on      the date of the making of that Advance and each subsequent Interest period      of each Advance shall commence on the last day of the previous Interest      Period relating to that Advance; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3.3   | if      any Interest Period for any Advance and/or Facility A and/or Facility B      and/or the Loan would otherwise overrun a Final Repayment Date, then, in      the case of the Final Repayment Date, such Interest Period shall end on      such Repayment Date, and in the case of any other Repayment Date or      Repayment Dates (as the case may be) shall be divided into parts so that      there is one part in the amount of the repayment instalment due on each      Repayment Date falling during that Interest Period and having an Interest      Period ending on the relevant Repayment Date and another part in the      amount of the balance of the relevant Advance and/or Facility A and/or      Facility B and/or the Loan as the case may be having an Interest Period      ascertained in accordance with clause 3.2 and the other provisions of      this clause 3.3; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3.4   | if      the Borrower fails to specify the duration of an Interest Period in      accordance with the provisions of clause 3.2 and this clause 3.3      such Interest Period shall have a duration of three (3) months or such      other period as shall comply with this  clause 3.3; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3.5   | for      the avoidance of doubt, during the currency of any Transaction, Interest      Periods in respect of each Advance or, as the case may be, Facility A or,      as the case may be, Facility B or, as the case may be, the Loan shall      coincide with the payment dates set out in such Transaction and the rate      of interest shall coincide with the fixed rate of interest determined in      accordance with such Transaction;and |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3.6   | following      consultation with the Borrower the Bank shall be entitled to require that      the Interest Periods relating to the Loan or any part thereof to be      consolidated. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4   | Default      interest |
|-----------------|-----------------------|

----

| 3.5   | Notification      of Interest Periods and interestrate |
|-----------------|--------------------------------------------------------|

| 3.6   | Market      disruption; non-availability |
|-----------------|------------------------------------------|

| 3.6.1   | If      and whenever, at any time prior to the commencement of any Interest      Period, the Bank shall have determined (which determination shall, in the      absence of manifest error, beconclusive): |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | that      adequate and fair means do not exist for ascertaining LIBOR during such      Interest Period; or |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (b)   | that      deposits in Dollars are not available to the Bank in the London Interbank      Market in the ordinary course of business in sufficient amounts to fund      the Loan for such Interest Period; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.6.2   | During      the period of ten (10) days after any Determination Notice has been given      by the Bank under clause 3.6.1, the Bank shall certify an alternative      basis (the “Substitute      Basis”) for maintaining the Loan.  The Substitute Basis      may (without limitation) include alternative interest periods, alternative      currencies or alternative rates of interest but shall include a margin      above the cost of funds including Additional Cost (if any) to the Bank      equivalent to the relevant Margin.  Each Substitute Basis so      certified shall be binding upon the Borrower and shall take effect in      accordance with its terms from the date specified in the Determination      Notice until such time as the Bank notifies the Borrower that none of the      circumstances specified in clause 3.6.1 continues to exist whereupon      the normal interest rate fixing provisions of this Agreement shall      apply. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | Repayment,      prepayment and reborrowing |
|---------------|--------------------------------------------|

| 4.1   | Repayment      of Facility A |
|-----------------|------------------------------|

----

| 4.2   | Repayment      of Facility B |
|-----------------|------------------------------|

| 4.2.1   | Subject      always to the provisions of this clause 4.2 the Borrower shall repay that      part of the Loan forming Facility B (including without limitation the      Initial Revolving Amount) by twenty (20) instalments.  One such      instalment shall be repaid on each of the Repayment Dates relative to      Facility B.  Subject to the provisions of this Agreement the      amount of each such instalment shall be equal to the Facility B Repayment      Amount as determined by the Bank and notified to the      Borrower.  For the avoidance of doubt as from 26 March 2008 (but      following the reduction of the Total Facility  B Commitment to      one hundred and twenty three million Dollars ($123,000,000) pursuant to      clause 4.2.2 and subject to the Borrower drawing down the entire available      amount of Facility B) the amount of each of the first to the nineteenth      instalments shall be four million and fifty thousand Dollars ($4,050,000)      and the amount of the twentieth and final instalment shall be forty six      million and fifty thousand Dollars ($46,050,000) (comprising a repayment      instalment of four million and fifty thousand Dollars ($4,050,000) and a      balloon repayment in the amount of forty two million Dollars      ($42,000,000). |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2.2   | The      Total Facility B Commitment shall be reduced by the sum of thirty five      million Dollars ($35,000,000) to one hundred and twenty three million      Dollars ($123,000,000) on 26 March 2008 and thereafter the Total Facility      B Commitment shall be reduced on each Reduction Date by a sum equal to      each of the Facility B Repayment Amounts referred to in clause 4.2.1 so      that on the Final Reduction Date the Total Facility B Commitment shall be      reduced to zero.  The Committed Facility B Amount shall be      reduced on each Reduction Date by the same percentage amount as the Total      Facility B Commitment and to zero on the Final Reduction Date and the      Borrower shall on each Repayment Date relative to Facility B repay such      further amount as shall ensure that the aggregate of all Advances of      Facility B never exceed the Total Facility B Commitment or the Committed      Facility B Amount at any relevanttime. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3   | Voluntary      prepayment |
|-----------------|---------------------------|

| 4.3.1   | Prepayment      of the Loan |
|-------------------|-----------------------------|

| (a)   | on      any Interest Payment Date relating to the part of the Loan being prepaid      together with any amounts payable under clause 11 and accrued      interest and commitment commission to the date of prepayment and any other      sums then payable under this Agreement and/or the Master Swap Agreement      and/or the other Security Documents or any of them in respect of the Loan;      and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | at      any other time upon payment to the Bankof: |
|-----------------|----------------------------------------------------|

| (i)   | accrued      interest to the date of prepayment;and |
|-----------------|-----------------------------------------------------|

| (ii)   | such      additional sum as the Bank in its absolute discretion shall determine to      be the loss, cost and expense incurred by the Bank, including in relation      to the Master Swap Agreement, as a result of the prepayment not being made      on an Interest Payment Date for any part of the Loan being prepaid;      and |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iii)   | any      other sums then payable under this Agreement and/or the Master Swap      Agreement and/or the other Security Documents or any of them (including      loss of Margin on the amount prepaid to the end of the then current      Interest Period). |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4   | Master      Swap Agreement, Repayments andPrepayments |
|-----------------|-------------------------------------------------------|

| 4.4.1   | Notwithstanding      any provision of the Master Swap Agreement to the contrary, in the case of      a prepayment of all or part of the Loan (including, without limit, upon a      Total Loss in accordance with clause 4.5 and under clause 8.4)      then subject to clause 4.4.2 the Bank shall be entitled but not      obliged (and, where relevant, may do without the consent of the Borrower,      where it would otherwise be required whether under the Master Swap      Agreement or otherwise) to amend, re-book, supplement, cancel, close out,      net out, terminate, liquidate, transfer or assign all or any part of the      rights, benefits and obligations created by any Transaction and/or the      Master      Swap Agreement and/or to obtain or re-establish any hedge or related      trading position in any manner and with any person the Bank in its      absolute discretion may determine and both the Bank’s and the Borrower’s      continuing obligations under any Transaction and/or the Master Swap      Agreement shall, unless agreed otherwise by the Bank, be calculated so far      as the Bank considers it practicable by reference to the amended repayment      Schedule for the Loan taking into account the fact that less than the      full amount of the Loan remains  outstanding. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4.2   | If      following a prepayment under this Agreement and the Bank in its absolute      discretion agrees, following a written request of the Borrower, that the      Borrower may be permitted to maintain all or part of a Transaction in an      amount not wholly matched with or linked to all or part of the Loan, the      Borrower shall within ten (10) days of being notified by the Bank of such      requirement, provide the Bank with, or procure the provision to the Bank      of, such additional security as shall in the opinion of the Bank be      adequate to secure the performance of such Transaction, which additional      security shall take such form, be constituted by such documentation and be      entered into between such parties, as the Bank in its absolute discretion      may approve or require, and each document comprising such additional      security shall constitute a Credit Support  Document. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4.3   | The      Borrower shall on the first written demand of the Bank indemnify the Bank      in respect of all losses, costs and expenses (including, but not limited      to, legal costs and expenses) incurred or sustained by the Bank as a      consequence of or in relation to the effecting of any matter or      transactions referred to in this  clause 4.4. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4.4   | Notwithstanding      any provision of the Master Swap Agreement to the contrary, if for any      reason a Transaction has been entered into but the Loan is not drawn down      under this Agreement then, subject to clause 4.4.5, the Bank shall be      entitled but not obliged (and, where relevant, may do so without the      consent of the Borrower where it would otherwise be required whether under      the Master Swap Agreement or otherwise) to amend, re-book, supplement,      cancel, close out, net out, terminate, liquidate, transfer or assign all      or any part of the rights, benefits and obligations created by such      Transaction and/or the Master Swap Agreement and/or to obtain or      re-establish any hedge or related trading position in any manner and with      any person the Bank in its absolute discretion may    determine. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4.5   | If      a Transaction has been entered into but the Loan is not drawn down under      this Agreement and the Bank in its absolute discretion agrees, following a      written request of the Borrower, that the Borrower may be permitted to      maintain all or part of a Transaction, the Borrower shall within ten (10)      days of being notified by the Bank of such requirement, provide the Bank      with, or procure the provision to the Bank of, such additional security as      shall in the opinion of the Bank be adequate to secure the performance of      such Transaction, which additional security shall take such form, be      constituted by such documentation and be entered into between such      parties, as the Bank in its absolute discretion may approve or require,      and each document comprising such additional security shall constitute a      Credit Support Document for the purposes of the Master Swap Agreement      and/or otherwise. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.5   | Prepayment      on Total Loss and sale |
|-----------------|----------------------------------------|

| (a)   | in      the case of an Initial Ship to make available the Advance constituting the      Facility A or the Advance constituting the Initial Revolving Amount for      such Initial Ship; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      the case of an Additional Ship to make that Advance of Facility B for such      Additional Ship |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (a)   | in      the case of the Initial Ships that part of the Advance constituting      Facility A or the Initial Revolving Amount as was applied in refinancing      the relevant Initial Ship and set out in Schedule 1, Part 3;      or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      the case of the Additional Ships the relevant Advance of Facility B      applied in the financing of such Additional Ship;  or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | such      greater proportion of the Loan as the Bank may in its sole discretion      determine to be prepaid but in any event such amount as shall ensure that      on the date of such prepayment the Security Value is not less than the      Security Requirement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.1   | In      the case of an actual total loss of a Ship on the actual date and at the      time such Ship was lost or, if such date is not known, on the date on      which such Ship was last reported; |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.2   | in      the case of a constructive total loss of a Ship, upon the date and at the      time notice of abandonment of a Ship is given to the insurers of a Ship      for the time being (provided a claim for total loss is admitted by such      insurers) or, if such insurers do not forthwith admit such a claim, at the      date and at the time at which either a total loss is subsequently admitted      by the insurers or a total loss is subsequently adjudged by a competent      court of law or arbitration tribunal to have  occurred; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.3   | in      the case of a compromised or arranged total loss, on the date upon which a      binding agreement as to such compromised or arranged total loss has been      entered into by the insurers of suchShip; |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.4   | in      the case of Compulsory Acquisition, on the date upon which the relevant      requisition of title or other compulsory acquisition occurs;      and |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.5.5   | in      the case of hijacking, theft, condemnation, capture, seizure, arrest,      detention or confiscation of a Ship (other than where the same amounts to      Compulsory Acquisition of such Ship) by any Government Entity, or by      persons purporting to act on behalf of any Government Entity, which      deprives the relevant Owner of the use of such Ship for more than thirty      (30) days, upon the expiry of the period of thirty (30) days after the      date upon which the relevant hijacking, theft, condemnation, capture,      seizure, arrest, detention or confiscation  occurred. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6   | Amounts      payable on prepayment |
|-----------------|------------------------------------|

| 4.7   | Notice      of prepayment; reduction of repayment  instalments |
|-----------------|----------------------------------------------------------------|

| 4.7.1   | clause 4.3      shall be applied (a) in the case of Facility A first in reducing the      repayment instalments on a pro rata basis and then the balloon payment in      each case as set out in clause 4.1; and (b) in the case of Facility B      in reducing the repayment instalments under clause 4.2.1 on a pro rata      basis; and |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.7.2   | clause      4.4 following the sale or Total Loss of any of the Ships shall be applied      first in reducing the repayment instalments of the Advance pursuant to      which the relevant Ship was financed or refinanced (including for the      avoidance of doubt the balloon payments) on a pro rata basis and      thereafter (and to the extent that the relevant Advance is repaid in full)      shall be applied to the extent required pursuant to clause 4.5 as between      all other Advances on a pro rata basis and in reducing the repayment      instalments of such other Advances on a pro rata  basis. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | Commitment      commission, fees and expenses |
|---------------|-----------------------------------------------|

| 5.1   | Fees |
|-----------------|------|

| 5.1.1   | on      the date of this Agreement an arrangement fee of one million thirty      thousand Dollars ($1,030,000); |
|-------------------|-----------------------------------------------------------------------------------------------------------------|

| 5.1.2   | quarterly      in arrears and at the end of the Drawdown Period, commitment commission      computed from the date of this Agreement at the rate of zero point three      five per cent (0.35%) per annum on the daily undrawn amount of the Loan;      and |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.2   | Expenses |
|-----------------|----------|

| 5.2.1   | in      connection with the negotiation, preparation, execution and, where      relevant, registration of the Security Documents and of any amendment or      extension of or the granting of any waiver or consent under, any of the      Security Documents; and |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2.2   | in      contemplation of, or otherwise in connection with, the enforcement of, or      preservation of any rights under, any of the Security Documents, or      otherwise in respect of the moneys owing under any of the Security      Documents together with interest at the rate referred to in      clause 3.4 from the date on which such expenses were incurred to the      date of payment (as well after as before  judgment). |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3   | Value      added tax |
|-----------------|----------------------|

| 5.4   | Stamp      and other duties |
|-----------------|-----------------------------|

| 6   | Payments      and taxes; accounts andcalculations |
|---------------|---------------------------------------------------|

| 6.1   | No      set-off or counterclaim |
|-----------------|---------------------------------|

| 6.2   | Payment      by the Bank |
|-----------------|--------------------------|

----

| 6.3   | Non-Banking      Days |
|-----------------|-----------------------|

| 6.4   | Calculations |
|-----------------|--------------|

| 6.5   | Certificates      conclusive |
|-----------------|------------------------------|

| 6.6   | Grossing-up      for Taxes |
|-----------------|----------------------------|

| 6.7   | Loan      account |
|-----------------|-------------------|

| 7   | Representations      and warranties |
|---------------|-------------------------------------|

| 7.1   | Continuing      representations and warranties |
|-----------------|------------------------------------------------|

| 7.1.1   | Due      incorporation |
|-------------------|------------------------|

----

| 7.1.2   | Corporate      power |
|-------------------|----------------------|

| 7.1.3   | Binding      obligations |
|-------------------|--------------------------|

| 7.1.4   | No      conflict with other obligations |
|-------------------|-----------------------------------------|

| 7.1.5   | No      litigation |
|-------------------|--------------------|

| 7.1.6   | No      filings required |
|-------------------|--------------------------|

| 7.1.7   | Choice      of law |
|-------------------|--------------------|

----

| 7.1.8   | No      immunity |
|-------------------|------------------|

| 7.1.9   | Financial      statements correct and complete |
|-------------------|------------------------------------------------|

| 7.1.10   | Consents      obtained |
|--------------------|------------------------|

| 7.1.11   | No      money laundering |
|--------------------|--------------------------|

| 7.2   | Initial      representations and warranties |
|-----------------|---------------------------------------------|

| 7.2.1   | Pari      passu |
|-------------------|-----------------|

| 7.2.2   | No      default under other Indebtedness |
|-------------------|------------------------------------------|

----

| 7.2.3   | Information |
|-------------------|-------------|

| 7.2.4   | No      withholding Taxes |
|-------------------|---------------------------|

| 7.2.5   | No      Default |
|-------------------|-----------------|

| 7.2.6   | No      Default under any Contract or any Refund  Guarantee |
|-------------------|-------------------------------------------------------------|

| 7.2.7   | No      Encumbrance in respect of pre-deliverysecurity |
|-------------------|--------------------------------------------------------|

| 7.2.8   | the      Ships |
|-------------------|----------------|

| (a)   | in      the absolute ownership of the relevant Owner who will on and after such      Drawdown Date be the sole, legal and beneficial owner of such      Ship; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | registered      through the offices of the relevant Registry as a ship under the laws and      flag of the relevant Flag State; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

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

| (d)   | classed      with the relevant Classification free of all requirements and      recommendations of the relevant Classification  Society; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.2.9   | Ships'      employment |
|-------------------|------------------------|

| 7.2.10   | Freedom      from Encumbrances |
|--------------------|--------------------------------|

| 7.2.11   | Environmental      matters |
|--------------------|----------------------------|

| (a)   | all      Environmental Laws applicable to any Fleet Vessel have been complied with      and all consents, licences and approvals required under such Environmental      Laws have been obtained and complied with;and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | no      Environmental Claim has been made or threatened or pending against any      member of the Borrower’s Group or any Fleet Vessel and not fully      satisfied; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | there      has been no Environmental Incident; |
|-----------------|------------------------------------------------|

| 7.2.12   | No      material adverse change |
|--------------------|---------------------------------|

| 7.2.13   | Parent      company |
|--------------------|---------------------|

| 7.2.14   | Copies      true and complete |
|--------------------|-------------------------------|

----

| 7.2.15   | ISM      Code and ISPS Code |
|--------------------|-----------------------------|

| 7.3   | Repetition      of representations and warranties |
|-----------------|---------------------------------------------------|

| 7.3.1   | On      and as of each Advance and (except in relation to the representations and      warranties in clause 7.2) on each Interest Payment Date the Borrower      shall (a) be deemed to repeat the representations and warranties in      clauses 7.1 (and so that the representation and warranty in      clause 7.1.9 shall for this purpose refer to the then latest audited      financial statements delivered to the Bank under clause 8.1) and 7.2      as if made with reference to the facts and circumstances existing on such      day and (b) be deemed to further represent and warrant to the Bank that      the then latest audited financial statements delivered to the Bank (if      any) have been prepared in accordance with GAAP which have been      consistently applied and present fairly and accurately the financial      position of the Borrower and the consolidated financial position of the      Borrower and its Related Companies as at the end of the financial period      to which the same relate and the results of the operations of the Borrower      and the consolidated results of the operations of the Borrower and its      Related Companies respectively for the financial period to which the same      relate and, as at the end of such financial period, neither the Borrower      nor any of its Related Companies had any significant liabilities      (contingent or otherwise) or any unrealised or anticipated losses which      are not disclosed by, or reserved against or provided for in, such      financial statements. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | Undertakings |
|---------------|--------------|

| 8.1   | General |
|-----------------|---------|

| 8.1.1   | Notice      of Default |
|-------------------|------------------------|

| 8.1.2   | Consents      and licences |
|-------------------|----------------------------|

| 8.1.3   | Use      of proceeds |
|-------------------|----------------------|

----

| 8.1.4   | Pari      passu |
|-------------------|-----------------|

| 8.1.5   | Financial      statements |
|-------------------|---------------------------|

| (a)   | prepare      financial statements of the Borrower and consolidated financial statements      of the Borrower and its Related Companies in accordance with GAAP and all      requirements of the Securities and Exchange Commission of the United      States of America consistently applied in respect of each financial year      and cause the same to be reported on by its auditors and deliver as many      copies of the same as the Bank may reasonably require as soon as      practicable but not later than seventy five (75) days after the end of the      financial period to which they relate;and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | prepare      unaudited financial statements of the Borrower and consolidated financial      statements of the Borrower and its Related Companies in respect of each of      the first three quarters of each financial year on the same basis as the      annual statements and deliver as many copies of the same as the Bank may      reasonably require as soon as practicable but not later than forty five      (45) days after the end of the financial period to which they      relate; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.6   | Delivery      of Compliance Certificate |
|-------------------|-----------------------------------------|

| 8.1.7   | Delivery      of reports |
|-------------------|--------------------------|

| 8.1.8   | Provision      of further information |
|-------------------|---------------------------------------|

| 8.1.9   | Obligations      under Security Documents |
|-------------------|-------------------------------------------|

| 8.1.10   | ISM      Code |
|--------------------|---------------|

| (a)   | comply      with and ensure that each Ship and any Operator at all times complies with      the requirements of the ISM Code; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | immediately      inform the Bank if there is any actual or threatened withdrawal of an      Owner’s or an Operator’s DOC or the SMC in respect of any Ship;      and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | promptly      inform the Bank upon the issue to the Borrower or any Operator of a DOC      and to any Ship of an SMC or the receipt by any of the Borrower or any      Operator of notification that its application for the same has been      refused; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.11   | ISPS      Code |
|--------------------|----------------|

| (a)   | comply      with and ensure that each Ship and any Operator at all times complies with      the requirements of the ISPS Code and with specifications of the      International Maritime Organisation, and any other regulations, either      existing or future, of the International Maritime Authority and the      European Union; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | immediately      inform the Bank if there is any actual or threatened withdrawal of any      certification required in order for any of them, any Operator and/or the      Ship to comply with the ISPS Code; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.12   | Documents      and evidence |
|--------------------|-----------------------------|

| 8.1.13   | Management      of the Borrower |
|--------------------|---------------------------------|

| 8.1.14   | Owner’s      Guarantee |
|--------------------|------------------------------|

| 8.1.15   | Intra-Group      Loan Agreements |
|--------------------|----------------------------------|

| 8.1.16   | Operating      Accounts balance |
|--------------------|---------------------------------|

| (a)   | subject      to this clause 8.1.16, on or before the Drawdown Date of the first Advance      pay to the credit of the Operating Accounts (or other accounts charged in      favour of the Bank in respect of the Ships) an aggregate sum of not less      than ten million Dollars ($10,000,000);and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | on      and from the Drawdown Date of the first Advance and throughout the      Security Period maintain an average balance (calculated on a monthly      basis) of not less than ten million Dollars ($10,000,000) and in any event      an aggregate balance of not less than five million Dollars ($5,000,000)      standing to the credit of the Operating Accounts (or other accounts      charged in favour of the Bank in respect of the  Ships); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.1.17   | Classification |
|--------------------|----------------|

| (a)   | to      send to the Bank, following receipt of a written request from the Bank,      certified true copies of all original certificates of class held by any      Classification Society in relation to anyShip; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | to      allow the Bank (or its agents), at any time and from time to time, to      inspect the classification reports of any Owner for any Ship at the      offices of any Classification Society and to take copies of      them; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | to      notify the Bank immediately in writing if any Classification      Society: |
|-----------------|------------------------------------------------------------------------------------|

| (i)   | receives      written notification from any Owner or any other person that the relevant      Ship’s Classification Society is to be changed;  or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d)   | following      receipt by any Classification Society of a written request from the      Bank: |
|-----------------|-----------------------------------------------------------------------------------------------|

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

| (ii)   | if      the relevant Owner is in default of any of its contractual obligations or      liabilities to the Classification Society, to specify to the Bank in      reasonable detail the facts and circumstances of such default, the      consequences thereof, and any remedy period agreed or allowed by the      Classification Society. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1.18   | Newbuilding |
|--------------------|-------------|

| 8.2   | Securityvaluemaintenance |
|-----------------|--------------------------|

----

| 8.2.1   | Security      shortfall |
|-------------------|-------------------------|

| (a)   | prepay      within a period of thirty (30) days of the date of receipt by the Borrower      of the Bank’s said notice such sum in Dollars as will result in the      Security Requirement after such prepayment (taking into account any other      repayment of the Loan made between the date of the notice and the date of      such prepayment) being equal to the Security Value;  or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | within      thirty (30) days of the date of receipt by the Borrower of the Bank’s said      notice constitute to the satisfaction of the Bank such further security      for the Loan as shall be acceptable to the Bank having a value for      security purposes (as determined by the Bank in its absolute discretion)      at the date upon which such further security shall be constituted which,      when added to the Security Value, shall not be less than the Security      Requirement as at such date. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2.2   | Valuation      of Ship |
|-------------------|------------------------|

| 8.2.3   | Information |
|-------------------|-------------|

| 8.2.4   | Costs |
|-------------------|-------|

| 8.2.5   | Valuation      of additional security |
|-------------------|---------------------------------------|

----

| 8.2.6   | Documents      and evidence |
|-------------------|-----------------------------|

| 8.3   | Negative      undertakings |
|-----------------|----------------------------|

| 8.3.1   | Negative      pledge |
|-------------------|----------------------|

| 8.3.2   | No      merger |
|-------------------|----------------|

| 8.3.3   | Disposals |
|-------------------|-----------|

| 8.3.4   | Other      business |
|-------------------|---------------------|

| 8.3.5   | Acquisitions |
|-------------------|--------------|

| 8.3.6   | Other      obligations |
|-------------------|------------------------|

----

| 8.3.7   | No      borrowing |
|-------------------|-------------------|

| 8.3.8   | Repayment      of borrowings |
|-------------------|------------------------------|

| 8.3.9   | Guarantees |
|-------------------|------------|

| 8.3.10   | Loans |
|--------------------|-------|

| 8.3.11   | Sureties |
|--------------------|----------|

| 8.3.12   | Share      capital and distribution |
|--------------------|-------------------------------------|

| 8.3.13   | Subsidiaries      and parent |
|--------------------|------------------------------|

----

| 8.3.14   | Change      of Classification, Classification Society or Flag  State |
|--------------------|----------------------------------------------------------------------|

| 8.3.15   | Managers |
|--------------------|----------|

| 8.3.16   | Constitutional      documents |
|--------------------|-------------------------------|

| 8.3.17   | Equity |
|--------------------|--------|

| 8.4   | Permitted      Ship sales |
|-----------------|---------------------------|

| 8.5   | Financialcovenants |
|-----------------|--------------------|

| 8.5.1   | The      Borrower undertakes that at all times during the Security Period the      financial condition of the Borrower, which shall be evidenced by the      Accounting Information provided to the Bank shall be such      that: |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Borrower’s Adjusted Net Worth shall never be less than two hundred and      fifty million Dollars ($250,000,000) and will at all times exceed thirty      five per cent (35%) of Total Assets;and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | EBITDA      of the Borrower will at all times exceed one hundred and twenty per cent      (120%) of the aggregate amount of FixedCharges; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Liquid Funds of the Borrower shall not at any time be less than the higher      of: |
|-----------------|----------------------------------------------------------------------------------------------|

----

| (i)   | ten      million Dollars ($10,000,000); or |
|-----------------|--------------------------------------------|

| (ii)   | five      hundred thousand Dollars ($500,000) per Group  Vessel. |
|------------------|------------------------------------------------------------------|

| 8.5.2   | For      the purposes of this clause 8.5: |
|-------------------|-------------------------------------------|

| (a)   | Financial      Indebtedness of the debtor; |
|-----------------|--------------------------------------------|

| (b)   | liability      for any credit to the debtor from a supplier of goods or services or under      any instalment purchase or payment plan or other similar      arrangement; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | contingent      liabilities of the debtor (including without limitation any taxes or other      payments under dispute) which have been or, under GAAP, should be recorded      in the notes to the AccountingInformation; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | deferred      tax of the debtor; and |
|-----------------|--------------------------------------|

| (e)   | liability      under a guarantee, indemnity or similar obligation entered into by the      debtor in respect of a liability of another person who is not a member of      the Group which would fall within (a) to (d) if the references to the      debtor referred to the otherperson; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (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 (in each      case, other than in respect of assets or services obtained on normal      commercial terms in the ordinary      course of business) or any other agreement having the commercial effect of      a borrowing or raising of money by the  debtor; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | under      any foreign exchange transaction, 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      (c) if the references to the debtor referred to the other      person; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | cash      in hand or held with banks or other financial institutions of the Borrower      and/or any other member of the Group in Dollars or another currency freely      convertible into Dollars, which is free of any Encumbrance (other than a      Permitted Encumbrance and other than ordinary bankers’ liens which have      not been enforced or become capable of being  enforced); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      other short-term financial investments which is free of any Security      Interest (other than a Permitted Security  Interest), |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.6   | Pre-delivery      positive undertakings |
|-----------------|-----------------------------------------|

| 8.6.1   | Document      of title to an Additional Ship |
|-------------------|----------------------------------------------|

| 8.6.2   | Performance      of the Contract |
|-------------------|----------------------------------|

| 8.6.3   | Performance      by Builder |
|-------------------|-----------------------------|

| 8.6.4   | Progress      of construction |
|-------------------|-------------------------------|

| 8.6.5   | Arbitration      under the Contract |
|-------------------|-------------------------------------|

| 8.6.6   | Conveyance      on default |
|-------------------|----------------------------|

| 8.6.7   | Enforcement      of Owner’s rights |
|-------------------|------------------------------------------|

----

| 8.6.8   | Notification      of rejection of an Additional Ship |
|-------------------|------------------------------------------------------|

| 8.6.9   | Ship’s      name and registration |
|-------------------|-----------------------------------------|

| 8.6.10   | Mortgage |
|--------------------|----------|

| 8.7   | Pre-delivery      negative undertakings |
|-----------------|-----------------------------------------|

| 8.7.1   | Sale      or other disposal |
|-------------------|-----------------------------|

| 8.7.2   | Creation      of Encumbrances |
|-------------------|-------------------------------|

| 8.7.3   | Variation      of Contract |
|-------------------|----------------------------|

| 8.7.4   | Releases      and waivers of Contract |
|-------------------|---------------------------------------|

----

| 8.7.5   | Delays |
|-------------------|--------|

| 8.7.6   | Rejection      and cancellation |
|-------------------|---------------------------------|

| 8.7.7   | Assignment      of Earnings |
|-------------------|-----------------------------|

| 8.7.8   | Variation      of a Refund Guarantee |
|-------------------|--------------------------------------|

| 8.7.9   | Release      and waiver of the Refund Guarantee |
|-------------------|-------------------------------------------------|

| 8.7.10   | Chartering |
|--------------------|------------|

| (a)   | on      demise charter for any period; or |
|-----------------|-------------------------------------------|

| (b)   | by      any time or consecutive voyage charter for a term which exceeds or which      by virtue of any optional extensions therein contained may exceed twelve      (12) months’ duration; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | on      terms whereby more than two months’ hire (or the equivalent) is payable in      advance; or |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (d)   | below      the market rate prevailing at the time when such Additional Ship is fixed      or other than on arms length terms; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| 8.7.11   | Manager |
|--------------------|---------|

| 9   | Conditions |
|---------------|------------|

| 9.1   | Commitment |
|-----------------|------------|

----

| 9.2   | First      Advance |
|-----------------|--------------------|

| 9.3   | All      Advances |
|-----------------|-------------------|

| 9.4   | Contract      Instalment Advances of Facility B |
|-----------------|-------------------------------------------------|

| 9.5   | Expected      Project Costs |
|-----------------|-----------------------------|

| 9.6   | General      conditions precedent |
|-----------------|-----------------------------------|

| 9.6.1   | the      representations and warranties contained in (i) clauses 7.1 (and so      that the representation and warranty in clause 7.1.9 shall for this      purpose refer to the then latest audited financial statements delivered to      the Bank under clause 8.1.5), 7.2 and 7.3 and (ii) clauses 4.1 and      4.2 of the Owner’s Guarantees (and so that the representation and warranty      in clause 4.1.6 of Owner’s Guarantees shall for this purpose refer to      the then latest audited financial statements delivered to the Bank under      clause 5.1 of the Owner’s Guarantees) are      true and correct on and as of each such time as if each was made with      respect to the facts and circumstances existing at such time;      and |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.6.2   | no      Default shall have occurred and be continuing or would result from the      making of the relevant Advancethereof. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------|

| 9.7   | Waiver      of conditions precedent |
|-----------------|-------------------------------------|

| 9.8   | Further      conditions precedent |
|-----------------|-----------------------------------|

----

| 10   | Events      of Default |
|----------------|------------------------|

| 10.1   | Events |
|------------------|--------|

| 10.1.1   | Non-payment: any      Security Party fails to pay any sum payable by it under any of the      Security Documents or the Underlying Documents at the time, in the      currency and in the manner stipulated in the Security Documents or the      Underlying Documents (and so that, for this purpose, sums payable on      demand shall be treated as having been paid at the stipulated time if paid      within three (3) Banking Days of demand);or |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.2   | Master Swap Agreement:      (a) an Event of Default or Potential Event of Default (in each case as      defined in the Master Swap Agreement) has occurred and is continued under      the Master Swap Agreement or (b) an Early Termination Date (as defined in      the Master Swap Agreement) has occurred or been or become capable of being      effectively designated under the Master Swap Agreement or (c) a person      entitled to do so gives notice of an Early Termination Date under      Section 6(b)(iv) of the Master Swap Agreement or (d) the Master Swap      Agreement is terminated, cancelled, suspended, rescinded or revoked or      otherwise ceases to remain in full force and effect for any reason;      or |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.3   | Breach of Insurance and certain      other obligations:  the Borrower fails to obtain and/or      maintain the Insurances (as defined in, and in accordance with the      requirements of, the Ship Security Documents) for any of the Mortgaged      Ships or if any insurer in respect of such Insurances cancels the      Insurances or disclaims liability by reason, in either case, of      mis-statement in any proposal for the Insurances or for any other failure      or default on the part of the Borrower or any other person or the Borrower      or any Owner commits any breach of or omits to observe any of the      obligations or undertakings expressed to be assumed by it under      clauses 8.1 or 8.2 or 8.6 or 8.7;or |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.4   | Breach of other      obligations: any Security Party commits any breach of or omits to      observe any of its obligations or undertakings including without      limitation, any Financial Covenants expressed to be assumed by it under      any of the Underlying Documents or the Security Documents (other than      those referred to in clauses 10.1.1 and 10.1.2 above) and, in respect      of any such breach or omission which in the opinion of the Bank is capable      of remedy, such action as the Bank may require shall not have been taken      within fourteen (14) days (or any such period as the Bank may agree in      writing) of the Bank notifying the relevant Security Party of such default      and of such required action; or |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.5   | Misrepresentation: any      representation or warranty made or deemed to be made or repeated by or in      respect of any Security Party in or pursuant to any of the Security      Documents or any of the Underlying Documents or in any notice, certificate      or statement referred to in or delivered under any of the Security      Documents or any of the Underlying Documents is or proves to have been      incorrect or misleading in any material respect;  or |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.6   | Cross-default: any      Indebtedness of any Security Party is not paid when due or any      Indebtedness of any Security Party becomes (whether by declaration or      automatically in accordance with the relevant agreement or instrument      constituting the same) due and payable prior to the date when it would      otherwise have become due (unless as a result of the exercise by the      relevant Security Party of a voluntary right of prepayment), or any      creditor of any Security Party becomes entitled to declare any such      Indebtedness due and payable or any facility or commitment available to      any Security Party relating to Indebtedness is withdrawn, suspended or      cancelled by reason of any default (however described) of the person      concerned unless the relevant Security Party shall have satisfied the Bank      that such withdrawal, suspension or cancellation will not affect or      prejudice in any way the relevant Security Party's ability to pay its      debts as they fall due and fund its commitments, or any guarantee given by      any Security Party in respect of Indebtedness is not honoured when due and      called upon; or |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.1.7   | Legal process: any      judgment or order made against any Security Party is not stayed or      complied with within seven (7) days (or any such period as the Bank may      agree in writing) or a creditor attaches or takes possession of, or a      distress, execution, sequestration or other process is levied or enforced      upon or sued out against, any of the undertakings, assets, rights or      revenues of any Security Party and is not discharged within seven (7) days      (or any such period as the Bank may agree in writing);  or |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.8   | Insolvency: any Security      Party is unable or admits inability to pay its debts as they fall due;      suspends making payments on any of its debts or announces an intention to      do so;  or |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.9   | Reduction or loss of      capital: a meeting is convened by any Security Party for the      purpose of passing any resolution to purchase, reduce or redeem any of its      share capital or shares, as the case may be;or |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.10   | Winding up: any      corporate action, legal proceedings or other procedure or step is taken      for the purpose of winding-up any Security Party or an order is made or      resolution passed for the winding up of any Security Party or a notice is      issued convening a meeting for the purpose of passing any such resolution;      or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.11   | Administration: any      petition is presented, notice given or other step is taken for the purpose      of the appointment of an administrator of any Security Party or the Bank      believes that any such petition or other step is imminent or an      administration order is made in relation to any Security Party;      or |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.12   | Appointment of receivers and      managers: any administrative or other receiver is appointed of any      Security Party or any part of its assets and/or undertaking or any other      steps are taken to enforce any Encumbrance over all or any part of the      assets of any Security Party; or |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.13   | Compositions: any      corporate action, legal proceedings or other procedures or steps are      taken, or negotiations commenced, by any Security Party or by any of its      creditors with a view to the general readjustment or rescheduling of all      or part of its indebtedness or to proposing any kind of composition,      compromise or arrangement involving such company and any of its creditors;      or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.14   | Analogous proceedings:      there occurs, in relation to any Security Party, in any country or      territory in which any of them carries on business or to the jurisdiction      of whose courts any part of their assets is subject, any event which, in      the reasonable opinion of the Bank, appears in that country or territory      to correspond with, or have an effect equivalent or similar to, any of      those mentioned in clauses 10.1.7 to 10.1.13 (inclusive) or any      Security Party otherwise becomes subject, in any such country or      territory, to the operation of any law relating to insolvency, bankruptcy      or liquidation; or |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.15   | Cessation of business:      any Security Party suspends or ceases or threatens to suspend or cease to      carry on its business; or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.16   | Seizure: all or a      material part of the undertaking, assets, rights or revenues of, or shares      or other ownership interests in, any Security Party are seized,      nationalised, expropriated or compulsorily acquired by or under the      authority of any government; or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.17   | Invalidity: any of the      Security Documents or any of the Underlying Documents shall at any time      and for any reason become invalid or unenforceable or otherwise cease to      remain in full force and effect, or if the validity or enforceability of      any of the Security Documents or any of the Underlying Documents shall at      any time and for any reason be contested by any Security Party which is a      party thereto, or if any such Security Party shall deny that it has any,      or any further, liability thereunder;or |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.18   | Unlawfulness: it becomes      impossible or unlawful at any time for any Security Party, to fulfil any      of the covenants and obligations expressed to be assumed by it in any of      the Security Documents or any of the Underlying Documents or for the Bank      to exercise the rights or any of them vested in it under any of the      Security Documents or otherwise; or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.1.19   | Repudiation: any      Security Party repudiates any of the Security Documents or any of the      Underlying Documents or does or causes or permits to be done any act or      thing evidencing an intention to repudiate any of the Security Documents      or any of the Underlying Documents;or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.20   | Encumbrances      enforceable: any Encumbrance (other than Permitted Liens) in      respect of any of the property (or part thereof) which is the subject of      any of the Security Documents becomes enforceable;  or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.21   | Material adverse change:      there occurs, in the opinion of the Bank, a material adverse change in the      financial condition of any Security Party by reference to the financial      statements referred to in clause 7.1.9 and clause 4.1.6 of      the Owner’s Guarantee; or |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.22   | Arrest: any Ship is      arrested, confiscated, seized, taken in execution, impounded, forfeited,      detained in exercise or purported exercise of any possessory lien or other      claim or otherwise taken from the possession of the Borrower or relevant      Owner and the Borrower or relevant Owner shall fail to procure the release      of such Ship within a period of seven (7) days (or such other period as      the Bank may agree in writing) thereafter;or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.23   | Registration: the      registration of any Ship under the laws and flag of the relevant Flag      State is cancelled or terminated without the prior written consent of the      Bank or, if any Ship is only provisionally registered on the Delivery Date      for such Ship, such Ship is not permanently registered under the laws and      flag of the relevant Flag State within ninety (90) days after the Drawdown      Date of the Advance constituting Facility A or, as the case may be, the      Advance constituting the Initial Revolving Amount or, as the case may be,      the Advance for such Ship or if such registration of any Ship is not      renewed at least forty five (45) days (or such other period as the Bank      may agree in writing) prior to the expiry of such registration;      or |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.24   | Unrest: the Flag State      of any Ship becomes involved in hostilities or civil war or there is a      seizure of power in such Flag State by unconstitutional means if, in any      such case, such event could in the opinion of the Bank reasonably be      expected to have a material adverse effect on the security constituted by      any of the Security Documents; or |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.25   | Environmental Incidents:      there is an Environmental Incident which gives rise, or may give rise, to      Environmental Claims which could, in the opinion of the Bank be expected      to have a material adverse effect (i) on the business, assets, operations,      property or financial condition of any Security Party or the Borrower’s      Group taken as a whole or (ii) on the security constituted by any of the      Security Documents or the enforceability of that security in accordance      with its terms; or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.26   | P&I: the Borrower or      any Owner or any other person fails or omits to comply with any      requirements of the protection and indemnity association or other insurer      with which a Ship is entered for insurance or insured against protection      and indemnity risks (including oil pollution risks) to the effect that any      cover (including, without limitation, any cover in respect of liability      for Environmental Claims arising in jurisdictions where such Ship operates      or trades) is or may be liable to cancellation, qualification or exclusion      at any time; or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.27   | Parent company: any      Owner ceases to be a wholly-owned subsidiary of the Borrower;      or |
|---------------------|------------------------------------------------------------------------------------------------|

| 10.1.28   | Breach of Contract:      there is a material breach by the Borrower or any Owner, a Seller or a      Builder of any Contract or the Borrower fails to repay any Advance of      Facility B constituting (in part) Expected Project Costs representing a      10% deposit under a Contract relating to a purchase of an Additional Ship      which is a second hand vessel within 7 days of the date of expiry or      termination of the relevant Contract;or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.29   | Termination or variation of a      Contract: a Contract is terminated for any reason whatsoever or a      Contract is frustrated or varied in any manner not permitted by or      pursuant to the relevant Pre-delivery Security Assignment or this      Agreement; or |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.1.30   | Termination of a Refund      Guarantee: a Refund Guarantee is repudiated, cancelled, rescinded      or otherwise terminated; or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------|

| 10.1.31   | Non-Delivery of      Ship: |
|---------------------|----------------------------|

| (a)   | on      or before the Termination Date (or such later date as the Bank in its      absolute discretion may agree in writing);  and/or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | on      the date that it is obliged to take Delivery of the relevant Ship in      accordance with any relevant Contract and its failure to take such      Delivery will constitute a breach of the provisions of the relevant      Contract; or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.32   | Material events: any      other event occurs or circumstance arises which, in the opinion of the      Bank, is likely materially and adversely to affect either (i) the ability      of any Security Party to perform all or any of its obligations under or      otherwise to comply with the terms of any of the Security Documents or      (ii) the security created by any of the Security Documents;    or |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.33   | ISM Code: the Borrower      or any Owner  or any Operator fails to comply with the      requirements of the ISM Code and/or obtain and/or maintain a DOC for      itself and an SMC in respect of each of the Ships in accordance with the      ISM Code; or |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.34   | ISPS Code: the Borrower      or any Owner or any Operator fails to comply with the requirements of the      ISPS Code and/or obtain and/or maintain the certifications required in      respect of each of the Ships in accordance with the ISPS      Code;  or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.35   | Managers: any Manager      takes any action or institutes any proceedings or makes or asserts any      claim against any Ship in exercise or purported exercise of any claim;      or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.36   | Management of      Borrower:  Evangelos Pistiolis ceases to be the Chief      Executive Officer of the Borrower without the Bank’s prior written      consent; or |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.37   | Failure to Drawdown Delivery      Date Advance: the Borrower fails to drawdown a Delivery Date      Advance without the prior written consent of the Bank which shall not be      unreasonably withheld; or |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.38   | Intra-Group Loans      Agreements: the Borrower demands or accepts any repayments of      principal or interest or any other sum payable under the Intra-Group Loan      Agreements save as envisaged by clause 14.4 or takes any action against      any Owner without the prior written consent of the Bank;  or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.39   | Newbuilding: the      Borrower or the relevant Owner as the case may be fails to pay all      instalments of the Contract Price or any part of the Contract Price not      being financed under this Agreement in full and in a timely manner and      otherwise in accordance with the terms of the relevant Contract for an      Additional Ship which is a newbuilding or the Bank determines in its      reasonable opinion that the Borrower or the relevant Owner will not be in      a position to pay all such instalments of the Contract Price or any part      of the Contract Price not being financed under this Agreement as      aforesaid; or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1.40   | Failure to create a      Mortgage: The Borrower or the relevant Owner fails to execute and      register at the Registry a valid and effective Mortgage over any      Additional Ship which is a newbuilding immediately following Delivery of      such Additional Ship pursuant to the relevant Contract or the Bank      determines in its reasonable opinion that the Borrower or the relevant      Owner will not (or is unlikely to) be able and/or willing to execute and      register at the Registry such Mortgage immediately upon Delivery of such      Additional Ship. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.2   | Acceleration |
|------------------|--------------|

| 10.2.1   | the      obligation of the Bank to make the Commitment available shall be      terminated, whereupon the Commitment shall be reduced to zero forthwith;      and/or |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2.2   | the      Loan and all interest and commitment commission accrued and all other sums      payable under the Security Documents have become due and payable,      whereupon the same shall, immediately or in accordance with the terms of      such notice, become due andpayable. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3   | Demand      basis |
|------------------|-------------------|

| 11   | Indemnities |
|----------------|-------------|

| 11.1   | Miscellaneous      indemnities |
|------------------|--------------------------------|

| 11.1.1   | any      default in payment by the Borrower of any sum under any of the Security      Documents when due; |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| 11.1.2   | the      occurrence of any other Event ofDefault; |
|--------------------|---------------------------------------------------|

| 11.1.3   | any      prepayment of the Loan or part thereof being made under clause 4.4,      4.5 or 12.1, or any other repayment of the Loan or part thereof being made      otherwise than on an Interest Payment Date relating to the part of the      Loan prepaid or repaid; or |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.1.4   | any      Advance not being made for any reason (excluding any default by the Bank)      after the relevant Drawdown Notice for such Advance has been      given, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2   | Currency      indemnity |
|------------------|-------------------------|

----

| 11.3   | Environmental      indemnity |
|------------------|------------------------------|

| 12   | Unlawfulness      and increased costs |
|----------------|---------------------------------------|

| 12.1   | Unlawfulness |
|------------------|--------------|

| 12.2   | Increased      costs |
|------------------|----------------------|

| 12.2.1   | subject      the Bank to Taxes or change the basis of Taxation of the Bank with respect      to any payment under any of the Security Documents (other than Taxes or      Taxation on the overall net income, profits or gains of the Bank imposed      in the jurisdiction in which its principal or lending office under this      Agreement is located); and/or |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.2   | increase      the cost to, or impose an additional cost on, the Bank or its holding      company in making or keeping the Commitment available or maintaining or      funding all or part of the Loan;and/or |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.3   | reduce      the amount payable or the effective return to the Bank under any of the      Security Documents; and/or |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| 12.2.4   | reduce      the Bank's or its holding company's rate of return on its overall capital      by reason of a change in the manner in which it is required to allocate      capital resources to the Bank's obligations under any of the Security      Documents; and/or |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2.5   | require      the Bank or its holding company to make a payment or forgo a return on or      calculated by reference to any amount received or receivable by the Bank      under any of the Security Documents;and/or |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.2.6   | require      the Bank or its holding company to incur or sustain a loss (including a      loss of future potential profits) by reason of being obliged to deduct all      or part of the Commitment or the Loan from its capital for regulatory      purposes, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Bank shall notify the Borrower in writing of such event promptly upon its      becoming aware of the same; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Borrower shall on demand pay to the Bank the amount which the Bank      specifies (in a certificate setting forth the basis of the computation of      such amount but not including any matters which the Bank or its holding      company regards as confidential) is required to compensate the Bank and/or      (as the case may be) its holding company for such liability to Taxes,      cost, reduction, payment, forgone return or  loss. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3   | Exception |
|------------------|-----------|

| 13   | Security      and set-off |
|----------------|---------------------------|

| 13.1   | Application      of moneys |
|------------------|----------------------------|

| 13.1.1   | first      in or toward payment of all unpaid fees, commissions and expenses which      may be owing to the Bank under any of the Security    Documents; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1.2   | secondly      in or towards payment of any arrears of interest owing in respect of the      Loan or any part thereof; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| 13.1.3   | thirdly      in or towards repayment of the Loan (whether the same is due and payable      or not); |
|--------------------|-----------------------------------------------------------------------------------------------------|

| 13.1.4   | fourthly      in or towards payment to the Bank for any loss suffered by reason of any      such payment in respect of principal not being effected on an Interest      Payment Date relating to the part of the Loan  repaid; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1.5   | fifthly      in or towards payment to the Bank of any other sums owing to it under any      of the Security Documents; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| 13.1.6   | sixthly      the surplus (if any) shall be paid to the Borrower or to whomsoever else      may be entitled to receive suchsurplus, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| 13.2   | Set-off |
|------------------|---------|

| 13.2.1   | The      Borrower authorises the Bank (without prejudice to any of the Bank's      rights at law, in equity or otherwise), at any time and without notice to      the Borrower, to apply any credit balance to which the Borrower is then      entitled standing upon any account of the Borrower with any branch of the      Bank in or towards satisfaction of any sum due and payable from the      Borrower to the Bank under any of the Security Documents.  For      this purpose, the Bank is authorised to purchase with the moneys standing      to the credit of such account such other currencies as may be necessary to      effect such application.  The Bank shall not be obliged to      exercise any right given to it by this clause 13.2.  The      Bank shall notify the Borrower forthwith upon the exercise or purported      exercise of any right of set-off giving full details in relation      thereto. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.2.2   | Without      prejudice to its rights hereunder and/or under the Master Swap Agreement,      the Bank may at the same time as, or at any time after, any Default under      this Agreement or the Borrower’s default under the Master Swap Agreement,      set-off any amount due now or in the future from the Borrower to the Bank      under this Agreement against any amount due from the Bank to the Borrower      under the Master Swap Agreement and apply the first amount in discharging      the second amount.  The effect of any set-off under this      clause 13.2.2 shall be effective to extinguish or, as the case may      require, reduce the liabilities of the Bank under the Master Swap      Agreement. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3   | Further      assurance |
|------------------|------------------------|

| 13.4   | Conflicts |
|------------------|-----------|

| 14   | Accounts |
|----------------|----------|

| 14.1   | General |
|------------------|---------|

| 14.1.1   | The      Borrower undertakes with the Bank that itwill: |
|--------------------|---------------------------------------------------------|

| (a)   | on      or before the Drawdown Date of the Advance constituting Facility A or the      first Advance (whichever is the earlier) open or procure that there is      opened by the relevant Initial Owner the relevant Operating Account and      prior to the drawdown of any Advance relative to an Additional Ship open      or procure that there is opened by the Owner of the relevant Additional      Ship an Operating Account for that Additional Ship;  and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | procure      that all moneys payable to the Borrower and/or any Owner in respect of the      Earnings (as defined in the Ship Security Documents) of the Ships shall,      unless and until the Bank directs to the contrary pursuant to proviso (a)      to clause 2.1 of the General Assignments, be paid to the relevant      Operating Account Provided however that if any of the moneys paid to the      Operating Accounts are payable in a currency other than Dollars, the Bank      shall convert such moneys into Dollars at the Bank’s spot rate of exchange      at the relevant time for the purchase of Dollars with such currency and      the term “spot rate of      exchange” shall include any premium and costs of exchange payable      in connection with the purchase of Dollars with such currency;      and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | on      or before the first Drawdown Date pay or procure that there is paid the      sum of ten million Dollars ($10,000,000) by way of working capital to the      Operating Accounts and maintain such balance in accordance with clause      8.1.16. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2   | AccountTerms |
|------------------|--------------|

----

| 14.2.1   | Amounts      standing to the credit of the Operating Accounts shall, (unless otherwise      agreed between the Bank the Borrower and each of the Owners) bear interest      at the rates from time to time offered by the Bank to its customers for      Dollar deposits in comparable amounts for comparable      periods.  Interest shall accrue on the Operating Accounts from      day to day and be calculated on the basis of actual days elapsed and a 360      day year and shall be credited as appropriate to the Operating Accounts at      such times as the Bank, the Borrower and each of the Owners shall      agree. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2.2   | The      Borrower and each of the Owners shall, unless and until a Default shall      occur and the Bank shall direct to the contrary, be entitled from time to      time to require that moneys for the time being standing to the credit of      the Operating Accounts be transferred in such amounts and for such periods      as the Borrower and each of the Owners select to fixed-term deposit      accounts (“deposit      accounts”) opened in the name of the Borrower and each of the      Owners with the Bank.  The Borrower and each of the Owners shall      not be entitled pursuant to clause 14.3 to withdraw moneys standing to the      credit of the Operating Accounts which are the subject of a fixed term      deposit until the expiry of the period of such deposit unless the Borrower      and each of the Owners shall, on withdrawing such moneys, pay to the Bank      on demand any loss or expense which the Bank shall certify that it has      sustained or incurred as a result of such withdrawal being made prior to      the expiry of the period of the relevant deposit and the Bank shall be      entitled to debit the relevant Operating Account for the amount so      certified prior to such withdrawal being made.  In the event      that any moneys deposited are to be applied pursuant to clause 14.5, the      Borrower and each of the Owners shall, on such application being made, pay      to the Bank on demand any loss or expense which the Bank shall certify      that it has sustained or incurred as a result of such application being      made prior to the expiry of the period of the relevant deposit and the      Bank shall be entitled to debit the Operating Accounts for the amount so      certified prior to such application being made.  Any deposit      accounts shall, for all the purposes of the Security Documents, be deemed      to be sub-accounts of the Operating Accounts from which the moneys      deposited in the deposit accounts were transferred and all references in      the Security Documents to the Operating Account shall be deemed to include      the deposit accounts deemed as aforesaid to be sub-accounts      thereof. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3   | Operating Account:withdrawals |
|------------------|-------------------------------|

| 14.3.1   | to      pay any amount to the Bank in or towards payment of any instalments of      interest or principal or any other amounts then payable pursuant to the      Security Documents and to the extent that there are moneys standing to the      credit of the Operating Accounts as at any Repayment Date and Interest      Payment Date or other relevant date, the Borrower and each of the Owners      hereby irrevocably authorise the Bank to apply such moneys in or towards      payment of any instalments of interest or principal or other amounts      payable pursuant to the Security Documents provided always that this shall      be strictly without prejudice to the obligations of the Borrower and each      of the Owners to make any such payments to the extent that the aforesaid      application by the Bank is insufficient to meet the same;    and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3.2   | to      pay the proper and reasonable operating expenses (including costs of      insuring, repairing and maintaining the Ships) of the Ships and the proper      and reasonable expenses of administering the affairs of the Borrower and      each of the Owners; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3.3   | to      pay any Manager’s remuneration under any Management Agreement in the      amounts and at the times thereinstated. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| 14.4   | Repayment      under the Intra-Group LoanAgreements |
|------------------|-----------------------------------------------------|

----

| 14.4.1   | until      such time as all sums due and payable under this Agreement and each of the      other Security Documents have been satisfied in full the obligation of      each Owner to pay all sums of principal and interest and any other sums      payable under the relevant Intra-Group Loan Agreements shall be fully      satisfied by that Owner depositing the relevant sums to the credit of its      Operating Account and the Borrower hereby irrevocably and unconditionally      acknowledges that all moneys from time to time standing to the credit of      the Operating Accounts shall be freely available to the Bank for      application in or towards payment of any instalments of principal or      interest or any other amounts then due and payable pursuant to this      Agreement and any of the other Security Documents;  and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4.2   | at      any time after the occurrence of an Event of Default, the Bank may,      without notice to the Borrower or any Owner, apply all moneys then      standing to the credit of the Operating Accounts (together with interest      from time to time accruing or accrued thereon) in or towards satisfaction      of any sums due to the Bank under the Security Documents in the manner      specified in clause 13.1. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5   | Applicationofaccounts |
|------------------|-----------------------|

| 14.6   | Chargingof OperatingAccounts |
|------------------|------------------------------|

| 14.6.1   | The      Operating Accounts and all amounts from time to time standing to the      credit thereof shall be subject to the security constituted and the rights      conferred by the Operating AccountCharges. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15   | Assignment,      transfer and lending office |
|----------------|----------------------------------------------|

| 15.1   | Benefit      and burden |
|------------------|-------------------------|

| 15.2   | No      assignment by Borrower |
|------------------|--------------------------------|

| 15.3   | Assignment      by Bank |
|------------------|-------------------------|

| 15.4   | Transfer |
|------------------|----------|

----

| 15.5   | Documenting      assignments and transfers |
|------------------|--------------------------------------------|

| 15.6   | Lending      office |
|------------------|---------------------|

| 15.7   | Disclosure      of information |
|------------------|--------------------------------|

| 16   | Notices      and other matters |
|----------------|--------------------------------|

| 16.1   | Notices |
|------------------|---------|

| 16.1.1   | be      in writing delivered personally or by first-class prepaid letter (airmail      if available) or facsimile transmission or other means of      telecommunication in permanent writtenform; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.1.2   | be      deemed to have been received, subject as otherwise provided in the      relevant Security Document, in the case of a letter, when delivered      personally or three (3) days after it has been put in to the post and, in      the case of a facsimile transmission or other means of telecommunication      in permanent written form, at the time of despatch (provided that if the      date of despatch is not a business day in the country of the addressee or      if the time of despatch is after the close of business in the country of      the addressee it shall be deemed to have been received at the opening of      business on the next such business day);and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.1.3   | be      sent: |
|--------------------|---------------|

| (a)   | to      the Borrower and any Owner at: |
|-----------------|----------------------------------------|

| (b)   | to      the Bank at: |
|-----------------|----------------------|

----

| 16.2   | No      implied waivers, remediescumulative |
|------------------|---------------------------------------------|

| 16.3   | English      language |
|------------------|-----------------------|

| 16.4   | Counterparts |
|------------------|--------------|

| 17   | Governing      law and jurisdiction |
|----------------|-------------------------------------|

| 17.1   | Law |
|------------------|-----|

| 17.2   | Submission      to jurisdiction |
|------------------|---------------------------------|

----

| Ship                    | Owner                                   | Country      of Incorporation of Owner | Flag                  | Official      Number | Classification      Society | Classification                                           | Ship      Type       | Year      Built | Deadweight/TEU | Account      number |
|-------------------------|-----------------------------------------|----------------------------------------|-----------------------|----------------------|-----------------------------|----------------------------------------------------------|----------------------|-----------------|----------------|---------------------|
| “DAUNTLESS” | Lefka      Shipping Company Limited     | Marshall      Islands             | Marshall      Islands | 2308                 | Det      Norske Veritas     | +1A1      Tanker for Oil ESP SPM E0 VCS-2 CSA-1 Nauticus | Products      Tanker | 1999            | 46,168         | LEFSHI-USD1         |
| “DOUBTLESS” | Falakro      Shipping Company Limited   | Liberia                                | Liberia               | 9363                 | Det      Norske Veritas     | +1A1      Ice-C tanker for oil ESP EO Nauticus           | Products      Tanker | 1991            | 47,076         | FASHOT-USD1         |
| “ENDLESS”   | Litochoro      Shipping Company Limited | Marshall      Islands                  | Marshall      Islands | 2040                 | Det      Norske Veritas     | +1A1      Ice-C tanker for oil ESP EO Nauticus           | Oil      Tanker      | 1992            | 135,915        | LITOSHIP-USD1       |
| “FAITHFUL”  | Gramos      Shipping Company Inc.       | Marshall      Islands                  | Marshall      Islands | 1689                 | Det      Norske Veritas     | +1A1      Ice-C tanker for oil ESP EO Nauticus           | Products      Tanker | 1992            | 45,000         | GRAMSHIP-USD1       |
| “FAULTLESS” | Parnasos      Shipping Company Limited  | Liberia                           | Liberia               | 12601                | Det      Norske Veritas     | +A1      Tanker for oil, ESP EO PP3 Nauticus             | Oil      Tanker      | 1992            | 154,970        | PASHICO-USD1        |
| “FLAWLESS”  | Pylio      Shipping Company Limited     | Liberia                           | Liberia               | 9475                 | Det      Norske Veritas     | +1A1      tanker for oil ESP PP3 ED-SBM                  | Oil      Tanker      | 1991            | 154,970        | PYSHCO-USD1         |
| “LIMITLESS” | Mytikas      Shipping Company Limited   | Marshall      Islands             | Marshall      Islands | 2034                 | Det      Norske Veritas     | +1A1      Ice-C tanker for oil ESP EO Nauticus           | Oil      Tanker      | 1993            | 136,055        | MYSHCO-USD1         |
| “NOISELESS” | Imitos      Shipping Company Limited    | Marshall      Islands             | Marshall      Islands | 2234                 | Det      Norske Veritas     | +A1,      oil carrier, ice class DO, (E) +AMS +ACCU      | Oil      Tanker      | 1992            | 149,554        | IMSHCO-USD1         |
| “PRICELESS” | Kisavos      Shipping Company Limited   | Marshall      Islands             | Marshall      Islands | 1598                 | Det      Norske Veritas     | +1A1      Tanker for oil ESP PP3 EO                      | Oil      Tanker      | 1991            | 154,970        | KISHCO-USD1         |
| “SOUNDLESS” | Agrafa      Shipping Company Limited    | Marshall      Islands             | Marshall      Islands | 2309                 | Det      Norske Veritas     | +1A1      Tanker for Oil ESP SPM E0 VCS-2 CSA-1 Nauticus | Products      Tanker | 1999            | 46,168         | AGRSHI-USD1         |
| “SPOTLESS”  | Idi      Shipping Company Limited       | Liberia                           | Liberia               | 9361                 | Det      Norske Veritas     | +1A1      Ice-C tanker for oil ESP EO Nauticus           | Products      Tanker | 1991            | 47,076         | IDISHCO-USD1        |

----

| “TAINTLESS” | Giona      Shipping Company Limited  | Marshall      Islands | Marshall      Islands | 2307   | Det      Norske Veritas | +1A1      Tanker for Oil ESP SPM E0 VCS-2 CSA-1 Nauticus | Products      Tanker | 1999 | 47,084  | GIOSHI-USD1   |
|-------------------------|-------------------------------------------|-----------------------|-----------------------|--------|-------------------------|----------------------------------------------------------|----------------------|------|---------|---------------|
| “TIMELESS”  | Taygetus      Shipping Company Limited    | Liberia          | Liberia               | 9480   | Det      Norske Veritas | +1A1      tanker for oil ESP PP3 ED-SBM                  | Oil      Tanker      | 1991 | 154,970 | TASHCO-USD1   |
| “TOPLESS”   | Agion      Oros Shipping Company Limited  | Marshall      Islands | Marshall      Islands | 2310   | Det      Norske Veritas | NS      MNS M0                                           | Products      Tanker | 1998 | 47,262  | AGORSHI-USD1  |
| “VANGUARD”  | Pageon      Shipping Company Limited      | Cyprus           | Cyprus                | 709465 | Det      Norske Veritas | +1A1      Ice-C tanker for oil ESP EO Nauticus           | Products      Tanker | 1992 | 47,084  | PAGSHICO-USD1 |

----

| (A)   | Each      Additional Ship shall: |
|-----------------|----------------------------------|

| 1   | be      a standard double hull crude oil or double hull product oil      tanker; |
|---------------|----------------------------------------------------------------------------------|

| 2   | be      aged 10 years or less on the relevant Delivery  Date; |
|---------------|---------------------------------------------------------------|

| 3   | maintain      a flag and class acceptable to theBank; |
|---------------|-------------------------------------------------------|

| 4   | be      wholly owned by the Borrower or an Additional Owner;  and |
|---------------|-------------------------------------------------------------------|

| 5   | have      a purchase price which shall not exceed the Fair Market Value for such      Additional Ship. |
|---------------|--------------------------------------------------------------------------------------------------------|

| (B)   | The      Bank shall be satisfied that Facility B relating to such Additional Ship      can be repaid by the Borrower in accordance with clause 4.2; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C)   | Each      Additional Ship shall be acceptable to the Bank in its absolute      discretion. |
|-----------------|--------------------------------------------------------------------------------------------|

----

| Initial      Ships      |   | Maximum      Amount$ |            |
|-------------------------|--------|----------------------|-----------------|
| “DAUNTLESS” |   |                 | 36,550,000.00   |   |
| “DOUBTLESS” |   |                 | 10,500,000.00   |   |
| “ENDLESS”   |   |                 | 19,300,000.00   |   |
| “FAITHFUL”  |   |                 | 11,100,000.00   |   |
| “FAULTLESS” |   |                 | 25,800,000.00   |   |
| “FLAWLESS”  |   |                 | 18,100,000.00   |   |
| “LIMITLESS” |   |                 | 19,800,000.00   |   |
| “NOISELESS” |   |                 | 25,800,000.00   |   |
| “PRICELESS” |   |                 | 25,800,000.00   |   |
| “SOUNDLESS” |   |                 | 36,550,000.00   |   |
| “SPOTLESS”  |   |                 | 10,500,000.00   |   |
| “TAINTLESS” |   |                 | 36,550,000.00   |   |
| “TIMELESS”  |   |                 | 18,100,000.00   |   |
| “TOPLESS”   |   |                 | 34,350,000.00   |   |
| “VANGUARD”  |   |                 | 10,856,899.82   |   |
|                    |   |                 | $339,656,899.82 |   |

----

| Initial      Ship       | Initial      Owner                       | Country      of Incorporation | Address                                                                                             | Shareholder |
|-------------------------|------------------------------------------|-------------------------------|-----------------------------------------------------------------------------------------------------|-------------|
| “DAUNTLESS” | Lefka      Shipping Company Limited      | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands  | Borrower    |
| “DOUBTLESS” | Falakro      Shipping Company Limited    | Liberia                       | 80      Broad Street, Monrovia, Liberia                                                             | Borrower    |
| “ENDLESS”   | Litochoro      Shipping Company Limited  | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands  | Borrower    |
| “FAITHFUL”  | Gramos      Shipping Company Inc.        | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands  | Borrower    |
| “FAULTLESS” | Parnasos      Shipping Company Limited   | Liberia                       | 80      Broad Street, Monrovia, Liberia                                                             | Borrower    |
| “FLAWLESS”  | Pylio      Shipping Company Limited      | Liberia                       | 80      Broad Street, Monrovia, Liberia                                                             | Borrower    |
| “LIMITLESS” | Mytikas      Shipping Company Limited    | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands  | Borrower    |
| “NOISELESS” | Imitos      Shipping Company Limited     | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands  | Borrower    |
| “PRICELESS” | Kisavos      Shipping Company Limited    | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands  | Borrower    |
| “SOUNDLESS” | Agrafa      Shipping Company Limited     | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands  | Borrower    |
| “SPOTLESS”  | Idi      Shipping Company Limited        | Liberia                       | 80      Broad Street, Monrovia, Liberia                                                             | Borrower    |
| “TAINTLESS” | Giona      Shipping Company Limited      | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands       | Borrower    |
| “TIMELESS”  | Taygetus      Shipping Company Limited   | Liberia                       | 80      Broad Street, Monrovia, Liberia                                                             | Borrower    |
| “TOPLESS”   | Agion      Oros Shipping Company Limited | Marshall      Islands         | Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands       | Borrower    |
| “VANGUARD”  | Pageon      Shipping Company Limited     | Cyprus                        | 284      Arch. Makarios III Avenue, Limassol, Cyprus                                                | Borrower    |

----

| (a)   | no      event or circumstance has occurred and is continuing which constitutes a      Default; |
|-----------------|------------------------------------------------------------------------------------------------|

| (b)   | the      representations and warranties containedin |
|-----------------|-----------------------------------------------------|

| (i)   | clauses 7.1      and 7.2 of the Loan Agreement (and so that the representation and warranty      in clause 7.1.9 refers for this purpose to the audited financial      statements of the Borrower and the consolidated financial statements of      the Borrower and its Related Companies in respect of the financial year      ended on {date});      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | clause 4.1      and 4.2 of each Owner’s Guarantee (and so that the representation and      warranty in clause 4.1.6 of each Owner’s Guarantee refers for this      purpose to the consolidated financial statements of the Borrower and its      Related Companies in respect of the financial year ended on {date}; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      borrowing to be effected by the drawdown of the Loan will be within our      corporate powers, has been validly authorised by appropriate corporate      action and will not cause any limit on our borrowings (whether imposed by      statute, regulation, agreement or otherwise) to be exceeded;      and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | there      has been no material adverse change in our financial position or in the      consolidated financial position of ourselves and our Related Companies      from that set forth in the financial statements referred to in (b)      above. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)   | Constitutional      documents |
|-----------------|-------------------------------|

| (b)   | Corporate      authorisations |
|-----------------|-------------------------------|

| (i)   | being      true and correct; |
|-----------------|------------------------------|

| (ii)   | being      duly passed at meetings of the directors of such Security Party and other      than in the case of the Borrower of the shareholders of such Security      Party each duly convened and held; |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | not      having been amended, modified or revoked;and |
|-------------------|-------------------------------------------------------|

| (iv)   | being      in full force and effect, |
|------------------|--------------------------------------|

| (c)   | Specimen      signatures |
|-----------------|--------------------------|

| (d)   | Certificates      of incumbency |
|-----------------|---------------------------------|

| (e)   | Borrower’s      consents and approvals |
|-----------------|----------------------------------------------|

----

| (f)   | Other      consents and approvals |
|-----------------|-----------------------------------|

| (g)   | Additional      documents and evidence |
|-----------------|----------------------------------------|

| (h)   | Fees,      commissions and expenses |
|-----------------|-------------------------------------|

----

| (a)   | Conditions      precedent |
|-----------------|---------------------------|

| (b)   | Security      Documents |
|-----------------|-------------------------|

| (c)   | Legal      opinions |
|-----------------|---------------------|

| (d)   | Borrower’s      process agent |
|-----------------|-------------------------------------|

| (e)   | Owner’s      process agent |
|-----------------|----------------------------------|

| (f)   | Manager’s      process agent |
|-----------------|------------------------------------|

----

| (g)   | Valuations |
|-----------------|------------|

| (h)   | Fees,      commissions and expenses |
|-----------------|-------------------------------------|

| (i)   | Operating      Accounts |
|-----------------|-------------------------|

| (j)   | Ownership |
|-----------------|-----------|

| (i)   | each      Owner is the legally and beneficially wholly-owned subsidiary of the      Borrower; and |
|-----------------|---------------------------------------------------------------------------------------------------|

| (ii)   | the      Shareholders are the legal and ultimate beneficial owners of fifteen per      cent (15%) of the issued share capital of the  Borrower; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | Financial      statements and ComplianceCertificate |
|-----------------|-----------------------------------------------------|

| (l)   | Subordination      of rights |
|-----------------|------------------------------|

| (m)   | Existing      Loan Agreement |
|-----------------|------------------------------|

----

| (a)   | Conditions      precedent |
|-----------------|---------------------------|

| (b)   | No      claim |
|-----------------|---------------|

| (c)   | No      variations to Contract |
|-----------------|--------------------------------|

| (d)   | No      Encumbrance |
|-----------------|---------------------|

| (e)   | Certified      Underlying Documents |
|-----------------|-------------------------------------|

| (f)   | Ship      conditions |
|-----------------|----------------------|

| (i)   | Registration      and Encumbrances |
|-----------------|------------------------------------|

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

----

| (iii)   | Insurance |
|-------------------|-----------|

| (g)   | Cancellation |
|-----------------|--------------|

| (h)   | Borrower’s      and Owner’s further corporateauthorisations |
|-----------------|-------------------------------------------------------------------------|

| (i)   | Other      further corporate authorisations |
|-----------------|---------------------------------------------|

| (j)   | Updated      certificates of incumbency |
|-----------------|-----------------------------------------|

| (k)   | Management |
|-----------------|------------|

----

| (l)   | Security      Documents |
|-----------------|-------------------------|

| (m)   | Mortgage      registration |
|-----------------|----------------------------|

| (n)   | Notices      of assignment and acknowledgement |
|-----------------|------------------------------------------------|

| (o)   | Valuations |
|-----------------|------------|

| (p)   | Survey      report |
|-----------------|--------------------|

| (q)   | Evidence      of subordination |
|-----------------|--------------------------------|

| (r)   | ISM      Code and ISPS Code |
|-----------------|-----------------------------|

| (s)   | Legal      opinions |
|-----------------|---------------------|

| (i)   | an      opinion of Chrysses Demetriades & Co., special legal advisers in the      Republic of Cyprus to the Bank; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (ii)   | an      opinion of Seward & Kissel, special legal advisers to the Bank on      Liberian law; and |
|------------------|------------------------------------------------------------------------------------------------------|

| (iii)   | an      opinion of Seward & Kissel, special legal advisers to the Bank on      Marshall Islands law; |
|-------------------|----------------------------------------------------------------------------------------------------------|

| (iv)   | any      such further opinion as may be required by the  Bank; |
|------------------|----------------------------------------------------------------|

----

| (t)   | Insurance      Opinion |
|-----------------|------------------------|

| (u)   | Owner’s      process agent |
|-----------------|----------------------------------|

| (v)   | Managers’      process agent |
|-----------------|------------------------------------|

| (w)   | Manager's      confirmation |
|-----------------|-----------------------------|

7.2.11

| (x)   | Certificates      of financial responsibility |
|-----------------|-----------------------------------------------|

| (y)   | Delivery      Documents |
|-----------------|-------------------------|

| (z)   | Contract      Price Payment |
|-----------------|-----------------------------|

----

| (a)   | Conditions      precedent |
|-----------------|---------------------------|

| (b)   | No      claim |
|-----------------|---------------|

| (c)   | No      variations to Contract |
|-----------------|--------------------------------|

| (d)   | No      Encumbrance |
|-----------------|---------------------|

| (e)   | Equity      contribution |
|-----------------|--------------------------|

| (f)   | Invoices |
|-----------------|----------|

| (g)   | Fees,      commissions and expenses |
|-----------------|-------------------------------------|

| (h)   | Title      documents |
|-----------------|----------------------|

----

| 1   | The      Additional Cost shall be calculated by the Bank in respect of each period      for which it falls to be calculated in relation to the Loan in accordance      with the following formula: |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Y | 0.01F |  =      per cent per annum |
|--------|---|-------|---------------------------------|
| 100    |

| 2   | For      the purposes of calculating the AdditionalCost: |
|---------------|----------------------------------------------------------|

| (a)   | the      formula is applied on the first day of each period for which it falls to      be calculated (and the result shall apply for the duration of such      period); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | each      amount is rounded up to the nearest four decimal places;    and |
|-----------------|---------------------------------------------------------------------------|

| (c)   | if      the formula produces a negative percentage, the percentage shall be taken      as zero. |
|-----------------|-------------------------------------------------------------------------------------------------|

| 3   | If      alternative or additional financial requirements are imposed by the Bank      of England, the Financial Services Authority or any other United Kingdom      governmental authority or agency which in the Bank’s opinion make the      formula no longer appropriate, the Bank shall be entitled by notice to the      Borrower to stipulate such other formula as shall be suitable to apply in      substitution for the formula.  Any such other formula so      stipulated shall take effect in accordance with the terms of such      notice. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | In      this Schedule 4: |
|---------------|-------------------------------|

| (a)   | “Fees Rules” means the      then current rules on periodic fees contained in the Supervision manual of      the Financial Services Authority’s Handbook of rules and guidance or such      other law or regulation as may be in force from time to time in respect of      the payment of fees for the regulation of the accepting of      deposits; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | “Fee Tariffs” means the      fee tariffs most recently published by the Financial Services Authority in      the Fees Rules in respect of activity group A.1 Deposit acceptors      therein; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | “Periodic Fee” means the      periodic fee for the period to which the Fee Tariffs relate payable to the      Financial Services Authority under the Fees Rules by the Bank in respect      of its being in the activity group A.1 Deposit acceptors in the Fees      Rules; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | “Sterling” means the      lawful currency of the United Kingdom;and |
|-----------------|---------------------------------------------------------------------------------|

| (e)   | “Tariff Base” has the      meaning given to it in the Fees Rules in respect of activity group A.1      Deposit acceptors therein and the period to which the Fee Tariffs relate,      and will be calculated in accordancetherewith. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1   | Financial      Covenants |
|---------------|--------------------------|

| (a)   | the      Company’s Adjusted Net Worth is not less than two hundred and fifty      million Dollars ($250,000,000) and exceeds thirty five per cent (35%) of      Total Assets; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | EBITDA      of the Company exceeds one hundred and twenty per cent (120%) of the      aggregate amount of Fixed Charges; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Liquid Funds of the Guarantor are not less than the higher    of: |
|-----------------|----------------------------------------------------------------------------|

| (i)   | ten      million Dollars ($10,000,000); or |
|-----------------|--------------------------------------------|

| (ii)   | five      hundred thousand Dollars ($500,000) per Group  Vessel. |
|------------------|------------------------------------------------------------------|

| 2   | Default |
|---------------|---------|

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| The      Borrower                   |   |                                      |
|-------------------------------------|--------|-------------------------------------------|
|                                |   |                                      |
| SIGNEDby                            | )      |                                      |
| for      and on behalf of           | )      |                                      |
| TOP      SHIPS INC                  | )      |                                      |
| pursuant      to a                  | )      |                                      |
| power      of attorney dated        | )      |                                      |
|                                |   | ........................................  |
|                                |   | Attorney-in-fact                          |
|                                |   |                                      |
|                                |   |                                      |
| The      Bank                       |   |                                      |
|                                |   |                                      |
| SIGNEDby                            | )      |                                      |
| for      and on behalf of           | )      |                                      |
| THE      ROYAL BANK OF SCOTLAND plc | )      |                                      |
| pursuant      to a power            | )      |                                      |
| of      attorney dated              | )      | ......................................... |
|                                |   | Attorney-in-fact                          |
|                                |   |                                      |
|                                |   |                                      |

----

| SIGNED byfor      and on behalf ofTOP      SHIPS INC.pursuant      toboard      resolutions dated 25 March 2008             | )))))  |   |    /s/Theodora HitropetrouAuthorized      signatory             |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|
|                                                                                                                        |   |   |                                                                           |
| /s/Eirini      AlexandropoulouErini AlexandropoulouAttorney-at-law                                                          |   |   |                                                                           |
|                                                                                                                        |   |   |                                                                           |
| SIGNED by Stephen      Moorbythe      duly authorized signatoryfor      and on behalf ofTHE      ROYAL BANK OF SCOTLAND plc | ))))   |   |   /s/Stephen Moorby    Authorised      signatory |
|                                                                                                                        |   |   |                                                                           |

----