----

| Clause | Page |
|--------|------|

| 1      | INTERPRETATION                                                 | 1      |
|--------|----------------------------------------------------------------|--------|
|   |                                                           |   |
| 2      | FACILITY                                                       | 19     |
|   |                                                           |   |
| 3      | DRAWDOWN                                                       | 19     |
|   |                                                           |   |
| 4      | INTEREST                                                       | 21     |
|   |                                                           |   |
| 5      | INTEREST      PERIODS                                          | 22     |
|   |                                                           |   |
| 6      | DEFAULT      INTEREST                                          | 23     |
|   |                                                           |   |
| 7      | REPAYMENT      AND PREPAYMENT                                  | 24     |
|   |                                                           |   |
| 8      | CONDITIONS      PRECEDENT                                      | 27     |
|   |                                                           |   |
| 9      | REPRESENTATIONS      AND WARRANTIES                            | 28     |
|   |                                                           |   |
| 10     | COVENANTS                                                      | 33     |
|   |                                                           |   |
| 11     | GUARANTY                                                       | 41     |
|   |                                                           |   |
| 12     | PAYMENTS      AND CALCULATIONS                                 | 43     |
|   |                                                           |   |
| 13     | APPLICATION      OF RECEIPTS                                   | 45     |
|   |                                                           |   |
| 14     | EVENTS      OF DEFAULT                                         | 47     |
|   |                                                           |   |
| 15     | FEES      AND EXPENSES                                         | 50     |
|   |                                                           |   |
| 16     | INDEMNITIES                                                    | 51     |
|   |                                                           |   |
| 17     | NO      SET-OFF OR TAX DEDUCTION                               | 54     |
|   |                                                           |   |
| 18     | ILLEGALITY                                                     | 55     |
|   |                                                           |   |
| 19     | ASSIGNMENTS      AND PARTICIPATIONS; CHANGES IN LENDING OFFICE | 58     |
|   |                                                           |   |
| 20     | VARIATIONS,      WAIVERS, ETC.                                 | 59     |
|   |                                                           |   |
| 21     | NOTICES                                                        | 60     |
|   |                                                           |   |
| 22     | SUBORDINATION                                                  | 61     |
|   |                                                           |   |
| 23     | SUPPLEMENTAL                                                   | 61     |
|   |                                                           |   |
| 24     | THE      AGENT AND THE SECURITY TRUSTEE                        | 62     |
|   |                                                           |   |
| 25     | LAW      AND JURISDICTION                                      | 65     |
|   |                                                           |   |
| 26     | PATRIOT      ACT                                               | 66     |
|   |                                                           |   |
| 27     | WAIVER      OF JURY TRIAL                                      | 67     |
|   |                                                           |   |

| SCHEDULE      1 | INITIAL      LENDERS AND COMMITMENTS |
|-----------------|--------------------------------------|
| SCHEDULE      2 | IRREVOCABLE      DRAWDOWN NOTICE     |
| SCHEDULE      3 | CONDITION      PRECEDENT DOCUMENTS   |

----

| APPENDIX      A | FORM      OF COMPLIANCE CERTIFICATE      |
|-----------------|------------------------------------------|
| APPENDIX      B | FORM      OF EARNINGS ASSIGNMENT         |
| APPENDIX      C | FORM      OF INSURANCE ASSIGNMENT        |
| APPENDIX      D | FORM      OF CHARTER ASSIGNMENT          |
| APPENDIX      E | FORM      OF MANAGER’S UNDERTAKING |
| APPENDIX      F | FORM      OF MORTGAGE                    |
| APPENDIX      G | FORM      OF NOTE                        |
| APPENDIX      H | FORM      OF ASSIGNMENT AND ACCEPTANCE   |

----

| (1) | JAPAN      II SHIPPING COMPANY LIMITED, a Liberian corporation (the “Borrower”); |
|-----|----------------------------------------------------------------------------------------------|

| (3) | THE      BANKS AND FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE PAGES HEREOF      (each, an “Initial      Lender”); |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (4) | DVB      BANK AG, acting through its office at Friedrich-Ebert-Anlage 2-14, 60325      Frankfurt am Main, Germany, as Swap Bank (together with its successors and      permitted assigns, the “Swap Bank”);      and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | DVB      BANK AMERICA N.V., with offices at Zeelandia Office Park, Kaya W.F.G.      Mensing 14, P.O. Box 3107, Curaçao, Netherlands Antilles, as Agent      (together with its successors and permitted assigns, the “Agent”) and Security      Trustee (together with its successors and permitted assigns, the “Security      Trustee”). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 1.1   | Definitions.  Subject      to Clause 1.5, in this Agreement and the other Finance      Documents: |
|-----------------|------------------------------------------------------------------------------------------------------------------|

----

----

1.1

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

|   | (b) | its      purpose is to hedge the Borrower’s exposure under this Agreement to      fluctuations in the interest rate arising from the funding of the Advance;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      notional principal amount of such Transaction, together with all other      continuing Designated Transactions, does not and in the future (taking      into account the scheduled amortization thereof) will not exceed the      aggregate amount of the Loan scheduled to be outstanding from time to      time; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

|   | (a) | any      commercial bank organized under the laws of the United States, or any      State thereof, and having total assets in excess of      $1,000,000,000; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any      commercial bank organized under the laws of any other country that is a      member of the OECD or has concluded special lending arrangements with the      International Monetary Fund Associated with its General Arrangements to      Borrow, or a political subdivision of any such country, and having total      assets in excess of $1,000,000,000, so long as such bank is acting through      a branch or agency located in the United States or in the country in which      it is organized or another country that is described in this      paragraph (b); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | any      finance company, insurance company or other financial institution or fund      (whether a corporation, partnership, trust or other entity) that (i) is      not affiliated with the Borrower, (ii) is engaged in making, purchasing or      otherwise investing in commercial loans in the ordinary course of its      business and (iii) has total assets in excess of $1,000,000,000;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any      other person (other than an Affiliate of the Borrower or the Guarantor)      approved by the Agent and the Borrower and having assets in excess of      $1,000,000,000, such approval not to be unreasonably    withheld; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|   | (b) | under      any bond, note or other security issued by such  person; |
|--------|-----|---------------------------------------------------------------------|

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

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

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

----

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

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

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

|   | (a) | the      International Safety Management Code (including the guidelines on its      implementation) adopted by the International Maritime Organization (“IMO”) as      Resolution A.741(18) and Resolution A.913(22) (superseding      Resolution A.788(19)) (and the terms “safety management      system”, “Safety      Management Certificate” and “Document of Compliance”      have the same meanings as are given to them in the ISM Code);      and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | all      further resolutions, circulars, codes, guidelines, regulations and      recommendations which are now or in the future issued by or on behalf of      the IMO or any other entity with responsibility for implementing the ISM      Code; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      Document of Compliance and Safety Management Certificate issued pursuant      to the ISM Code in relation to the Ship within the periods specified by      the ISM Code; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      other documents and data that are relevant to the safety management system      and its implementation and verification that the Agent may require;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | all      other documents that are prepared or that are otherwise relevant to      establish and maintain the Ship’s compliance or the compliance of the      Borrower, the Approved Manager (technical) or any Approved Technical      Submanager with the ISM Code that the Agent may  require; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | each      and every person who has assumed responsibility for the operation of the      Ship and has agreed to take over or is required to assume responsibility      for the performance or observance of the duties and responsibilities      imposed by the ISM Code; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | each      and every person ashore who is a ‘designated person’ for the purposes of      the ISM Code with direct access to the highest level of management of the      Ship’s owner or operator and who, in that capacity, has under the ISM Code      responsibility and authority whichincludes: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | monitoring      the safety and pollution prevention aspects of the operation of the Ship;      and |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (ii) | ensuring      that adequate resources and shore based support are supplied, as required,      in each case, under the ISM Code; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | the      rate per annum equal to the offered quotation for deposits in Dollars for      a period equal to, or as near as possible equal to, the relevant Interest      Period which appears on Reuters BBA Page LIBOR 01 at or about 11.00 a.m.      (London time) on the Quotation Date for that Interest Period (and, for the      purposes of this Agreement, “BBA Page |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | LIBOR      01” means that      Reuters’ page or such other page as may replace that page on that service      for the purpose of displaying rates comparable to that rate or on such      other service as may be nominated by the British Bankers’ Association as      the information vendor for the purpose of displaying British Bankers’      Association Interest Settlement Rates for Dollars) provided      thatshould there be a discrepancy between the rate      appearing on BBA Page LIBOR 01 mentioned above and the actual rate at      which deposits in Dollars are offered by leading banks in the London      Interbank Market the “actual” rate (determined in its absolute discretion,      acting reasonably) available to the Agent shall be the rate used in      determining LIBOR;      or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      no rate is quoted on BBA Page LIBOR 01, the rate per annum determined by      the Agent to be the arithmetic mean (rounded upwards, if necessary, to the      nearest one-sixteenth of one percent) of the rates per annum notified to      the Agent by each Reference Bank as the rate at which deposits in Dollars      are offered to that Reference Bank by leading banks in the London      Interbank Market at that Reference Bank’s request at or about 11:00 a.m.      (London time) on the Quotation Date for that Interest Period for a period      equal to that Interest Period and for delivery on the first Business Day      of it; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

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

----

|   | (f) | any      political subdivision of any of theforegoing; |
|--------|-----|--------------------------------------------------------|

|   | (b) | the      amount that would be payable by the Borrower pursuant to      Section 6(e)(i) of the Master Agreement if an Early Termination Date      (as such term is defined in the Master Agreement) were deemed to have      occurred in relation to all Designated Transactions existing at such time      following an Event of Default by theBorrower; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|   | (e) | all      other documents (whether creating a Security Interest or not) that are      executed at any time by either Obligor or any other person as security      for, or to establish any form of subordination or priorities arrangement      in relation to, any amount payable to or for the benefit of a Lender, the      Swap Bank, the Agent or the Security Trustee under this Agreement or any      other Finance Document; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (b) | the      rights of the plaintiff under an action in rem in which the      vessel concerned has been arrested or a writ has been issued or similar      steps taken; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

|   | (a) | all      amounts that have become due for payment by the Borrower under the Finance      Documents have been paid; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

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

|   | (c) | no      Obligor has any future or contingent liability under Clause 16 or 17      or any other provision of this Agreement or any other Finance Document;      and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | no      Credit Party believes that there is a significant risk that any payment or      transaction under a Finance Document would be set aside, or would have to      be reversed or adjusted, in any present or possible future bankruptcy of      an Obligor or in any present or possible future proceeding relating to a      Finance Document or any asset covered (or previously covered) by a      Security Interest created by a FinanceDocument; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any      expropriation, confiscation, requisition or acquisition of the Ship,      whether for full consideration, a consideration less than her proper      value, a nominal consideration or without any consideration, which is      effected by any government or official authority or by any person or      persons claiming to be or to represent a government or official authority,      excluding a requisition for hire for a fixed period not exceeding one year      without any right to an extension; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      final and non-appealable condemnation of the Ship by any tribunal or by      any person or persons claiming to be a tribunal;  or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | any      arrest, capture, seizure or detention of the Ship (including any hijacking      or theft) unless she is within 60 days redelivered to the full control of      the Borrower; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

| 1.2   | Additional Financial      Terms.  Subject to Clause 1.5, in this Agreement and      the other Finance Documents: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | deducting      any amount shown in such consolidated balance sheet in respect of goodwill      (including goodwill arising on consolidation) and other intangible      assets; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | deducting      (so far as not otherwise excluded as attributable to minority interests) a      sum equal to the aggregate of the amount of which the book value of any      fixed assets of any member of the Group has been written up after December      31, 2005 (or, in the case of a company becoming a subsidiary after that      date, the date on which that company became a subsidiary) by way of      revaluation and, for the purposes of this paragraph (c) any increase      in the book value of any fixed assets resulting from its transfer by one      member of the Group to another member of the Group shall be deemed to      result from a writing up of its book value by way of      revaluation; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | excluding      amounts set aside for taxation as at the date of such balance sheet and      making such adjustments as may be appropriate in respect of any      significant additional taxation expected to result from transactions      carried out by any member of the Group after such date and not reflected      in that balance sheet; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | deducting      all amounts attributable to minority interests in      subsidiaries; |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (f) | making      such adjustments as may be appropriate in respect of any variation in the      amount of such paid up spare capital or any such reserves after the date      of the relevant balance sheet (but so that no such adjustment shall be      made in respect of any variation in profit and loss account except to the      extent of any profit or loss, calculated on a cumulative basis, recorded      in the consolidated profit and loss account of the Group delivered to the      Agent before the date of this Agreement, or under Clause 10.1(f) in      respect of any subsequent period); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | making      such adjustments as may be appropriate in respect of any distribution      declared, recommended or made by any member of the Group (otherwise than      attributable directly or indirectly to the Guarantor) out of profits      earned up to and including the date of the latest audited balance sheet of      that member of the Group to the extent that such distribution is not      provided for in that balance sheet; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | making      such adjustments as may be appropriate in respect of any variation in the      interests of the Guarantor in its subsidiaries since the date of the      latest published audited consolidated balance sheet of the Group;      and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if      the calculation is required for the purpose of or in connection with a      transaction under or in connection with when any company is to become or      cease to be a subsidiary of the Guarantor, making all such adjustments as      would be appropriate if that transaction has been carried into      effect; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | bonds,      notes, loan stock, debentures, commercial paper or other debt securities      issued by the Guarantor or any of its subsidiaries not for the time being      beneficially owned by the Guarantor or any of its      subsidiaries; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | sums      outstanding under acceptances by the Guarantor or any of its subsidiaries      or by any bank or acceptable house under acceptance credits opened on      behalf of the Guarantor or anysubsidiary; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | deferred      indebtedness of the Guarantor or any of its subsidiaries for payment of      the acquisition or construction price for assets or services acquired or      constructed; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | the      nominal amount of any issued and paid up share capital (other than equity      share capital) of any subsidiary not beneficially owned by the Guarantor      or another subsidiary; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | indebtedness      secured by any Security Interest over all or any part of the undertaking,      property, assets, rights or revenues of the Guarantor or any of its      subsidiaries irrespective of whether or not such indebtedness is supported      by a personal covenant on the part of the Guarantor or any of its      subsidiaries; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | indebtedness      incurred in respect of swaps, forward exchange contracts, futures or other      derivatives; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (k) | any      other liability arising from a transaction having the commercial effect of      a borrowing or the raising of money;and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | obligations      under guarantees in respect of the obligations of any other person which,      if such person were the Guarantor or a subsidiary would fall within any of      paragraphs (a) through (k) above,inclusive; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      value (less depreciation computed in accordance with generally accepted      international accounting principles consistently applied) on a      consolidated basis of all tangible fixed assets of the Group, including      long-term cash receivables (seller’s credit), as stated in the relevant      consolidated financial statements of the Group, but excluding any ships at      the relevant time owned by members of the Group which, for the purposes of      such consolidated financial statements, are included in the consolidated      tangible fixed assets of the Group (the “Relevant Ships”);      and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      aggregate of the market value of the Relevant Ships, as such market value      shall have been most recently determined (as of the date of the relevant      calculation) pursuant to Clause 10.1(v) by means of valuations      obtained by the Agent in accordance therewith (and not the value of the      Relevant Ships as stated in the relevant consolidated financial statements      of the Group). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.3   | Construction of Certain      Terms.  In this Agreement and the other Finance      Documents: |
|-----------------|--------------------------------------------------------------------------------------------------------|

----

| 1.4   | Meaning of      “month”.  A period of one or more “months” ends on the      day in the relevant calendar month numerically corresponding to the day of      the calendar month on which the period started (“the numerically corresponding      day”), but: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 1.5   | Meaning of      “subsidiary”.  A company (S) is a subsidiary of another      company (P) (the “parent      company”) if: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | a      majority of the issued equity in S (or a majority of the issued equity in      S that carries unlimited rights to capital and income distributions) is      directly owned by P or is indirectly attributable to P;  or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 1.6   | General      Interpretation. |
|-----------------|------------------------------|

| (a)            | In      this Agreement and the other FinanceDocuments: |
|-----------------------------------------------------------------------|--------------------------------------------------------|

----

|   | (i)    | references      to, or to a provision of, a Finance Document or any other document are      references to it as amended, restated or otherwise modified, whether      before the date of this Agreement or otherwise, except that any reference      to, or to a provision of, any Junior Loan Document shall include such      Junior Loan Document or provision, as the case may be, as amended,      restated or otherwise modified, but only with the prior written consent of      the Agent; |
|--------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (ii)   | references      to, or to a provision of, any law include any amendment, extension,      re-enactment or replacement, whether made before the date of this      Agreement or otherwise;                                                                                                                                                                                                                                                                                                            |
|   |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (iii)       | references      to “including” shall mean including without limiting the generality of any      description preceding such term;                                                                                                                                                                                                                                                                                                                                                       |
|   |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (iv)        | any      reference in any Finance Document to a clause, sub-clause, paragraph,      schedule, exhibit, annex or appendix shall be construed to mean a clause,      sub-clause or paragraph thereof, or a schedule, exhibit, annex or appendix      thereto, respectively;                                                                                                                                                                                                                          |
|   |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (v)              | words      denoting the singular number shall include the plural and vice versa;      and                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (vi)        | Clauses 1.1      through 1.5 and this paragraph (a) apply unless the contrary      intention appears;                                                                                                                                                                                                                                                                                                                                                                                    |
|   |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

| (b)                 | References      in Clause 1.1 to a document being in the form of a particular      appendix, exhibit, schedule or annex include references to that form with      any modifications to that form that the Agent shall approve or reasonably      require; and |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)                 | The      table of contents and the headings of the clauses, sub-clauses,      paragraphs, schedules, exhibits, annexes or appendices of this Agreement      or any other Finance Document shall not affect the interpretation of this      Agreement or any other FinanceDocument. |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2.1   | Amount of      Facility.  Subject to the other provisions of this      Agreement, the Lenders severally agree to make available to the Borrower a      loan facility in the aggregate principal amount of up to $48,000,000 (the      “Initial Aggregate      Commitment”). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2   | Purpose of      Loan.  The Borrower undertakes to use the Loan only for      the purposes stated in the recitals to this Agreement and in accordance      with Clause 3.2(b). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 3.1   | Request for the      Advance.  Subject to the following conditions, the      Borrower may request the Advance by delivering to the Agent a completed      Drawdown Notice in respect of the Advance not later than 11:00 a.m. (New      York time) three Business Days prior to the |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Expected      Drawdown Date thereof.  The Agent shall promptly notify the      Lenders that it has received the Drawdown Notice and shall inform each      Lender of: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | the      amount of the requested Advance and the Expected Drawdown Date      thereof; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------|

| (b)            | the      amount of each Lender’s Ratable Portion of the Advance;  and |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------|

| (c)            | the      duration of the first Interest Period applicable to the      Advance. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------|

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

| (a)            | the      Expected Drawdown Date shall be a Business Day during the Availability      Period; |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------|

| (b)            | the      Advance shall be applied as payment for the acquisition of the Ship by the      Borrower that shall not then own the Ship and shall not (i) exceed      the purchase price of the Ship as stated in the Memorandum of Agreement      for the Ship or (ii) exceed the lesser of the Initial Aggregate Commitment      and the sum of all Commitments; |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | there      shall be no more than one Advance;and |
|-----------------------------------------------------------------------|--------------------------------------------------|

| (d)            | the      applicable conditions precedent stated in Clause 8 shall have been      satisfied or waived as providedtherein. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|

| 3.3  | Drawdown Notice      Irrevocable.  The Drawdown Notice must be signed by an      officer or duly authorized attorney-in-fact of the Borrower; and once      served, the Drawdown Notice cannot be revoked without the prior consent of      the Agent, acting with the authority of the Majority    Lenders. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4  | Disbursement of      Advance.  Subject to the provisions of this      Agreement: |
|-----------|--------------------------------------------------------------------------------------------|

| (a)            | Each      Lender shall before 11:00 a.m. (New York City time) make its Ratable      Portion of the Advance available to the Agent, for the account of the      Borrower, on and with the value date of the Expected Drawdown Date for the      Advance.  After the Agent’s receipt of such funds and upon      fulfillment or waiver of the applicable conditions set forth in      Clause 8, the Agent shall make such funds available to the Borrower      by paying such funds to such account or accounts that the Borrower      specifies in the Drawdown Notice.  The payment by the Agent      under this Clause 3.4 to such account or accounts shall constitute      the making of the Advance to the Borrower and the Borrower shall thereupon      become indebted, as principal and direct obligor, to each Lender in an      amount equal to such Lender’s Ratable Portion of the    Advance. |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | Unless      the Agent shall have received notice from a Lender prior to the Expected      Drawdown Date that such Lender will not make available to the Agent such      Lender’s Ratable Portion of the Advance, the Agent may assume, or at its      option request confirmation from such Lender, that such Lender has made      its Ratable Portion available to the Agent on such date in accordance with      Clause 3.4(a) and the Agent may, in reliance upon such assumption or      confirmation (as the case may be), make available to the Borrower on such      date a corresponding amount.  If and to the extent that such      Lender shall not have so made such Ratable Portion available to the Agent,      such Lender and the Borrower (but without duplication) severally agree to      repay to |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             | the      Agent forthwith on demand such corresponding amount, together with      interest thereon, for each day from the date such amount is made available      to the Borrower by the Agent until the date such amount is repaid to the      Agent, at the LIBOR rate for overnight      or weekend deposits.  If such Lender shall pay to the Agent such      corresponding amount, such amount so paid shall constitute such Lender’s      Ratable Portion of the Advance for purposes of this      Agreement.  Nothing in this Clause 3.4(b) shall be deemed      to relieve any Lender of its obligation to make the Advance to the extent      provided in this Agreement. |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | In      the event that the Borrower is required to repay all or a portion of the      Advance pursuant to Clause 3.4(b), as between the Borrower and the      defaulting Lender, the liability for any breakage costs as described in      Clause 16.2 shall be borne by the defaulting Lender, provided that if the      defaulting Lender has not paid any such breakage costs upon demand by the      Agent therefor, the Borrower shall pay such breakage costs upon demand by      the Agent and the Borrower shall be entitled to recover from the      defaulting Lender any such payment for breakage costs made by the      Borrower. |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 4.1   | Payment of Normal      Interest.  Subject to the provisions of this Agreement,      interest on the Advance or any part thereof in respect of each Interest      Period shall be paid by the Borrower on the last day of that Interest      Period. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2   | Normal Rate of      Interest.  Subject to the provisions of this Agreement,      the rate of interest on the Advance or any part thereof in respect of an      Interest Period shall be the sum of the Margin and LIBOR for that Interest      Period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3   | Payment of Accrued      Interest.  Accrued interest shall be paid on the last day      of each month and on the last day of each Interest  Period. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4   | Notification of Interest      Rate.  The Agent shall notify the Borrower and each      Lender of the rate of interest as soon as it is  determined. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5   | Notification of Market      Disruption.  The Agent shall promptly notify the Borrower      if: |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (a)            | it      is unable to determine LIBOR; or |
|-----------------------------------------------------------------------|------------------------------------------|

| (b)            | for      any reason any Lender (the “Affected Lender”) is      unable to obtain Dollars in the London Interbank Market to fund all or any      part of its Ratable Portion of the Advance during any Interest      Period, |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6   | Suspension of      Drawdown.  If the Agent’s notice under Clause 4.5      shall be served before the Advance is made, then while the circumstances      referred to in the Agent’s noticecontinue: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | in      the case of Clause 4.5(a), each Lender’s obligation to make its      Ratable Portion of the Advance shall be suspended;  and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)            | in      the case of Clause 4.5(b), the Affected Lender’s obligation to make      its Ratable Portion of the Advance shall be  suspended. |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 4.8   | Application of Agreed      Alternative Rate of Interest.  Any alternative interest      rate or an alternative basis that is agreed during the Negotiation Period      shall take effect in accordance with the terms  agreed. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.9   | Alternative Rate of Interest in      Absence of Agreement.  If an alternative interest rate or      alternative basis is not agreed within the Negotiation Period, and the      relevant circumstances are continuing at the end of the Negotiation      Period, then the Agent shall set an interest period and interest rate      representing the cost of funding of the Lenders or (as the case may be)      the Affected Lender in Dollars or in any available currency of their or      its Ratable Portion of the Advance plus the Margin and the procedure      provided for by this Clause 4.9 shall be repeated if the relevant      circumstances are continuing at the end of the interest period so set by      the Agent. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.10   | Notice of      Prepayment.  If the Borrower does not agree with an      interest rate set by the Agent under Clause 4.9, the Borrower may      give the Agent not less than three Business Days’ notice of its intention      to prepay the Advance at the end of the interest period set by the      Agent. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.11   | Prepayment.  A      notice under Clause 4.10 shall be irrevocable.  The Agent      shall promptly notify the Lenders or (as the case may be) the Affected      Lender of the Borrower’s notice of intended prepayment  and: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | on      the date on which the Agent so notifies the Lenders or (as the case may      be) the Affected Lender, the Commitments or (as the case may be) the      Commitment of the Affected Lender shall be cancelled;  and |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | on      the last Business Day of the interest period set by the Agent, the      Borrower shall prepay the Loan or (as the case may be) the Affected      Lender’s Ratable Portion thereof, together with accrued interest thereon      at the applicable rate plus theMargin. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.12   | Application of      Prepayment.  The provisions of Clause 7 shall apply      in relation to each prepayment pursuant to    Clause 4.11. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5.1   | Duration of Normal Interest      Periods.  Subject to Clauses 5.2 and 5.3, each      Interest Period shall be: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (a)            | one,      three or six months, but no more than three one-month periods in any      one-year period and provided that no such period shall overrun the first      anniversary of the Actual Drawdown Date, in each case as notified by the      Borrower to the Agent not |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             | later      than 11:00 a.m. (New York time) three Business Days before the      commencement of such Interest Period;or |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|

| (b)            | three      months or, if such Interest Period would overrun the first anniversary of      the Actual Drawdown Date, a shorter period ending on such anniversary, if      the Borrower fails to notify the Agent by the time specified in      paragraph (a) above; or |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | such      other period as the Majority Lenders may agree with the Borrower, provided that if the      Borrower desires an Interest Period longer than six months, the Borrower      must notify the Agent not later than 11:00 a.m. (New York time) five      Business Days before the commencement of such Interest    Period. |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2   | Duration of Interest Periods      Overrunning Repayment Date.  If the Borrower has selected      an Interest Period that would overrun a Repayment Date or Repayment Dates,      then: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | in      the case of the final Repayment Date, the Interest Period shall end on the      final Repayment Date; and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|

| (b)            | in      the case of any other Repayment Date, the Loan shall be divided so      that: |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------|

| (i)                  | the      amount of each repayment installment falling due before the end of the      Interest Period selected shall have an Interest Period ending on the      Repayment Date on which it falls due;and |
|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)            | the      balance of the Loan from time to time outstanding during such Interest      Period shall have an Interest Period ascertained in accordance with the      provisions of Clause 5.1; |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3   | Duration of First Interest      Period. |
|-----------------|-----------------------------------------|

| (a)            | The      first Interest Period of the Advance shall commence on the Expected      Drawdown Date and shall expire on the last day of the Interest Period      selected by the Borrower in the DrawdownNotice. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | Each      Interest Period following the first Interest Period under      Clause 5.3(a) shall commence on the expiry of the preceding Interest      Period and end on the last day of the Interest Period selected by the      Borrowers pursuant to the provisions of  Clause 5.1. |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 6.1   | Payment of Default Interest on      Overdue Amounts.  The Borrower shall pay interest in      accordance with the following provisions of this Clause 6 on all      amounts payable by the Borrower under any Finance Document that the Agent,      the Security Trustee or a Lender, as |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | the      case may be, shall not receive on or before the date on which a Finance      Document provides that such amount is due for    payment. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2   | Rate of Default      Interest.  Overdue principal and, to the extent permitted      by applicable law, overdue interest in respect of the Advance and every      other overdue amount payable by either Obligor pursuant to Finance      Documents shall accrue interest from (and including) the date due until      the date of actual payment (as well after as before judgment) at the rate      per annum determined by the Agent to be two percent plus the Margin plus      LIBOR for a period of one month (determined by the Agent on the first      Business Day of each calendarmonth). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3   | Notification of Default Rates      of Interest.  The Agent shall promptly notify the      Borrower of each interest rate determined by the Agent pursuant to      Clause 6.2, but such notice shall not be taken to imply that the      Borrower is obligated to pay such interest only with effect from the date      of such notice. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4   | Payment of Accrued Default      Interest.  Subject to the other provisions of this      Agreement, all interest accruing under this Clause 6 shall be due and      payable on demand. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7.1   | Amount of Repayment      Installments.  The Borrower shall repay the Loan in the      following twenty consecutive quarterly  installments: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | each      of the first three of which shall be in an amount equal to the lesser of      the aggregate outstanding principal amount of the Loan and      $3,500,000; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | the      next one of which shall be in an amount equal to the lesser of the      aggregate outstanding principal amount of the Loan and      $9,500,000; |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | each      of the next four of which shall be in an amount equal to the lesser of the      aggregate outstanding principal amount of the Loan and      $2,500,000; |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)            | each      of the next eleven of which shall be in an amount equal to the lesser of      the aggregate outstanding principal amount of the Loan and $600,000;      and |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)            | the      last of which shall be payable on the Maturity Date in an amount equal to      the aggregate outstanding principal amount of the  Loan, |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a)            | each      of the first eight of which shall be in an amount equal to the lesser of      the aggregate outstanding principal amount of the Loan and      $3,500,000; |
|--------|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)            | each      of the next four of which shall be in an amount equal to the lesser of the      aggregate outstanding principal amount of the Loan and      $1,100,000; |
|--------|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)            | each      of the next seven of which shall be in an amount equal to the lesser of      the aggregate outstanding principal amount of the Loan and $600,000;      and |
|--------|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)            | the      last of which shall be payable on the Maturity Date in an amount equal to      the aggregate outstanding principal amount of the Loan;  or |
|--------|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a)            | each      of the first three of which shall be in an amount equal to the lesser of      the aggregate outstanding principal of the Loan and      $3,500,000; |
|--------|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)            | the      next one of which shall be in an amount equal to the lesser of the      aggregate outstanding principal amount of the Loan and      $3,000,000; |
|--------|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)            | each      of the next eight of which shall be in an amount equal to the lesser of      the aggregate outstanding principal amount of the Loan and      $2,550,000; |
|--------|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)            | each      of the next seven of which shall be in an amount equal to the lesser of      the aggregate outstanding principal amount of the Loan and $600,000;      and |
|--------|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e)            | the      last of which shall be payable on the Maturity Date in an amount equal to      the aggregate outstanding principal amount of the  Loan. |
|--------|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2   | Repayment      Dates.  The first repayment installment shall be made on      the First Repayment Date.  Each subsequent repayment installment      shall be repaid quarterly thereafter; provided that the last      repayment installment shall be repaid on the Maturity Date together with      all other sums then accrued or owing under the Finance      Documents. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3   | Voluntary      Prepayment.  The Borrower may prepay the whole or any      part of the Loan on the last day of an Interest Period, subject to the      following conditions: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)                 | each      partial prepayment shall be in an amount not less than $500,000 and      increments of an integral multiple of$500,000; |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|

----

| (b)            | the      Agent shall have received from the Borrower at least five Business Days’      prior written notice specifying the amount to be prepaid and the date on      which the prepayment is to be made;and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | the      Borrower shall have provided evidence satisfactory to the Agent that any      consent required by the Borrower in connection with the prepayment shall      have been obtained and remains in force and that each regulation relevant      to this Agreement that affects the Borrower shall have been complied      with. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4   | Mandatory      Prepayment. |
|-----------------|----------------------------|

| (a)            | If      the Ship is sold or becomes a Total Loss, the Borrower shall prepay the      aggregate outstanding principal amount of the  Loan. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | If      (i) the Borrower shall not have (A) elected Option B in      accordance with the first proviso to Clause 7.1 and      (B) delivered to the Agent, at least twenty Business Days prior to      the first anniversary of the Actual Drawdown Date, an irrevocable notice      of its election to continue the term of the Loan beyond such anniversary      and, on or before such anniversary, a written appraisal report prepared by      the Broker stating the Fair Market Value of the Ship as of such      anniversary, which Fair Market Value shall not be less than 140% of the      sum of the aggregate outstanding principal amount of the Loan, plus all      accrued and unpaid interest thereon, plus all other amounts due and      payable by the Borrower pursuant to the Finance Documents as of such      anniversary, and which report shall otherwise be in form and substance      satisfactory to the Agent, or (ii) either the Borrower or the      Guarantor shall not have paid all fees due and payable by it pursuant to      this Agreement and the Finance Documents on or before such anniversary,      the Borrower shall prepay the aggregate outstanding principal amount of      the Loan. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | The      Borrower shall make each mandatory prepayment pursuant to this      Clause 7.4: |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|

| (i)                  | in      the case of the sale of the Ship requiring a prepayment pursuant to      Clause 7.4(a), on or before the date on which the sale is completed      by delivery of the Ship to the buyer;or |
|-----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)            | in      the case of a Total Loss of the Ship requiring a prepayment pursuant to      Clause 7.4(a), on the earlier of the date falling 180 days after the      Total Loss Date and the date of receipt by the Security Trustee or the      Borrower of the proceeds of insurance relating to such Total      Loss; |
|------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)           | in      the case of (A) the Borrower’s failure to elect Option B in      accordance with the first proviso to Clause 7.1 and to deliver the      irrevocable notice and the written appraisal report described in      Clause 7.4(b) or (B) the Borrower’s or the Guarantor’s failure to pay      the fees described in such Clause |
|-------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 7.4(b) requiring      a prepayment pursuant to Clause 7.4(b), on or before the first      anniversary of the Actual DrawdownDate. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5   | Amounts Payable on      Prepayment.  Each prepayment pursuant to Clause 7.3      or 7.4 shall be made together with: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | any      and all accrued interest (and any other amount payable under      Clause 16.1 or otherwise) in respect of the amount      prepaid; |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | if      the prepayment is not made on the last day of an Interest Period, any and      all sums payable under Clause 16.2;and |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | any      and all additional amounts that may need to be paid for the Borrower to      remain in compliance with the requirements of      Clause 10.3. |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6   | Application of      Prepayments.  Each prepayment pursuant to Clause 7.3      shall be applied pro-rata to the repayment installments (excluding the      balloon payment, if any due on the Maturity Date) of the Loan, and      promptly thereafter the Agent shall recalculate the remaining repayment      installments and advise the Borrower  accordingly. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7   | No      Reborrowing.  No amount repaid or prepaid may be      reborrowed. |
|-----------------|-------------------------------------------------------------------------------------|

| 7.8   | Unwinding of Designated      Transactions.  On or prior to any repayment or prepayment      under this Clause 7 or any other provision of this Agreement, the      Borrower shall wholly or partially reverse, offset, unwind or otherwise      terminate one or more of the continuing Designated Transactions to the      extent necessary to ensure that the aggregate notional principal amount of      the continuing Designated Transactions thereafter remaining does not and      will not in the future (taking into account the scheduled amortization      thereof) exceed the aggregate amount of the Loan scheduled to be      outstanding from time to timehereunder. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.9   | Repayment of Swap      Benefit.  If a Designated Transaction is terminated in      circumstances in which the Swap Bank would be obliged to pay an amount to      the Borrower under the Master agreement, the Borrower hereby agrees that      such payment shall be applied in prepayment of the Loan in accordance with      the terms of Clause 7.6 and hereby authorizes the Swap Bank to pay      such amount to the Agent for suchpurpose. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 8.1   | Documents, Fees and No      Default.  Each Lender’s obligation to make available its      Ratable Portion of the Advance is subject to the following conditions      precedent: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | on      or before the delivery of the Drawdown Notice, the Agent shall have      received: |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------|

| (i)            | the      documents described in Part A of Schedule 3, each in form and      substance satisfactory to the Agent and its lawyers;  and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)            | such      documentation and other evidence as is reasonably requested by the Agent      or a Lender in order for each Lender to carry out and be satisfied with      the results of all necessary “know your customer” or other checks that it      is required to carry out in relation to the transactions contemplated by      this |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Agreement      and the other Finance Documents, including obtaining, verifying and      recording certain information and documentation that will allow the Agent      and each Lender to identify the Borrower and the Guarantor in accordance      with the requirements of the USA PATRIOT Act (Title III of      Pub. L. 107-56 (signed into law October 26, 2001)) (the “PATRIOT      Act”); |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | on      or before the Expected Drawdown Date, the Agent shall have received the      documents described in Part B of Schedule 3, each in form and      substance satisfactory to the Agent and its  lawyers; |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | the      Borrower shall have paid in full all fees and expenses referred to in      Clause 15 that are due, or demanded by the Agent, on or before the      date of the Advance; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)            | on      the date of the Drawdown Notice, the Expected Drawdown Date and the Actual      Drawdown Date: |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|

| (i)            | no      Event of Default or Potential Event of Default shall have occurred and be      continuing or would result from the borrowing of the Loan or any part      thereof; |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)           | the      representations and warranties in Clause 9 and those of each Obligor      in any other Finance Document would be true and not misleading if repeated      on each of those dates with reference to the circumstances then      existing; |
|------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)          | there      has been no material change in the financial condition, assets, operations      or business prospects of either of the Obligors since the date on which      either Obligor provided information concerning those topics to the Agent      or any Lender; and |
|-------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)          | none      of the circumstances described in Clause 4.5 shall have occurred and      be continuing; |
|------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|

| (e)            | if      the ratio set out in Clause 10.3 were applied immediately following      the making of the Advance, the Borrower would not be obliged to provide      additional security or prepay part of the Loan;  and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)            | the      Agent shall have received and found acceptable any further opinions,      consents, agreements and documents in connection with the Finance      Documents that the Agent shall have requested by notice to the      Borrower. |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2   | Waiver of Conditions      Precedent.  If the Agent, with the consent of the      Majority Lenders, permits the Advance to be borrowed before certain of the      conditions referred to in Clause 8.1 shall be satisfied, the Borrower      shall ensure that those conditions are satisfied within five Business Days      after the Actual Drawdown Date (or such longer period as the Agent may      specify). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 9.1   | Status.        Each Obligor  is: |
|-----------------|--------------------------------------------|

| (a)            | a      corporation duly organized, validly existing and in good standing under      the law of the Marshall Islands (in the case of the Guarantor) or Liberia      (in the case of the Borrower); and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | duly      qualified and in good standing as a foreign corporation in each other      jurisdiction in which it owns or leases property or in which the conduct      of its business requires it to so qualify or be  licensed. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2   | Company Power;      Consents.  Each Obligor has the corporate power and has      taken all action required, and no consent of any person is required,      for: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | it      to own or lease and operate its properties and to carry on its business as      now conducted and as proposed to beconducted; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | it      to execute, deliver and perform its obligations under this Agreement, each      other Finance Document, the Memorandum of Agreement and each charter to      which it is or is to be a party, and to consummate the transactions      contemplated hereby and thereby; |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | it      to borrow under this Agreement (in the case of the Borrower) and to make      all payments contemplated by, and to comply with the obligations of, the      Finance Documents to which it is or is to be a  party; |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)            | it      to grant the liens granted or to be granted by it pursuant to the Finance      Documents to which it is or is to be aparty; |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (e)            | to      perfect and maintain the perfection of the liens granted or to be granted      by it pursuant to the Security Documents (including the first-priority      nature thereof); and |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)            | the      exercise by the Agent, the Security Trustee, Lenders and the Swap Bank of      their rights under the Finance Documents and the remedies in respect of      the Collateral pursuant to the Finance  Documents; |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3   | Consents Not Capable of      Revocation.  Nothing has occurred that makes any of the      consents referred to in Clause 9.2 capable of being revoked and each      Obligor is in compliance with all applicable  laws. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.4   | Legal Validity; Effective      Security Interests. |
|-----------------|----------------------------------------------------|

| (a)            | Each      of the Memorandum of Agreement and this Agreement constitutes, and each      other Finance Document to which either Obligor is to be a party will      constitute upon the execution and delivery thereof by such Obligor, the      legal, valid and binding obligations of each Obligor party hereto or      thereto, as the case may be, enforceable against such Obligor in      accordance with its terms. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)            | Each      Security Document creates or, upon the execution and delivery thereof by      each Obligor party thereto, willcreate: |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|

| (i)            | in      the case of the Mortgage, a valid first preferred mortgage in favor of the      Security Trustee over the Collateral described therein, subject to the      registration of the Mortgage as described herein;  and |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)           | in      the case of each other Security Document, a legal, valid, binding and      enforceable Security Interest in favor of the Security Trustee over all      the Collateral described therein that shall be duly perfected and have      first priority (A) in the case of the Earnings Assignment and Charter      Assignment, upon notice thereof being given each obligor referenced      therein and proper UCC financing statements describing such Collateral      being filed with the Washington, D.C., Recorder of Deeds, and (B) in      the case of the Insurance Assignment, notice thereof being given to      underwriters and protection and indemnity clubs and their consent being      obtained where policy provisions or club rules so  require. |
|------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5   | No Conflicts; No      Liens.  The execution, delivery and performance by each      Obligor of the Memorandum of Agreement, this Agreement and each other      Finance Document to which it is or is to be a party, the borrowing by the      Borrower of the Loan, and consummation of the transactions contemplated      hereby and thereby do not and willnot: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | violate      or contravene (i) any law or regulation or order, writ, judgment,      injunction, decree, determination or award; (ii) the organizational      documents of either Obligor; or (iii) any contractual or other      obligation or restriction that is binding on either Obligor or any of its      assets; and |
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| (b)            | except      for liens created by the Security Documents, result in or require the      creation or imposition of any lien upon or with respect to any of the      properties of either Obligor. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.6   | No Withholding Taxes; Tax      Returns. |
|-----------------|-----------------------------------------|

| (a)            | Each      payment that an Obligor is required to make under the Finance Documents      may be made without deduction or withholding for or on account of any tax      payable under any law of any Pertinent  Jurisdiction. |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | Each      Obligor has filed or has caused to be filed all tax returns and other      reports that it is required by law or regulation to file in any Pertinent      Jurisdiction, and has paid or caused to be paid all taxes, assessments and      other similar charges that are due and payable in any Pertinent      Jurisdiction, other than taxes and charges that are (i) not yet      delinquent or (ii) being contested in good faith by appropriate      proceedings and for which adequate reserves have been      established.  The charges, accruals, and reserves on the books      of each Obligor respecting taxes are adequate in accordance with      Applicable Accounting Principles. |
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| 9.7   | No      Default.  No Event of Default or Potential Event of      Default has occurred and is continuing and there is no incipient or other      default under any other agreements of either  Obligor. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.8   | Compliance with      Laws.  Each Obligor is in compliance with all laws,      orders, writs, injunctions and decrees applicable to it or any of its      assets except to the extent such non-compliance could not reasonably be      expected to have a material adverse effect on the financial condition,      assets, operations or business prospects of either Obligor or to affect      adversely the legality, validity, binding effect of enforceability of this      Agreement, any Finance Document, the Memorandum of Agreement or any      Approved Charter; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.9   | Information.  All      financial and other information that has been provided in writing by or on      behalf of each Obligor to any of the Credit Parties in connection with any      Finance Document was true and accurate at the time it was given, there are      no other facts or matters the omission of which would have made or make      any such information false or misleading and there has been no material      adverse change in the financial condition, assets, operations or business      prospects of either Obligor since the date on which such information was      provided. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.10   | No      Litigation.  No legal or administrative action involving      either Obligor (including any action relating to any alleged or actual      breach of the ISM Code or ISPS Code or any Environmental Law) has been      commenced or taken or, to either Obligor’s knowledge is likely to be      commenced or taken, that could reasonably be expected to have a material      adverse effect on the financial condition, assets, operations or business      prospects of either Obligor or to affect adversely the legality, validity,      binding effect or enforceability of this Agreement, any other Finance      Document, the Memorandum of Agreement or any Approved    Charter. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.11   | ISM Code and ISPS Code      Compliance.  The Borrower has obtained, or has caused the      Approved Manager (technical) and the Approved Technical Submanager, if      any, to obtain, all necessary ISM Code Documentation in connection with      the Ship and its operation and will be, and will cause the Ship, the      Approved Manager and the Approved Technical Submanager, if any, to be, in      full compliance with the ISM Code and the ISPS  Code. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.12   | Validity      and Completeness of Memorandum of Agreement and  Charters |
|------------------|-------------------------------------------------------------------------|

| (a)            | The      Borrower has executed and delivered the Memorandum of Agreement and a      charter in respect of the Ship and such Memorandum of Agreement and      charter constitute the valid, binding and enforceable obligations of the      parties thereto in accordance with their terms and is in full force and      effect.  True and complete copies of the Memorandum of Agreement      and each Approved Charter, each agreement, instrument and other document      delivered in connection therewith, and each amendment thereto and waiver      thereof have been delivered to the Agent and the  Lenders. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | There      is no default on the part of the Borrower or, to the best knowledge of the      Borrower, on the part of the relevant seller or charterer, with respect to      the Memorandum of Agreement or any Approved Charter and no party to the      Memorandum of Agreement or any Approved Charter has any right to terminate      the Memorandum of Agreement or such Approved  Charter. |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | There      is no, nor shall there be, any agreement or understanding to allow or pay      any rebate, premium, commission, discount or other benefit or payment      (howsoever |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|         | described)      to the Borrower or any third party in connection with the purchase of the      Ship other than as disclosed to the Agent in    writing. |
|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.13   | Margin      Stock.  The Borrower is not engaged in the business of      extending credit for the purpose of purchasing or carrying Margin Stock      and no proceeds of the Loan will be used to buy or carry any Margin Stock      or to extend credit to others for the purpose of buying or carrying any      Margin Stock. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.14   | Compliance with Environmental      Laws; Environmentally Sensitive Material.  Except to the      extent the following could not reasonably be expected to have a material      adverse effect on the financial condition, assets, operations or business      prospects of either Obligor or that may affect adversely the legality,      validity, binding effect or enforceability of this Agreement, any other      Finance Document, the Memorandum of Agreement or any Approved      Charter: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | the      operations and assets of each Obligor comply with all Environmental Laws,      all necessary Environmental Permits have been obtained and are in full      force and effect for the operations and properties of each Obligor, and      each Obligor is in compliance in all material respects with all such      Environmental Permits; and |
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| (b)            | none      of the Obligors has been notified in writing by any person that it or any      of its subsidiaries or Affiliates is potentially liable for the remedial      or other costs with respect to treatment, storage, disposal, release,      arrangement for disposal or transportation of any Environmentally      Sensitive Material, except for costs incurred in the ordinary course of      business with respect to treatment, storage, disposal or transportation of      such Environmentally SensitiveMaterial. |
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| 9.15   | Subsidiaries; Ownership of      Borrower.  The Borrower does not have any      subsidiaries.  All of the outstanding equity of the Borrower has      been validly issued, is fully paid, non-assessable and free and clear of      all liens and is owned beneficially and of record by the      Guarantor. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.16   | Investment Company, Holding      Company, Etc.  None of the Obligors is (a) an      “investment company,” or an “affiliated person” of, or “promoter” or      “principal underwriter” for, an “investment company,” as such terms are      defined in the Investment Company Act of 1940, as amended, or (b) a      “holding company” or a “subsidiary company” of a “holding company” or an      affiliate of a “holding company” or of a “subsidiary company” of a      “holding company” or a “public utility” within the meaning of the Public      Utility Holding Company of 1935, as amended, or (c) a “public      utility” within the meaning of the Federal Power Act of 1920, as      amended. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.17   | Asset      Control.  None of the Obligors is a “national” of any      “designated foreign country” within the meaning of the Foreign Assets      Control Regulations or the Cuban Asset Control Regulations of the U.S.      Treasury Department, 31 C.F.R., Subtitle B, Chapter V, as      amended, or a “specially designated national” listed by the Office of      Foreign Assets Control (“OFAC”), the U.S.      Department of the Treasury, or any regulations or rulings issued      thereunder.  Neither the making of the Advance nor the use of      the proceeds thereof nor the performance by the Borrower of its      obligations under any of the Finance Documents to which it is a party      violates any statute, regulation or executive order restricting loans to,      investments in, or the export of assets to, foreign countries or entities      doing business there. |
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----

| 9.18   | ERISA.  None      of the Obligors maintains, or has ever established or maintained, any      employee benefit plan subject to Title IV of the Employee Retirement      Income Security Act of 1974, asamended. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.19   | Use of      Proceeds.  The Borrower is using the proceeds of the Loan      only for the purposes stated in the recitals to this      Agreement. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.20   | Legal Name, Location and Place      of Business.  The Borrower’s exact legal name, as defined      in Section 9-503(a) of the UCC, is correctly set forth on the      signature pages to this Agreement.  The Borrower has not      previously changed its name, location, chief executive office, only place      of business, place where it maintains its agreements, type of organization      or jurisdiction of organization.  The Borrower is located      (within the meaning of Section 9-307 of the UCC) in Washington, D.C.,      and has its chief executive office or only place of business and the      location at which it conducts its affairs and keeps its records at Vas.      Sofias 1 & Meg. Alexandrou, Maroussi, Athens 151 24,      Greece. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.21   | Repetition.  The      representations and warranties contained in this Clause 9.3 shall be      deemed to be repeated by each Obligor at the commencement of each Interest      Period until all of the Outstanding Indebtedness has been paid in      full. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | COVENANTS |
|----------------|-----------|

| 10.1   | Affirmative      Covenants.  From the date of this Agreement and      throughout the Security Period (unless otherwise    specified): |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | each      Obligor shall duly observe and perform its obligations under this      Agreement, the other Finance Documents, the Memorandum of Agreement and      the charters to which it is or will be a party, and each Obligor shall      promptly notify the Agent of (i) any material default by any party to      the Memorandum of Agreement or charter, and (ii) any significant      damage or injury caused by or to theShip; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | each      Obligor shall notify the Agent, promptly upon becoming aware of the same,      of the occurrence of any Event of Default or Potential Event of Default or      any other event (including any litigation) that might adversely affect the      ability of any Obligor to perform its obligations under this Agreement,      any other Finance Document, the Memorandum of Agreement or any Approved      Charter; |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | each      Obligor shall obtain, maintain in full force and effect and comply with      the conditions and restrictions (if any) imposed in connection with each      consent, and shall do all other acts and things, that may from time to      time be necessary or required for the continued due performance of all of      its obligations under this Agreement, the other Finance Documents, the      Memorandum of Agreement and the charters to which it is a party, and shall      deliver a copy of each such consent to the Agent promptly upon its      request; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)            | each      Obligor shall comply with all applicable federal, state, local and foreign      laws, ordinances, rules, orders and regulations now in force or hereafter      enacted, including all Environmental Laws and regulations relating to      thereto, the failure to comply with which could reasonably be expected to      have a material adverse effect on the financial |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | condition,      assets, operations or business prospects of either Obligor or to affect      adversely the legality, validity, binding effect or enforceability of this      Agreement, any other Finance Document, the Memorandum of Agreement or any      Approved Charter; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)            | each      Obligor shall keep proper books of record and account, in which full and      materially correct entries shall be made of all financial transactions and      the assets and business of such Obligor in accordance with Applicable      Accounting Principles acceptable to the Agent, and the Agent shall have      the right to examine the books and records of the Obligors wherever the      same may be kept from time to time as it sees fit, in its sole discretion,      or to cause an examination to be made by a firm of accountants selected by      it; |
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| (f)            | the      Guarantor shall prepare and deliver to the  Agent: |
|-----------------------------------------------------------------------|-------------------------------------------------------------|

| (i)                  | within      45 days after the end of each of the first three quarters of each of its      fiscal years, the consolidated unaudited financial results of the Group in      respect of such quarter (including balance sheet, profit and loss account      and quarterly management accounts), and as soon as practicable, but not      later than 120 days after the end of each of its fiscal years, the      consolidated annual audited financial statements of the Group in respect      of such fiscal year, together with reports of and updates on all      off-balance sheet financings and time charter hire commitments of the      Borrower, in each case (A) prepared in accordance with Applicable      Accounting Principles acceptable to the Agent (and in the case of the      consolidated annual financial statements, audited by a firm of independent      auditors reasonably acceptable to the Agent) and (B) certified as      true, complete and correct by the chief financial officer of the      Guarantor; |
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| (ii)                 | together      with each financial statement that the Guarantor delivers in      Clause 10.1(f)(i), a Compliance Certificate;  and |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (iii)                | such      other financial statements, annual budgets and projections as may be      reasonably requested by the Agent, in each case in such form as the Agent      may reasonably request; |
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| (g)            | each      Obligor shall prepare and timely file all tax returns required to be filed      by it and pay and discharge all taxes imposed upon it or in respect of any      of its property and assets before the same shall become in default, as      well as all lawful claims (including claims for labor, materials and      supplies) that, if unpaid, might become a lien or charge upon the      Collateral or any part thereof, except in each case, such taxes (i) that      are being contested in good faith by appropriate proceedings or (ii) the      failure of which to pay or discharge could not reasonably be expected to      have a material adverse effect on the financial condition, assets,      operations or business prospects of either Obligor or to affect adversely      the legality, validity, binding effect or enforceability of this      Agreement, any other Finance Document, the Memorandum of Agreement or any      Approved Charter; |
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----

| (h)            | each      Obligor shall permit each person designated by the Agent to visit and      inspect the Ship, at the risk and cost of the Obligors, at such times and      so often as the Agent may reasonably require, provided that no such      visit or inspection shall unduly interfere with the operation of the      Ship; |
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| (i)                  | the      Borrower shall cause the Ship at all times to be (i) kept in a good      and safe condition and state of repair that is consistent with first class      ship ownership and management practice, (ii) in compliance with all      laws and regulations applicable to vessels registered under the law of the      Approved Flag in which the Ship is registered and trading to any      jurisdiction to which the Ship may trade from time to time,      (iii) managed by an Approved Manager, or an Approved Manager and an      Approved Technical Submanager, in accordance with vessel management      agreements and vessel technical submanagement agreements acceptable to the      Agent and that shall each have executed and delivered a Manager’s      Undertaking to the Agent, (iv) registered under the law of an      Approved Flag state, and (v) classed with the Classification Society      in the highest classification and rating for vessels of the same age and      type without any outstanding conditions or recommendations affecting class      (other than those for which the time prescribed for curing the condition      or recommendation has not passed); |
|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)                  | the      Borrower shall (i) cause the operator of the Ship to comply, in all      material respects within the requisite applicable time limits for vessels      of the same type, size, age and flag as the Ship, with the ISM Code and,      in particular, without prejudice to the generality of the foregoing, as      and when required to do so by the ISM Code and at all times thereafter,      (ii) cause the operator of the Ship to hold a valid Document of      Compliance and Safety Management Certificate with respect to the Ship,      (iii) provide the Agent with copies of each such Document of      Compliance and Safety Management Certificate promptly following the      issuance thereof and after every renewal and (iv) cause to kept on board      the Ship a copy of such Document of Compliance and the original of such      Safety Management Certificate; |
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| (k)            | the      Borrower shall: |
|-----------------------------------------------------------------------|--------------------------|

| (i)                  | maintain      a valid International Ship Security Certificate with respect to the      Ship; |
|-----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|

| (ii)                 | cause      the Ship’s security system and associated security equipment to comply      with the applicable requirements of Chapter XI-2 of SOLAS and      Part A of the ISPS Code; and |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)                | maintain      an approved ship security plan with respect to the  Ship; |
|-------------------------------------------------------------------|-------------------------------------------------------------------------|

| (l)                  | each      Obligor shall do or cause to be done all things necessary to preserve and      keep in full force and effect its corporate  existence; |
|-----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)           | the      Borrower shall maintain insurance on the Ship as required by the terms of      the Mortgage; |
|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|

----

| (n)            | each      Obligor shall maintain insurance on all of its properties other than the      Ship, payable in United States Dollars, with responsible companies, in      such amounts and against such risks as is usually carried by owners of      similar businesses and properties in the same general areas in which it      operates, and as shall be satisfactory to the Majority      Lenders; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)            | except      as otherwise required by any Finance Document or to the extent the failure      to do so could not reasonably be expected to have a material adverse      effect on the financial condition, assets, operations or business      prospects of any Obligor or to affect adversely the legality, validity,      binding effect or enforceability of this Agreement, any other Finance      Document, the Memorandum of Agreement or any Approved Charter, each      Obligor shall maintain and preserve all of its properties that are used or      useful in the conduct of its business in good working order and condition,      ordinary wear and tear excepted; |
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| (p)            | the      Borrower shall use the proceeds of the Loan solely for the purposes      referenced in Clause 2.2; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|

| (q)            | the      Borrower shall furnish to the Agent a true and complete copy of the      Memorandum of Agreement and each charter to which it becomes a party after      the date hereof and a true and complete copy of each material amendment or      other modification thereto promptly following the execution and delivery      thereof; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r)            | each      Obligor shall take, or cause to be taken, such actions as may be      reasonably required to mitigate potential liability to it arising out of      pollution incidents or as may be reasonably required to protect the      interests of the Credit Parties with respect  thereto; |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (s)            | the      Borrower shall cause all loans made by the Guarantor or any other      Affiliate to it and all sums and other obligations (financial or      otherwise) owed by it to any Approved Manager to be fully subordinated to      all Secured Liabilities of theBorrower; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (t)            | the      Borrower shall procure and deliver to the Agent, in each case at the      expense of the Borrower (i) on or before the thirtieth day following each      of the second and fourth anniversaries of the Effective Date, a written      appraisal report prepared by the Broker setting forth the Fair Market      Value of the Ship as of such anniversary, and (ii) promptly following      the Agent’s request therefor so long as an Event of Default shall have      occurred and be continuing, such other interim valuation reports that the      Agent may request in each case prepared by the Broker and setting forth      the Fair Market Value of the Ship as of any date requested by the Agent      and following such request; |
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| (u)            | the      Guarantor shall be the sole legal and beneficial shareholder of the      Borrower; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------|

| (v)            | the      Guarantor shall: |
|-----------------------------------------------------------------------|---------------------------|

| (i)                  | maintain,      at all times until the end of the Security Period, a minimum amount of      $25,000,000 in bank accounts in its name or in the name of any of      a |
|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | member      of the Group and agreed by the Agent in writing from time to time, and for      the purposes of this Clause 10.1(v)(i) the expression “bank accounts”      shall exclude any bank accounts that shall be subject to any Security      Interest; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | cause      its Net Asset Value to exceed $125,000,000 at all times until the end of      the Security Period; and |
|------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|

| (iii)                | cause      its Book Equity to exceed $100,000,000 at all times until the end of the      Security Period; |
|-------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|

| (w)           | the      Borrower shall (i) ensure that no person who owns a controlling      interest in or otherwise controls the Borrower or any subsidiary thereof      is or shall be listed on the Specially Designated Nationals and Blocked      Person List or other similar lists maintained by OFAC or included in any      Executive Orders, (ii) comply, and cause each of its subsidiaries to      comply, with all applicable Bank Secrecy Act laws and regulations, as      amended, and (iii) not use or permit the use of the proceeds of the      Loan to violate any of the foreign asset control regulations of OFAC or      any enabling statute or Executive Order relating thereto;    and |
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| (x)            | from      time to time and at its expense, each Obligor shall duly execute and      deliver to the Agent such further documents and assurances as the Majority      Lenders or the Agent      may request to effectuate the purposes of this Agreement and the other      Finance Documents or to obtain the full benefit of any of the      Collateral. |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.2   | Negative      Covenants.  Without the prior written consent of the      Majority Lenders: |
|------------------|-----------------------------------------------------------------------------------------------------|

| (a)            | none      of the Obligors will create, assume or permit to exist any Security      Interest whatsoever upon any of its properties or assets, whether now      owned or hereafter acquired, except for (i) the Security Interests      created by the Finance Documents to which it is a party, (ii) the      Security Interests created by the Junior Security Documents to which it is      a party, but only so long as all Security Interests created by the Junior      Security Documents shall be subject and subordinate to the Security      Interests created by the Finance Documents, and (iii) liens that      arise by operation of law in the ordinary course of business, the failure      of which to pay or discharge could not reasonably be expected to have a      material adverse effect on the financial condition, assets, operations or      business prospects of any Obligor or to affect adversely the legality,      validity, binding effect or enforceability of this Agreement, any other      Finance Document, the Memorandum of Agreement or any Approved      Charter; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | none      of the Obligors shall sell, transfer or lease all of or a substantial      portion of its properties and assets, or enter into any transaction of      merger or consolidation or liquidate, windup or dissolve itself (or suffer      any liquidation or dissolution), except that, so long as no Event of      Default or Potential Event of Default shall have occurred or be continuing      or would occur or be continuing immediately after giving effect to such      transaction: |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)                  | the      Borrower may sell the Ship, but only if the proceeds of the sale are      applied in accordance with Clause 7.4 and the sale of the Ship is      effected pursuant to an arm’s length transaction for fair market value;      and |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | the      Borrower may charter or lease the Ship in accordance with      Clause 10.2(c); |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|

| (c)            | the      Borrower shall not charter the Ship, or permit the Ship to be chartered or      sub-chartered, to any person, or permit any person to have possession or      the right to use or direct the use of the Ship, except that the Borrower      may: |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)                  | charter      the Ship to an Approved Charterer pursuant to the terms of an Approved      Charter assigned as Collateral to the Security Trustee for the benefit of      the Credit Parties pursuant to a Charter  Assignment; |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | permit      each charterer of the Ship to charter or sub-charter the Ship to an      Approved Charterer pursuant to the terms of a charter that is an Approved      Charter but is not an Option B Time Charter or the Initial Approved      Charter; and |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)                | cause      or permit the Ship to be managed by an Approved Manager, or an Approved      Manager and an Approved Technical Submanager, pursuant to |
|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | vessel      management and technical submanagement agreements acceptable to the      Agent; |
|--------|---------------------------------------------------------------------------------------------|

| (d)            | neither      of the Obligors shall enter into any transaction or series of related      transactions, whether or not in the ordinary course of business, with any      Affiliate or subsidiary, other than on terms and conditions substantially      as favorable to such person as would be obtainable by such person at the      time in a comparable arm’s-length transaction with a person other than an      Affiliate or subsidiary; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)            | neither      of the Obligors shall make or permit any change in accounting policies      affecting (i) the presentation of financial statements or      (ii) reporting practices, except in either case except as required by      Applicable Accounting Principles or as may be acceptable to the Agent with      the consent of the MajorityLenders; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)            | the      Borrower shall not engage in any business other the execution, delivery      and performance of its obligations under this Agreement, the other Finance      Documents to which it is or will be a party, and the Junior Loan      Documents, the ownership of the Ship, and the execution, delivery and      performance of its obligations under the Memorandum of Agreement and each      charter and management agreement to which it is a party relating to the      Ship and permitted by the terms of this Agreement, the other Finance      Documents to which it is or will be a party, and the Junior Loan      Documents; |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)            | the      Borrower shall not transfer or change or permit the transfer or change of      the flag of the Ship from the Approved Flag in which the Ship is      registered on the Actual Drawdown Date or change the classification or the      Classification Society of the Ship except with the prior written consent      of the Majority Lenders, such consent not to be unreasonably withheld, or      do or allow to be done anything as a result of which such registration or      classification might be imperiled orcancelled; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)            | the      Borrower shall not replace any Approved Manager or permit the appointment      or replacement of any Approved Technical Submanager for the Ship or agree      or consent to any material amendment or other modification of the terms of      any of technical or commercial management agreements relating to the Ship,      including any increase in the rate of compensation payable thereunder,      except with the prior written consent of the Majority Lenders, such      consent not to be unreasonably withheld; provided that, subject      to the requirements of Clause 10.1(i), the Borrower may at any time      and in its discretion replace the manager of the Ship with any Approved      Manager and may permit any Approved Manager to appoint any Approved      Technical Submanager with respect to the Ship or to replace any technical      submanager of the Ship with any Approved Technical    Submanager; |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)            | the      Borrower shall not permit any act, event or circumstance that would result      in the Guarantor holding directly less than 100% of the Borrower’s      equity; |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)            | the      Borrower shall not incur any Financial Indebtedness other than the Loan      and pursuant to pursuant to the Junior  Guarantee; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (k)            | the      Borrower shall not declare or pay any dividends or return any capital to      its equity holders or authorize or make any other distribution, payment or      delivery of property |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | or      cash to its equity holders, or redeem, retire, purchase or otherwise      acquire, directly or indirectly, for value, any share of any class of its      capital stock or other form of equity interest (or require any rights,      options or warrants relating thereto but not including convertible debt)      now or hereafter outstanding, or repay any subordinated shareholder loans      or set aside any funds for any of the foregoing  purposes; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)            | the      Borrower shall not increase its capital by way of the creation of      preference securities, further common or ordinary securities or otherwise      howsoever, or create any new class ofequity; |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)            | the      Borrowers shall not permit any material amendment of or other modification      to the Memorandum of Agreement or any Approved Charter, which, in the case      of any Approved Charter, shall include any amendment or other modification      of the day rates, the allocation of expenses or any provision relating to      the term or termination of such Approved  Charter; |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)            | the      Borrower shall not make any loan or advance to, make any investment in, or      enter into any working capital maintenance or similar agreement with      respect to any person, whether by acquisition of stock or indebtedness, by      loan, guarantee or otherwise, except pursuant to the Junior      Guarantee; |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)            | the      Borrower shall not acquire any capital assets (including any vessel other      than the Ship) by purchase, charter or otherwise; provided that nothing in      this Clause 10.2(o) shall prevent or be deemed to prevent capital      improvements being made to theShip; |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (p)            | the      Borrower shall not enter into any arrangements, directly or indirectly,      with any person whereby it shall sell or transfer, or shall be obligated      to sell or transfer, any property, whether real or personal, and used or      useful in its business, whether now owned or hereafter acquired, if at the      time of such sale or disposition, the Borrower shall intend to lease or      otherwise acquire the right to use or possess (except by purchase) such      property or like property for a substantially similar    purpose; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (q)            | the      Borrower shall not change the jurisdiction of its incorporation or amend      its organizational documents except in connection with a merger or      consolidation that is not prohibited by the terms of      Clause 10.2(b); |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r)            | the      Borrower shall not change its name, type or jurisdiction of organization      or location from the name, type or jurisdiction of organization, or      location set forth on the signature pages to this Agreement or in      Clause 9.1(a) or 9.19, as the case may be, without first giving at      least 30 days’ prior written notice to the Agent and the Security Trustee      and taking all action required by the Agent or the Security Trustee for      the purpose of perfecting or protecting the security interest granted by      the Security Documents; and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (s)            | the      Guarantor shall not permit the appointment of any chief executive officer      other than Mr. Evangelos Pistiolis without the prior written consent of      the Majority Lenders. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.3    |  Value      Maintenance. |
|------------------------|-------------------------------|

| (a)            | If,      at any time during the first two years following the Effective Date, the      Fair Market Value of the Ship and any additional Collateral provided      pursuant to this Clause 10.3(a) shall be less than 140% of the      Required Fair Market Value as at such time, or if at any time thereafter,      the Fair Market Value of the Ship and any additional Collateral provided      pursuant to this Clause 10.3(a) shall be less than 130% of the Required      Fair Market Value as at such time, the Agent (acting upon the instruction      of the Majority Lenders) shall have the right to require the Borrower and      the Guarantor, within 30 Business Days of the date of the written demand      of the Agent therefor, either (i) to prepay the Loan in such amount as may      be necessary to cause such Fair Market Value of the Ship to equal or      exceed 140% or 130%, as the case may be, of the Required Fair Market Value      as at such time or (ii) to provide such additional Collateral as may be      acceptable to the Agent in its sole reasonable discretion (acting upon the      instruction of the Majority Lenders) so that Fair Market Value of the Ship      and additional Collateral provided pursuant to this Clause 10.3(a)      shall equal or exceed 140% or 130%, as the case may be, of the Required      Fair Market Value as at such time, and the Obligors shall comply with any      such written demand made by theAgent. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | Any      prepayment required by this Clause 10.3 shall be subject to the      requirements of Clauses 7.5, 7.6, 7.7, 7.8 and  7.9. |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Clear      Market.  Without the prior written consent of the Agent,      neither of the Obligors shall, and the Guarantor shall not permit any of      its Affiliates to, syndicate or issue, attempt to syndicate or issue,      announce or authorize the announcement of the syndication or issuance of,      or engage in discussions concerning the syndication or issuance of, any      debt facility or debt security (including any renewals thereof) for a      period of two months following the datehereof. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5   | Forward Freight      Agreements.  Neither of the Obligors shall enter into any      forward freight agreements with counterparties other than DVB Bank AG or      its Affiliates without the prior written consent of the    Agent. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | GUARANTY |
|----------------|----------|

| 11.1   | Guaranty.  To      induce the Lenders to make the Loan to the Borrower, and to induce the      Swap Bank to enter into Designated Transactions with the Borrower, the      Guarantor hereby irrevocably and unconditionally guarantees (this “Guaranty”), as a primary      obligor and not merely as a surety, the performance and punctual payment      when due, whether at stated maturity, by acceleration or otherwise, of all      Secured Liabilities of the Borrower now or hereafter existing under this      Agreement and the other Finance Documents, whether for principal,      interest, fees, expenses or otherwise (collectively, the “Guaranteed Obligations”)      due or owing to the Credit Parties, and agrees to pay any and all expenses      (including counsel fees and expenses) incurred by each Credit Party in      enforcing any rights under this Guaranty.  The obligations of      the Guarantor under this Guaranty are in addition to and shall not in any      way be prejudiced by any other guaranty or security now or subsequently      held by any Credit Party. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.2   | Obligations      Absolute.  The Guarantor guarantees that the Guaranteed      Obligations will be performed and paid to the Credit Parties strictly in      accordance with the terms of any applicable agreement, express or implied,      of the Borrower, regardless of any law, regulation or order of any      jurisdiction affecting any term of any Guaranteed Obligation or the rights      of the Credit Parties with respect thereto, including any law, rule or      policy that is now or hereafter promulgated by any governmental authority      (including any central bank) or regulatory body any of which may adversely      affect the Borrower’s ability or obligation to make, or right of the      Credit Parties to receive, such payments, including any sovereign act or      circumstance that might otherwise constitute a defense to, or a legal or      equitable discharge of, theBorrower. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3   | Guaranty      Unconditional.  The liability of the Guarantor hereunder      shall be unconditional irrespective of, and the Guarantor hereby waives      any defenses it may have with respectto: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | any      lack of validity or enforceability of any Guaranteed Obligation or      agreement or instrument relatingthereto; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|

| (b)            | any      change in the time, manner or place of payment of, or in any other term      of, any Guaranteed Obligation; |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|

| (c)            | any      exchange, release or non-perfection of any other Collateral securing      payment of any GuaranteedObligation; |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|

| (d)            | any      moratorium, bankruptcy, insolvency or other similar law or any other law,      regulation or order of any jurisdiction affecting any term of any      Guaranteed Obligation or a Credit Party’s rights with respect thereto;      or |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)            | any      other circumstance that might otherwise constitute a defense available to,      or the discharge of, the Borrower or the  Guarantor. |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4   | Waiver of Subrogation;      Contribution.  Notwithstanding any other provision of      this Guaranty, until payment in full of the Guaranteed Obligations in cash      and the termination of the commitments of the Lenders and the Swap Bank      with respect thereto: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | the      Guarantor hereby irrevocably waives any right to assert, enforce, or      otherwise exercise any right of subrogation to any of the rights, security      interests, claims, or liens that any Credit Party has or may have against      the Borrower in respect of the Guaranteed  Obligations; |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | the      Guarantor shall not have any right of recourse, reimbursements,      contribution, indemnification, or similar right (by contract or otherwise)      against the Borrower in respect of the Guaranteed Obligations;      and |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | the      Guarantor hereby irrevocably waives any and all of the foregoing rights      and also irrevocably waives the benefit of, and any right to participate      in, any Collateral or other security given to the Credit Parties to secure      payment of the GuaranteedObligations. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.5 | Reinstatement.  This      Guaranty shall continue to be effective or be reinstated, as the case may      be, if at any time any payment of any of the Guaranteed Obligations is      rescinded or must otherwise be returned by any Credit    Party. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6   | Waiver.  The      Guarantor waives promptness, diligence and notices with respect to any      Guaranteed Obligation and this Guaranty and any requirement that a Credit      Party exhaust any right or take any action against the Borrower or any      other entity or any of itsproperty. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7   | Payments; No      Reductions. |
|------------------|-------------------------------|

| (a)            | All      payments under this Guaranty shall be made in accordance with      Clauses 12, 16, and 17 of thisAgreement. |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|

| (b)            | The      Guarantor agrees to pay any and all taxes that arise from any payment made      hereunder or from the execution, delivery or registration by such      Guarantor of, or otherwise with respect to, this  Agreement. |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | The      Guarantor shall indemnify each Credit Party in accordance with      Clause 16. |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------|

| (d)            | Within      30 days after the date of any payment of taxes, the Guarantor shall      furnish to each Credit Party at its address for notices, the original or a      certified copy of a receipt evidencing payment thereof.  If no      taxes are payable in respect of any payment, the Guarantor will furnish to      each Credit Party a certificate from each appropriate taxing authority, or      an opinion of counsel acceptable to each Credit Party, in either case      stating that such payment is exempt from or not subject to      taxes. |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.8   | Continuing      Guarantee.  This Guaranty (a) is a continuing      guaranty, (b) is joint and several with each other guarantee given in      respect of the Guaranteed Obligations, (c) shall, subject to      Clause 11.5, remain in full force and effect until the later of the      termination of the Commitments under this Agreement and the payment in      full of the Guaranteed Obligations and all other amounts payable pursuant      to the Finance Documents and (d) shall be binding upon the Guarantor,      its successors and permitted assigns.  The obligations of the      Guarantor under this Guaranty shall rank pari passu with all other      unsecured obligations of theGuarantor. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12   | PAYMENTS      AND CALCULATIONS |
|----------------|--------------------------------|

| 12.1   | Currency and Method of      Payments.  All payments to be made by either Obligor      under the Finance Documents shall be made to the  Agent: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | not      later than 10:00 a.m. (New York City time) on the due  date; |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|

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

| (c)            | to      the account and in favor of the Agent at HSBC Bank USA, New York, New      York, ABA No. 021001088, SWIFT: MRMDUS33, for credit to 1700006231,      Reference:  |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Top      Ships, or to such other account with such other bank as the Agent may from      time to time notify to the Obligors. |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

| 12.2   | Payment on a Non-Business      Day.  If any payment by either Obligor under a Finance      Document would otherwise fall due on a day that is not a Business      Day: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 12.3   | Basis for Calculation of      Periodic Payments.  All interest, commitment fees and any      other payments under any Finance Document that are of an annual or      periodic nature shall accrue from day to day and shall be calculated on      the basis of the actual number of days elapsed and a 360-day      year. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4   | Distribution of Payments to      Credit Parties.  Subject to Clauses 12.2, 12.6 and      12.7: |
|------------------|---------------------------------------------------------------------------------------------------------------|

| (a)            | each      amount received by the Agent under a Finance Document for distribution or      remittance to a Lender shall be made available by the Agent to such Lender      by payment to such account indicated by notice from such Lender to the      Agent not less than five Business Days prior to the date on which such      payment is to be made; and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 12.5   | Permitted Deductions by      Agent.  Notwithstanding any other provision of this      Agreement or any other Finance Document to the contrary, the Agent may, to      the extent permitted by applicable law and before making an amount      available to a Lender, deduct and withhold from that amount any sum that      is then due and payable to the Agent from such Lender under any Finance      Document or any sum that the Agent is then entitled under any Finance      Document to require such Lender to pay on  demand. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.6   | Agent Only Obliged to Pay      Monies Received.  Notwithstanding any other provision of      this Agreement or any other Finance Document to the contrary, the Agent      shall not be obligated to make available to the Borrower or any Lender any      sum that the Agent is expecting to receive for remittance or distribution      to the Borrower or that Lender until the Agent has satisfied itself that      it has actually received that sum. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7   | Refund to Agent of Monies Not      Received.  Except as is otherwise provided in      Clause 3.4(b) of this Agreement, if and to the extent that the Agent      makes available a sum to the Borrower or a Lender without first having      received that sum, the Borrower or (as the case may be) the Lender      concerned shall, on demand: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| 12.8   | Agent May Assume      Receipt.  Clause 12.7 shall not affect any claim      that the Agent has under the law of restitution, and applies irrespective      of whether the Agent had any form of notice that it had not received the      sum that it made available (except an express notice from a Lender that it      will not fund its Ratable Portion of the  Advance). |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.9   | Credit Party      Accounts.  Each Credit Party shall maintain accounts      showing the amounts owing to it by the Borrower under the Finance      Documents and all payments in respect of those amounts made by the      Obligors. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.10   | Agent’s Memorandum      Account.  The Agent shall maintain a memorandum account      showing the amounts advanced by the Lenders and all other sums owing to      the Agent, the Security Trustee and each Lender from the Obligors under      the Finance Documents and all payments in respect of those amounts made by      the Obligors. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.11   | Accounts Prima      Facie      Evidence.  If the accounts maintained under      Clauses 12.9 and 12.10 show an amount to be owing by any Obligor to a      Credit Party, those accounts shall be prima facie evidence      that that amount is owing to that CreditParty. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13   | APPLICATION      OF RECEIPTS |
|----------------|------------------------------|

| 13.1   | Normal Order of      Application.  Except as this Agreement or any other      Finance Document may otherwise provide, any sums that are received or      recovered by the Agent or the Security Trustee under or by virtue of any      Finance Document shall be paid to the account of the Agent identified in      Clause 12.1(c) and applied by the Agent in the following      manner: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | FIRST: | in      or towards payment of all sums (other than principal of the Loan or      interest owing in respect thereof or amounts due under the Master      Agreement) that may be owing to any Credit Party under this Agreement and      the other Finance Documents (or any of them), including any amounts due      under Clause 16; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SECOND: | in      or towards payment of any accrued default interest due but unpaid under      Clause 6; |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | THIRD: | in      or towards payment of any accrued interest due but unpaid under      Clause 4; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | FOURTH: | in      or towards payment, on a pro rata basis, of any amounts then due under the      Master Agreement and any principal due but unpaid under Clause 7,      provided that any      amounts in payment of any principal due under Clause 7 shall be      applied to the outstanding principal balance of the Loan as provided      therein; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | FIFTH: | in      or towards payment of the balance (if any) of the Outstanding      Indebtedness; and |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | SIXTH: | any      surplus shall be paid to the Borrower as it  directs. |
|--------|--------|----------------------------------------------------------------|

----

| 13.2 | Application of Credit      Balances.  Each Credit Party may, upon not less than      seven days’ prior notice to each Obligor or, to the extent permitted by      applicable law, without prior notice if an Event of Default shall have      occurred and be continuing: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | apply      any balance (whether or not then due) that at any time shall be standing      to the credit of any account in the name of any Obligor at any office of      such Credit Party in any country in or towards satisfaction of any sum      then due from that Obligor to such Credit Party under any of the Finance      Documents; and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (iii)                | enter      into any other transaction or make any entry with regard to the credit      balance that such Credit Party considers  appropriate. |
|-------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3   | Other Rights      Unaffected.  A Credit Party shall not be obliged to      exercise any of its rights under Clause 13.2 and those rights shall      be without prejudice and in addition to any right of set-off, combination      of accounts, charge, lien or other right or remedy to which such Credit      Party is entitled (whether under the general law or any      document). |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4   | Payments in Excess of Ratable      Share.  If any Lender shall obtain any payment (whether      voluntary, involuntary, through the exercise of any right of set-off,      counterclaim or otherwise) on account of its portion of the Loan and in      excess of its ratable share of payments on account of the Loan obtained by      all the Lenders, such Lender shall forthwith purchase from the other      Lenders such participation in their respective portions of the Loan as      shall be necessary to share the excess payment ratably with each of them;      provided that if      all or any portion of such excess payment shall be thereafter recovered by      any other Lender from the purchasing Lender, such purchase from such other      Lender shall be rescinded and such other Lender shall repay to the      purchasing Lender the purchase price to the extent of such recovery      together with an amount equal to such Lender’s ratable share (according to      the proportion of (a) the amount of such Lender’s required repayment      to (b) the total amount so recovered from the purchasing Lender) of      any interest or other amount paid or payable by the purchasing Lender in      respect of the total amount so recovered.  The Borrower agrees      that any Lender so purchasing a participation from another Lender pursuant      to this Clause 13.4 may, to the fullest extent permitted by law,      exercise all of its rights of payment (including any right of set-off)      with respect to such participation as fully as if such Lender were the      direct creditor of the Borrower in the amount of such      participation.  Notwithstanding the preceding sentences of this      Clause 13.4, any Lender that shall have commenced or joined (as a      plaintiff) in an action or proceeding in any court to recover sums due to      it under this Agreement or any other Finance Document and pursuant to a      judgment obtained therein or a settlement or compromise of that      action or proceeding shall have received any amount, shall not be |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | required      to share any proportion of that amount with any Lender that shall have had      the legal right to, but shall not have joined such action or proceeding or      commenced and diligently prosecuted a separate action or proceeding to      enforce its rights in the same or another court.  Each Lender      exercising or contemplating exercising any right giving rise to a receipt      or receiving any payment of the type referred to in this Clause 13.4      or instituting legal proceedings to recover sums owing to it under this      Agreement shall, as soon as reasonably practicable thereafter, give notice      thereof to the Agent, which shall give notice thereof to the other      Lenders. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14   | EVENTS      OF DEFAULT |
|----------------|------------------------|

| 14.1   | Events of      Default.  There shall be an Event of Default      if: |
|------------------|--------------------------------------------------------------------------------|

| (a)            | any      sum payable under this Agreement or any of the other Finance Documents      shall not be paid when due; or |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|

| (b)            | either      Obligor or any other party (other than a Credit Party) shall commit any      breach of or fail to perform any of its obligations, covenants or      undertakings in this Agreement or any other Finance Document (except as      provided in Clause 14.1(a)) or any event of default, or any event or      circumstance that with the giving of any notice, the lapse of time or both      would constitute an event of default, shall occur under any other Finance      Document; or |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | any      representation or warranty made by either Obligor or any other party      (other than a Credit Party) in or pursuant to this Agreement or any other      Finance Document shall prove to have been incorrect in any material      respect when made or deemed made or confirmed;  or |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)            | any      principal of or interest on any Financial Indebtedness of either Obligor      (other than the Financial Indebtedness payable pursuant to this Agreement      or any other Finance Document) shall not be paid when due, subject to any      agreed cure period but only so long as cure shall be made in accordance      with the terms thereof and in any event on or before the thirtieth day      after such principal or interest shall be due;  or |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)            | any      event of default, or any event or circumstance that, with the giving of      any notice, the lapse of time or both would constitute an event of      default, shall occur under any agreement (other than the Finance      Documents) to which either of the Obligors or a Principal Subsidiary is a      party, including any charter party or other contract of employment for the      Ship; or |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)            | any      of the consents referred to in Clause 9.3 shall be modified in a      manner that shall be unacceptable to the Majority Lenders, shall be      revoked or terminated, shall expire and not be renewed, or otherwise shall      cease to be in full force and effect;or |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)            | either      Obligor shall suspend payment of its debts or shall be unable or shall      admit its inability to pay its debts as they fall due or any proceeding      shall be commenced by or against either Obligor for a composition or other      arrangement for the benefit of its creditors generally relating to      reconstruction or readjustment of it or its debts or any |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | similar      process or proceeding shall be instituted by or against either Obligor      under the laws of any relevant jurisdiction;or |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (h)            | either      Obligor shall take any action or any legal proceedings shall be started or      other steps shall be taken for: |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|

| (i)                  | such      Obligor to be adjudicated or found bankrupt or  insolvent; |
|-----------------------------------------------------------------------------|----------------------------------------------------------------------|

| (ii)                 | the      winding-up or dissolution of such Obligor;or |
|------------------------------------------------------------------------|-------------------------------------------------------|

| (iii)                | the      appointment of a liquidator, trustee, receiver or similar officer of such      Obligor or of the whole or any part of its undertakings, assets, rights or      revenues or any similar process or proceeding shall be instituted under      the laws of any relevant jurisdiction;or |
|-------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)                  | either      Obligor ceases or threatens to cease to carry on its business except, with      respect to the Borrower, in the case of a sale or a proposed sale of the      Ship; or |
|-----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)                  | all      or a material part of the undertakings, assets, rights or revenues of, or      shares or other ownership interest in, either Obligor shall be seized,      nationalized, expropriated or compulsorily acquired by or under authority      of any government; or |
|-----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)            | a      creditor shall attach or take possession of, or a distress, execution,      sequestration or process (each an “action”) shall be levied      or enforced upon or sued out against, a material part of the undertakings,      assets, rights or revenues of either Obligor in relation to a claim by      such creditor and such action shall not have been lifted, vacated,      released or expunged, or substitute security posted, within 10 Business      Days of such action having been instituted;or |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)                  | the      Guarantor shall cease to be the legal and beneficial owner of all of the      issued and outstanding shares of the Borrower;  or |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (m)           | the      Ship shall be a Total Loss and insurance proceeds with respect to such      Total Loss shall not be collected or received by the Security Trustee      within 150 days thereafter; or |
|-----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)            | any      provision of this Agreement shall cease to be valid and binding on or      enforceable against either Obligor or such Obligor shall so state in      writing, or any other Finance Document executed and delivered by either      Obligor shall for any reason cease to be valid and binding on or      enforceable against such Obligor or any such Obligor shall so state in      writing; or |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)            | any      Security Document shall cease for any reason (other than pursuant to the      terms thereof) after the execution and delivery thereof to create (i) in      the case of the Mortgage, a valid first priority preferred mortgage under      the laws of the Republic of Liberia on the Ship described therein or (ii)      in the case of the Earnings Assignment, Insurance Assignment or Charter      Assignment, a valid first-priority perfected lien on the Collateral      described therein; or |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (p)            | any      Approved Charter shall cease to be in full force and effect at any time      after such Approved Charter shall have been executed and delivered by the      parties thereto; or |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (q)            | it      shall be impossible or unlawful: |
|-----------------------------------------------------------------------|------------------------------------------|

| (i)                  | for      either Obligor or any other party (other than a Credit Party) to fulfill      any of the covenants and obligations contained in this Agreement or any      other Finance Document; or |
|-----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | for      any Credit Party to exercise any of the rights vested in it under this      Agreement or any other Finance Documents;or |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|

| (r)            | in      the reasonable opinion of the Majority Lenders, a material adverse change      in the financial condition of either Obligor shall occur;    or |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (s)            | any      other event occurs or circumstance shall occur that, in the reasonable      opinion of the Majority Lenders, shall likely materially and adversely      affect: |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)                  | the      ability of either Obligor or any other party (other than a Credit Party)      to perform all or any of its respective obligations under or otherwise to      perform its obligations under this Agreement or any other Finance      Document; or |
|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | the      security created by any Collateral. |
|------------------------------------------------------------------------|----------------------------------------------|

| 14.2   | Actions Following an Event of      Default.  If at any time an Event of Default shall have      occurred and be continuing, the Agent may and, if so instructed by the      Majority Lenders, shall: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | serve      on the Borrower a notice stating that all obligations of the Lenders to      the Borrower under this Agreement are terminated at which time such      obligations shall immediately terminate without any further action by any      party hereto; provided that if any Event of Default described in either of      Clauses 14.1(g) and 14.1(h) shall have occurred and be continuing,      such obligations shall be deemed immediately terminated without notice      thereof or any other action by any partyhereto; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | serve      on the Borrower a notice stating that the Loan, all accrued interest and      all other amounts accrued or owing under this Agreement are immediately      due and payable at which time the Loan, all accrued interest and all other      amounts accrued or owing by the Obligors under this Agreement and the      other Finance Documents shall become immediately due and payable, and the      Security Trustee shall be entitled to enforce the Security Interests      created by this Agreement and the other Finance Documents in any manner      available to it and in such sequence as the Security Trustee may, in its      absolute discretion, determine; provided that if any      Event of Default described in either of Clauses 14.1(g) and 14.1(h)      shall have occurred and be continuing, the Loan, all such accrued interest      and all such other amounts shall become immediately due and payable and      the Security Trustee shall be entitled to enforce the Security Interests      as provided herein, in each case without notice or demand therefor or any      other action by any party hereto;and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c)            | take      such other actions that, as a result of such Event of Default or any      notice served pursuant to paragraph (a) or (b) above, a Credit Party      shall be entitled to take under any Finance Document or any applicable      law. |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3   | Multiple Notices; Action      without Notice.  The Agent may serve notices pursuant to      Clauses 14.2(a) and 14.2(b) simultaneously or at different times and      may take any action referred to in either such Clause even if no such      notice is served or simultaneously with or at any time after the service      of both or either of such notices. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15   | FEES      AND EXPENSES |
|----------------|------------------------|

| 15.1   | Commitment      Fee.  The Borrower shall pay to the Agent for the account      of each Lender a commitment fee equal to 0.50% per annum of the undrawn      portion of the Commitment of such Lender from the Effective Date (in the      case of any Initial Lender) and from the effective date specified in the      Assignment and Acceptance pursuant to which it became a Lender (in the      case of each other Lender) until the end of the Availability Period,      payable in arrears on the last day of the Availability    Period. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2   | Other      Fees.  The Guarantor shall pay to DVB Bank America N.V.      for its own account such fees as may from time to time be agreed by DVB      Bank America N.V. and theGuarantor. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3   | Costs of Negotiation,      Preparation, Etc.  The Borrower shall pay to the Agent on      demand the amount of all out-of-pocket expenses incurred by the Agent and      each other Credit Party in connection with the negotiation, preparation,      execution, registration and enforcement of each Finance Document and      related document and each transaction contemplated by any Finance Document      or related document, including the reasonable fees and disbursements of      each Credit Party’s legal counsel and any local counsel retained by      them. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4   | Costs of Variations,      Amendments, Enforcement, Etc.  The Borrower shall pay to      the Agent on demand the amount of all expenses incurred by the Credit      Parties (including the legal fees and disbursements of counsel to the      Credit Parties) in connection with: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | each      amendment or supplement to any Finance Document, and each proposal for any      such amendment or supplement regardless of whether or not such amendment      or supplement shall becomeeffective; |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | each      consent or waiver by any Credit Party under or in connection with any      Finance Document, and each request for any such waiver or consent      regardless of whether or not such waiver or consent shall be      given; |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | the      valuation of or any other matter relating to the Collateral or the Ship;      and |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------|

| (d)            | each      action taken by a Credit Party for the protection, exercise or enforcement      of any right or Security Interest created by any Finance Document or for      any similar purpose. |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.5   | Documentary      Taxes.  The Borrower shall promptly pay any tax payable      on or by reference to any Finance Document, and shall, on demand, fully      indemnify any Credit Party against any liabilities and expenses resulting      from any failure or delay by the Borrower to pay such a    tax. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16   | INDEMNITIES |
|----------------|-------------|

| 16.1   | Indemnities Regarding Borrowing      and Repayment of Loan.  The Borrower shall indemnify each      Lender on demand for any and all expenses, liabilities and losses incurred      by such Lender as a result of or in connection  with: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (d)            | the      occurrence and continuance of any Event of Default or Potential Event of      Default and the acceleration of repayment of the Loan or any other amounts      pursuant to Clause 14; and |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)            | any      tax (other than tax on its overall net income imposed by a taxing      jurisdiction in which such Lender is organized, holds or books the Loan or      has a principal place of business) for which such Lender is liable in any      jurisdiction directly in connection with any amount paid or payable to      such Credit Party under any FinanceDocument. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2   | Breakage      Costs.  Without limiting its generality of      Clause 16.1, the expenses, liabilities and losses indemnified by the      Borrower pursuant to Clause 16.1 shall include those incurred by each      Lender: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 16.3   | Miscellaneous      Indemnities.  The Borrower shall indemnify each Credit      Party for any and all claims, demands, proceedings, liabilities, taxes,      losses and expenses of every kind that may be made or brought against, or      incurred by, such Credit Party, in any country, in relation      to: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| 16.4   | Other      Indemnities.  The Borrower shall indemnify each Credit      Party for any and all reasonable expenses, liabilities and losses incurred      by such Credit Party as a result of or in connection with the enforcement      (whether through negotiations, legal proceedings or otherwise) of the      Finance Documents and any other document to be delivered      hereunder. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.5   | Currency      Indemnity.  If any amount payable by either Obligor to      any Credit Party pursuant to any Finance Document or pursuant to any order      or judgment relating to any Finance Document shall be converted from the      currency in which the Finance Documents require such amount to be paid      (the “Contractual      Currency”) into another currency (the “Payment Currency”) for      the purpose of: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)            | making      or lodging any claim or proof against the Borrower, whether in      liquidation, bankruptcy, insolvency or otherwise;  or |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 16.6   | Increased      Costs. |
|------------------|-----------------------|

| (a)            | If,      due to either |
|-----------------------------------------------------------------------|------------------------|

| (i)                  | the      introduction of or any change in or in the interpretation of any law or      regulation; or |
|-----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|

| (ii)                 | the      compliance by any Lender with any guideline or request from any central      bank or other governmental authority after the date hereof (whether or not      having the force of law); |
|------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | there      shall be |
|--------|---------------------|

----

|   | (x) | imposed,      modified or deemed applicable any reserve, special deposit or similar      requirement against assets held by, or deposits in or for the account of,      any Lender; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (y) | imposed      on any Lender any tax of any kind whatsoever with respect to this      Agreement or the Advance made by it, or any change in the basis of      taxation of payments to any Lender in respect thereof (except for taxes      indemnified pursuant to Clause 17);or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | imposed      on any Lender any other condition relating to this Agreement or the      Advance made by it; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (A) | if      such Lender fails to so notify the Borrower within such 60-day period,      such increased cost shall commence accruing on such later date on which      the Lender notifies the Borrower;and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | before      making any such demand, such Lender agrees to use reasonable efforts      (consistent with its internal policy and legal and regulatory      restrictions) to designate a different Lending Office if the making of      such a designation would avoid the need for, or reduce the amount of, such      increased cost and would not, in the reasonable judgment of such Lender,      be otherwise disadvantageous to suchLender. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | If      any Lender shall determine that compliance with any law or regulation or      any guideline or request from any central bank or other governmental or      monetary authority in regard to capital adequacy (whether or not having      the force of law) including any guideline contemplated by the report dated      July 1988 entitled “International Convergence of Capital Management and      Capital Standards” issued by the Bank Committee on Banking Regulations and      Supervisory Practices, in any case |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | in      which such law, regulation, guideline or request shall have become      effective or shall have been made after the date hereof, shall or would      have the effect of reducing the rate of return on the capital of, or      maintained by, such Lender or any person controlling such Lender as a      consequence of such Lender making its ratable portion of the Advance or      Commitment hereunder and other commitments of this type, by increasing the      amount of capital required or expected to be maintained by such Lender or      any person controlling such Lender, to a level below that which such      Lender or any person controlling such Lender could have achieved but for      such adoption, effectiveness, change or compliance (taking into account      such Lender’s or such person’s policies with respect to capital adequacy),      then the Borrower shall, from time to time, pay such Lender, upon demand      by such Lender made within 60 days after the first date on which such      Lender has actual knowledge that it is entitled to make demand for payment      under this Clause 16.6(b) of such reduction in return, such      additional amount as may be specified by such Lender as being sufficient      to compensate such Lender for such reduction in return, to the extent that      such Lender reasonably determines such reduction to be attributable to the      existence of such Lender’s commitment to lend hereunder; provided that if such      Lender fails to so notify the Borrower within such 60 day period, such      amounts shall commence accruing on such later date on which such Lender      notifies the Borrower.  A certificate as to such amounts      submitted to the Borrower by a Lender shall be conclusive and binding for      all purposes, absent manifesterror. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17   | NO      SET-OFF OR TAX DEDUCTION |
|----------------|----------------------------------|

| 17.1   | No      Deductions.  All amounts due from either Obligor under      any Finance Document shall be paid: |
|------------------|-------------------------------------------------------------------------------------------------------------------|

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

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

| 17.2   | Grossing-Up for      Taxes.  If either Obligor shall be required by law to      make a tax deduction from anypayment: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 17.3   | Evidence of Payment of      Taxes.  Within 30 days after making any tax deduction, an      Obligor shall deliver to the Agent documentary evidence satisfactory to      the Agent that the tax shall have been paid to the appropriate taxation      authority. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17.4   | Exclusion of Tax on Overall Net      Income.  In this Clause 17, “tax deduction” means any      deduction or withholding for or on account of any present or future tax      except tax on a Credit Party’s overall net income imposed by a taxing      jurisdiction in which such Credit Party is organized, holds or books the      Loan (as applicable) or has a principal place of  business. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18   | ILLEGALITY |
|----------------|------------|

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

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

| 19   | ASSIGNMENTS      AND PARTICIPATIONS; CHANGES IN LENDINGOFFICE |
|----------------|---------------------------------------------------------------|

| 19.1   | Assignment by      Borrower.  Except as permitted by Clause 10.2(b), no      Obligor may, without the consent of the Majority  Lenders: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 19.2   | Assignments by Lenders;      Participations. |
|------------------|----------------------------------------------|

| (a)            | Each      Lender may at its own expense assign to a bank or other entity all or a      portion of its rights and obligations under this Agreement (including all      or a portion of its Commitment, the Advance owing to it and the Notes held      by it, if any), provided      that: |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)                  | each      such assignment shall be of a uniform, and not a varying, percentage of      all rights and obligations under this Agreement and the other Finance      Documents; |
|-----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | except      in the case of an assignment of all of such Lender’s rights and      obligations under this Agreement or an assignment to a person that,      immediately prior to such assignment, shall also be a Lender, the amount      of the Commitment of the assigning Lender being assigned pursuant to each      such assignment (determined as of the date of the Assignment and |
|------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Acceptance      with respect to such assignment) shall in no event be less than $5,000,000      and shall be an integral multiple of $1,000,000 in excess    thereof; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)                | each      such assignment shall be to (A) an Eligible Assignee acceptable to      the Borrower, which acceptance the Borrower shall not unreasonably      withhold, condition or delay, (B) another Lender or (C) an      Affiliate of the assigning Lender or an Eligible  Assignee; |
|-------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)                | the      parties to each such assignment shall execute and deliver to the Agent,      for its acceptance and recording in the Register, an Assignment and      Acceptance, together with the Notes (if any) subject to such assignment      and a processing and recordation fee of $5,000 payable by the assigning      Lender; and |
|------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)            | after      giving effect to each such assignment, there shall be no more than five      Lenders. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|

| (b)            | By      executing and delivering an Assignment and Acceptance, the assigning      Lender thereunder and the assignee thereunder confirm to and agree with      each other and the other parties hereto as  follows: |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)                  | other      than as provided in such Assignment and Acceptance, such assigning Lender      makes no representation or warranty and assumes no responsibility with      respect to any statements, warranties or representations made in or in      connection with this Agreement or the execution, legality, validity,      enforceability, genuineness, sufficiency or value of this Agreement or any      other instrument or document furnished pursuant  hereto; |
|-----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | such      assigning Lender makes no representation or warranty and assumes no      responsibility with respect to the financial condition of either Obligor      or the performance or observance by either Obligor of any of its      obligations under this Agreement, any other Finance Document or any other      instrument or document furnished pursuant hereto or    thereto; |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)                | such      assignee confirms that it has received a copy of this Agreement, together      with copies of all financial statements referred to or delivered in      accordance with Clauses 9.9 and 10.1(f) and such other documents and      information as it |
|-------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | deems      appropriate to make its own credit analysis and decision to enter into      such Assignment and Acceptance; |
|--------|------------------------------------------------------------------------------------------------------------------------|

| (iv)           | such      assignee will, independently and without reliance upon the Agent, the      Security Trustee, the Swap Bank, the assigning Lender or any other Lender      and based on such documents and information as it shall deem appropriate      at the time, continue to make its own credit decisions in taking or not      taking action under this Agreement; |
|------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)            | such      assignee confirms that it is another Lender, an Affiliate of the assigning      Lender or an Eligible Assignee; |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|

| (vi)           | such      assignee appoints and authorizes the Agent to take such action as agent on      its behalf and to exercise such powers under this Agreement as are      delegated to the Agent by the terms hereof, together with such powers as      are reasonably incidental thereto; |
|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)          | such      assignee agrees that it shall perform in accordance with their terms all      of the obligations which by the terms of this Agreement are required to be      performed by it as a Lender; and |
|-------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii)         | such      assigning Lender and such assignee represent and warrant that such      assignment is not in violation of any applicable law, including any      securities law. |
|--------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)            | The      Agent shall maintain at its address referred to in Clause 21.2 a copy      of each Assignment and Acceptance delivered to and accepted by it and a      register for the recordation of the names and addresses of the Lenders and      the Commitment of, and principal amount of the Advance owing to, each      Lender from time to time (the “Register”).  The      entries in the Register shall be conclusive and binding for all purposes,      absent manifest error, and the Borrower, the Guarantor, the Agent, the      Security Trustee and the Lenders may treat each person whose name is      recorded in the Register as a Lender hereunder for all purposes of this      Agreement and the Security Documents.  The Register shall be      available for inspection by the Borrower or any Lender at any reasonable      time and from time to time upon reasonable prior  notice. |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)            | Upon      its receipt of an Assignment and Acceptance executed by an assigning      Lender and an assignee, the Agent shall, if such Assignment and Acceptance      has been completed and is in substantially the form of Appendix H,      (i) accept such Assignment and Acceptance, (ii) record the      information contained therein in the Register and (iii) give prompt      notice thereof to the Borrower and the  Guarantor. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)            | Each      Lender may, at is own expense, sell participations to one or more banks or      other entities in or to all or a portion of its rights and obligations      under this Agreement (including all or a portion of its Commitment and the      Advances owing to it); provided      that: |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (i)                  | such      Lender’s obligations under this Agreement (including its Commitment to the      Borrower hereunder) shall remainunchanged; |
|-----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | such      Lender shall remain solely responsible to the other parties hereto for the      performance of such obligations; |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|

| (iii)                | such      Lender shall remain a Lender for all purposes of this      Agreement; |
|-------------------------------------------------------------------|---------------------------------------------------------------------------------|

| (iv)                | the      Borrower, the Guarantor, the Agent, the Security Trustee and the other      Lenders shall continue to deal solely and directly with such Lender in      connection with such Lender’s rights and obligations under this Agreement;      and |
|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)            | no      participant under any such participation shall have any right to approve      any amendment or waiver of any provision of any Finance Document, or any      consent to any departure by the Borrower  therefrom. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)            | Notwithstanding      any other provision set forth in this Agreement, any Lender may, at its      own expense, at any time create a security interest in all or any portion      of its rights under this Agreement (including the Advance owing to it and      the Notes held by it) in favor of any Federal Reserve Bank in accordance      with Regulation A of the Board of Governors of the Federal Reserve      System. |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3   | Rights of      Assignee.  In respect of any breach of a warranty,      undertaking, condition or other provision of a Finance Document, or any      misrepresentation made in or in connection with a Finance Document, a      direct or indirect assignee of any of a Lender’s rights or interests under      or by virtue of the Finance Documents shall be entitled to recover damages      by reference to the loss incurred by that assignee as a result of the      breach or misrepresentation irrespective of whether the Lender would have      incurred a loss of that kind oramount. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4   | Subrogation      Assignment.  A Lender may assign, in any manner and on      terms agreed by it, all or any part of those rights to an insurer or      surety who has become subrogated tothem. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5   | Disclosure of      Information.  Any Lender may, in connection with any      assignment or participation or proposed assignment or participation      pursuant to this Clause 19.2, discloseto |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.6   | Change of Lending      Office.  Subject to Clause 16.6, a Lender may change      its Lending Office by notice to the Borrower and such change shall become      effective on the later of: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 20          |  VARIATIONS,      WAVIERS, ETC. |
|------------------|--------------------------------------|
|             |                                 |
| 20.1   | Variations,      Waivers, Etc.       |

| (a)                 | A      document shall be effective to vary, waive, suspend or limit any provision      of a Finance Document, or a Credit Party’s rights or remedies under such a      provision or the general law, only if the document is signed, or      specifically agreed to by fax, by the relevant Obligors and the relevant      Credit Parties. |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)            | Except      as otherwise provided in this Agreement, this Agreement or any term hereof      may be amended, modified, waived, discharged or terminated only by an      instrument in writing, signed by the Majority Lenders or by the Agent      acting with the consent of the Majority Lenders; provided that no      amendment, modification or waiver shall, unless by an instrument signed by      all the Lenders or by the Agent acting with the consent of all the Lenders      (so long as this Agreement remains in effect or there are any Designated      Transactions continuing): |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)                  | increase      the Commitment of any Lender, or increase or extend the term, or extend      the time or waive any requirement for the reduction or termination, of the      Advance; |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)                 | extend      the date fixed for the payment of principal or interest on the      Loan; |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------------|

| (iii)                | reduce      the amount of any payment of principal thereof or the rate at which      interest is payable thereon or any fee is payable    hereunder; |
|-------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)                | alter      the terms of this Clause 20; |
|------------------------------------------------------------------|----------------------------------------------|

| (v)            | waive      any of the conditions precedent set forth in  Clause 8; |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------|

| (vi)           | release      any Collateral, except as contemplated by this Agreement or any other      Finance Document; or |
|------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|

| (vii)          | change      the definition of the term “MajorityLenders”; |
|-------------------------------------------------------------|-----------------------------------------------------------------------|

| 20.2   | Exclusion of Other or Implied      Variations.  Except as expressly provided in any document      that satisfies the requirements of Clause 20.1, no document, and no      act, course of conduct, failure or neglect to act, delay or acquiescence      on the part of a Credit Party (or any person acting on its behalf) shall      result in such Credit Party (or any person acting on its behalf) being      taken to have varied, waived, suspended or limited, or being precluded      (permanently or temporarily) from enforcing, relying on or      exercising: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)            | any      Event of Default or Potential Event of Default;  or |
|-----------------------------------------------------------------------|--------------------------------------------------------------|

----

| (c)            | any      breach by an Obligor of an obligation under any Finance Document or      applicable law; or |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|

| (d)            | any      right or remedy conferred by any Finance Document or applicable      law; |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------|

| 21 | NOTICES |
|----|---------|

| 21.1   | General.  Unless      otherwise specifically provided, each notice given pursuant to or in      connection with this Agreement or any other Finance Document shall be      given by registered or certified mail, by FedEx, DHL or similar courier,      by facsimile or by hand. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2   | Addresses for Notices,      Etc.  Each such notice shall be  sent: |
|------------------|------------------------------------------------------------------------------|

|   | (a)    | if      to the Borrower, to:                      | Japan      II Shipping Company Limitedc/o      Top Ships Inc.Vas.      Sofias 1 & Meg. AlexandrouMaroussi      -- Athens 151 24, GREECEFacsimile:  +30-210-614-1273;                                      |
|--------|--------|---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |                                                                                                                                                                                                                    |
|   | (b)    | if      to the Guarantor, to:                     | Top      Ships Inc.Vas.      Sofias 1 & Meg. AlexandrouMaroussi      -- Athens 151 24 GREECEFacsimile:  +30-210-614-1273;                                                                                 |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |                                                                                                                                                                                                                    |
|   | (c)    | if      to the Agent or the Security Trustee, to: | DVB      Bank America N.V.Zeelandia      Office ParkKaya      W.F.G. Mensing 14P.O.      Box 3107Curaçao,      NETHERLANDS ANTILLESAttention:  Natascha      BloemFacsimile:  +599-9-465-2366; |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |                                                                                                                                                                                                                    |
|   |   | with      a copy to:                              | DVB      Bank AGRepresentative      Office -- Greece95      Akti Miaouli185      35 Piraeus, GREECEAttention:  Nikolas      ChontzopoulosFacsimile:      +30-210-455-7420;                                    |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |
|   |   |                                              |

----

|   | (d)    | if      the Swap Bank, to:         | DVB      Bank AGFriedrich-Ebert-Anlage      2-14D-50325      Frankfurt am MainGERMANY;                                                                                               |
|--------|--------|------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                               |
|   |   |                               |
|   |   |                               |
|   |   |                               |                                                                                                                                                                                 |
|   |   | with      a copy to:               | DVB      Bank AGRepresentative      Office -- Greece95      Akti Miaouli185      35 Piraeus, GREECEAttention:  Nikolas      ChontzopoulosFacsimile:      +30-210-455-7420; |
|   |   |                               |
|   |   |                               |
|   |   |                               |
|   |   |                               |
|   |   |                               |
|   |   |                               |                                                                                                                                                                                 |
|   | (e)    | if      to any Initial Lender, to: | the      address or facsimile number for such Lender listed on Schedule 1 hereto;      and                                                                                           |
|   |   |                               |                                                                                                                                                                                 |
|   | (f)    | if      to any other Lender, to:   | the      address or facsimile number listed for notices to such Lender on the      Assignment and Acceptance pursuant to which it shall have become a      Lender;                   |

| 21.3 | Effective Date of      Notices.  Subject to Clauses 21.4 and      21.5: |
|------|----------------------------------------------------------------------------------------|

|   | (a) | a      notice that is sent by post shall be deemed served and given, and shall      take effect, three days after the date of delivery to the      post; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a      notice that is sent by FedEx, DHL or similar courier shall be deemed      served and given, and shall take effect, two days after the date of      delivery to such courier; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a      notice that is sent by facsimile shall be deemed served and given, and      shall take effect, two hours after its successful transmission is      completed; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a      notice that is delivered by hand shall deemed served and given, and shall      take effect, at the time that it isdelivered. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| 21.4 | Service Outside Business      Hours.  However, if under Clause 21.3 a notice would      be deemed to be served: |
|------|--------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | on      a day that is not a Business Day in the place of receipt;    or |
|--------|-----|-------------------------------------------------------------------------|

|   | (b) | on      such a Business Day, but after 5:00 p.m. local time on such Business      Day; |
|--------|-----|----------------------------------------------------------------------------------------|

| 21.5 | Illegible      Notices.  Clauses 21.3 and 21.4 do not apply if the      recipient of a notice notifies the sender within one hour after the time      at which the notice would otherwise be deemed to be served that the notice      has been received in a form that is illegible in any material      respect. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.6 | English      Language.  All notices given pursuant to or in connection      with this Agreement or any other Finance Document shall be in the English      language. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.7 | Meaning of      “notice”.  In this Clause 21, “notice” includes any      demand, consent, authorization, approval, instruction, waiver or other      communication. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22 | SUBORDINATION |
|----|---------------|

| 22.1 | [intentionally      omitted] |
|------|------------------------------|

| 22.2 | [intentionally      omitted] |
|------|------------------------------|

| 22.3 | [intentionally      omitted] |
|------|------------------------------|

| 22.4 | Subordination.  Subject      to Clause 22.5, during the Security Period, neither Obligor      shall: |
|------|---------------------------------------------------------------------------------------------------------------------|

|   | (a) | claim      by way of any legal or administrative action any amount that may be due to      it from the other Obligor whether in respect of a payment made, or matter      arising out of, this Agreement or any other Finance Document, or any      matter unconnected with this Agreement or any other Finance Document;      or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 22.5 | Obligors’ Required      Action.  If during the Security Period, the Agent, by      notice to either Obligor, requires such Obligor to take any action      referred to in paragraphs (a) through (d) of Clause 22.4, in      relation to the other Obligor, such Obligor shall take that action as soon      as practicable after receiving the Agent’s  notice. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23 | SUPPLEMENTAL |
|----|--------------|

| 23.1 | Rights Cumulative,      Non-Exclusive.  The rights and remedies granted to the      Credit Parties pursuant to the Finance  Documents: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

| 23.2 | Severability of      Provisions.  If any provision of a Finance Document is or      subsequently becomes void, unenforceable or illegal, that shall not affect      the validity, enforceability or legality of the other provisions of that      Finance Document or of the provisions of any other Finance      Document. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | Counterparts.  This      Agreement may be executed in any number of counterparts and by different      parties hereto in separate counterparts, each of which when so executed      shall be deemed to be an original and all of which taken together shall      constitute one and the sameagreement. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.4 | Binding      Effect.  This Agreement shall be binding upon and inure      to the benefit of each of the parties hereto and their respective      successors and assigns, except that the Borrower shall not have the right      to assign its rights hereunder or any interest herein except as provided      in Clause 19.1. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24 | THE      AGENT AND THE SECURITY TRUSTEE |
|----|-----------------------------------------|

| 24.1 | Appointment and      Granting. |
|------|--------------------------------|

|   | (a) | Each      of the Lenders and the Swap Bank hereby irrevocably appoints and      authorizes the Agent to act as its agent hereunder and under any of the      other Finance Documents with such powers as are specifically delegated to      the Agent by the terms of this Agreement and the other Finance Documents,      together with such other powers as are reasonably incidental      thereto. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      Security Trustee. |
|--------|-----|----------------------------|

|   | (i) | Each      of the Lenders, the Swap Bank and the Agent hereby irrevocably appoints      and authorizes the Security Trustee to act as security trustee hereunder      and under the other Finance Documents (other than the Notes) with such      powers as are specifically delegated to the Security Trustee by the terms      of this Agreement and such other Finance Documents, together with such      other powers as are reasonably incidental  thereto. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | To      secure the payment of all sums of money from time to time owing to the      Lenders under this Agreement, the Notes and the other Finance Documents in      the maximum principal amount of $48,000,000 plus accrued interest thereon      and all other amounts owing to the Lenders, the Swap Bank, the Agent and      the Security Trustee pursuant to this Agreement, the Notes and the other      Finance Documents, and the performance of the covenants of the Borrower      and the other Obligor herein and therein contained, and in consideration      of the premises and of the covenants herein contained and of the      extensions of credit by the Lenders and the entry by the Swap Bank into      the Master Agreement, the Security Trustee does hereby declare that it      shall hold as such trustee in trust for the benefit of the Lenders, the      Swap Bank and the Agent, from and after the execution and delivery      thereof, all of its right, title and interest as mortgagee in, to and      under each Mortgage and its right, title and interest as assignee and      secured party under the other Finance Documents (the right, title and      interest of the Security Trustee in and to the property, rights |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | and      privileges described above, from and after the execution and delivery      thereof, and all property hereafter specifically subjected to the lien of      the indenture created hereby and by the Finance Documents by any amendment      hereto or thereto are herein collectively called the “Estate”) TO HAVE AND TO      HOLD the Estate unto the Security Trustee and its successors and assigns      forever, BUT IN TRUST, NEVERTHELESS, for the equal and proportionate      benefit and security of the Lenders, the Swap Bank and the Agent and their      respective successors and assigns without any priority of any one over any      other, UPON THE CONDITION that, unless and until an Event of Default under      this Agreement shall have occurred and be continuing, the Borrower shall      be permitted, to the exclusion of the Security Trustee, to possess and use      the Ship.  IT IS HEREBY COVENANTED, DECLARED AND AGREED that all      property subject or to become subject hereto is to be held, subject to the      further covenants, conditions, uses and trusts hereinafter set forth, and      the Borrower, for itself and its respective successors and assigns, hereby      covenants and agrees to and with the Security Trustee and its successors      in said trust, for the equal and proportionate benefit and security of the      Lenders, the Swap Bank and the Agent as hereinafter set  forth. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | The      Security Trustee hereby accepts the trusts imposed upon it as Security      Trustee by this Agreement, and the Security Trustee covenants and agrees      to perform the same as herein expressed and agrees to receive and disburse      all monies constituting part of the Estate in accordance with the terms      hereof. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.2 | Scope of      Duties.  Neither the Agent nor the Security Trustee      (which terms as used in this sentence and in Clause 24.5 shall      include reference to their respective affiliates and their own respective      and their respective affiliates’ officers, directors, employees, agents      and attorneys-in-fact): (a) shall have any duties or responsibilities      except those expressly set forth in this Agreement and the other Finance      Documents, and shall not by reason of this Agreement or any of the other      Finance Documents be (except, with respect to the Security Trustee, as      specifically stated to the contrary in this Agreement) a trustee for a      Lender; (b) shall be responsible to any Credit Party for any      recitals, statements, representations or warranties contained in this      Agreement or in any of the Finance Documents, or in any certificate or      other document referred to or provided for in, or received by any of them      under, this Agreement or any of the other Finance Documents, or for the      value, validity, effectiveness, genuineness, enforceability or sufficiency      of this Agreement or any of the other Finance Documents or any other      document referred to or provided for herein or therein or for any failure      by the Borrower, the Guarantor or any other person to perform any of its      obligations hereunder or thereunder or for the location, condition or      value of any property covered by any lien under any of the Finance      Documents or for the creation, perfection or priority of any such lien;      (c) shall be required to initiate or conduct any litigation or      collection proceedings hereunder or under any of the Finance Documents      unless expressly instructed to do so in writing by the Majority Lenders;      or (d) shall be responsible for any action taken or omitted to be      taken by it hereunder or under any of the Finance Documents or under any      other document or instrument referred to or provided for herein or therein      or in connection herewith or therewith, except for its own gross      negligence or willful misconduct.  Each of the Agent and the      Security Trustee may employ agents and attorneys-in-fact and neither the      Agent nor the Security Trustee shall be responsible for the negligence or      misconduct of any such agents or attorneys-in-fact selected by it in good      faith.  Each of the Agent and the Security Trustee may |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | deem      and treat the payee of a Note as the holder thereof for all purposes      hereof unless and until a written notice of the assignment or transfer      thereof shall have been filed with and accepted by the Agent in accordance      herewith. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3 | Reliance.  Each      of the Agent and the Security Trustee shall be entitled to rely upon any      certification, notice or other communication (including any thereof by      telephone, telex, telefacsimile, telegram or cable) believed by it to be      genuine and correct and to have been signed or sent by or on behalf of the      proper person or persons, and upon advice and statements of legal counsel,      independent accountants and other experts selected by the Agent or the      Security Trustee, as the case may be.  As to any matters not      expressly provided for by this Agreement or any of the other Finance      Documents, each of the Agent and the Security Trustee shall in all cases      be fully protected in acting, or in refraining from acting, hereunder or      thereunder in accordance with instructions signed by the Majority Lenders,      and such instructions and any action taken or failure to act pursuant      thereto shall be binding on all of the Lenders and the Swap      Bank. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.4 | Knowledge.  Neither      the Agent nor the Security Trustee shall be deemed to have knowledge or      notice of the occurrence of a Potential Event of Default or an Event of      Default (other than, in the case of the Agent, the non-payment of      principal of or interest on the Loan or the Advance) unless it shall have      received notice from a Lender or an Obligor specifying such Potential      Event of Default or Event of Default and stating that such notice is a      “Notice of Default.”  If the Agent receives such a notice of the      occurrence of such Potential Event of Default or Event of Default, the      Agent shall give prompt notice thereof to the Security Trustee, the      Lenders and the Swap Bank (and shall give each of the Security Trustee,      the Lenders and the Swap Bank prompt notice of each such      non-payment).  Subject to Clause 24.8, the Agent and the      Security Trustee shall take such action with respect to such Potential      Event of Default or Event of Default or other event as shall be directed      by the Majority Lenders, except that, unless and until the Agent and the      Security Trustee shall have received such directions, each of the Agent      and the Security Trustee may (but shall not be obligated to) take such      action, or refrain from taking such action, with respect to such Potential      Event of Default or Event of Default or other event as it shall deem      advisable in the best interest of the Lenders and the Swap      Bank. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.5 | Agent and Security Trustee as      Lenders.  Each of the Agent and the Security Trustee (and      any successor acting as Agent or Security Trustee, as the case may be) in      its individual capacity as a Lender hereunder shall have the same rights      and powers hereunder as any other Lender and may exercise the same as      though it were not acting as the Agent or the Security Trustee, as the      case may be, and the term “Lender” and “Lenders” shall, unless the context      otherwise indicates, include each of the Agent and the Security Trustee in      its individual capacity.  Each of the Agent and the Security      Trustee (and any successor acting as Agent or Security Trustee, as the      case may be) and their respective affiliates may (without having to      account therefor to any Lender or the Swap Bank) accept deposits from,      lend money to and generally engage in any kind of banking, trust or other      business with the Obligors and any of their respective subsidiaries or      affiliates as if it were not acting as the Agent or the Security Trustee,      as the case may be, and each of the Agent and the Security Trustee and      their respective affiliates may accept fees and other consideration from      the Borrower and the Guarantor for services in connection with this      Agreement or otherwise without having to account for the same to the      Lenders or the Swap Bank. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 24.6 | Indemnification of the Agent and the Security      Trustee.  The Lenders agree to      indemnify each of the Agent and the Security Trustee (to the extent not      reimbursed under other provisions of this Agreement, but without limiting      the obligations of either Obligor under said other provisions), ratably in      accordance with the aggregate principal amount of each Lender’s      participation in the Loan, for any and all liabilities, obligations,      losses, damages, penalties, actions, judgments, suits, costs, expenses or      disbursements of any kind and nature whatsoever that may be imposed on,      incurred by or asserted against the Agent or the Security Trustee in any      way relating to or arising out of this Agreement or any other Finance      Document or any other documents contemplated by or referred to herein or      therein or the transactions contemplated hereby or thereby (including the      costs and expenses that the Borrower is to pay hereunder, but excluding,      unless an Event of Default shall have occurred and be continuing, normal      administrative costs and expenses incident to the performance of their      respective agency duties hereunder) or the enforcement of any of the terms      hereof or thereof or of any such other documents, except that no Lender      shall be liable for any of the foregoing to the extent they arise from the      gross negligence or willful misconduct of the party to be      indemnified. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.7 | Reliance on Agent or Security      Trustee.  Each of the Lenders and the Swap Bank agrees      that it has, independently and without reliance on the Agent, the Security      Trustee or any other Credit Party, and based on such documents and      information as it has deemed appropriate, made its own credit analysis of      the Borrower and the Guarantor and decision to enter into this Agreement      and that it will, independently and without reliance upon the Agent, the      Security Trustee or any other Credit Party, and based on such documents      and information as it shall deem appropriate at the time, continue to make      its own analysis and decisions in taking or not taking action under this      Agreement or any of the Finance Documents.  None of the Agent or      the Security Trustee shall be required to keep itself informed as to the      performance or observance by either of the Obligors of its obligations      under this Agreement or any other Finance Document or any other document      referred to or provided for herein or therein or to inspect the properties      or books of either Obligor.  Except for notices, reports and      other documents and information expressly required to be furnished to the      Lenders and the Swap Bank by the Agent or the Security Trustee hereunder,      neither the Agent nor the Security Trustee shall have any duty or      responsibility to provide any Lender or the Swap Bank with any credit or      other information concerning the affairs, financial condition or business      of the Borrower or the Guarantor or any of their respective parents,      subsidiaries or Affiliates that may come into the possession of the Agent,      the Security Trustee or any of their respective  Affiliates. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.8 | Actions by Agent and Security      Trustee.  Except for action expressly required of the      Agent or the Security Trustee hereunder and under the other Finance      Documents, each of the Agent and the Security Trustee shall in all cases      be fully justified in failing or refusing to act hereunder and thereunder      unless it shall receive further assurances to its satisfaction from the      Lenders of their indemnification obligations under Clause 24.6      against any and all liability and expense that may be incurred by it by      reason of taking or continuing to take any such  action. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.9 | Resignation and      Removal.  Subject to the appointment and acceptance of a      successor Agent or Security Trustee (as the case may be) as provided      below, each of the Agent and the Security Trustee may resign at any time      by giving notice thereof to the Lenders, the Swap Bank and the Obligors,      and the Agent or the Security Trustee may be removed at any time |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | with      or without cause by the Majority Lenders.  Upon any such      resignation or removal, the Majority Lenders shall have the right to      appoint a successor Agent or Security Trustee, as the case may be, which      shall be a Lender, or a Lender with an Affiliate, that has an office in      New York, New York.  If no successor Agent or Security Trustee,      as the case may be, shall have been so appointed by the Lenders or, if      appointed, shall not have accepted such appointment within 30 days after      the retiring Agent’s or Security Trustee’s, as the case may be, giving of      notice of resignation or the Majority Lenders’ removal of the retiring      Agent or Security Trustee, as the case may be, then the retiring Agent or      Security Trustee, as the case may be, may, on behalf of the Lenders,      appoint a successor Agent or Security Trustee, as the case may be, which      shall be a Lender, or a Lender with an Affiliate, that has an office in      New York, New York.  Upon the acceptance of any appointment as      Agent or Security Trustee hereunder by a successor Agent or Security      Trustee, such successor Agent or Security Trustee, as the case may be,      shall thereupon succeed to and become vested with all the rights, powers,      privileges and duties of the retiring Agent or Security Trustee, as the      case may be, and the retiring Agent or Security Trustee shall be      discharged from its duties and obligations hereunder.  After any      retiring Agent’s or Security Trustee’s resignation or removal hereunder as      Agent or Security Trustee, as the case may be, the provisions of this      Clause 24 shall continue in effect for its benefit in respect of any      actions taken or omitted to be taken by it while it was acting as the      Agent or the Security Trustee, as the case maybe. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.10 | Release of      Collateral.  Without the prior written consent of all of      the Lenders and the Swap Bank, neither the Agent nor the Security Trustee      shall consent to any modification, supplement or waiver under any Finance      Document or release any Collateral or otherwise terminate any lien under      any Finance Document, except that no such consent shall be required, and      each of the Agent and the Security Trustee shall be authorized, to release      any lien covering property that is the subject of a disposition of      property permitted hereunder or to which the Lenders and the Swap Bank      have consented. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25 | LAW      AND JURISDICTION |
|----|---------------------------|

| 25.1 | Governing      Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED      IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW  YORK. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Consent to      Jurisdiction. |
|------|-------------------------------|

|   | (a) | Each      of parties hereto irrevocably and unconditionally submits, for itself and      its property, to the nonexclusive jurisdiction of any New York State court      or Federal court of the United States of America sitting in New York      County, and any appellate court thereof, in any action, suit or proceeding      arising out of or relating to this Agreement or any other Finance Document      or for recognition or enforcement of any judgment, and each of the parties      hereto hereby irrevocably and unconditionally agrees that all claims in      respect of any such action, suit or proceeding may be heard and determined      in such New York State Court or, to the extent permitted by law, in such      Federal court.  Each of the parties hereto agrees that a final      judgment in any such action, suit or proceeding shall be conclusive and      may be enforced in other jurisdictions by suit on the judgment or in any      other manner provided by law. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Nothing      in this Clause 25.2 shall affect the right of any Credit Party to      bring any action or proceeding against an Obligor or its property in the      courts of any other jurisdiction where such action or proceeding may be      heard. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Each      of the parties hereto irrevocably and unconditionally waives, to the      fullest extent it may legally and effectively do so, any objection that it      may now or hereafter have to the laying of venue of any suit, action, suit      or proceeding arising out of or relating to this Agreement or any other      Finance Document in any New York State or Federal court and the defense of      an inconvenient forum to the maintenance of such action, suit or      proceeding in any such court and any immunity from jurisdiction of any      court or from any legal process with respect to themselves or their      property. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Each      Obligor irrevocably appoints Seward & Kissel LLP, with an office at      One Battery Park Plaza, New York, New York 10004 U.S.A., as its agent to      receive on its behalf service of copies of the summons and complaint and      any other process which may be served in any such action, suit or      proceeding.  If the appointment of Seward & Kissel LLP as      agent pursuant to the preceding sentence shall cease to be effective as to      any Obligor or Seward & Kissel LLP shall at any time cease to have an      office in New York County, each of the Obligors shall immediately appoint      another person having an office in New York County and otherwise      acceptable to the Agent to accept service on its behalf.  If      Seward & Kissel LLP shall at any time change its name or shall move      its office in the County of New York from One Battery Park Plaza, New      York, New York 10004 U.S.A., each Obligor shall promptly notify the each      of the Lenders, the Swap Bank and the Agent of such new name or address,      as the case may be.  Each Obligor hereby consents to service of      process in connection with the subject matter specified in the first      sentence of Clause 25.2(a) by registered or certified mail, FedEx,      DHL or similar courier at the address to which notices to it are to be      given, it being agreed that service in such manner shall constitute valid      service upon such party or its respective successors or assigns in      connection with any such action or proceeding only; provided, that nothing      in this Clause 25.2(d) shall affect the right of any party to serve      legal process in any other manner permitted by applicable    law. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.3 | Rights      unaffected.  Nothing in this Clause 25 shall exclude      or limit any right a Credit Party may have (whether under the law of any      country, an international convention or otherwise) with regard to the      bringing of proceedings, the service of process, the recognition or      enforcement of a judgment or any similar or related matter in any      jurisdiction. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.4 | Meaning of      “proceedings”.  In this Clause 25, “proceedings” means      proceedings of any kind, including an application for a provisional or      protective measure. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26 | PATRIOT      ACT |
|----|------------------|

----

| 27 | WAIVER      OF JURY TRIAL |
|----|---------------------------|

----

|   | JAPAN      II SHIPPING COMPANY LIMITED  By:           /s/ Arthur      LichtensteinName:       Arthur LichtensteinTitle:       Attorney-in-Fact                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | TOP      SHIPS INC.,as      Guarantor By:           /s/ Arthur      LichtensteinName:       Arthur LichtensteinTitle:       Attorney-in-Fact                              |
|   | DVB      BANK AG,as      Swap Bank By:           /s/  John F.      Imhof, Jr.Name:       John F. Imhof, Jr.Title:       Attorney-in-Fact                             |
|   | DVB      BANK AMERICA N.V.,as      Agent and Security Trustee  By:          /s/  John F. Imhof,      Jr.Name:       John F. Imhof, Jr.Title:       Attorney-in-Fact  |

----

|   | INITIAL      LENDER(S): DVB      BANK AMERICA N.V.,as      Initial Lender  By:           /s/ John F. Imhof,      Jr.Name:       John F. Imhof, Jr.Title:       Attorney-in-Fact  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Lender                           |                                                                                                                                                                                                                          | Commitment        |
|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|
|  DVB      BANK AMERICA N.V. |                                                                                                                                                                                                                          |  $48,000,000 |
|  Lending      Office:       |  DVB      Bank America N.V.Zeelandia      Office ParkKaya      W.F.G. Mensing 14P.O.      Box 3107Curaçao,      NETHERLANDS ANTILLES                                                                                |              |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|  Address for      Notices:  |  DVB      Bank America N.V.Zeelandia      Office ParkKaya      W.F.G. Mensing 14P.O.      Box 3107Curaçao,      NETHERLANDS ANTILLESAttention:  Natascha      BloemFacsimile:  +599-9-465-2366; |              |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |              |
|                             | with      a copy to:                                                                                                                                                                                                          |              |
|                             |                                                                                                                                                                                                                          |              |
|                             | DVB      Bank AGRepresentative      Office – Greece95      Akti Miaouli185      35 Piraeus, GREECEAttention:  Nikolas      ChontzopoulosFacsimile:  +30-210-455-7420                                |              |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |
|                             |                                                                                                                                                                                                                          |

----

| To:    | DVB      Bank America N.V., as AgentZeelandia      Office ParkKaya      W.F.G. Mensing 14P.O.      Box 3107Curaçao,      Netherlands AntillesAttention:  Natascha      BloemFacsimile:      +599-9-465-2366 |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                       |
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|   |                                                                                                                                                                                                                       |   |
| cc:    | DVB      Bank AGRepresentative      Office – Greece95      Akti Miaouli185      35 Piraeus, GREECEAttention:  Nikolas      ChonzopoulosFacsimile:      +30-210455-7420                                     |   |
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|   |                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                       |
|   | Date:      ________, 2008                                                                                                                                                                                                  |

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

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

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| By: | ___________________________Name:Title: |
|-----|----------------------------------------|

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| 1. | An      original of each Finance Document (other than those Finance Documents to      be delivered in connection with the Ship pursuant to paragraph 2 of Part B      hereof) and each document required to be delivered by each such Finance      Document, each duly executed by each party  thereto; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Copies      of the constitutional documents, and each amendment thereto, of each      Obligor, certified as of a date reasonably near the date of the relevant      Drawdown Notice by the president or the secretary (or equivalent officer)      of such party as being a true and correct copy  thereof; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Copies      of certificates dated as of a date reasonably near the date of the      Drawdown Notice, certifying that each Obligor is duly incorporated and in      good standing under the laws of such party’s jurisdiction of      incorporation; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Copies      of resolutions of the directors (or equivalent governing body) (and where      required, the shareholders or equivalent equity holders)    of: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | each      Obligor authorizing the execution of each of the Finance Documents to      which such Obligor is or is to be a party (and additionally, in the case      of the Borrower, the Memorandum of Agreement) and authorizing named      officers or attorneys-in-fact to execute such documents and, in the case      of the Borrower, to give the Drawdown Notice and other notices required by      the Finance Documents; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      seller under the Memorandum of Agreement authorizing the execution of the      Memorandum of Agreement and authorizing named officers or      attorneys-in-fact to execute such documents and to give any notices      required thereunder, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The      original or a certified copy of any power of attorney under which any      Finance Document is to be executed on behalf of an  Obligor; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Copies      of all consents that any of the Obligors requires to enter into, or make      any payment or perform any of its obligations under or in connection with      the transactions contemplated by this Agreement and the Finance Documents,      each certified as of a date reasonably near the date of the relevant      Drawdown Notice by the president or the secretary (or equivalent officer)      of such party as being a true and correct copy thereof, or certification      by such president or secretary (or equivalent officer) that no such      consents are required; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7. | A      copy of the Memorandum of Agreement, to be in form and substance      acceptable to the Majority Lenders and certified as of a date reasonably      near the date of the relevant Drawdown Notice by the president or the      secretary (or equivalent officer) of the Borrower as being a true and      correct copy thereof and furthercertifying; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | such      document remains valid and in full force and effect as of the anticipated      delivery date of the Ship; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      seller in respect of the Memorandum of Agreement is not in default under      the terms of such document; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (c) | there      is no pending dispute or arbitration proceeding arising out of or in      connection with any such document;and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

| 8. | Documentary      evidence that Seward & Kissel LLP has accepted its appointment as      agent for service of process in respect of each  Obligor. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | All      know-your-customer information and information under applicable      anti-money laundering rules and regulations, in each case as requested by      any Lender in connection with its internal compliance regulations, under      the PATRIOT Act, applicable EU regulations or      otherwise. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | A      certificate of each Obligor, signed on behalf of each such party by the      president or the secretary (or equivalent officer) of such party, dated as      of the Expected Drawdown Date (the statements made in such certificate      shall be true on and as of the Expected Drawdown Date), certifying as      to: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      absence of any amendments to the constitutive documents of such party      since the date of the certificate referred to in paragraph 2 of      Part A above; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      absence of any proceeding for the dissolution or liquidation of such      party; |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (c) | the      veracity in all material respects of the representations and warranties      contained in this Agreement and the other Finance Documents as though made      on and as of the Expected DrawdownDate; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      absence of any material misstatement of fact in any information provided      by the Obligors to the Agent, the Security Trustee or any Lender and that      such information did not omit to state any material fact necessary to make      the statements therein, in the light of the circumstances under which they      were made, not misleading; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      absence of any event occurring and continuing, or that would result from      the making of the Advance, that constitutes or would constitute a      Potential Event of Default or an Event of  Default; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 2. | A      duly executed original of the Mortgage, Insurance Assignment, Earnings      Assignment, Charter Assignment and Manager’s Undertakings (and of each      document required to be delivered thereby), duly executed by each party      thereto, and documentary evidence that the Security Interest created by      such Finance Documents have been dulyperfected; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      Ship has been unconditionally delivered by the seller to, and      unconditionally accepted by, the Borrower in accordance with all of the      terms and conditions of the Memorandum of Agreement, free and clear of all      liens and encumbrances, together with a copy, certified as of the relevant      Expected Drawdown Date by the president or the secretary (or equivalent      officer) of the Borrower as being a true and correct copy of the original,      of: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Protocol of Delivery and Acceptance for the Ship, duly executed by the      seller and the relevant Borrower; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      Bill of Sale delivered by the seller to the  Borrower; |
|--------|------|-----------------------------------------------------------------|

|   | (iii) | the      commercial invoice issued by the seller to the  Borrower; |
|--------|-------|--------------------------------------------------------------------|

|   | (iv) | the      corporate authorities of the seller permitting such seller to sell the      Ship to the Borrower under the terms of the Memorandum of Agreement;      and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | each      charter in effect with respect to theShip; |
|--------|-----|------------------------------------------------------|

|   | (b) | there      is no pending dispute or arbitration proceedings arising out of or in      connection with the Memorandum of Agreement, which may be established by a      certificate dated as of the relevant Expected Drawdown Date by the      president, the secretary or an equivalent officer of the      Borrower; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Ship is registered in the name of the Borrower under Liberian registry,      free of all recorded liens and encumbrances, save as contemplated by the      Finance Documents (which shall be established by a Certificate of      Ownership and Encumbrance issued by the appropriate Liberian authorities      stating that the Ship is owned by the Borrower and that there are on      record no other mortgages, liens or other encumbrances on the Ship except      the Mortgage); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the      Mortgage has been preliminarily registered against the Ship as a valid      first preferred ship mortgage in accordance with the laws of Liberia and      the Security Interest created by the Mortgage shall have been duly      perfected; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      Ship is classed with the Classification Society in the highest      classification and rating for vessels of the same age and type without any      outstanding conditions or recommendations affecting class (other than      those for which the time prescribed for curing the condition or      recommendation has not passed), which shall be established by a      Confirmation of Class Certificate issued by the Classification Society of      the Ship and dated a date reasonably near the relevant Expected Drawdown      Date; a “Class Statement” or similar instrument shall not be acceptable      for purposes of this clause; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (f) | the      Ship: |
|--------|-----|----------------|

|   | (i) | is      insured in compliance with the terms of the Mortgage, including      mortgagee’s interest and loss of hireinsurance; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | is      or will be managed by the Approved Manager and the relevant Approved      Technical Submanager in accordance with management agreements acceptable      to the Agent; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | has      been inspected and found to be in a satisfactory condition by an inspector      appointed by the Agent at the cost of the Borrower;  and |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | if      chartered to an Approved Charterer, the Ship has been unconditionally      delivered by the Borrower to, and unconditionally accepted by, such      Approved Charterer in accordance with all of the terms and conditions of      the relevant Approved Charter, together with a copy, certified as of the      Expected Drawdown Date by the president or the secretary (or equivalent      officer) of the Borrower as being a true and correct copy of the original,      of the Protocol of Delivery and Acceptance for the Ship, duly executed by      the Borrower and such ApprovedCharterer; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | A      certificate by the president or the secretary (or equivalent officer) of      the Borrower, or a certificate of the Approved Manager, identifying and      giving the address and other communication details of the ISM Responsible      Person(s) for the Ship; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Copies      of the Document of Compliance and Safety Management Certificate referred      to in paragraph (a) of the definition of the ISM Code Documentation      for the Ship, certified as true and in effect by the president or the      secretary (or equivalent officer) of the Borrower or the Approved Manager,      provided that the Borrower may deliver to the Agent on or before the      Expected Drawdown Date an undertaking, in form and substance satisfactory      to the Agent, to deliver a copy of the Safety Management Certificate to      the Agent within ten Business Days after the relevant Expected Drawdown      Date; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Copies      of such other ISM Code Documentation as the Agent may have requested by      written notice to the Borrower not later than two days before the relevant      Expected Drawdown Date, certified as true and complete in all material      respects by the Borrower or the relevant Approved  Manager; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Ship has and will maintain for the duration of the Security Period a valid      International Ship Security Certificate (and either a true copy of such      International Ship Security Certificate shall be attached to such      Borrower’s certification or the Borrower shall undertake to deliver a      certified copy of such certificate as soon as it becomes      available); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      security system of the relevant Ship and associated security equipment      complies with, and at all times during the Security Period will comply      with, the applicable requirements of Chapter XI-2 of SOLAS and Part A of      the ISPS Code; and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (iii) | an      approved ship security plan is in place and will be maintained at all      times during the Security Period. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------|

| 8. | A      favorable opinion of Watson, Farley & Williams (New York) LLP, New      York, Marshall Islands and Liberian counsel for the Credit Parties, in      form, scope and substance satisfactory to the Credit    Parties; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | A      favorable opinion of Seward & Kissel LLP, New York, Marshall Islands      and Liberian counsel for the Obligors, in form, scope and substance      satisfactory to the Credit Parties;and |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Documentary      evidence that it has funds adequate to cover the acquisition cost of the      Ship five Business Days prior to the Ship’s expected delivery      date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   |  TOP      SHIPS INC.                                                     |
|--------|--------|-------------------------------------------------------------------------------|
|   |   |                                                                          |
|   |   |                                                                          |
|   | By:    | _______________________________Name:Title:  Chief Financial      Officer |

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| Clause      10.1(v)(i):  Cash in Bank Accounts:                                                                                                                                           |                                   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|
|                                                                                                                                                                                                |                                   |
| Names      of members of the Group as ofthe      Statement Date:                                                                                                                                    |  ______________________________   |
|                                                                                                                                                                                                |                                   |
| Cash      in bank accounts in the name ofthe      Guarantor or in the name of any ofa      member of the Group (excluding anybank      accounts that shall besubject      to any Security Interest) |     $_____________ |
|                                                                                                                                                                                                | [itemize      by bank and Groupmember] |

| I.     | Total      Debt:                                                                                                                                                                                                                           |   |                             |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|
| (a)    | moneys      borrowed or raised by the Guarantor and its subsidiaries                                                                                                                                                                       |   |  $_____________        |
|   |                                                                                                                                                                                                                                       |   |                             |
| (b)    | bonds,      notes, loan stock, debentures, commercial paper or other debt securities      issued by the Guarantor or any of its subsidiaries not for the time being      beneficially owned by the Guarantor or any of its    subsidiaries |   |   $_____________  |
|   |                                                                                                                                                                                                                                       |   |                             |
| (c)    | sums      outstanding under acceptances by the Guarantor or any of its subsidiaries      or by any bank or acceptable house under acceptance credits opened on      behalf of the Guarantor or any subsidiary                              |   |   $_____________  |
|   |                                                                                                                                                                                                                                       |   |                             |
| (d)    | deferred      indebtedness of the Guarantor or any of its subsidiaries for payment of      the acquisition or construction price for assets or services acquired or      constructed                                                       |   |   $_____________       |
|   |                                                                                                                                                                                                                                       |   |                             |
| (e)    | rental      payments under Finance Leases                                                                                                                                                                                                  |   | $_____________                   |
|   |                                                                                                                                                                                                                                       |   |                             |
| (f)    | receivables      sold or discounted with a right of recourse to the Guarantor or any of its      subsidiaries                                                                                                                              |   |  $_____________             |
|   |                                                                                                                                                                                                                                       |   |                             |

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| (g)                                                                                                                  | the      nominal amount of any issued and paid up share capital (other than equity      share capital) of any subsidiary not beneficially owned by the Guarantor      or another subsidiary                                                                                                |                       | $____________            |
|----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|--------------------------|
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |                     |
| (h)                                                                                                                  | preference      share capital redeemable prior to the last day of the Security      Period                                                                                                                                                                                                 |                       | $____________            |
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |                     |
| (i)                                                                                                                  | over      all or any part of the undertaking, property, assets, rights or revenues      of the Guarantor or any of its subsidiaries irrespective of whether or not      such indebtedness is supported by a personal covenant on the part of the      Guarantor or any of its subsidiaries |                       | $____________            |
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |                     |
| (j)                                                                                                                  | indebtedness      incurred in respect of swaps, forward exchange contracts, futures or other      derivatives                                                                                                                                                                              |                       |                     |
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |                     |
| (k)                                                                                                                  | any      other liability arising from a transaction having the commercial effect of      a borrowing or the raising of money                                                                                                                                                               |                       | $_____________      plus |
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |                     |
| (l)                                                                                                                  | obligations      under guarantees in respect of the obligations of any other person which,      if such person were the Guarantor or a subsidiary would fall within      paragraphs (a) to (k) above                                                                                       |                       | $_____________           |
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |                     |
| minus:                                                                                                               |                                                                                                                                                                                                                                                                                       |                       |                     |
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |                     |
| moneys      owing by the Guarantor to a subsidiary or by a subsidiary to the Guarantor      or to another subsidiary |                                                                                                                                                                                                                                                                                       | $_____________      equals |
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |
| Total      Debt =                                                                                                    |                                                                                                                                                                                                                                                                                       | $_____________             |
|                                                                                                                 |                                                                                                                                                                                                                                                                                       |                       |                     |

| The      principal amount of Total Debt deemed to be outstanding in relation to      Finance Leases or hire purchase agreements shall be the present value of      the minimum lease or hire payments discounted at the interest rate      implicit in the relevant lease or hire purchase  agreement |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| II.                  Total Market Value Adjusted      Assets                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                               |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The      value (less depreciation computed in accordance with generally accepted      international accounting principles consistently applied) on a      consolidated basis of all tangible fixed assets of the Group, , including      long-term cash receivables (seller’s credit), as stated in the relevant      consolidated financial statements of the Group, but excluding any Relevant      Ships                |                                                                                                                                                                                                                                               | $_____________      plus  |
| (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | the      aggregate of the market value of the Relevant Ships,  as such      market value shall have been most recently determined (as of the date of      the relevant calculation) pursuant to Clause 10.1(v) by means of      valuations obtained by the Agent in accordance therewith (and not the      value of the Relevant Ships as stated in the relevant consolidated      financial statements of the Group)  |                                                                                                                                                                                                                                               | $_____________      equals  |
| Total      Market Value Adjusted Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                  | $_____________.                                                                                                                                                                                                                                    |
| Net      Asset Value (Total Debt minus Total Market      Value Adjusted Assets) as of the Statement Date                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                      $_____________  |
| Clause 10.1(v)(iii):  Book      Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                               |
| Aggregate      of the amounts paid-up or credited as paid-up on the Guarantor’s issued      share capital and the amount of the consolidated capital and revenue      reserves of the Group (including any share premium account, capital      redemption reserve fund and any credit balance on the consolidated profit      and loss account of the Group) all as shown by the latest audited      consolidated balance sheet and profit and loss account of the Group      delivered under the Loan Agreement  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |            $_____________ minus                                                                                                                                                                                           |
| (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | any      debit balance on such consolidated profit and loss account                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                               | $_____________  |
| (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | any      amount shown in such consolidated balance sheet in respect of goodwill      (including goodwill arising on consolidation) and other intangible      assets                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                               | $_____________ |

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| (c) | so      far as not otherwise excluded as attributable to minority interests, a sum      equal to the aggregate of the amount of which the book value of any fixed      assets of any member of the Group has been written up after      December 31, 2005 (or, in the case of a company becoming a subsidiary      after that date, the date on which that company became a subsidiary) by      way of revaluation and, for the purposes of this paragraph (c) any      increase in the book value of any fixed assets resulting from its transfer      by one member of the Group to another member of the Group shall be deemed      to result from a writing up of its book value by way of      revaluation  |   | $_____________                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (d) | amounts      set aside for taxation as at the date of such balance sheet and making      such adjustments as may be appropriate in respect of any significant      additional taxation expected to result from transactions carried out by      any member of the Group after such date and not reflected in      that  balance sheet                                                                                                                                                                                                                                                                                                                                                                            |   | $_____________                                 |
| (e) | all      amounts attributable to minority interests in subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $_____________  and      plus/minus  |
| (f) | adjustments      appropriate in respect of any variation in the amount of such paid up      spare capital or any such reserves after the of the attached financial      statements (but so that no such adjustment shall be made in respect of any      variation in profit and loss account except to the extent of any profit or      loss, calculated on a cumulative basis, recorded in the consolidated      profit and loss account of the Group delivered to the Agent before the      date of this Agreement, or under Clause 10.1(g) in respect of any      subsequent period)                                                                                                                               |   | $_____________  plus/minus           |
| (g) | adjustments      appropriate in respect of any distribution declared, recommended or made      by any member of the Group (otherwise than attributable directly or      indirectly to the Guarantor) out of profits earned up to and including the      date of the latest audited balance sheet of that member of the Group to      the extent that such distribution is not provided for in that balance      sheet                                                                                                                                                                                                                                                                                                      |   | $_____________      plus/minus                 |

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| (h)                                                  | adjustments      appropriate in respect of any variation in the interests of the Guarantor      in its subsidiaries since the date of the latest published audited      consolidated balance sheet of the Group                                                                             |                                                                                                                                                                                                                                                                                                 | $_____________      and plus/minus  |
|------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
| (i)                                                  | if      the calculation is required for the purpose of or in connection with a      transaction under or in connection with when any company is to become or      cease to be a subsidiary of the Guarantor, adjustments appropriate if that      transaction has been carried into effect  |                                                                                                                                                                                                                                                                                                 | $____________      equals           |
| Book      Equity  as of the Statement Date |                                                                                                                                                                                                                                                                                             |                                                   $_______________  |

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| [NAME      OF ASSIGNOR]                                                                                                      | [NAME      OF ASSIGNEE]                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
| By:  _____________________________                                                                                                     | By:  _____________________________ |
| Name:                                                                                                                                            | Name:                                        |
| Title:                                                                                                                                           | Title:                                       |
|                                                                                                                                             |                                         |
|        Address      for Notices to the Assignee:____________________________________________________________________________________        |                                         |
|                                                                                                                                             |                                         |
|        Address      of Assignee’s Lending Office:____________________________________________________________________________________ |                                         |

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| By:    |  _______________________ |
|--------|-------------------------------|
|   | Name:                         |
|   | Title:                        |