|   |                                                      |   |
|--------|-----------------------------------------------------------|--------|
|   |                                                      |   |
|   |  US$48,000,000      SECUREDLOAN      AGREEMENT  |   |
|   |                                                      |   |

----

| 1   | Definitions      and Interpretation     | 1  |
|-----|-----------------------------------------|----|
| 2   | The      Loan and its Purpose           | 10 |
| 3   | Conditions      of Utilisation          | 11 |
| 4   | Advance                                 | 11 |
| 5   | Repayment                               | 12 |
| 6   | Prepayment                              | 12 |
| 7   | Interest                                | 14 |
| 8   | Indemnities                             | 16 |
| 9   | Fees                                    | 20 |
| 10  | Security      and Application of Moneys | 23 |
| 11. | Representations                         | 23 |
| 12  | Undertakings      and Covenants         | 26 |
| 13  | Events      of Default                  | 34 |
| 14  | Assignment      and Sub-Participation   | 38 |
| 15  | Set-Off                                 | 38 |
| 16  | Payments                                | 39 |
| 17  | Notices                                 | 40 |
| 18  | Partial      Invalidity                 | 41 |
| 19  | Remedies      and Waivers               | 42 |
| 20  | Miscellaneous                           | 42 |
| 21  | Law      and jurisdiction.              | 43 |

----

| SCHEDULE      1: Conditions Precedent and Subsequent                                          | 45     |
|-----------------------------------------------------------------------------------------------|--------|
| Part      I: Conditions precedent                                                             | 45     |
| Part      II Conditions subsequent                                                            | 50     |
|  SCHEDULE      3: Form of Drawdown Notice                                                | 51     |
|  JAPAN      III SHIPPING COMPANY LIMITED SCHEDULE 4: Form of Compliance      Certificate | 51     |
|                                                                                          |   |
| SCHEDULE      4: Form of Compliance Certificate                                               | 52     |

----

| (1) | JAPAN III SHIPPING COMPANY      LIMITED, a company incorporated under the laws of the Republic of      Liberia whose registered office is at 80 Broad Street Monrovia, Liberia      (the "Borrower");      and  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | ALPHA BANK A.E., acting      through its office at 89 Akti Miaouli, GR 185 38 Piraeus, Greece (the      "Lender").  |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (A) | The      Borrower has agreed to purchase the Vessel from the Seller on the terms of      the MOA and intends to register the Vessel under the flag of the Republic      of Liberia.  |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | The      Lender has agreed to advance to the Borrower an amount not exceeding forty      eight million Dollars ($48,000,000) representing sixty five per centum      (65%) of the Purchase Price to assist the Borrower to finance part of the      Purchase Price.  |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.1 | In      this Agreement:  |
|--------|-----|-------------------------------|

----

----

----

|   | (a) | moneys      borrowed;  |
|--------|-----|-----------------------------|

|   | (b) | any      acceptance credit;  |
|--------|-----|-----------------------------------|

|   | (c) | any      bond, note, debenture, loan stock or similar instrument;  |
|--------|-----|-------------------------------------------------------------------------|

|   | (d) | any      finance or capital lease;  |
|--------|-----|------------------------------------------|

|   | (e) | receivables      sold or discounted (other than on a non-recourse basis);  |
|--------|-----|---------------------------------------------------------------------------------|

|   | (f) | deferred      payments for assets or services;  |
|--------|-----|------------------------------------------------------|

|   | (g) | any      derivative transaction protecting against or benefiting from fluctuations      in any rate or price (and, when calculating the value of any derivative      transaction, only the marked to market value shall be taken into      account);  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | any      amount raised under any other transaction (including any forward sale or      purchase agreement) having the commercial effect of a      borrowing;  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      counter-indemnity obligation in respect of a guarantee, indemnity, bond,      standby or documentary letter of credit or any other instrument issued by      a bank or financial institution; and  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | the      amount of any liability in respect of any guarantee or indemnity for any      of the items referred to in paragraphs (a) to (i) above.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Guarantor" means Top      Tankers Inc., a company incorporated under the laws of the Marshall      Islands, having its registered office at the Trust Company Complex, |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (a) | the      applicable Screen Rate; or  |
|--------|-----|-------------------------------------------|

|   | (b) | (if      no Screen Rate is available for any Interest Period) the arithmetic mean      of the rates (rounded upwards to the nearest whole multiple of      one-sixteenth of one per centum) quoted to the Lender in the London      interbank market,  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

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

|   | (b) | the      requisition for title or compulsory acquisition of the Vessel by any      government or other competent authority (other than by way of requisition      for hire); or  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      capture, seizure, arrest, detention or confiscation of the Vessel by any      government or by persons acting or purporting to act on behalf of any      government, unless the Vessel is released and returned to the possession      of the Borrower within forty five (45) days after the capture, seizure,      arrest, detention or confiscation in question.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2 | In      this Agreement:  |
|--------|-----|-------------------------------|

|   | 1.2.1 | words      denoting the plural number include the singular and vice      versa;  |
|--------|-------|---------------------------------------------------------------------------------------|

|   | 1.2.2 | words      denoting persons include corporations, partnerships, associations of      persons (whether incorporated or not) or governmental or      quasi-governmental bodies or authorities and vice versa;  |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2.3 | references      to Recitals, Clauses and Schedules are references to recitals, clauses and      schedules to or of this Agreement;  |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1.2.4 | references      to this Agreement include the Recitals and the Schedules;  |
|--------|-------|---------------------------------------------------------------------------------|

|   | 1.2.5 | the      headings and contents page(s) are for the purpose of reference only, have      no legal or other significance, and shall be ignored in the interpretation      of this Agreement;  |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2.6 | references      to any document (including, without limitation, to all or any of the      Relevant Documents) are, unless the context otherwise requires, references      to that document as amended, supplemented, novated or replaced from time      to time;  |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2.7 | references      to statutes or provisions of statutes are references to those statutes, or      those provisions, as from time to time amended, replaced or      re-enacted;  |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2.8 | references      to the Lender include its successors, transferees and assignees;      and  |
|--------|-------|-------------------------------------------------------------------------------------------------|

|   | 1.2.9 | a      time of day (unless otherwise specified) is a reference to London      time.  |
|--------|-------|-------------------------------------------------------------------------------------------|

|   | 1.3 | Offerletter  |
|--------|-----|-------------------|

|   | 2.1 | Amount Subject to the      terms of this Agreement, the Lender agrees to make available to the      Borrower a term loan in an aggregate amount not exceeding the Maximum Loan      Amount.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.7 | Purpose The Borrower      shall apply the Loan for the purposes referred to in Recital      (B).  |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | 2.3 | Monitoring The Lender      shall not be bound to monitor or verify the application of any amount      borrowed under this Agreement.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3.1 | Conditions precedent The      Borrower is not entitled to have the Loan advanced unless the Lender has      received all of the documents and other evidence listed in Part I of      Schedule 1 (Conditions      precedent).  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Further conditions precedent      The Lender will only be obliged to advance the Loan if on the date      of the Drawdown Notice and on the proposed Drawdown Date:  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2.1 | no      Default is continuing or would result from the advance of the Loan:      and;  |
|--------|-------|---------------------------------------------------------------------------------------------|

|   | 3.2.2 | the      representations made by the Borrower under Clause I1 (Representations) are      true in all material respects.  |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------|

|   | 3.3 | Conditions subsequent      The Borrower undertakes to deliver or to cause to be delivered to      the Lender on, or as soon as practicable after, the Drawdown Date the      additional documents and other evidence listed in Part II of Schedule I      (Conditions      subsequent).  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.4 | No Waiver If the Lender      in its sole discretion agrees to advance all or any part of the Loan to      the Borrower before all of the documents and evidence required by Clause      3.1 (Conditions      precedent) have been delivered to or to the order of the Lender,      the Borrower undertakes to deliver all outstanding documents and evidence      to or to the order of the Lender no later than thirty (30) days after the      Drawdown Date or such other date specified by the Lender.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.5 | Form and content All      documents and evidence delivered to the Lender under this Clause 3      shall:  |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | 3.5.1 | be      in form and substance acceptable to the Lender; and  |
|--------|-------|-------------------------------------------------------------------|

|   | 3.5.2 | if      required by the Lender, be certified, notarised, legalised or attested in      a manner acceptable to the Lender.  |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------|

----

|   | 5.1 | Repayment of Loan The      Borrower agrees to repay the Loan to the Lender by thirty two (32)      consecutive quarterly instalments, the first four such instalments      (1st-4th) each in the sum of two million seven hundred and fifty thousand      Dollars ($2,750,000), the following four such instalments (5th-8th) each      in the sum of two million two hundred and fifty thousand Dollars      ($2,250,000), the following four such instalments (9th-12th) each in the      sum of one million two hundred and fifty thousand Dollars ($1,250,000) and      the following nineteen such instalments (13th-31st) each in the amount of      seven hundred and fifty thousand Dollars ($750,000) and the thirty second      (32nd) and final instalment in the amount of eight million seven hundred      and fifty thousand Dollars ($8,750,000) (consisting of an instalment of      seven hundred and fifty thousand Dollars ($750,000) and a balloon payment      of eight million Dollars ($8,000,000) (the "Balloon Payment") the      first instalment falling due on the date which is three calendar months      after the Drawdown Date and subsequent instalments falling due at      consecutive intervals of three calendar months thereafter with the last      instalment falling due on the Final Maturity Date.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.2 | Reduction of Repayment      Instalments If the aggregate amount advanced to the Borrower is      less than the Maximum Loan Amount, the amount of each Repayment Instalment      shall be reduced pro rata to the amount actually advanced.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3 | Reborrowing The Borrower      may not reborrow any part of the Loan which is repaid or      prepaid.  |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | 6.1 | Illegality If it becomes      unlawful in any jurisdiction for the Lender to perform any of its      obligations as contemplated by this Agreement or to fund or maintain the      Loan:  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.1.1 | the      Lender shall promptly notify the Borrower of that event; and  |
|--------|-------|-----------------------------------------------------------------------------|

----

|   | 6.1.2 | the      Borrower shall repay the Loan (to the extent already advanced) on the last      day of the current Interest Period or, if earlier, the date. specified by      the Lender in the notice delivered to the Borrower (being no earlier than      the last day of any applicable grace period permitted bylaw).  |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.2 | Voluntary prepayment of Loan      The Borrower may prepay the. whole or any part of the Loan (but, if      in part, being an amount that reduces the Loan by a minimum amount of five      hundred thousand Dollars ($500,000) or integral multiples thereof) subject      as follows:  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.2.1 | it      gives the Lender not less than fifteen (15) Business Days' (or such      shorter period as the Lender may agree) prior notice;  |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.2.2 | no      prepayment may be made until after the Availability Termination Date;      and  |
|--------|-------|----------------------------------------------------------------------------------------------|

|   | 6.2.3 | any      prepayment under this Clause 6.2 shall satisfy the obligations under      Clause 5.1 (Repayment of      Loan) as follows:  |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if      prepayment is made within two years after the Drawdown Date, fifty per      cent (50%) of such prepayment shall be applied in reducing pro rata any      unpaid part of the first eight (1st-8th) Repayment Instalments and the      other fifty per cent (50%) of such prepayment shall he applied in reducing      pro rata the following twenty four (9th-32nd) Repayment      Instalments;  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      prepayment is made following the repayment of the eighth (8th) Repayment      Instalment, such prepayment shall be applied in reducing pro rata the      outstanding Repayment Instalments including the Balloon      Payment.  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.3 | Mandatory prepayment on sale      orTotal Loss      If the Vessel is sold by the Borrower or becomes a Total Loss, the      Borrower shall, simultaneously with any such sale or within one hundred      and fifty (150) days after any such Total Loss, prepay the whole of the      Loan.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.4 | Restrictions Any notice      of prepayment given under this Clause 6 shall be irrevocable and, unless a      contrary indication appears in this Agreement, shall |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 7.1 | Interest Periods The      period during which the Loan shall be outstanding under this Agreement      shall be divided into consecutive Interest Periods of one, three or six      months' duration or longer duration subject to the Lender's consent and      market availability, as selected by the Borrower by written notice to the      Lender not later than 11.00 a.m. on the third Business Day before the      beginning of the Interest Period in question, or such other duration as      may be agreed by the Lender.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.2 | Beginning and end of Interest      Periods Each Interest Period shall start on the Drawdown Date or      (if the Loan is already made) on the last day of the preceding Interest      Period and end on the date which numerically corresponds to the Drawdown      Date or the last day of the preceding Interest Period in the relevant      calendar month except that, if there is no numerically corresponding date      in that calendar month, the Interest Period shall end on the last Business      Day in that month.  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.3 | Interest Periods to meet      Repayment Dates If an Interest Period would otherwise expire after      the next Repayment Date, there shall be a separate Interest Period for a      part of the Loan equal to the relevant Repayment Instalment which shall      expire on the next Repayment Date and the interest Period determined shall      apply only to the balance of the Loan.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.4 | Non-Business Days If an Interest Period would      otherwise end on a day which is not a Business Day, that Interest Period      will instead end on the next Business Day in that calendar month (if there      is one) or the preceding Business Day (if there is not).  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.5 | Interest rate During      each Interest Period interest shall accrue on the Loan at the rate      determined by the Lender to be the aggregate of (a) the Margin, and (b)      LIBOR.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.6 | Failure to select Interest Period If the      Borrower at any time fails to select or agree an Interest Period in      accordance with Clause 7.1 (Interest Periods), the      interest rate |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 7.7 | Accrual and payment of interest      Interest shall accrue from day to day, shall be calculated on the      basis of a 360 day year and the actual number of days elapsed (or, in any      circumstance where market practice differs, in accordance with the      prevailing market practice) and shall be paid by the Borrower to the      Lender on the last day of each Interest Period and, if the Interest Period      is longer than three months, on the dates falling at three monthly      intervals after the first day of that Interest Period.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.8 | Default interest If the      Borrower fails to pay any amount payable by it under a Finance Document on      its due date, interest shall accrue on the overdue amount from the due      date up to the date of actual payment (both before and after judgment) at      a rate which is two per cent (2%) higher than the rate which would have      been payable if the overdue amount had, during the period of non-payment,      constituted the Loan in the currency of the overdue amount for successive      Interest Periods, each selected by the Lender (acting reasonably). Any      interest accruing under this Clause 7.8 shall be immediately payable by      the Borrower on demand by the Lender. If unpaid, any such interest will be      compounded with the overdue amount at the end of each Interest Period      applicable to that overdue amount but will remain immediately due and      payable.  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.9 | Changes in market circumstances      If at any time the Lender determines (which determination shall be      final and conclusive and binding on the Borrower) that, by reason of      changes affecting the London interbank market, adequate and fair means do      not exist for determining the rate of interest on the Loan for any      Interest Period:  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.9.1 | the      Lender shall give notice to the Borrower of the occurrence of such event;      and  |
|--------|-------|---------------------------------------------------------------------------------------------------|

|   | 7.9.2 | the      rate of interest on the Loan for that Interest Period shall be the rate      per annum which is the sum of:  |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      Margin; and  |
|--------|-----|----------------------------|

----

|   | (b) | the      rate which expresses as a percentage rate per annum the cost to the Lender      of funding the Loan from whatever source it may reasonably      select,  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.9.3 | the      Lender will negotiate with the Borrower in good faith with a view to      modifying this Agreement to provide a substitute basis for determining the      rate of interest which is financially a substantial equivalent to the      basis provided for in this Agreement;  |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.9.4 | any      substitute basis agreed pursuant to Clause 7.9.3 shall be binding on the      parties to this Agreement; and  |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------|

|   | 7.9.5 | if,      within thirty (30) days of the giving of the notice referred to in Clause      7.9.1, the Borrower and the Lender fail to agree in writing on a      substitute basis for determining the rate of interest, the Borrower will      immediately prepay the Loan, together with any Break Costs.  |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.10 | Determinations conclusive      The Lender shall promptly notify the Borrower of the determination      of a rate of interest under this Clause 7 and each such determination      shall (save in the case of manifest error) be final and      conclusive.  |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1 | Transaction expenses The      Borrower will, within fourteen (14) days of the Lender's written demand,      pay the Lender the amount of all costs and expenses (including legal fees      and Value Added Tax or any similar or replacement tax if applicable)      incurred by the Lender in connection with:  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.1 | the      negotiation, preparation, printing, execution and registration of the      Finance      Documents (whether or not any Finance Document is actually executed or      registered and whether or not all or any part of the Loan is      advanced);  |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.1.2 | any      amendment, addendum or supplement to any Finance Document (whether or not      completed); and:  |
|--------|-------|----------------------------------------------------------------------------------------------------------------|

----

|   | 8.1.3 | any      other document which may at any time be required by the Lender to give      effect to any Finance Document or which the Lender is entitled to call for      or obtain under any Finance Document.  |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.2 | Funding costs The      Borrower shall indemnify the Lender on the Lender's written demand against      all losses and costs incurred or sustained by the Lender if, for any      reason, the Loan is not advanced to the Borrower after the relevant      Drawdown Notice has been given to the Lender, or is advanced on a date      other than that requested in the Drawdown Notice (unless, in either case,      as a result of any default by the Lender).  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.3 | Break Costs The Borrower      shall indemnify the Lender on the Lender's written demand against all      costs, losses, premiums or penalties incurred by the Lender as a result of      its receiving any prepayment of all or any part of the Loan (whether      pursuant to Clause 6 (Prepayment) or      otherwise) on a day other than the last day of an Interest Period for the      Loan or relevant part of the Loan, or any other payment under or in      relation to the Finance Documents on a day other than the due date for      payment of the sum in question, including (without limitation) any losses      or costs incurred in liquidating or re-employing deposits from third      parties acquired to effect or maintain all or any part of the Loan, and      any liabilities, expenses or losses incurred by the Lender in terminating      or reversing, or otherwise in connection with, any interest rate andlor      currency swap, transaction or arrangement entered into by the Lender to      hedge any exposure arising under this Agreement, or in terminating or      reversing, or otherwise in connection with, any open position arising      under this Agreement.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.4 | Currency indemnity In      the event of the Lender receiving or recovering any amount payable under a      Finance Document in a currency other than the Currency of Account, and if      the amount received      or recovered is insufficient when converted into the Currency of      Account at the date of receipt to satisfy in full the amount due, the      Borrower shall, on the Lender's written demand, pay to the Lender such      further amount in the Currency of Accountt as is sufficient to satisfy in      full the amount due and that further amount shall be due to the Lender as      a separate debt under this Agreement.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.5 | Increased costs (subject toClause 8.6 (Exceptions to increased costs))If, by reason of the introduction of any law, or any change in any      law, or any change in the interpretation or administration of any law, or      compliance with any request or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 8.5.1 | the      Lender (or the holding company of the Lender) shall be subject to any Tax      with respect to payment of all or any part of the Indebtedness (other than      Tax on overall net income); or  |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.5.2 | the      basis of Taxation of payments to the Lender in respect of all or any part      of the Indebtedness shall be changed; or  |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.5.3 | any      reserve requirements shall be imposed, modified or deemed applicable      against assets held by or deposits in or for the account of or loans by      any branch of the Lender; or  |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.5.4 | the      manner in which the Lender allocates capital resources to its obligations      under this Agreement or any ratio (whether cash, capital adequacy,      liquidity or otherwise) which the Lender is required or requested to      maintain shall be affected; or  |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.5.5 | there      is imposed on the Lender (or on the holding company of the Lender) any      other condition in relation to the Indebtedness or the Finance      Documents;  |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.6 | Exceptions to increased      costs  Clause 8.5 (Increased costs) does      not apply to the extent any additional costs or reduced return referred to      in that Clause is:  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 8.6.1 | compensated      for by a payment made under Clause 8.10 (Taxes);or  |
|--------|-------|---------------------------------------------------------------------------|

|   | 8.6.2 | compensated      for by a payment made under Clause 16.3 (Grossing-up);      or  |
|--------|-------|---------------------------------------------------------------------------------------|

|   | 8.6.3 | attributable      to the wilful breach by the Lender (or the holding company of the Lender)      of any law or regulation.  |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------|

|   | 8.7 | Events of Default The      Borrower shall indemnify the. Lender from time to time on the Lender's      written demand against all losses, costs and liabilities incurred or      sustained by the Lender as a consequence of any Event of      Default.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.8 | Enforcement costs The      Borrower shall pay to the Lender on the Lender's written demand the amount      of all costs and expenses (including legal fees) incurred by the Lender in      connection with the enforcement of, or the preservation of any rights      under, any Finance Document including (without limitation) any losses,      costs and expenses which the Lender may from time to time sustain, incur      or become liable for by reason of the Lender being mortgagee of the Vessel      and/or a lender to the Borrower, or by reason of the Lender being deemed      by any court or authority to be an operator or controller, or in any way      concerned in the operation or control, of the Vessel.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.9 | Other costs The Borrower      shall pay to the Lender on the Lenders written demand the amount of all      sums which the Lender may pay or become actually or contingently liable      for on account of the Borrower in connection with the Vessel (whether      alone or jointly or jointly and severally with any other person) including      (without limitation) all sums which the Lender may pay or guarantees which      it may give in respect of the Insurances, any expenses incurred by the      Lender in connection with the maintenance or repair of the Vessel or in      discharging any lien, bond or other claim relating in any way to the      Vessel, and any sums which the Lender may pay or guarantees which it may      give to procure the release of the Vessel from arrest or      detention.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8.10 | Taxes The Borrower shall      pay all Taxes to which all or any part of the indebtedness or any Finance      Document may be at any time subject (other than Tax on the Lender's      overall net income) and shall indemnify the Lender on the Lender's written      demand against all liabilities, costs, claims and expenses resulting from      any omission to pay or delay in paying any such Taxes.  |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 9.1 | Commitment fee The      Borrower shall pay to the Lender a fee computed at the rate of zero point      twenty five per cent (0.25%) per annum on the undrawn amount of the. Loan      from time to time from 22nd October 2007 until the earlier to occur of the      Drawdown Date and the Availability Termination Date (both dates      inclusive). The accrued commitment fee is payable on the last day of each      successive period of three months from the date of this Agreement and on      the Availability Termination Date.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9.2 | Arrangement fee The      Borrower shall pay to the Lender an arrangement fee in the amount of zero      point fifty per cent (0.50%) of the Maximum Loan Amount of which half was      due and payable on the date of acceptance of the offer letter and the      other half is due and payable within 30 days from the Drawdown      Date.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Security Documents As      security for the payment of the Indebtedness, the Borrower shall execute      and deliver to the Lender or cause to be executed and delivered to the      Lender the following documents in such forms and containing such terms and      conditions as the Lender shall require:  |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1.1 | a      first preferred mortgage over the Vessel;  |
|--------|--------|--------------------------------------------------------|

|   | 10.1.2 | a      first priority deed or deeds of assignment of the Insurances, Earnings,      any Charter and Requisition Compensation; and  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1.3 | a      guarantee and indemnity from the Guarantor.  |
|--------|--------|----------------------------------------------------------|

|   | 10.2       | Earnings Account The      Borrower shall maintain the Earnings Account with the Lender for the.      duration of the Facility Period free of Encumbrances and rights of set off      other than those created by or under the Finance Documents. Interest shall      accrue on a daily basis on any balance from time to time on the Earnings      Account at a rate of interest determined by the Lender in its discretion      as the rate of interest payable to its customers on deposits in thc same      currency and of similar amount and maturity, and shall be credited to the      Earnings Account.  |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.3  | Earnings The      Borrower shall procure that all Earnings and any Requisition Compensation      are credited to the Earnings Account.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

|   | 10.4 | Application of Earnings Account      The Borrower shall procure that there is transferred from the      Earnings Account to the Lender:  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4.1 | on      each Repayment Date, the amount of the Repayment Instalment then due;      and  |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | 10.4.2 | on      each Interest Payment Date, the amount of interest then due, and      the Borrower irrevocably authorises the Lender to make those      transfers.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | Borrower's obligations not      affected If for any reason the amount standing to the credit of the      Earnings Account is insufficient to pay any Repayment Instalment or to      make any payment of interest when due, the Borrower's obligation to pay      that Repayment Instalment or to make that payment of interest shall not be      affected.  |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Release of surplus Any      amount remaining to the credit of the Earnings Account following the      making of any transfer required by Clause 10.4 {Application of Earnings      Account) shall (unless a Default shall have occurred and be      continuing) be released to or to the order of the Borrower.  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Restriction on withdrawal      During the Facility Period no sum may be withdrawn from the      Earnings Account (except in accordance with this Clause 10) without the      prior written consent of the Lender.  |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Relocation of Earnings Account      At any time following the occurrence and during the continuation of      a Default, the Lender may without the consent of the Borrower relocate the      Earnings Account to any other branch of the Lender, without prejudice      to the continued      application of this Clause 10 and the rights of the Lender under the      Finance Documents.  |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Application after acceleration      From and after the giving of notice to the Borrower by the Lender      under Clause 13.2 (Acceleration),      the Borrower shall procure that all sums from time to time standing to the      credit of the Earnings Account are immediately transferred to the Lender      for application in accordance with Clause 10.10 (General application of      moneys) and the Borrower irrevocably authorises the Lender to make      those transfers.  |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.10 | General application of moneys      The. Borrower, subject to Clause 10.11 (Application of moneys on sale      or Total Loss), irrevocably authorises the Lender to apply all sums      which the Lender may receive:  |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10.1 | pursuant      to a sale or other disposition of the Vessel or any right, title or      interest in the Vessel; or  |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | 10.10.2 | by      way of payment of any sum in respect of the Insurances, Earnings, Charter      or Requisition Compensation; or  |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10.3 | by      way of transfer of any sum from the Earnings Account; or  |
|--------|---------|------------------------------------------------------------------------|

|   | 10.10.4 | otherwise      arising under or in connection with any Security Document,  |
|--------|---------|---------------------------------------------------------------------------------|

| 10.11 | Application of moneys on sale      or Total Loss The Borrower irrevocably authorises the Lender to      apply all sums which the Lender may receive pursuant to a sale by the      Borrower of the Vessel or a Total Loss in or towards satisfaction of the      prepayment due and payable by virtue of that sale or Total Loss under      Clause 6.3 (Mandatory      prepayment on sale or Total Loss), but the Borrower's obligation to      make that prepayment shall not be affected if those sums are insufficient      to satisfy that obligation.  |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12 | Additional security If      at any time the aggregate of the market value of the Vessel (such market      value to be conclusively determined at least once during each calendar      year by a reputable, independent and first class firm of shipbrokers      appointed by the Lender on the basis of a charter-free sale for prompt      delivery for cash at arm's length on normal commercial terms as between a      willing seller and a willing buyer) and the value of any additional      security (such value to be the face amount of      the deposit (in the case of cash), determined conclusively by appropriate      advisers appointed by the Lender (in the case of other charged assets),      and determined by the Lender in its discretion (in all other cases)) for      the time being provided to the. Lender under this Clause 10.12 is less      than one hundred and thirty per cent (130%) of the Loan the Borrower      shall. within thirty (30) days of the Lender's request, at the Borrower's      option:  |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.12.1 | pay      to the Lender or to its nominee a cash deposit in the amount of the      shortfall to be secured in favour of the Lender as additional security for      the payment of the Indebtedness; or  |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12.2 | give      to the Lender other additional security in amount and form acceptable to      the Lender in its discretion; or  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12.3 | prepay      the amount of the Indebtedness which will ensure that the aggregate of the      market value of the Vessel (determined as stated above) and the value of      any such additional security is not less than one hundred and thirty per      cent (130%) of the Loan.  |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1 | Representations The      Borrower makes the representations and warranties set out in this Clause      11.1 to the Lender on the date of this Agreement except as otherwise      disclosed by the Borrower to the Lender in writing before the date of this      Agreement with specific reference to this Agreement.  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.1 | Status Each Security      Party (which is not an individual) is a corporation, duly incorporated and      validly existing under the law of its jurisdiction of incorporation and      has the power to own its assets and carry on its business as it is being      conducted.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.2 | Binding obligations The      obligations expressed to be assumed by each Security Party in each Finance      Document to which it is a party are, subject to any general principles of      law limiting its obligations which are specifically referred to in any      legal opinion delivered pursuant to Clause 3 (Conditions of Utilisation),      legal, valid, binding and enforceable obligations.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 11.1.3 | Non-conflict with other      obligations The entry into and performance by each Security Party      of, and the transactions contemplated by, the Finance Documents do not      conflict with:  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | any      law or regulation applicable to that Security Party;  |
|--------|-----|---------------------------------------------------------------------|

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

|   | (c) | any      document binding on that Security Party or any of its assets, and in      borrowing the Loan, the Borrower is acting for its own      account.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.4 | Power and authority Each      Security Party has the power to enter into, perform and deliver, and has      taken all necessary action to authorise its entry into, performance and      delivery of, the Finance Documents to which it is a party and the      transactions contemplated by those Finance Documents.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.5 | Validity and admissibility in      evidence All consents, licences, approvals, authorisations, filings      and registrations required or desirable:  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | to      enable each Security Party lawfully to enter into, exercise its rights and      comply with its obligations in the Finance Documents to which it is a      party or to enable the Lender to enforce and exercise all its rights under      the Finance Documents; and  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to      make the Finance Documents to which any Security Party is a party      admissible in evidence in its jurisdiction of incorporation,  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.6 | Governing law and enforcement      The choice of English law as the governing law of any Finance      Document expressed to be governed by English law will be recognised and      enforced in the jurisdiction of incorporation of each relevant Security      Party, and any judgment obtained in England in relation to any such      Finance Document will be recognised and enforced in the jurisdiction of      incorporation of each relevant Security Party.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 11.1.7 | Deduction of Tax No      Security Party is required under the law of its jurisdiction of      incorporation to make any deduction foror on account of Tax      from any payment it may make under any Finance Document.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.8 | No filing or stamp taxes      Under the law of jurisdiction of incorporation of each relevant      Security Party it is not necessary that the Finance Documents (other than      the Security Documents) be filed, recorded or enrolled with any court or      other authority in that jurisdiction or that any stamp, registration or      similar tax be paid on or in relation to the Finance Documents or the      transactions contemplated by the Finance Documents.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.9 | No default No Event of      Default is continuing or might reasonably be expected to result from the      advance of the Loan.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.10 | Nomisleading information      Any factual information provided by any Security Party to the      Lender was true and accurate in all material respects as at the date it      was provided.  |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.11 | Pari passu ranking The      payment obligations of each Security Party under the Finance Documents to      which it is a party rank at least pari passu with the claims of all its      other unsecured and unsubordinated creditors, except for obligations      mandatorily preferred by law applying to companies generally.  |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.12 | No proceedings pending or      threatened No litigation, arbitration or administrative proceedings      of or before any court, arbitral body or agency have been started or (to      the best of the Borrower's knowledge threatened) which, if adversely      determined, might reasonably be expected to have a materially adverse      effect on the business, assets, financial condition or credit worthiness      of any Security Party.  |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.13 | Disclosure of material facts      The Borrower is not aware of any material facts or circumstances      which have not been disclosed to the Lender and which might, if disclosed,      have adversely affected the decision of a person considering whether or      not to make loan facilities of the nature contemplated by this Agreement      available to the Borrower. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 11.1.14 | No established place of      business in the UK or US No Security Party has an established place      of business in the United Kingdom or the United States of      America.  |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1.15 | Completeness of Relevant      Documents The copies of any Relevant Documents provided or to be      provided by the Borrower to the Lender in accordance with Clause 3 (Conditions of Utilisation)      are, or will be, true and accurate copies of the originals and      represent, or will represent, the full agreement between the parties to      those Relevant Documents in relation to the subject matter of those      Relevant Documents and there are no commissions, rebates, premiums or      other payments due or to become due in connection with the subject matter      of those Relevant Documents other than in the ordinary course of business      or as disclosed to, and approved in writing by, the Lender.  |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.2 | Repetition Each      representation and warranty in Clause 11.1 (Representations) is      deemed to be repeated by the Borrower by reference to the facts and      circumstances then existing on the date of the Drawdown Notice and the      first day of each Interest Period.  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1 | Information      Undertakings  |
|--------|------|-------------------------------------|

|   | 12.1.1 | Financial statements The      Borrower shall supply and procure that the Guarantor supplies, to the      Lender as soon as the same become available, but in any event within 180      days after the end of each of its financial years, its audited financial      statements for that financial year, together with a Compliance      Certificate, signed by one director of the Guarantor, setting out (in      reasonable detail) computations as to compliance with Clause 12.2 (Financial covenants)      as at the date as at which those financial statements were drawn      up.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.2 | Requirements as to financial      statements Each set of financial statements delivered by the      Borrower or the Guarantor, under Clause 12.1.1 (Financial      statements):  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | shall      be certified by a director of the Borrower or the Guarantor (as the      context may require), as fairly representing its financial condition as at      the date as at which those financial statements were drawn up;      and  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | shall      be prepared using GAAP, accounting practices and financial reference      periods consistent with those applied in the preparation of the Original      Financial Statements unless, in Marion. to any set of financial      statements, the Borrower notifies the Lender that there has been a change      in GAAP, the accounting practices or reference periods and the Borrower's      auditors deliver to the Lender:  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a      description of any change necessary for those financial statements to      reflect the GAAP, accounting practices and reference periods upon which      the Original Financial Statements were prepared; and  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | sufficient      information, in form and substance as may be reasonably required by the      Lender, to enable the Lender to make an accurate comparison between the      financial position indicated in those financial statements and that      indicated in the Original Financial Statements.  |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.3 | Information: miscellaneous      The Borrower shall supply to the Lender:  |
|--------|--------|--------------------------------------------------------------------------------|

|   | (a) | all      documents dispatched by the Borrower to its shareholders (or any class of      them) or its creditors generally at the same time as they are      dispatched;  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | promptly      upon becoming aware of them, details of any litigation, arbitration or      administrative proceedings which are current, threatened or pending      against any Security Party, and which might, if adversely determined, have      a materially adverse effect on the business, assets, financial condition      or credit worthiness of that Security Party; and  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | promptly.      such further information regarding the financial condition, business and      operations of any Security Party as the |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 12.1.4 | Notification      of default  |
|--------|--------|------------------------------------|

|   | (a) | The      Borrower shall notify the Lender of any Default (and the steps, if any,      being taken to remedy it) promptly upon becoming aware of its      occurrence.  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Promptly      upon a request by the Lender, the Borrower shall supply to the Lender a      certificate signed by two of its directors or senior officers on its      behalf certifying that no Default is continuing (or if a Default is      continuing, specifying the Default and the steps, if any, being taken to      remedy it).  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1.5 | "Know your customer"      checks If:  |
|--------|--------|--------------------------------------------|

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

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

|   | (c) | a      proposed assignment or transfer by the Lender of any of its rights and      obligations under this Agreement,  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

----

|   | 12.2 | Financial      covenants  |
|--------|------|--------------------------------|

|   | 12.2.1 | maintain      a Minimum Liquidity of not less than twenty five million Dollars      ($25,000,000); and  |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | 12.2.2 | maintain      a Minimum Adjusted Net Worth of not less than two hundred and fifty      million Dollars ($250,000,000) : and  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | 12.2.3 | maintain      Minimum Equity of not less than one hundred million Dollars      ($100,000,000).  |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | 12.3 | General      undertakings  |
|--------|------|---------------------------------|

|   | 12.3.1 | Authorisations The      Borrower shall promptly:  |
|--------|--------|--------------------------------------------------------|

|   | (a) | obtain,      comply with and do all that is necessary to maintain in full force and      effect; and  |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (b) | supply      certified copies to the Lender of,  |
|--------|-----|------------------------------------------------------|

|   | 12.3.2 | Compliance with laws The      Borrower shall comply in all respects with all laws to which it may be      subject, if failure so to comply would materially impair its ability to      perform its obligations under the Finance Documents.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.3 | Conduct of business The      Borrower shall carry on and conduct its business in a proper and efficient      manner, file all requisite tax returns and pay all tax which becomes due      and payable (except where contested in good      faith).  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 12.3.4 | Evidence of good standing      The Borrower will from time to time if requested by the Lender      provide the Lender with evidence in form and substance satisfactory to the      Lender that the Security Parties and all corporate shareholders of any      Security Party remain in good standing.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.5 | Negative pledge and no      disposals The Borrower shall not without the prior written consent      of the Lender create nor permit to subsist any Encumbrance or other third      party rights over any of its present or future assets or undertaking nor      dispose of any those assets or of all or part of that      undertaking.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.6 | Merger The Borrower      shall not without the prior written consent of the Lender enter into any      amalgamation, demerger, merger or corporate reconstruction.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.7 | Change of business The      Borrower shall not without the prior written consent of the Lender make      any substantial change to the general nature of its business from that      carried on at the date of this Agreement.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.8 | No other business The      Borrower shall not without the prior written consent of the Lender engage      in any business other than the ownership, operation, chartering and      management of the Vessel.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.9 | No place of business in UK or      US The Borrower shall not have an established place of business in      the United Kingdom or the United States of America at any time during the      Facility Period.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.10 | No borrowings The      Borrower shall not without the prior written consent of the Lender borrow      any money (except for the Loan and unsecured Financial Indebtedness      subordinated to the Loan and arising in the Borrowers normal course of      operating the Vessel) nor incur any obligations under leases.  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.11 | No substantial liabilities      Except in the ordinary course of business, the Borrower shall not      without the prior written consent of the Lender incur any liability to any      third party which is in the Lender's opinion of a substantial      nature.  |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 12.3.12 | Noloans or other financial      commitments The Borrower shall not without the prior written      consent of the Lender make any loan nor enter into any guarantee or      indemnity or otherwise voluntarily assume any actual or contingent      liability in respect of any obligation of any other person except for      loans made in the ordinary course of business in connection with the      chartering, operation or repair of the. Vessel.  |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.13 | No dividends The      Borrower shall not without the prior written consent of the Lender pay any      dividends or make any other distributions to shareholders or issue any new      shares following the occurrence of a Default.  |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.14 | Inspection of records      The Borrower will permit the inspection of its financial records      and accounts from time to time by the Lender or its nominee.  |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.15 | No change in Relevant Documents      The Borrower shall procure that, without the prior written consent      of the Lender, there shall be no termination of, alteration to, or waiver      of any term of, any of the Relevant Documents which are not Finance      Documents.  |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.3.16 | No change in ownership or      control The Borrower shall not permit any change in its beneficial      ownership and control from that advised to the Lender at the date of this      Agreement without the prior written consent of the Lender.  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.4 | Vessel      undertakings  |
|--------|------|--------------------------------|

|   | 12.4.1 | No sale of Vessel The      Borrower shall not sell or otherwise dispose of the Vessel or any shares      in the Vessel nor agree to do so without the prior written consent of the      Lender.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.4.2 | No chartering after Event of      Default Following the occurrence and during the continuation of an      Event of Default the Borrower shall not without the prior written consent      of the Lender let the Vessel on charter or renew or extend any charter or      other contract of employment of the Vessel (nor agree to do      so).  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 12.4.3 | No change in management      The Borrower shall procure that, without the prior written consent      of the Lender, there shall be no termination of, alteration to, or waiver      of any term of, the Management Agreement and the Borrower shall not      without the prior written consent of the Lender permit the Managers to      sub-contract or delegate the commercial or technical management of the      Vessel to any third party.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.4.4 | Registration of Vessel      The Borrower undertakes to maintain the registration of the Vessel      under the flag stated in Recital (A) for the duration of the Facility      Period unless the Lender agrees otherwise in writing.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.4.5 | Evidence of current COFR      The Borrower will, if and for so long as the Vessel trades in the      United States of America and Exclusive Economic Zone (as defined in the      United States Oil Pollution Act 1990), obtain, retain and provide the      Lender with a copy of, a valid Certificate of Financial Responsibility for      the Vessel under that Act and will comply strictly with the requirements      of that Act.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.4.6 | ISM Code compliance The      Borrower will:  |
|--------|--------|---------------------------------------------------|

|   | (a) | procure      that the Vessel remains for the duration of the Facility Period subject to      a SMS;  |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (b) | maintain      a valid and current SMC for the Vessel throughout the Facility Period and      provide a copy to the Lender;  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | procure      that the ISM Company maintains a valid and current DOC throughout the      Facility Period and provide a copy to the Lender; and  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | immediately      notify the Lender in writing of any actual or threatened withdrawal,      suspension, cancellation or modification of the SMC of the Vessel or of      the DOC of the ISM. Company.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.4.7 | ISPS Code Compliance The      Borrower will:  |
|--------|--------|----------------------------------------------------|

|   | (a) | for      the duration of the Facility Period comply with the ISPS Code in relation      to the Vessel and procure that the Vessel and the ISPS Company comply with      the ISPS Code; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | maintain      a valid and current ISSC for the Vessel throughout the Facility Period and      provide a copy to the Lender; and  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

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

|   | 12.4.8 | Annex VI compliance The      Borrower will:  |
|--------|--------|---------------------------------------------------|

|   | (a) | for      the duration of the Facility Period comply with Annex VI in relation to      the Vessel and procure that the Vessel's master and crew are familiar      with, and that the Vessel complies with, Annex VI;  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | maintain      a valid and current IAPPC for the Vessel throughout the Facility Period      and provide a copy to the Lender; and  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

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

|   | 12.4.9 | Chartering agreement The      Borrower (as owner) shall, by not later than six (6) months after the      Drawdown Date, enter into a Charter whereby the Vessel is employed for a      period of at least twelve (12) months' duration, such Charter to be in      form and substance, and on terms and conditions, satisfactory to the      Lender in all respects.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1 | Events of Default Each      of the events or circumstances set out in this Clause 13.1 is an Event of      Default.  |
|--------|------|---------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.1 | Non-payment The Borrower      does not pay on the due date any amount payable by it under a Finance      Document at the place at and in the currency in which it is expressed to      he payable.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.2 | Other obligations A      Security Party or any other person (except the Lender) does not comply      with any provision of any of the Relevant Documents to which that Security      Party or person is a party (other than as referred to in Clause 13.1.1      (Non-payment))  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 13.1.3 | Misrepresentation Any      representation, warranty or statement made or deemed to be repeated by a      Security Party in any Finance Document or any other document delivered by      or on behalf of a Security Party under or in connection with any Finance      Document is or proves to have been incorrect or misleading in any material      respect when made or deemed to be repeated.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.4 | Cross default Any      Financial Indebtedness of a Security Party:  |
|--------|--------|--------------------------------------------------------------------------|

|   | (a) | is      not paid when due or within any originally applicable grace period;      or  |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (b) | is      declared to be, or otherwise becomes, due and payable before its specified      maturity as a result of an event of default (however described);      or  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | is      capable of being declared by a creditor to be due and payable before its      specified maturity as a result of such an event.  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.5 | Insolvency  |
|--------|--------|------------------|

|   | (a) | A      Security Party is unable or admits inability to pay its debts as they fall      due, suspends making payments on any of its debts or, by reason of actual      or anticipated financial difficulties, commences negotiations with one or      more of its creditors with a view to rescheduling any of its Financial      Indebtedness.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      value of the assets of a Security Party is less than its liabilities      (taking into account contingent and prospective liabilities).  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | A      moratorium is declared in respect of any Financial Indebtedness of a      Security Party.  |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | 13.1.6 | Insolvency proceedings      Any corporate action, legal proceedings or other procedure or step is      taken for:  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | the      suspension of payments, a moratorium of any Financial Indebtedness,      winding-up, dissolution, administration, bankruptcy or reorganisation (by      way of voluntary arrangement, scheme of arrangement or otherwise) of a      Security Party;  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a      composition, compromise, assignment or arrangement with any creditor of a      Security Party;  |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (c) | the      appointment of a liquidator, receiver, administrative receiver,      administrator, compulsory manager, or trustee or other similar officer      inrespect of any Security Party      or any of its assets; or  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | enforcement      of any Encumbrance over any assets of a Security Party,  |
|--------|-----|--------------------------------------------------------------------------------|

|   | or      any analogous procedure or step is taken in any jurisdiction.  |
|--------|-----------------------------------------------------------------------------|

|   | 13.1.7 | Creditors' process Any      expropriation, attachment, sequestration, distress or execution affects      any asset or assets of a Security Party.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.8 | Change in ownership or control      of the Borrower There is any change in the beneficial ownership or      control of the Borrower from that advised to the Lender by the Borrower at      the date of this Agreement.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.9 | Repudiation A Security      Party or any other person (except the Lender) repudiates any of the      Relevant Documents to which that Security Party or person is a party or      evidences an intention to do so.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.10 | Impossibility or      illegality Any event occurs which would, or would with the passage      of time, render performance of any of the Relevant Documents by a Security      Party or any other party to any such document impossible, unlawful or      unenforceable by the Lender or a Security Party.  |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.11 | Conditions subsequent      Any of the conditions referred to in Clause 3.3 (Conditions subsequent)      is not satisfied within the time reasonably required by the      Lender.  |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.12 | Revocation or modification of      authorisation  Any consent, licence, approval,      authorisation, filing, registration or other requirement of any |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 13.1.13 | Curtailment of business      A Security Party ceases, or threatens to cease, to carry on all or      a substantial part of its business or, as a result of intervention. by or      under the authority of any government, the business of a Security Party is      wholly or partially curtailed or suspended, or ail or a substantial part      of the assets or undertaking of a Security Party is seized, nationalised,      expropriated or compulsorily acquired.  |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.14 | Reduction of capital      A Security Party      reduces its authorised or issued or subscribed capital.  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | 13.1.15 | Loss of Vessel The      Vessel suffers a Total Loss or is otherwise destroyed, abandoned,      confiscated, forfeited or condemned as prize, or a similar event occurs in      relation to any other vessel which may from time to time be mortgaged to      the Lender as security for the payment of all or any part of the      Indebtedness, except that a Total Loss, or event similar to a Total Loss      in relation to any other vessel, shall not be an Event of Default      if:  |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      Vessel or other vessel is insured in accordance with the Security      Documents; and  |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (b) | no      insurer has refused to meet or has disputed the claim for Total Loss and      it is not apparent to the Lender in its discretion that any such refusal      or dispute is likely to occur; and  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | payment      of all insurance proceeds in respect of the Total Loss is made in full to      the Lender within one hundred and eighty (180) days of the occurrence of      the casualty giving rise to the Total Loss in Question or such longer      period as the Lender may in its discretion agree.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 13.1.16 | Challenge to registration      The registration of the Vessel or the Mortgage is contested or      becomes void or voidable or liable to cancellation or termination, or the      validity or priority of the Mortgage is contested.  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.17 | War The country of      registration of the. Vessel becomes involved in war (whether or not      declared) or civil war or is occupied by any other power and the Lender in      its discretion considers that, as a result, the security conferred by the      Security Documents is materially prejudiced.  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.18 | Notice of termination      The Guarantor gives notice to the Lender to terminate its      obligations under the Guarantee.  |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

|   | 13.1.19 | Material adverse change      Any event or series of events occurs which, in the opinion of the      Lender, is likely to have a materially adverse effect on the business,      assets, financial condition or credit worthiness of a Security      Party.  |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.2 | Acceleration If an Event      of Default is continuing the Lender may by notice to the      Borrower:  |
|--------|------|-------------------------------------------------------------------------------------------------------------|

|   | 13.2.1 | declare      that the Loan, together with accrued interest, and all other amounts      accrued or outstanding under the Finance Documents are immediately due and      payable, whereupon they become immediately due and payable;      and/or  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13.2.2 | declare      that the Loan is payable on demand, whereupon it shall immediately become      payable on demand by the Lender.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.1 | Lender's rights The      Lender may assign any of its rights under this Agreement or transfer by      novation any of its rights and obligations under this Agreement to any      other branch of the Lender or to any other bank or financial institution,      and may grant sub-participations in all or any part of the      Loan.  |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.2 | Borrower's co-operation      The Borrower will co-operate fully with the Lender in connection      with any assignment, transfer or sub-participation; will execute and      procure the execution of such documents as the Lender may require in that      connection; and irrevocably authorises the Lender to disclose to any      proposed assignee, transferee or sub-participant (whether before or after      any assignment, |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 14.3 | Rights of assignee or      transferee Any assignee or transferee of the Lender shall (unless      limited by the express terms of the assignment or novation) take the full      benefit of every provision of the Finance Documents benefitting the      Lender.  |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.4 | No assignment or transfer by      the Borrower The Borrower may not assign any of its rights or      transfer any of its rights or obligations under the Finance      Documents.  |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 15.1 | Set-off The Lender may      set off any matured obligation due from the Borrower under any Finance      Document against any matured obligation owed by the Lender to the Borrower,      regardless of the place of payment, booking branch or currency of either      obligation. If the obligations are in different currencies, the Lender may      convert either obligation at a market rate of exchange in its usual course      of business for the purpose of the set-off.  |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.1 | Payments Each amount      payable by the Borrower under a Finance Document shall be paid to such      account at such bank as the Lender may from time to time direct to the      Borrower in the Currency of Account and in such funds as are customary at      the time for settlement of transactions in the relevant currency in the      place of payment. Payment shall be deemed to have been received by the      Lender on the date on which the Lender receives authenticated advice of      receipt, unless that advice is received by the Lender on a day other than      a Business Day or at a time of day (whether on a Business Day or not) when      the Lender in its discretion considers that it is impossible or      impracticable for the Lender to utilise the amount received for value that      same day, in which event the payment in question shall be deemed to have      been received by the Lender on the Business Day next following the date of      receipt of advice by the Lender.  |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.2 | No deductions or      withholdings  Each payment (whether of principal or      interest or otherwise) to be made by the Borrower under a Finance Document      shall, subject only |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 16.3 | Grossing-up If at any      time any law requires (or is interpreted to require) the Borrower to make      any deduction or withholding from any payment, or to change the rate or      manner in which      any required deduction or withholding is made, the Borrower will promptly      notify the Lender and, simultaneously with making that payment, will pay      to the Lender whatever additional amount (after taking into account any      additional Taxes on, or deductions or withholdings from, or restrictions      or conditions on, that additional amount) is necessary to ensure that,      after making the deduction or withholding, the Lender receives a net sum      equal to the sum which the Lender would have received had no deduction or      withholding been made.  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.4 | Evidence of deductions      If at any time the Borrower is required by law to make any      deduction or withholding from any payment to be made by it under a Finance      Document, the Borrower will pay the amount required to be deducted or      withheld to the relevant authority within the time allowed under the      applicable law and will, no later than thirty (30) days after making that      payment, deliver to the Lender an original receipt issued by the relevant      authority, or other evidence acceptable to the Lender, evidencing the      payment to that authority of all amounts required to be deducted or      withheld.  |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.5 | Adjustment of due dates      If any payment or transfer of funds to be made under a Finance      Document, other than a payment of interest on the Loan, shall be due on a      day which is not a Business Day, that payment shall be made on the next      succeeding Business Day (unless the next succeeding Business Day falls in      the next calendar month in which event the payment shah be made on the      next preceding Business Day). Any such variation of time shall be taken      into account in computing any interest in respect of that      payment.  |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16.6 | Control Account The      Lender shall open and maintain on its books a control account in the name      of the Borrower showing the advance of the Loan and the computation and      payment of interest and all other sums due under this      Agreement.  The Borrower's obligations to repay the Loan and to      pay interest and all other sums due under this Agreement shall be      evidenced by the entries from time to time made |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 17.1 | Communications in writing      Any communication to be made under or in connection with this      Agreement shall be made in writing and, unless otherwise stated, may be      made by fax or letter.  |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.2 | Addresses The address      and fax number (and the department or officer, if any, for whose attention      the communication is to be made) of each party to this Agreement for any      communication or document to bemade or delivered under or in      connection with this Agreement are:  |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.2.1 | in      the case of the Borrower, c/o Top Tanker Management Inc., 1 Vassilissis      Sofias Str. & Meg. Alexandrou Str. 151 24 Marousi, Greece (fax no: +30      210 614 1204) marked for the attention of Mr Stamatios Tsantanis;      and  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.2.2 | in      the case of the Lender, to the Lender at its address at the head of this      Agreement (fax no: 210 429 0348 telex no: 212435) marked for the attention      of Shipping Division branch 960);  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.3 | Delivery Any      communication or document made or delivered by one party to this Agreement      to the other under or in connection this Agreement will only be      effective:  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.3.1 | if      by way of fax, when received in legible form; or  |
|--------|--------|----------------------------------------------------------------|

|   | 17.3.2 | if      by way of letter, when it has been left at the relevant address or five      (5) Business Days after being deposited in the post postage prepaid in an      envelope addressed to it at that address;  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 17.4 | English language Any      notice given under or in connection with this Agreement must be in      English. All other documents provided under or in connection with this      Agreement must be:  |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 17.4.1 | in      English; or  |
|--------|--------|---------------------------|

|   | 17.4.2 | if      not in English, and if so required by the Lender, accompanied by a      certified English translation and, in this case, the English translation      will prevail unless the document is a constitutional, statutory or other      official document.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 20.1 | No      oral variations No variation or amendment of a Finance Document shall be      valid unless in writing and signed on behalf of the Lender.  |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 20.2 | Further Assurance If any      provision of a Finance Document shall be invalid or unenforceable in whole      or in part by reason of any present or future law or any decision of any      court, or if the documents at any time held by or on behalf of the Lender      are considered by the Lender for any reason insufficient to carry out the      terms |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 20.3 | Rescission of payments etc.      Any discharge, release or reassignment by the Lender of any of the      security constituted by, or any of the obligations of a Security Party      contained in, a Finance Document shall be (and be deemed always to have      been) void if any act (including, without limitation, any payment) as a      result of which such discharge, release or reassignment was given or made      is subsequently wholly or partially rescinded or avoided by operation of      any law.  |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 20.4 | Certificates Any      certificate or statement signed by an authorised signatory of the Lender      purporting to show the amount of the Indebtedness (or any part of the      Indebtedness) or any other amount referred to in any Finance Document      shall, save for manifest error or on any question of law, be conclusive      evidence as against the Borrower of that amount.  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 20.5 | Counterparts This      Agreement may be executed in any number of counterparts each of which      shall be original but which shall together constitute the same      instrument.  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 20.6 | Contracts (Rights of Third      Parties) Act 1999 A person who is not a party to this Agreement has      no right under the Contracts (Rights of Third Parties) Act 1999 to enforce      or to enjoy the benefit of any term of this Agreement.  |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.1 | Governing law This Agreement shall in all respects      be governed by and interpreted in accordance with Englishlaw.  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | 21.2 | Jurisdiction For the      exclusive benefit of the Lender, the parties to this Agreement irrevocably      agree that the courts of England are to have jurisdiction to settle any      disputes which may arise out of or in connection with this Agreement and      that any proceedings may be brought in those courts.  |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.3 | Alternative jurisdictions      Nothing contained in this Clause 21 shall limit the right of the      Lender to commence any proceedings against the Borrower in any other court      of competent jurisdiction nor shall the commencement of any proceedings      against the |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 21.4 | Waiver of objections The      Borrower irrevocably waives any objection which it may now or in the      future have to the laying of the venue of any proceedings in any court      referred to in this Clause 21, and any claim that those proceedings have      been brought in an inconvenient or inappropriate forum, and irrevocably      agrees that a judgment in any proceedings commenced in any such court      shall be conclusive and binding on it and may be enforced in the courts of      any other jurisdiction.  |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.5 | Service of process      Without prejudice to any other mode of service allowed under any      relevant law, the Borrower:  |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------|

|   | 21.5.1 | irrevocably      appoints Top Tankers (UK) Limited of 8 Duke Street , W1U 3EW London, UK as      its agent for service of process in relation to any proceedings before the      English courts in connection with this Agreement; and  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21.5.2 | agrees      that failure by a process agent to notify the Borrower of the process will      not invalidate the proceedings concerned.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Constitutional Documents      Copies of the constitutional documents of each Security Party      together with such other evidence as the Lender may reasonably require      that each Security Party is duly incorporated in its country of      incorporation and remains in existence with power to enter into, and      perform its obligations under, the Relevant Documents to which it is or is      to become a party.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Certificates of good standing      A certificate of good standing in respect of each Security Party      (if such a certificate can be obtained).  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Board resolutions A copy      of a resolution of the board of directors of each Security      Party:  |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (i) | approving      the terms of, and the transactions contemplated by, the Relevant Documents      to which it is a party and resolving that it execute those Relevant      Documents: and  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | authorising      a specified person or persons to execute those Relevant Documents (and all      documents and notices to be signed and/or despatched under those      documents) on its behalf.  |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Shareholder resolutions      A copy of a resolution signed by all the holders of the issued      shares in each Security Party, approving the terms of, and the      transactions contemplated by, the Relevant Documents to which that      Security Party is a party.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Officer's certificates A      certificate of a duly authorised officer of each Security Party certifying      that each copy document relating to it specified in this Part I of      Schedule I is correct, complete and in full force and effect as at a date      no earlier than the date of this Agreement and setting out tiro names of      the directors, officers and shareholders of that Security Party and the      proportion of shares held by each      shareholder.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Evidence of registration      Where such registration is required or permitted under the laws of      the relevant jurisdiction, evidence that the names of the directors,      officers and shareholders of each Security Party are duly registered in      the companies registry or other registry in the country of incorporation      of that Security Party. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | Powers of attorney The      notarially attested and legalised power of attorney of each Security Party      under which any documents are to be executed or transactions undertaken by      that Security Party.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Vessel documents      Photocopies, certified as true, accurate and complete. by a      director or the secretary or the legal advisers of the Borrower,      of:  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      MOA;  |
|--------|-----|---------------------|

|   | (ii) | such      documents as the Lender may reasonably require to evidence the nomination      of the Borrower as purchaser of the Vessel pursuant to the      MOA;  |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      bill of sale transferring title in the Vessel to the Borrower free of all      encumbrances, maritime liens or other debts;  |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the      protocol of delivery and acceptance evidencing the unconditional physical      delivery of the      Vessel by the Seller to the Borrower pursuant to the MOA;  |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | any      charterparty or other contract of employment of the Vessel which will be      in force on the Drawdown Date including, without limitation, the      Charter;  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | the      Management Agreement;  |
|--------|------|--------------------------------------|

|   | (vii) | the      Vessel's current Safety Construction, Safety Equipment, Safety Radio and      Load Line Certificates;  |
|--------|-------|----------------------------------------------------------------------------------------------------------------------|

|   | (viii) | the      Vessel's current Certificate of Financial Responsibility issued pursuant      to the United States Oil Pollution Act 1990;  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | the      Vessel's current SMC;  |
|--------|------|--------------------------------------|

|   | (x) | the      ISM Company's current DOC;  |
|--------|-----|-------------------------------------------|

|   | (xi) | the      Vessel's current ISSC;  |
|--------|------|---------------------------------------|

----

|   | (xii) | the      Vessel's current IAPPC;  |
|--------|-------|----------------------------------------|

|   | (xiii) | the      Vessel's current Tonnage Certificate;  |
|--------|--------|------------------------------------------------------|

|   | (xiv) | the      Borrower's current Carrier Initiative Agreement with the United States'      Customs Service;  |
|--------|-------|--------------------------------------------------------------------------------------------------------------|

|   | (b) | Evidence of Seller's title      Certificate of ownership and encumbrance (or equivalent) issued by      the Registrar of Ships (or equivalent official) of the Vessel's current      flag confirming that the Vessel is owned by the Seller and free of      registered Encumbrances and an undertaking by the Seller to delete the      Vessel from its current flag.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Evidence of Borrower's title      Evidence that on the Drawdown Date (i) the Vessel will be at least      provisionally registered under the flag stated in Recital (A) in the      ownership of the Borrower and (ii) the Mortgage will be capable of being      registered against the Vessel with first priority.  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Evidence of insurance      Evidence that the Vessel is insured in the manner required by the      Security .Documents and that letters of undertaking wilt be issued in the      manner required by the Security Documents, together with (if required by      the Lender) the written approval of the Insurances by an insurance adviser      appointed by the Lender and at the expense of the Borrower.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Confirmation of class A      Certificate of Confirmation of Class for hull and machinery confirming      that the Vessel is classed with the highest class applicable to vessels of      her type with Lloyds Register or such other classification society as may      be acceptable to the Lender free of recommendations affecting      class.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Instruction to classification      society A letter of instruction from the Borrower to the Vessel's      classification society.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Survey report A report      by a surveyor instructed by the Lender to inspect the Vessel confirming      that the condition of the Vessel is in all respects acceptable to the      Lender and at the expense of the Borrower.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | Valuation A valuation of      the Vessel addressed to the Lender from an independent broker acceptable      to the Lender certifying a value for the Vessel, assessed in such manner      as the Lender may require in its discretion, acceptable to the Lender and      at the expense of the Borrower,  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Security Documents The      Security Documents, together with all other documents required by any of      them, including, without limitation, all notices of assignment and/or      charge and evidence that those notices will be duly acknowledged by the      recipients.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Mandates Such duly      signed forms of mandate, and/or other evidence of the opening of the      Earnings Account, as the Lender may require.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Managers' confirmation      The written confirmation of the Managers that, throughout the      Facility Period unless otherwise agreed by the Lender, they will remain      the commercial and technical managers of the Vessel and that they will      not, without the prior written consent of the Lender, sub-contract or      delegate the commercial or technical management of the Vessel to any third      party and confirming in terms acceptable to the Lender that, following the      occurrence of an Event of Default, all claims of the Managers against the      Borrower shall be subordinated to the claims of the Lender under the      Finance Documents.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | No disputes The written      confirmation of the Borrower that there is no dispute under any of the      Relevant Documents as between the parties to any such      document.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | Other Relevant Documents      Copies of each of the Relevant Documents not otherwise comprised in      the documents listed in this Part I of Schedule I.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | If      a Security Party is incorporated in a jurisdiction other than England and      Wales or if any Finance Document is governed by the laws of a jurisdiction      other than England and Wales, a legal opinion of the legal advisers to the      Lender in each relevant jurisdiction, substantially in the form or forms      provided to the Lender prior to signing this Agreement or confirmation      satisfactory to the Lender that such an opinion will be    given. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Drawdown Notice A duly      completed Drawdown Notice.  |
|--------|-----|--------------------------------------------------------------|

|   | (b) | Process agent Evidence      that any process agent referred to in Clause 21.5 (Service of process)      and any process agent appointed under any other Finance Document      has accepted its appointment.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Other authorisations A copy of any other      consent, licence, approval, authorisation or other document, opinion or      assurance which the Lender considers to be necessary or desirable (if it      has notified the Borrower accordingly) in connection with the entry into      and performance of the transactions contemplated by any of the Relevant      Documents or for the validity and enforceability of any of the Relevant      Documents.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Financial statements      Copies of the Original Financial Statements.  |
|--------|-----|------------------------------------------------------------------------------|

|   | (e) | Fees Evidence that the      fees, costs and expenses then due from the Borrower under Clause 8 (Indemnities) and      Clause 9 (Fees)      have been paid or will be paid by the Drawdown Date.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | "Know your customer" documents      Such documentation and other evidence as is reasonably requested by      the. Lender in order for the Lender to comply with all necessary "know      your customer" or similar identification procedures in relation to the      transactions contemplated in the Finance  Documents. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1 | Evidence of Borrower's title      Certificate of ownership and encumbrance (or equivalent) issued by      the Registrar of Ships (or equivalent official) of the flag stated in      Recital (A) confirming that (a) the Vessel is permanently registered under      that flag in the ownership of the Borrower, (b) the Mortgage has been      registered with first priority against the Vessel and (c) there are no      further Encumbrances registered against the Vessel.  |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Deletion by Seller      Evidence that the Vessel has been deleted from its current      flag.  |
|---|-----------------------------------------------------------------------------------------------------|

| 3 | Letters of undertaking      Letters of undertaking in respect of the Insurances as required by      the Security Documents together with copies of the relevant policies or      cover notes or entry certificates duly endorsed with the interest of the      Lender.  |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Acknowledgements of notices      Acknowledgements of all notices of assignment and/or charge given      pursuant to the Security Documents.  |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Legal opinions Such of      the legal opinions specified in Part I of this Schedule 1 as have not      already been provided to the Lender.  |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Companies Act registrations      Evidence that the prescribed particulars of the Security Documents      have been delivered to the Registrar of Companies within the statutory      time limit.  |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Master's receipt The      master's receipt for the Mortgage.  |
|---|--------------------------------------------------------------------|

| 8 | Chartering agreement A      copy of the Charter in accordance with the requirements of Clause      12.4.9. |
|---|------------------------------------------------------------------------------------------------------------|

----

----

|    |                                    |   |                                    |
|---------|-----------------------------------------|--------|-----------------------------------------|
| Signed: |                                    |   |                                    |
|    | Director                                |   | Director                                |
|    | of                                      |   | of                                      |
|    | JAPAN      III SHIPPING COMPANY LIMITED |   | JAPAN      III SHIPPING COMPANY LIMITED |
|    |                                    |   |                                    |

----

  
| * | If      this statement cannot be made, the certificate should identify any Default      that is continuing and the steps, if any, being taken to remedy      it. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| SIGNED by Theodora      Hitropetrou                | )      |                          |
|----------------------------------------------------|--------|-------------------------------|
| duly      authorised for and on behalf             | )      | /s/      Theodora Hitropetrou |
| of      JAPAN III SHIPPING      COMPANY            | )      |                          |
| LIMITED                                            | )      |                          |
|                                               |   |                          |
|                                               |   |                          |
|                                               |   |                          |
| SIGNED Constantine      Flokos, Grigorios Kondilis | )      |                          |
| duly      authorised for and on behalf             | )      | /s/      Constantine Flokos   |
| of      ALPHA BANK      A.E.                       | )      | /s/      Grigorios Kondilis   |
|                                               |   |                          |

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

----