----

| Clause |                                          | Page   |
|--------|-----------------------------------------------|--------|
|   |                                          |   |
| 1      | INTERPRETATION                                | 1      |
|   |                                          |   |
| 2      | FACILITY                                      | 15     |
|   |                                          |   |
| 3      | POSITION      OF THE LENDERS AND SWAP BANKS   | 15     |
|   |                                          |   |
| 4      | DRAWDOWN                                      | 16     |
|   |                                          |   |
| 5      | INTEREST                                      | 18     |
|   |                                          |   |
| 6      | INTEREST      PERIODS                         | 20     |
|   |                                          |   |
| 7      | DEFAULT      INTEREST                         | 20     |
|   |                                          |   |
| 8      | REPAYMENT      AND PREPAYMENT                 | 21     |
|   |                                          |   |
| 9      | CONDITIONS      PRECEDENT                     | 23     |
|   |                                          |   |
| 10     | REPRESENTATIONS      AND WARRANTIES           | 25     |
|   |                                          |   |
| 11     | GENERAL      UNDERTAKINGS                     | 28     |
|   |                                          |   |
| 12     | CORPORATE      UNDERTAKINGS                   | 34     |
|   |                                          |   |
| 13     | INSURANCE                                     | 35     |
|   |                                          |   |
| 14     | SHIP      COVENANTS                           | 39     |
|   |                                          |   |
| 15     | SECURITY      COVER                           | 42     |
|   |                                          |   |
| 16     | PAYMENTS      AND CALCULATIONS                | 44     |
|   |                                          |   |
| 17     | APPLICATION      OF RECEIPTS                  | 46     |
|   |                                          |   |
| 18     | APPLICATION      OF EARNINGS                  | 47     |
|   |                                          |   |
| 19     | EVENTS      OF DEFAULT                        | 47     |
|   |                                          |   |
| 20     | FEES      AND EXPENSES                        | 52     |
|   |                                          |   |
| 21     | INDEMNITIES                                   | 54     |
|   |                                          |   |
| 22     | NO      SET-OFF OR TAX DEDUCTION              | 55     |
|   |                                          |   |
| 23     | ILLEGALITY,      ETC                          | 56     |
|   |                                          |   |
| 24     | INCREASED      COSTS                          | 57     |
|   |                                          |   |
| 25     | SET      OFF                                  | 58     |
|   |                                          |   |
| 26     | TRANSFERS      AND CHANGES IN LENDING OFFICES | 59     |
|   |                                          |   |
| 27     | VARIATIONS      AND WAIVERS                   | 62     |

----

| 28     | NOTICES                          | 63     |
|--------|----------------------------------|--------|
|   |                             |   |
| 29     | JOINT      AND SEVERAL LIABILITY | 65     |
|   |                             |   |
| 30     | SUPPLEMENTAL                     | 66     |
|   |                             |   |
| 31     | LAW      AND JURISDICTION        | 66     |

| SCHEDULE      1     LENDERS AND COMMITMENTS       | 68     |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |
| SCHEDULE      2     SWAP BANKS                    | 69     |
|                                                                  |   |
| SCHEDULE      3     DRAWDOWN NOTICE               | 70     |
|                                                                  |   |
| SCHEDULE      4     CONDITION PRECEDENT DOCUMENTS | 71     |
|                                                                  |   |
| SCHEDULE      5     TRANSFER CERTIFICATE          | 75     |
|                                                                  |   |
| SCHEDULE      6     DESIGNATION NOTICE            | 79     |
|                                                                  |   |
| SCHEDULE      7     DVB LOAN ADMINISTRATION FORM  | 80     |
|                                                                  |   |
| EXECUTION      PAGES                                                  | 82     |

----

| (1) | BANKSY SHIPPING COMPANY      LIMITED      and HONGBO      SHIPPING COMPANY LIMITED, as joint and      several Borrowers; |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (2) | THE BANKS AND FINANCIAL      INSTITUTIONS listed in Schedule 1, as Lenders; |
|-----|-----------------------------------------------------------------------------|

| (3) | THE BANKS AND FINANCIAL      INSTITUTIONS listed in Schedule 2, as Swap    Banks; |
|-----|-----------------------------------------------------------------------------------|

| (4) | DVB BANK AMERICA N.V.,      as Agent;      and |
|-----|------------------------------------------------|

| (5) | DVB BANK AMERICA N.V.,      as SecurityTrustee. |
|-----|-------------------------------------------------|

| (A) | The      Lenders have agreed to make available to the Borrowers a facility of up to      $80,000,000 for the purpose of part financing the purchase price of the      Ships which are to be constructed by the Builder for, and purchased by,      the Borrowers. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | The      Swap Banks may enter into interest rate swap transactions with the      Borrowers from time to time to hedge the Borrowers' exposure under this      Agreement to interest ratefluctuations. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | The      Lenders and the Swap Banks have agreed to share pari passu in the      security to be granted to the Security Trustee pursuant to this      Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | "Account Security Deed"      means, in relation to an Earnings Account, a deed creating security in      respect of that Earnings Accounts in the Agreed  Form; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | "Affected Lender" has the      meaning given in Clause 5.7; |
|--------|-------------------------------------------------------------|

|   | "Agency and Trust      Agreement" means the agency and trust agreement dated the same date      as this Agreement and made between the same  parties; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Agent" means DVB Bank      America N.V., acting in such capacity through its office at Zeelandia      Office Park, Kaya W.F.G. Mensing 14, Curaçao, Netherlands Antilles, or any      successor of it appointed under clause 5 of the Agency and Trust      Agreement; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Agreed Form" means in      relation to any document, that document in the form approved in writing by      the Agent or as otherwise approved in accordance with any other approval      procedure specified in any relevant provisions of any Finance      Document; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Approved Manager" means,      in relation to a Ship, any company which the Agent may, with the      authorisation of the Majority Lenders, approve from time to time as the      technical  or commercial manager of the  Ship; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | 30      September 2009 (or such later date as the Agent may, with the      authorisation of the Lenders, agree with the Borrowers);  or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      earlier, the date on which the Total Commitments are fully borrowed,      cancelled or terminated; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | "Borrowers" means each of      Banksy Shipping Company Limited ("Banksy") and Hongbo      Shipping Company Limited ("Hongbo"), each being a      company incorporated in the Republic of Liberia whose registered office is      at 80 Broad Street, Monrovia, Liberia (and includes their respective      successors); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Builder"  means      SPP Plant & Shipbuilding Co., Ltd. of the Republic of      Korea; |
|--------|-------------------------------------------------------------------------------------------------------|

|   | "Business Day" means a      day on which banks are open in Curaçao, Frankfurt, London and Piraeus and,      in respect of a day on which a payment is required to be made under a      Finance Document, also in New YorkCity; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Charter Assignment"      means, in relation to a Ship, an assignment of the Charter and the Charter      Guarantee in the Agreed Form; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | "Charters"  means: |
|--------|------------------------------|

|   | (a) | in      relation to Ship A, the "hell and high water" bareboat charter dated 27      May 2008 and made between the Guarantor (or its nominee) and Magellano      Marine C.V. for a period of 7 years on a rate of US$14,300 (net) per day      (with the Borrower having options to extend the period for an additional      year on a rate of US$14,800 (net) per day, thereafter for an additional      year on a rate of US$15,300 (net) per day and thereafter for an additional      year on a rate of US$15,800 (net) per day);and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in      relation to Ship B, the "hell and high water" bareboat charter dated 8      April 2008 and made between the Guarantor (or its guaranteed nominee) and      Daelim H&L Co., Ltd. for a period of 10 years on a rate of US$14,550      (net) per day, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | each      in a form approved by the Lenders and as supplemented and/or amended from      time to time and, in the singular, means either of  them; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Charter      Guarantees"  means: |
|--------|---------------------------------------------|

|   | (a) | in      relation to the Charter of Ship A, the guarantee dated 27 May 2008 and      issued by Marco Polo Seatrade B.V. in favour of the Guarantor;      and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in      relation to the Charter of Ship B, the guarantee dated 21 April 2008 and      issued by Daelim Corporation in favour of the Guarantor (or its guaranteed      nominee), |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | each      in a form approved by the Lenders and as supplemented and/or amended from      time to time and, in the singular, means either of  them; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Charter      Guarantor"  means, in relation to a Charter Guarantee,      the party which has issued by that Charter Guarantor in favour of the      relevant Borrower; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Charterer"  means,      in relation to a Charter, the party which has entered into that Charter      with the relevant Borrower; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Commitment" means, in      relation to a Lender, the amount set opposite its name in Schedule 1, or,      as the case may require, the amount specified in the relevant      Transfer |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | "Confirmation" and "Early Termination Date",      in relation to any continuing Designated Transaction, have the meanings      given in the relevant MasterAgreement; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Contractual Currency"      has the meaning given in Clause21.4; |
|--------|------------------------------------------------------------------|

|   | "Contribution" means, in      relation to a Lender, the part of the Loan which is owing to that      Lender; |
|--------|--------------------------------------------------------------------------------------------------------------|

|   | "Creditor Party" means      the Agent, the Security Trustee, any Lender or any Swap Bank, whether as      at the date of this Agreement or at any later  time; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | it      is entered into by the Borrowers pursuant to a Master Agreement with a      Swap Bank which, at the time the Transaction is entered into, is also a      Lender; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (c) | it      is designated by the Borrowers, by delivery by the Borrowers to the Agent      of a notice of designation in the form set out in Schedule 6, as a      Designated Transaction for the purposes of the Finance      Documents; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | "Drawdown Notice" means a      notice in the form set out in Schedule 3 (or in any other form which the      Agent approves or reasonablyrequires); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | except      to the extent that they fall within paragraph  (b); |
|--------|-----|-----------------------------------------------------------------|

|   | (i) | all      freight, hire and passage moneys; |
|--------|-----|--------------------------------------------|

|   | (ii) | compensation      payable to any Borrower or the Security Trustee in the event of      requisition of a Ship for hire; |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | remuneration      for salvage and towage services; |
|--------|-------|----------------------------------------------------|

----

|   | (iv) | demurrage      and detention moneys; |
|--------|------|--------------------------------------|

|   | (v) | damages      for breach (or payments for variation or termination) of any charterparty      or other contract for the employment of a Ship;  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | "Earnings Account" means,      in relation to a Ship, an account in the name of the Borrower owning the      Ship with a bank or financial institution approved by the Agent which is      designated by the Agent as the Earnings Account in relation to that Ship      for the purposes of this Agreement; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Environmental Claim"      means: |
|--------|-----------------------------------|

|   | (a) | any      claim by any governmental, judicial or regulatory authority which arises      out of an Environmental Incident or an alleged Environmental Incident or      which relates to any Environmental Law;or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any      claim by any other person which relates to an Environmental Incident or to      an alleged Environmental Incident, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

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

|   | "Environmental Incident"      means: |
|--------|--------------------------------------|

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

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

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

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

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

----

|   | "Fee      Letter"  means a fee letter signed or to be signed on or      around the date of this Agreement between DVB Bank America N.V., the      Borrowers and the Guarantor in the AgreedForm; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Finance Documents"      means: |
|--------|---------------------------------|

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

|   | (b) | the      Fee Letter; |
|--------|-----|----------------------|

|   | (c) | the      Agency and Trust Agreement; |
|--------|-----|--------------------------------------|

|   | (d) | the      Guarantee; |
|--------|-----|---------------------|

|   | (e) | the      Master Agreement Assignments; |
|--------|-----|----------------------------------------|

|   | (f) | the      Account Security Deeds; |
|--------|-----|----------------------------------|

|   | (g) | the      Shares Pledges; |
|--------|-----|--------------------------|

|   | (h) | the      Predelivery Security Assignments; |
|--------|-----|--------------------------------------------|

|   | (i) | the      Mortgages; |
|--------|-----|---------------------|

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

|   | (k) | the      Charter Assignments; |
|--------|-----|-------------------------------|

|   | (l) | the      Quadripartite Agreements; and |
|--------|-----|----------------------------------------|

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

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

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

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

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

|   | (d) | under      a financial lease (including, without limitation, off-balance sheet      liabilities such as remaining obligations under any leasing/chartering      arrangement (whether or not a financial lease)), a deferred purchase      consideration arrangement or any other agreement having the commercial      effect of a borrowing or raising of money by the  debtor; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

|   | "GAAP" means generally      accepted accounting principles in the United States of      America; |
|--------|--------------------------------------------------------------------------------------------------|

|   | "General Assignment"      means, in relation to a Ship, a general assignment of the Earnings, the      Insurances and any Requisition Compensation in the Agreed      Form; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Guarantee" means a      guarantee issued by the Guarantor in favour of the Security Trustee in the      Agreed Form; |
|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | "Guarantor" means Top      Ships Inc. (formerly known as Top Tankers Inc.), a corporation      incorporated in the Republic of the Marshall Islands whose registered      office is at Trust Company Complex, Ajeltake Island, P.O. Box 1405,      Majuro, Marshall Islands MH96960; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "IAPPC"  means      an International Air Pollution Prevention Certificate for the purposes of      MARPOL Annex VI, "Regulations for the Prevention of Air Pollution from      Ships"; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Insurances" means, in      relation to a Ship: |
|--------|-------------------------------------------------|

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

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

|   | "Interest Period" means a      period determined in accordance with Clause6; |
|--------|------------------------------------------------------------------------------|

|   | "ISM Code" means the      International Safety Management Code (including the guidelines on its      implementation), adopted by the International Maritime Organisation as the      same may be amended or supplemented from time to time (and the terms      "safety management      system", "Safety      Management Certificate" and "Document of Compliance"      have the same meanings as are given to them in the ISM    Code); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Lender" means a bank or      financial institution listed in Schedule 1 and acting through its branch      indicated in Schedule 1 (or through another branch notified to the Agent      under Clause 26.14) or its transferee, successor or  assign; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      rate per annum equal to the offered quotation for deposits in Dollars for      a period equal to, or as near as possible equal to, that period which      appears on REUTERS BBA Page LIBOR 01 at or about 11.00 a.m. (London time)      on the Quotation Date for that period (and, for the purposes of this      Agreement, "REUTERS BBA      Page LIBOR 01" means the display designated as "Page 01" on the      REUTERS Service or such other page as may replace Page 01 on      that |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | if      no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum      determined by the Agent to be the arithmetic mean (rounded upwards, if      necessary, to the nearest one-sixteenth of one per cent.) of the rates per      annum notified to the Agent by each Reference Bank as the rate at which      deposits in Dollars are offered to that Reference Bank by leading banks in      the London Interbank Market at that Reference Bank's request at or about      11.00 a.m. (London time) on the Quotation Date for that period for a      period equal to that period and for delivery on the first Business Day of      it; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | "Major Casualty" means,      in relation to a Ship, any casualty to the Ship in respect of which the      claim or the aggregate of the claims against all insurers, before      adjustment for any relevant franchise or deductible, exceeds $500,000 or      the equivalent in any othercurrency; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Majority Lenders"      means: |
|--------|--------------------------------|

|   | (a) | before      an Advance has been made, Lenders whose Commitments total more than 67 per      cent. of the Total Commitments; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | after      an Advance has been made, Lenders whose Contributions total more than 67      per cent. of the Loan; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | "Margin" means 1.55 per      cent. per annum; |
|--------|-----------------------------------------------|

|   | "Mortgages"      means: |
|--------|-------------------------|

|   | (a) | in      relation to Ship A, the first priority Maltese ship mortgage on that Ship      and deed of covenant collateral thereto;and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in      relation to Ship B, the first preferred Liberian ship mortgage on that      Ship, |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | each      in the Agreed Form and, in the singular, means either of    them; |
|--------|-----------------------------------------------------------------------------|

|   | "Negotiation Period" has      the meaning given in Clause5.10; |
|--------|----------------------------------------------------------------|

----

|   | "Payment Currency" has      the meaning given in Clause 21.4; |
|--------|---------------------------------------------------------------|

|   | "Permitted Security      Interests" means: |
|--------|--------------------------------------------|

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

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

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

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

|   | (e) | liens      for master's disbursements incurred in the ordinary course of trading and      any other lien arising by operation of law or otherwise in the ordinary      course of the operation, repair or maintenance of a Ship, provided such      liens do not secure amounts more than 30 days overdue (unless the      overdue amount is being contested by the relevant Borrower in good faith      by appropriate steps) and subject, in the case of liens for repair or      maintenance, toClause 14.12(g); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | any      Security Interest created in favour of a plaintiff or defendant in any      proceedings or arbitration as security for costs and expenses while a      Borrower is actively prosecuting or defending such proceedings or      arbitration in good faith; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (b) | any      policy or contract of insurance contemplated by or referred to in Clause      13 or any other provision of this Agreement or another Finance      Document; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

|   | (c) | a      country in which the company has the centre of its main interests or which      the company's central management and control is or has recently been      exercised; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

|   | "Pertinent Matter"      means: |
|--------|--------------------------------|

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

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

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

|   | "Predelivery Security      Assignment"  means, in relation to a Ship, an assignment      of the Shipbuilding Contract for that Ship and of the Refund Guarantee in      relation to that Shipbuilding Contract in the Agreed  Form; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Principal      Subsidiaries"  means each company which has total assets      which are valued at 5 per cent. or more of the value of the consolidated      total assets of the Guarantor and its subsidiaries, as calculated by      reference to the then latest audited annual accounts of such subsidiary      and the Guarantor and, in the singular, means any of  them; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Quadripartite Agreement"      means, in relation to a Ship, an agreement between the Borrower owning or      to own that Ship, the Charterer of that Ship, the relevant Charter      Guarantor and the Security Trustee in the Agreed  Form; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Quotation Date" means,      in relation to any period for which an interest rate is to be determined      under any provision of a Finance Document, the day which is 2 Business      Days before the first day of that period, unless market practice differs      in the London Interbank Market for a currency, in which case the Quotation      Date will be determined by the Agent in accordance with market practice in      the London Interbank Market (and if quotations would normally be given by      leading banks in the London Interbank Market on more than one day, the      Quotation Date will be the last of thosedays); |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Reference Banks" means,      subject to Clause 26.16, DVB Bank AmericaN.V.; |
|--------|------------------------------------------------------------------------------|

|   | "Refund      Guarantees"  means: |
|--------|--------------------------------------------|

|   | (a) | in      relation to the Shipbuilding Contract for Ship A, the guarantee dated 18      December 2006 and issued by the Refund Guarantor in favour of the      Guarantor together with an agreement made or to be made between the Refund      Guarantor, the Guarantor and Banksy pursuant to which Banksy will become      the beneficiary under such guarantee;and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | in      relation to the Shipbuilding Contract for Ship B, the guarantee dated 18      December 2006 and issued by the Refund Guarantor in favour of the      Guarantor together with an agreement made or to be made between the Refund      Guarantor, the Guarantor and Hongbo pursuant to which Hongbo will become      the beneficiary under suchguarantee, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | each      in a form approved by the Lenders and as supplemented and/or amended from      time to time and, in the singular, means either of  them; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Refund      Guarantor"  means Woori Bank of the Republic of      Korea; |
|--------|------------------------------------------------------------------------------------|

|   | "Relevant Person" has the      meaning given in Clause 19.9; |
|--------|--------------------------------------------------------------|

|   | "Repayment Date" means a      date on which a repayment is required to be made under Clause      8; |
|--------|-----------------------------------------------------------------------------------------------------|

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

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

|   | "Security Interest"      means: |
|--------|---------------------------------|

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

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

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

|   | "Security Party" means      the Guarantor, each party to each Quadripartite Agreement (except a      Creditor Party) and any other person (except a Creditor Party) who, as a      surety or mortgagor, as a party to any subordination or priorities      arrangement, or in any similar capacity, executes a document falling      within the last paragraph of the definition of "Finance      Documents"; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Security Period" means      the period commencing on the date of this Agreement and ending on the date      on which the Agent notifies the Borrowers, the Security Parties and the      Lenders that: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

|   | (c) | neither      any Borrower nor any Security Party has any future or contingent liability      under Clause 20, 21 or 22 or any other provision of this Agreement or      another Finance Document or a Master Agreement;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | "Security      Trustee"  means DVB Bank America N.V., acting in such      capacity through its office at Zeelandia Office Park, Kaya W.F.G. Mensing      14, Curaçao, Netherlands Antilles, or any successor of it appointed under      clause 5 of the Agency and TrustAgreement; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Servicing Bank" means      the Agent or the Security Trustee; |
|--------|----------------------------------------------------------------|

|   | "Shares Pledge" means, in      relation to a Borrower, a deed creating security over the share capital of      that Borrower in the Agreed Form; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Ship" means each      of: |
|--------|----------------------------|

|   | (a) | "Ship A", being the      newbuilding IMO III, double hull product tanker of 50,000 dwt which is to      be constructed by the Builder for, and purchased by, Banksy under the      Shipbuilding Contract in respect of hull number S-1027 and upon delivery      registered in the name of Banksy under Maltese flag;  and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | "Ship B", being the      newbuilding IMO III, double hull product tanker of 50,000 dwt which is to      be constructed by the Builder for, and purchased by, Hongbo under the      Shipbuilding Contract in respect of hull number S-1033 and upon delivery      registered in the name of Hongbo under Liberian  flag; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | and,      in the singular, means either ofthem; |
|--------|-------------------------------------------------|

|   | "Shipbuilding      Contracts"  means: |
|--------|-------------------------------------------------|

|   | (a) | the      shipbuilding contract dated 31 October 2006 and made between the Builder      and the Guarantor for the construction by the Builder of a newbuilding IMO      III, double hull product tanker of 50,000 dwt with hull number S-1027 and      its purchase by Guarantor together with a novation agreement made or to be      made between the Builder, the Guarantor and Banksy pursuant to which the      Guarantor's rights and obligations under such shipbuilding contract are      novated in favour of Banksy; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      shipbuilding contract dated 31 October 2006 and made between the Builder      and the Guarantor for the construction by the Builder of a newbuilding IMO      III, double hull product tanker of 50,000 dwt with hull number S-1033 and      its purchase by Guarantor together with a novation agreement made or to be      made between the Builder, the Guarantor and Hongbo pursuant to which the      Guarantor's rights and obligations under such shipbuilding contract are      novated in favour of Hongbo; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | "Total Loss" means, in      relation to a Ship: |
|--------|-------------------------------------------------|

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

|   | (b) | any      expropriation, confiscation, requisition or acquisition of the Ship,      whether for full consideration, a consideration less than its proper      value, a nominal consideration or without any consideration, which is      effected by any government or official authority or by any person or      persons claiming to be or to represent a government or official authority      (excluding a requisition for hire for a fixed period not exceeding 1 year      without any right to an extension) unless it is within 1 month redelivered      to the full control of the Borrower owning the Ship;  and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      arrest, capture, seizure or detention of the Ship (including any hijacking      or theft) unless it is within 1 month redelivered to the full control of      the Borrower owning the Ship; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | (i) | the      date on which a notice of abandonment is given to the insurers;      and |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (ii) | the      date of any compromise, arrangement or agreement made by or on behalf of      the Borrower owning the Ship with the Ship's insurers in which the      insurers agree to treat the Ship as a total loss;  and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in      the case of any other type of total loss, on the date (or the most likely      date) on which it appears to the Agent that the event constituting the      total loss occurred; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Tranche"  means,      in relation to a Ship, the aggregate of the Advances relating to that      Ship; |
|--------|-------------------------------------------------------------------------------------------------------------------|

|   | "Transaction"  has      the meaning given in each MasterAgreement; |
|--------|------------------------------------------------------------------------------|

|   | "Transaction      Documents"  means the Shipbuilding Contracts, the      Charters and the Charter Guarantees and, in the singular, means any of      them; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Transfer      Certificate"  has the meaning given in Clause 26.2;      and |
|--------|---------------------------------------------------------------------------------------|

----

|   | "Trust Property" has the      meaning given in clause 3.1 of the Agency and Trust    Agreement. |
|--------|-------------------------------------------------------------------------------------------------|

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

|   | "approved" means, for the      purposes of Clause 13, approved in writing by the  Agent; |
|--------|------------------------------------------------------------------------------------------|

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

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

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

|   | "control"  by      one person (A) of another (B) means that A (whether directly or indirectly      and whether by the ownership of share capital, the possession of voting      power, contract or otherwise and whether acting alone or in concert with      one or more other parties) has the power to appoint and/or remove all or      the majority of the members of the board of directors or other governing      body of B or otherwise controls or has the power to control the affairs      and policies of B; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "document" includes a      deed; also a letter or fax; |
|--------|--------------------------------------------------------|

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

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

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

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

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

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

|   | "obligatory insurances"      means, in relation to a Ship, all insurances effected, or which the      Borrower owning the Ship is obliged to effect, under Clause 13 or any      other provision of this Agreement or another Finance    Document; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

|   | "protection and indemnity      risks" means the usual risks covered by a protection and indemnity      association managed in London, including pollution risks and the      proportion (if any) of any sums payable to any other person or persons in      case of collision which are not recoverable under the hull and machinery      policies by reason of the incorporation in them of clause 6 of the      International Hull Clauses (1/11/02 or 1/11/03), clause 8 of the Institute      Time Clauses (Hulls) (1/11/95) or clause 8 of the Institute Time Clauses      (Hulls) (1/10/83) or the Institute Amended Running Down Clause (1/10/71)      or any equivalent provision; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | "subsidiary"  has      the meaning given in Clause 1.4; |
|--------|-------------------------------------------------------------------|

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

|   | "war      risks"  includes the risk of mines, blocking, trapping      and all risks excluded by clause 29 of the International Hull Clauses      (1/11/02 or 1/11/03), clause 24 of the Institute Time Clauses      (Hulls)(1/11/95) or clause 23 of the Institute Time Clauses (Hulls)      (1/10/83). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | Meaning of      "month".  A period of one or more "months" ends on the day      in the relevant calendar month numerically corresponding to the day of the      calendar month on which the period started ("the numerically corresponding      day"), but: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 1.4 | Meaning of      "subsidiary".  A company (S) is a subsidiary of another      company (P) if: |
|-----|--------------------------------------------------------------------------------------------------------|

| (a) | a      majority of the issued shares in S (or a majority of the issued shares in      S which carry unlimited rights to capital and income distributions) are      directly owned by P or are indirectly attributable to P;  or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

|   | and      any company of which S is a subsidiary is a parent company of      S. |
|--------|--------------------------------------------------------------------------------|

| 1.5 | General      Interpretation.  In this  Agreement: |
|-----|-------------------------------------------------------------|

| (a) | references      to, or to a provision of, a Finance Document or any other document are      references to it as amended or supplemented, whether before the date of      this Agreement or otherwise; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | references      to, or to a provision of, any law include any amendment, extension,      re-enactment or replacement, whether made before the date of this      Agreement or otherwise; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d) | Clauses      1.1 to 1.5 apply unless the contrary intention  appears. |
|-----|-----------------------------------------------------------------------|

| 1.6 | Headings.  In      interpreting a Finance Document or any provision of a Finance Document,      all clause, sub-clause and other headings in that and any other Finance      Document shall be entirelydisregarded. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2.1 | Amount of      facility.  Subject to the other provisions of this      Agreement, the Lenders shall make a loan facility not exceeding      $80,000,000 available to theBorrowers. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Lenders' participations in      Advances.  Subject to the other provisions of this      Agreement, each Lender shall participate in each Advance in the proportion      which, as at the relevant Drawdown Date, its Commitment bears to the Total      Commitments. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | Purpose of      Advances.  The Borrowers undertake with each Creditor      Party to use each Advance only for the purpose stated in the preamble to      this Agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | POSITION      OF THE LENDERS AND SWAP BANKS |
|---|---------------------------------------------|

| 3.1 | Interests      several.  The rights of the Lenders and of the Swap Banks      under this Agreement and under the Master Agreements are      several. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Individual right of      action.  Each Lender and each Swap Bank shall be entitled      to sue for any amount which has become due and payable by the Borrowers to      it under this Agreement or under a Master Agreement without joining the      Agent, the Security Trustee, any other Lender or any other Swap Bank as      additional parties in theproceedings. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Proceedings requiring Majority      Lenders' consent.  Except as provided in Clause 3.2, no      Lender and no Swap Bank may commence proceedings against any Borrower or      any Security Party in connection with a Finance Document or a Master      Agreement without the prior consent of the Majority    Lenders. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Obligations      several.  The obligations of the Lenders under this      Agreement and of the Swap Banks under the Master Agreement to which each      is a party are several; and a failure of a Lender to perform its      obligations under this Agreement or a failure of a Swap Bank to perform      its obligations under the Master Agreement to which it is a party shall      not result in: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      obligations of the other Lenders or Swap Banks being increased;      nor |
|-----|-----------------------------------------------------------------------------------|

| (b) | any      Borrower, any Security Party, any other Lender or any other Swap Bank      being discharged (in whole or in part) from its obligations under any      Finance Document or under any MasterAgreement, |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | and      in no circumstances shall a Lender or a Swap Bank have any responsibility      for a failure of another Lender or another Swap Bank to perform its      obligations under this Agreement or a Master  Agreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | DRAWDOWN |
|---|----------|

| 4.1 | Request for      Advance.  Subject to the following conditions, the      Borrowers may request an Advance to be made by ensuring that the Agent      receives a completed Drawdown Notice not later than 11.00 a.m. (London      time) 3 Business Days prior to the intended Drawdown  Date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Availability.  The      conditions referred to in Clause 4.1 arethat: |
|-----|---------------------------------------------------------------------------------|

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

| (b) | each      Advance shall relate to either Ship A or ShipB; |
|-----|-----------------------------------------------------------|

| (c) | there      shall be no more than 5 Advances relating to each Ship and the aggregate      of such Advances relating to a Ship shall not exceed      $40,000,000; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      amount of the first Advance relating to a Ship shall not exceed the lesser      of: |
|-----|----------------------------------------------------------------------------------------------|

|   | (i) | 70      per cent. of the net amount of the instalment of the purchase price      already paid to the Builder under article 10(b)(i) (refund guarantee      arrangement) of the Shipbuilding Contract for that  Ship; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | $5,011,650;      or |
|--------|------|---------------------|

|   | (iii) | such      lesser amount required to ensure that, if the ratio set out in Clause      15.1(a) were applied immediately following the making of the Advance, the      Borrowers would not be obliged to provide additional security or prepay      part of the Loan under that Clause; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | the      amount of the second Advance relating to a Ship shall not exceed the      lesser of: |
|-----|-----------------------------------------------------------------------------------------------|

|   | (i) | 70      per cent. of the net amount of the instalment of the purchase price due to      the Builder under article 10(b)(ii) (steel cutting) of the Shipbuilding      Contract for that Ship on the relevant Drawdown  Date; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | $5,011,650;      or |
|--------|------|---------------------|

|   | (iii) | such      lesser amount required to ensure that, if the ratio set out in Clause      15.1(a) were applied immediately following the making of the Advance, the      Borrowers would not be obliged to provide additional security or prepay      part of the Loan under that Clause; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | the      amount of the third Advance relating to a Ship shall not exceed the lesser      of: |
|-----|----------------------------------------------------------------------------------------------|

|   | (i) | 70      per cent. of the net amount of the instalment of the purchase price due to      the Builder under article 10(b)(iii) (keel laying) of the Shipbuilding      Contract for that Ship on the relevant Drawdown  Date; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | $6,682,200;      or |
|--------|------|---------------------|

|   | (iii) | such      lesser amount required to ensure that, if the ratio set out in Clause      15.1(a) were applied immediately following the making of the Advance, the      Borrowers |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (g) | the      amount of the fourth Advance relating to a Ship shall not exceed the      lesser of: |
|-----|-----------------------------------------------------------------------------------------------|

|   | (i) | 70      per cent. of the net amount of the instalment of the purchase price due to      the Builder under article 10(b)(iv) (launching) of the Shipbuilding      Contract for that Ship on the relevant Drawdown  Date; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | $6,682,200;      or |
|--------|------|---------------------|

|   | (iii) | such      lesser amount required to ensure that, if the ratio set out in Clause      15.1(a) were applied immediately following the making of the Advance, the      Borrowers would not be obliged to provide additional security or prepay      part of the Loan under that Clause; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | the      amount of the final Advance relating to a Ship shall not exceed the lesser      of: |
|-----|----------------------------------------------------------------------------------------------|

|   | (i) | 116      per cent. of the net amount of the instalment of the purchase price due to      the Builder under article 10(b)(v) (delivery) of the Shipbuilding Contract      for that Ship on the relevant DrawdownDate; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | $16,612,300; |
|--------|------|--------------|

|   | (iii) | together      with the aggregate amount of the previous Advances relating to that Ship,      75 per cent. of the market value (determined as provided in Clause 15.3 on      the basis of a valuation carried out not more than 2 weeks prior to the      Drawdown Date) of that Ship; or |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | such      lesser amount as the Lenders may determine in their absolute discretion if      the Borrowers have not provided all of the documents and evidence set out      in Clauses 11.28 and 11.29 in form and substance satisfactory to the Agent      and its lawyers; and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | the      aggregate amount of the Advances shall not exceed the Total      Commitments. |
|-----|----------------------------------------------------------------------------------------|

| 4.3 | Notification to Lenders of      receipt of a Drawdown Notice.  The Agent shall promptly      notify the Lenders that it has received a Drawdown Notice and shall inform      each Lender of: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      amount of the Advance and the DrawdownDate; |
|-----|------------------------------------------------------|

| (b) | the      amount of that Lender's participation in the Advance;  and |
|-----|---------------------------------------------------------------------|

| (c) | the      duration of the first InterestPeriod. |
|-----|------------------------------------------------|

| 4.4 | Drawdown Notice      irrevocable.  A Drawdown Notice must be signed by a      director, officer or attorney-in-fact of each Borrower; and once served, a      Drawdown Notice cannot be revoked without the prior consent of the Agent,      acting on the authority of the MajorityLenders. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Lenders to make available      Contributions.  Subject to the provisions of this      Agreement, each Lender shall, on and with value on each Drawdown Date,      make available to the Agent the amount due from that Lender on that      Drawdown Date under Clause 2.2. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.6 | Disbursement of      Advance.  Subject to the provisions of this Agreement,      the Agent shall on each Drawdown Date pay to the Borrowers the amounts      which the Agent receives from the Lenders under Clause 4.5; and that      payment to the Borrowers shall bemade: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      the account which the Borrowers specify in the Drawdown Notice;      and |
|-----|----------------------------------------------------------------------------------|

| (b) | in      the like funds as the Agent received the payments from the      Lenders. |
|-----|----------------------------------------------------------------------------------|

| 4.7 | Disbursement of Advance to      third party.  The payment by the Agent under Clause 4.6      shall constitute the making of the Advance and the Borrowers shall at that      time become indebted, as principal and direct obligors, to each Lender in      an amount equal to that Lender'sContribution. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5.1 | Payment of normal      interest.  Subject to the provisions of this Agreement,      interest on the Loan in respect of each Interest Period shall be paid by      the Borrowers on the last day of that Interest  Period. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Normal rate of      interest.  Subject to the provisions of this Agreement,      the rate of interest on the Loan in respect of an Interest Period shall be      the aggregate of the Margin and LIBOR for that Interest      Period. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Payment of accrued      interest.  In the case of an Interest Period longer than      3 months, accrued interest shall be paid every 3 months during that      Interest Period and on the last day of that Interest    Period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Notification of Interest      Periods and rates of normal interest.  The Agent shall      notify the Borrowers and each Lenderof: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | each      rate of interest; and |
|-----|---------------------------------|

| (b) | the      duration of each Interest Period, |
|-----|--------------------------------------------|

| 5.5 | Obligation of Reference Banks      to quote.  A Reference Bank which is a Lender shall use      all reasonable efforts to supply the quotation required of it for the      purposes of fixing a rate of interest under this  Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | Absence of quotations by      Reference Banks.  If any Reference Bank fails to supply a      quotation, the Agent shall determine the relevant LIBOR on the basis of      the quotations supplied by the other Reference Bank or Banks; but if the      Reference Banks fail to provide a quotation, the relevant rate of interest      shall be set in accordance with the following provisions of this Clause      5. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | Market      disruption.  The following provisions of this Clause 5      apply if: |
|-----|---------------------------------------------------------------------------------------------|

| (a) | no      rate is quoted on REUTERS BBA Page LIBOR 01 and the Reference Banks do      not, before 1.00 p.m. (London time) on the Quotation Date, provide      quotations to the Agent in order to fix LIBOR;  or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | at      least 1 Business Day before the start of an Interest Period, Lenders      having Contributions together amounting to more than 50 per cent. of the      Loan (or, if an Advance has not been made, Commitments amounting to more      than 50 per cent. of the Total Commitments) notify the Agent that LIBOR      fixed by the Agent would not accurately reflect the cost to those Lenders      of funding their respective Contributions (or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | at      least 1 Business Day before the start of an Interest Period, the Agent is      notified by a Lender (the "Affected Lender") that      for any reason it is unable to obtain Dollars in the London Interbank      Market in order to fund its Contribution (or any part of it) during the      Interest Period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | Notification of market      disruption.  The Agent shall promptly notify the      Borrowers and each of the Lenders and each of the Swap Counterparties      stating the circumstances falling within Clause 5.7 which have caused its      notice to be given. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.9 | Suspension of      drawdown.  If the Agent's notice under Clause 5.8 is      served before an Advance is made: |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (a) | in      a case falling within Clauses 5.7(a) or (b), the Lenders' obligations to      make the Advance; and |
|-----|-------------------------------------------------------------------------------------------------------------|

| (b) | in      a case falling within Clause 5.7(c), the Affected Lender's obligation to      participate in the Advance, |
|-----|-------------------------------------------------------------------------------------------------------------------|

| 5.10 | Negotiation of alternative rate      of interest.  If the Agent's notice under Clause 5.8 is      served after an Advance is made, the Borrowers, the Agent and the Lenders      or (as the case may be) the Affected Lender and the Swap Counterparties      shall use reasonable endeavours to agree, within the 30 days after the      date on which the Agent serves its notice under Clause 5.8 (the "Negotiation Period"), an      alternative interest rate or (as the case may be) an alternative basis for      the Lenders or (as the case may be) the Affected Lender to fund or      continue to fund their or its Contribution during the Interest Period      concerned. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.11 | Application of agreed      alternative rate of interest.  Any alternative interest      rate or an alternative basis which is agreed during the Negotiation Period      shall take effect in accordance with the terms  agreed. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.12 | Alternative rate of interest in      absence of agreement.  If an alternative interest rate or      alternative basis is not agreed within the Negotiation Period, and the      relevant  circumstances are continuing at the end of the      Negotiation Period, then the Agent shall, with the agreement of each      Lender or (as the case may be) the Affected Lender, set an interest period      and interest rate representing the cost of funding of the Lenders or (as      the case may be) the Affected Lender in Dollars or in any available      currency of their or its Contribution plus the Margin; and the procedure      provided for by this Clause 5.12 shall be repeated if the relevant      circumstances are continuing at the end of the interest period so set by      the Agent. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.13 | Notice of      prepayment.  If the Borrowers do not agree with an      interest rate set by the Agent under Clause 5.12, the Borrowers may give      the Agent not less than 15 Business Days' notice of their intention to      prepay at the end of the interest period set by the  Agent. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.14 | Prepayment; termination of      Commitments.  A notice under Clause 5.13 shall be      irrevocable; the Agent shall promptly notify the Lenders or (as the case      may require) the Affected Lender of the Borrowers' notice of intended      prepayment; and: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | on      the date on which the Agent serves that notice, the Total Commitments or      (as the case may require) the Commitment of the Affected Lender shall be      cancelled; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | on      the last Business Day of the interest period set by the Agent, the      Borrowers shall prepay (without premium or penalty) the Loan or, as the      case may be, the Affected Lender's Contribution, together with accrued      interest thereon at the applicable rate plus the  Margin. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.15 | Application of      prepayment.  The provisions of Clause 8 shall apply in      relation to the prepayment. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| 6 | INTEREST      PERIODS |
|---|-----------------------|

| 6.1 | Commencement of Interest      Periods.  The first Interest Period applicable to an      Advance shall commence on the Drawdown Date and each subsequent Interest      Period shall commence on the expiry of the preceding Interest      Period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Duration of normal Interest      Periods.  Subject to Clauses 6.3 and 6.4, each Interest      Period shall be: |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (a) | 3,      6, 9 or 12 months as notified by the Borrowers to the Agent not later than      11.00 a.m. (London time) 5 Business Days before the commencement of the      Interest Period Provided      that the Borrowers shall only be permitted to select the same      period for both Tranches; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (d) | such      other period as the Agent may, with the authorisation of the Lenders,      agree with the Borrowers. |
|-----|----------------------------------------------------------------------------------------------------------------|

| 6.3 | Duration of Interest Periods      for repayment instalments.  In respect of an amount due      to be repaid under Clause 8 on a particular Repayment Date, an Interest      Period shall end on that RepaymentDate. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4 | Non-availability of matching      deposits for Interest Period selected.  If, after the      Borrowers have selected and the Lenders have agreed an Interest Period      longer than 6 months, any Lender notifies the Agent by 11.00 a.m. (London      time) on the third Business Day before the commencement of the Interest      Period that it is not satisfied that deposits in Dollars for a period      equal to the Interest Period will be available to it in the London      Interbank Market when the Interest Period commences, the Interest Period      shall be of 6 months. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | DEFAULT      INTEREST |
|---|-----------------------|

| 7.1 | Payment of default interest on      overdue amounts.  The Borrowers shall pay interest in      accordance with the following provisions of this Clause 7 on any amount      payable by the Borrowers under any Finance Document which the Agent, the      Security Trustee or the other designated payee does not receive on or      before the relevant date, that is: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| (c) | if      such amount has become immediately due and payable under Clause 19.4, the      date on which it became immediately due and  payable. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Default rate of      interest.  Interest shall accrue on an overdue amount      from (and including) the relevant date until the date of actual payment      (as well after as before judgment) at the rate per annum determined by the      Agent to be 2 per cent. above: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | in      the case of an overdue amount of principal, the higher of the rates set      out at Clauses 7.3(a) and (b); or |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (b) | in      the case of any other overdue amount, the rate set out at Clause      7.3(b). |
|-----|---------------------------------------------------------------------------------------|

| 7.3 | Calculation of default rate of      interest.  The rates referred to in Clause 7.2      are: |
|-----|--------------------------------------------------------------------------------------------------------|

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

| (b) | the      Margin plus, in respect of successive periods of any duration (including      at call) up to 3 months which the Agent may select from time to      time: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 7.4 | Notification of interest      periods and default rates.  The Agent shall promptly      notify the Lenders and the Borrowers of each interest rate determined by      the Agent under Clause 7.3 and of each period selected by the Agent for      the purposes of paragraph (b) of that Clause; but this shall not be taken      to imply that the Borrowers are liable to pay such interest only with      effect from the date of the Agent's  notification. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | Payment of accrued default      interest.  Subject to the other provisions of this      Agreement, any interest due under this Clause shall be paid on the Agent's      demand but also in any event, on the last day of the period by reference      to which it was determined; and the payment shall be made to the Agent for      the account of the Creditor Party to which the overdue amount is      due. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6 | Compounding of default      interest.  Any such interest which is not paid at the end      of the period by reference to which it was determined shall thereupon be      compounded. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7 | Application to Master      Agreements.  For the avoidance of doubt, this Clause 7      does not apply to any amount payable under a Master Agreement in respect      of any continuing Designated Transaction as to which section 2(e) (Default Interest; Other      Amounts) of that Master Agreement shall  apply. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | REPAYMENT      AND PREPAYMENT |
|---|-------------------------------|

| 8.1 | Amount of repayment      instalments.  The Borrowers shall repay each Tranche by      40 equal consecutive quarterly instalments of $625,000 each together with      a balloon instalment equal to the outstanding balance of that      Tranche. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Repayment      Dates.  The first instalment of each Tranche shall be      repaid on the earlier of (i) the date falling 6 months after the first      Delivery Date or (ii) 31 December 2009;and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.3 | Final Repayment      Date.  On the earlier of (i) the final Repayment Date or      (ii) 30 September 2019, the Borrowers shall additionally pay to the Agent      for the account of the Creditor Parties all other sums then accrued or      owing under any Finance Document. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Voluntary      prepayment.  Subject to the following conditions, the      Borrowers may prepay the whole or any part of a  Tranche. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Conditions for voluntary      prepayment.  The conditions referred to in Clause 8.4 are      that: |
|-----|--------------------------------------------------------------------------------------------------------------|

| (a) | a      partial prepayment shall be $500,000 or an integral multiple of      $500,000; |
|-----|---------------------------------------------------------------------------------------|

| (b) | the      Agent has received from the Borrowers at least 3 Business Days' prior      written notice specifying the amount to be prepaid and the date on which      the prepayment is to be made; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      Borrowers have provided evidence satisfactory to the Agent that any      consent required by any Borrower or any Security Party in connection with      the prepayment has been obtained and remains in force, and that any      official  regulation relevant to this Agreement which affects      any Borrower or any Security Party has been complied with;    and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      Borrowers have complied with Clause 8.12 on or prior to the date of      prepayment. |
|-----|-----------------------------------------------------------------------------------------------|

| 8.6 | Effect of notice of      prepayment.  A prepayment notice may not be withdrawn or      amended without the consent of the Agent, given with the authorisation of      the Majority Lenders, and the amount specified in the prepayment notice      shall become due and payable by the Borrowers on the date for prepayment      specified in the prepayment notice. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.7 | Notification of notice of      prepayment.  The Agent shall notify the Lenders promptly      upon receiving a prepayment notice, and shall provide any Lender which so      requests with a copy of any document delivered by the Borrowers under      Clause 8.5(c). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.8 | Mandatory      prepayment.  The Borrowers shall be obliged to prepay in      full the Tranche relating to that Ship, and to comply with Clause      8.12: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | if      any of a Borrower's rights under a Shipbuilding Contract are assigned      (other than pursuant to a Predelivery Security Assignment), novated or      sold, on or before the date on which such assignment, novation or sale is      executed (in the case of an assignment or novation) or completed (in the      case of a sale); or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | if,      prior to the Delivery Date of a Ship, the Borrowers arrange financing in      part or full of any pre-delivery instalment or the delivery instalment of      the Shipbuilding Contract for that Ship with a bank or financial      institution (other than DVB Bank America N.V.), on or before the first      drawdown under such financing; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | if      any of the following occurs in relation to a Ship, on demand by the      Agent: |
|-----|-----------------------------------------------------------------------------------------|

----

|   | (i)    | any      of the events specified in article 11(a) or 11(c) of the Shipbuilding      Contract for that Ship occurs; or                                                                                                      |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                       |
|   | (ii)   | either      the Shipbuilding Contract for that Ship or the Refund Guarantee in      relation to that Ship is cancelled, terminated, rescinded or suspended or      otherwise ceases to remain in force for any reason;  or |

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

|   | (iv) | that      Ship has not for any reason been delivered to, and accepted by, the      relevant Borrower under the Shipbuilding Contract for that Ship by the      date specified in article 3(a)(iii) of that Shipbuilding      Contract, |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.9 | Amounts payable on      prepayment.  A prepayment shall be made together      with: |
|-----|-----------------------------------------------------------------------------------------------|

| (a) | accrued      interest (and any other amount payable under Clause 21 or otherwise) in      respect of the amount prepaid; |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (b) | if      the prepayment is not made on the last day of an Interest Period, together      with any sums payable under Clause 21.1(b);and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| (c) | if      any part of the Loan is prepaid in connection with a financing or      refinancing arranged by a bank or financial institution (other than DVB      Bank America N.V.), as an agreed compensation for the loss of the Lenders'      anticipated return on capital, a prepayment fee equal to 1 per cent. of      the amount prepaid, for distribution among the Lenders pro rata to their      Commitments, |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.10 | Application of partial      prepayment.  Each partial prepayment of a Tranche shall      be applied pro rata against the repayment instalments and the balloon both      specified in Clause 8.1 for thatTranche. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.11 | No      reborrowing.  No amount prepaid may be      reborrowed. |
|------|---------------------------------------------------------------------------|

| 8.12 | Unwinding of Designated      Transactions.  On or prior to any repayment or prepayment      of the Loan under this Clause 8 or any other provision of this Agreement,      the Borrowers shall wholly or partially reverse, offset, unwind or      otherwise terminate one or more of the continuing Designated Transactions      so that the notional principal amount of the continuing Designated      Transactions thereafter remaining does not and will not in the future      (taking into account the scheduled amortisation) exceed the amount of the      Loan as reducing from time to time thereafter pursuant to Clause      8.1. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | CONDITIONS      PRECEDENT |
|---|---------------------------|

| 9.1 | Documents, fees and no      default.  Each Lender's obligation to contribute to an      Advance is subject to the following conditions  precedent: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a) | that,      on or before the service of the first Drawdown Notice, the Agent receives      the documents described in Part A of Schedule 4 in form and substance      satisfactory to the Agent and itslawyers; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | that,      on or before each Drawdown Date after the first Advance, but prior to the      making of that subsequent Advance, the Agent  receives: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | evidence      (which shall include a copy of the relevant invoice or invoices and any      class stage certification) that the instalment under the Shipbuilding      Contract to be financed by the Advance is due for payment;    and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | evidence      that the Builder has been paid or will be paid that part of the relevant      instalment to be financed by the relevant Advance which is not itself      financed by that Advance; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | that,      on or before the Drawdown Date of an Advance relating to the delivery      instalment under the Shipbuilding Contract for Ship  A: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Agent receives or is satisfied that it will receive on the making of that      Advance the documents described in Part B of Schedule 4 in form and      substance satisfactory to it and its lawyers;  and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      Borrowers enter into one or more Designated Transactions fixing the      interest rate for that Tranche under this Agreement via an interest rate      swap mechanism for a minimum period of 3 years but otherwise, on terms in      all respects approved by the Agent, with the authorisation of the Majority      Lenders; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | that,      on or before the Drawdown Date of an Advance relating to the delivery      instalment under the Shipbuilding Contract for Ship  B: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Agent receives or is satisfied that it will receive on the making of that      Advance the documents described in Part C of Schedule 4 in form and      substance satisfactory to it and its lawyers;  and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      Borrowers enter into one or more Designated Transactions fixing the      interest rate for that Tranche under this Agreement via an interest rate      swap mechanism for a minimum period of 3 years but otherwise, on terms in      all respects approved by the Agent, with the authorisation of the Majority      Lenders; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | that,      on or before the service of the first Drawdown Notice, the Agent has      received the upfront fee referred to in Clause 20.1 and the first      instalment of the annual agency fee referred to in Clause 20.1 and has      received payment of the expenses referred to in Clause    20.2; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (i) | no      Event of Default or Potential Event of Default has occurred or would      result from the borrowing of theAdvance; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      representations and warranties in Clause 10.1 and those of any Borrower or      any Security Party which are set out in the other Finance Documents would      be true and not misleading if repeated on each of those dates with      reference to the circumstances then existing;  and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | none      of the circumstances contemplated by Clause 5.7 has occurred and is      continuing; |
|--------|-------|------------------------------------------------------------------------------------------------|

----

|   | (g) | that,      if the ratio set out in Clause 15.1 (with the market value of the Ship to      which the Advance relates determined as provided in Clause 15.3 on the      basis of a valuation carried out not more than 2 weeks prior to the      Drawdown Date) were applied immediately following the making of the      Advance, the Borrowers would not be obliged to provide additional security      or prepay part of the Loan under that Clause;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | that      the Agent has received, and found to be acceptable to it, any further      opinions, consents, agreements and documents in connection with the      Finance Documents which the Agent may, with the authorisation of the      Majority Lenders, request by notice to the Borrowers prior to the Drawdown      Date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Waiver of conditions      precedent.  If the Majority Lenders, at their discretion,      permit an Advance to be borrowed before certain of the conditions referred      to in Clause 9.1 are satisfied, the Borrowers shall ensure that those      conditions are satisfied within 5 Business Days after the Drawdown Date      (or such longer period as the Agent may, with the authorisation of the      Majority Lenders, specify). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | REPRESENTATIONS      AND WARRANTIES |
|----|-------------------------------------|

| 10.1 | General.  Each      Borrower represents and warrants to each Creditor Party as      follows. |
|------|--------------------------------------------------------------------------------------------------------|

| 10.2 | Status.  Each      Borrower is duly incorporated and validly existing and in good standing      under the laws of the Republic of Liberia and is not immune to any legal      proceedings in such country ofincorporation. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Share capital and      ownership.  Each Borrower has an authorised share capital      of 500 registered and/or bearer shares of no par value, all of which      shares have been issued in registered form and the legal title and      beneficial ownership of all those shares is held, free of any Security      Interest or other claim, by theGuarantor. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Corporate      power. |
|------|-----------------------|

| (a) | Each      Borrower has the corporate capacity, and has taken all corporate action      and obtained all consents, licenses and authorisations necessary for      it: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | to      carry out its business carried on or to be carried on by it and own its      assets owned or to be owned by it; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | to      purchase and pay for the Ship to be owned by it under the Shipbuilding      Contract for that Ship and register that Ship in its name under Maltese      flag (in the case of Ship A) or Liberian flag (in the case of Ship      B); |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | to      execute the Finance Documents and the Transaction Documents to which that      Borrower is a party and the Master Agreements;  and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | to      borrow under this Agreement, to enter into Designated Transactions under      the Master Agreements and to make all the payments contemplated by, and to      comply with, the Finance Documents and the Transaction Documents to which      that Borrower is a party and the Master  Agreements. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The      copies of the constitutional documents of the Borrower delivered to the      Agent before the date of this Agreement is a true and complete      copy. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Consents in      force.  All the consents referred to in Clause 10.4      remain in force and nothing has occurred which makes any of them liable to      revocation. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.6 | Legal validity; admissibility      in evidence; pari passu ranking; effective Security      Interests.  The Finance Documents and the Transaction      Documents to which each Borrower is a party and the Master Agreements, do      now or, as the case may be, will, upon execution and delivery (and, where      applicable, registration as provided for in the Finance      Documents): |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | constitute      that Borrower's legal, valid and binding obligations enforceable against      that Borrower in accordance with their respective  terms; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | are      admissible in evidence and are in full force and  effect; |
|-----|--------------------------------------------------------------------|

| (c) | rank      at least pari passu with all its other present and future unsecured      liabilities, except for liabilities which are mandatorily preferred by      law; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 10.7 | No third party Security      Interests.  Without limiting the generality of Clause      10.6, at the time of the execution and delivery of each Finance      Document: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.8 | No      conflicts.  The execution by each Borrower of each      Finance Document and each Transaction Document to which it is a party and      each Master Agreement, and the borrowing by that Borrower of the Loan, and      its compliance with each Finance Document and each Transaction Document to      which it is a party and each Master Agreement will not involve or lead to      a contravention of: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 10.9 | No withholding taxes; stamp      duty.  All payments which each Borrower is liable to make      under the Finance Documents to which it is a party may be made without      deduction or withholding for or on account of any tax payable under any      law of any Pertinent Jurisdiction.  No Finance Document is      subject to any filing or stamp duty in any Pertinent      Jurisdiction. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10 | No      default.  No Event of Default or Potential Event of      Default has occurred. |
|-------|--------------------------------------------------------------------------------------------------|

| 10.11 | Information.  All      information which has been provided in writing by or on behalf of the      Borrowers or any Security Party to any Creditor Party in connection with      any Finance Document satisfied the requirements of Clause 11.5; all      audited and unaudited accounts which have been so provided satisfied the      requirements of Clause 11.7; and there has been no material adverse change      in the financial position or state of affairs of any Borrower from that      disclosed in the latest of thoseaccounts. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.12 | No      litigation.  No legal or administrative action involving      any Borrower (including action relating to any alleged or actual breach of      the ISM Code or the ISPS Code) has been commenced or taken or, to any      Borrower's knowledge, is likely to be commenced or  taken. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Validity and completeness of      Transaction Documents.  Each Transaction Document      constitutes valid, binding and enforceable obligations of the respective      parties thereto in accordance with its terms;  and: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      copy of each Transaction Document delivered to the Agent before the date      of this Agreement is a true and complete copy;  and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | no      amendments or additions to any Transaction Document have been agreed nor      has the party to any Transaction Document waived any of their respective      rights under that TransactionDocument. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 | No rebates      etc.  There is no agreement or understanding to allow or      pay any rebate, premium, commission, discount or other benefit or payment      (howsoever described) to any party to a Transaction Document or a third      party in connection with any Transaction Document, other than as disclosed      to the Lenders in writing on or prior to the date of this      Agreement. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15 | Compliance with certain      undertakings.  At the date of this Agreement, the      Borrowers are in compliance with Clauses 11.2, 11.4, 11.9 and      11.14. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 | Taxes      paid.  Each Borrower has paid all taxes applicable to, or      imposed on or in relation to that Borrower, its business or the Ship owned      by it. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 | ISM Code and ISPS Code      compliance.  All requirements of the ISM Code and the      ISPS Code as they relate to the Borrowers, the Approved Managers and the      Ships have been complied with. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18 | No money      laundering.  Without prejudice to the generality of      Clause 2.3, in relation to the borrowing by the Borrowers of the Loan, the      performance and discharge of their obligations and liabilities under the      Finance Documents, and the transactions and other arrangements affected or      contemplated by the Finance Documents to which a Borrower is a party, the      Borrowers confirm (i) that they are acting for their own account; (ii)      that they will use the proceeds of the Loan for their own benefit, under      their full responsibility and exclusively for the purposes specified in      this Agreement; and (iii) that the foregoing will not involve or lead to a      contravention of any law, official requirement or other regulatory measure      or procedure implemented to combat "money laundering" (as defined in      Article 1 of Directive (91/308) (EEC) of the Council of the European      Communities). |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19 | Title and      ownership.  The Borrower has good title to and is the      ultimate beneficial owner of each of the assets owned or purported to be      owned by it. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.20 | No prior      business.  The Borrower has not traded or carried on      business prior to the date of this Agreement other than the entering into      of the Transaction Documents. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.21 | Employees and pension scheme      obligations.  The Borrower does not have any employees or      obligations in respect of any pensions scheme save for, and in relation      to, the master, officers and crew of the Ship owned or to be owned by      it. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.22 | Submission to jurisdiction and      choice of laws.  Each submission to jurisdiction, and      choice of law, by the Borrower contained in any Finance Document is      effective. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23 | No adverse consequences in      jurisdiction of incorporation.  No Creditor Party will be      deemed to be resident, domiciled, carrying on business or subject to      taxation in the |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.24 | Accounting reference      date.  The accounting reference date for the Borrower is      31 December. |
|-------|----------------------------------------------------------------------------------------------------------------|

| 10.25 | Repetition of representations      and warranties.  The representations and warranties set      out in this Clause 10 (except Clause 10.12) will be deemed to be repeated      by each Borrower to each Creditor Party at the end of each Interest Period      with reference to the circumstances then  existing. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11 | GENERAL      UNDERTAKINGS |
|----|---------------------------|

| 11.1 | General.  Each      Borrower undertakes with each Creditor Party to comply with the following      provisions of this Clause 11 at all times during the Security Period      except as the Agent may, with the authorisation of the Majority Lenders,      otherwise permit. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Title; negative      pledge.  Each Borrowerwill: |
|------|------------------------------------------------------------|

| (a) | hold      the legal title to, and own the entire beneficial interest in the Ship      owned by it, her Insurances and Earnings, free from all Security Interests      and other interests and rights of every kind, except for those created by      the Finance Documents and the effect of assignments contained in the      Finance Documents and except for Permitted Security Interests;      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | not      create or permit to arise any Security Interest (except for Permitted      Security Interests) over any other asset, present or future (including,      but not limited to, that Borrower's rights against a Swap Counterparty      under a Master Agreement or all or any part of that Borrower's interest in      any amount payable to that Borrower by a Swap Counterparty under a Master      Agreement). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | No disposal of      assets.  No Borrower will transfer, lease or otherwise      dispose of: |
|------|-------------------------------------------------------------------------------------------------------|

| (a) | all      or a substantial part of its assets, whether by one transaction or a      number of transactions, whether related or not;  or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any      debt payable to it or any other right (present, future or contingent      right) to receive a payment, including any right to damages or      compensation, |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | No other liabilities or      obligations to be incurred.  No Borrower will incur any      liability or obligation except: |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

| (a) | liabilities      and obligations under the Transaction Documents and the Finance Documents      to which it is a party; |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (b) | liabilities      or obligations reasonably incurred in the ordinary course of operating and      chartering the Ship owned by it (and then only if any such Financial      Indebtedness is unsecured trade credit with an aggregate amount not      exceeding $500,000 (or the equivalent in any other currency) at any time);      and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Designated      Transactions. |
|-----|-------------------------------|

| 11.5 | Information provided to be      accurate.  All financial and other information which is      provided in writing by or on behalf of a Borrower under or in connection      with any |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.6 | Provision      of financial statements. |
|------|-----------------------------------------|

| (a) | Each      Borrower will send to the Agent: |
|-----|--------------------------------------------|

|   | (i) | as      soon as possible, but in no event later than 180 days after the end of      each financial year of that Borrower, the audited accounts of that      Borrower (together with updated details of all off-balance sheet and time      charter hire commitments of the Borrower);and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | as      soon as possible, but in no event later than 90 days after the end of each      quarter in each financial year of thatBorrower: |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | unaudited      accounts of that Borrower which are certified as to their correctness by      the chief financial officer of that Borrower;  and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | management      accounts in a format approved by the Agent which show the results of the      operation of the Ship owned by it during the preceding financial quarter      and which are certified as to their correctness by the chief financial      officer of that Borrower. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Each      Borrower will procure that there is sent to the Agent in relation to each      Charterer and each CharterGuarantor: |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | as      soon as possible, and the Borrower shall use its best efforts to procure      that in no event later than 180 days after the end of each financial year      of that company there is sent to the Agent, the audited consolidated      accounts of that company and its subsidiaries and audited individual      accounts of that company (together with in either case updated details of      all off-balance sheet and time charter hire commitments of that company);      and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | as      soon as possible, and the Borrower shall use its best efforts to procure      that in no event later than 90 days after the end of each half-year period      in each financial year of that company there is sent to the      Agent: |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | unaudited      consolidated accounts of that company and its subsidiaries and unaudited      individual accounts of that company, each of which are certified as to      their correctness by the chief financial officer of that company;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | management      accounts in a format approved by the Agent which show the results of the      operation of the Ship chartered by it (or, as the case may be, which is      the subject of a guarantee issued by it) during the preceding financial      half-year and which are certified as to their correctness by the chief      financial officer of that company. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7 | Form of financial      statements.  All accounts (audited and unaudited)      delivered under Clause 11.6 will: |
|------|---------------------------------------------------------------------------------------------------------------------------|

| (a) | be      prepared in accordance with all applicable laws and GAAP (or, in the case      of a Charterer or a Charter Guarantor, such other accounting principles      approved by the Agent) consistentlyapplied; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | give      a true and fair view of the state of affairs of the relevant company and      (if applicable) its subsidiaries at the date of those accounts and of its      or their profit for the period to which those accounts relate;      and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | fully      disclose or provide for all significant liabilities of the relevant      company and (if applicable) itssubsidiaries. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| 11.8 | Shareholder and creditor      notices.  Each Borrower will send the Agent, at the same      time as they are despatched, copies of all communications which are      despatched to that Borrower's shareholders or creditors or any class of      them. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.9 | Consents      and compliance with laws. |
|------|-----------------------------------------|

| (a) | Each      Borrower will maintain in force and promptly obtain or renew, and will      promptly send certified copies to the Agent of, all consents      required: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | for      that Borrower to perform its obligations under any Finance Document or any      Transaction Document to which it is a party or any Master      Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | for      the validity or enforceability of any Finance Document or any Transaction      Document to which it is a party or any Master  Agreement; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | for      that Borrower to continue to own and operate the Ship and any other asset      owned by it; |
|--------|-------|------------------------------------------------------------------------------------------------------|

|   | (iv) | for      that Borrower to continue to carry on its business as currently      conducted, |
|--------|------|------------------------------------------------------------------------------------------|

| (b) | Without      prejudice to the other obligations under the Finance Documents, each      Borrower is in compliance, and shall comply in all respects, with all laws      and regulations to which it may be subject including, without limitation,      all Environmental Laws and all intellectual property  laws. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.10 | Maintenance of Security      Interests.  Each Borrowerwill: |
|-------|-----------------------------------------------------------------------|

| (a) | at      its own cost, do all that is legally possible to ensure that any Finance      Document validly creates the obligations and the Security Interests which      it purports to create; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | without      limiting the generality of paragraph (a), at its own cost, promptly      register, file, record or enrol any Finance Document with any court or      authority in all Pertinent Jurisdictions, pay any stamp, registration or      similar tax in all Pertinent Jurisdictions in respect of any Finance      Document, give any notice or take any other step which, in the opinion of      the Majority Lenders, is or has become necessary or desirable for any      Finance Document to be valid, enforceable or admissible in evidence or to      ensure or protect the priority of any Security Interest which it      creates. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.11 | Notification of      litigation.  Each Borrower will provide the Agent with      details of any legal or administrative action involving that Borrower, any      Security Party, any Approved Manager or the Ship owned by it, the Earnings      or the Insurances as soon as such action is instituted or it becomes      apparent to that Borrower that it is likely to be instituted, unless it is      clear that the legal or administrative action cannot be considered      material in the context of any FinanceDocument. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.12 | No amendment to Transaction      Documents.  Neither Borrower will agree to any amendment      or supplement to, nor waive nor fail to enforce, any Transaction Document      or any of its provisions. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.13 | No amendment to Master      Agreements.  Neither Borrower will agree to any amendment      or supplement to, or waive or fail to enforce, any Master Agreement or any      of its provisions. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.14 | Principal place of      business.  Each Borrower will maintain its place of      business, and keep its corporate documents and records, at the address      stated at the commencement of this Agreement; and no Borrower will      establish, or do anything as a result of which it would be deemed to have,      a place of business in any country other than  Greece. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.15 | Confirmation of no      default.  Each Borrower will, within 2 Business Days      after service by the Agent of a written request, serve on the Agent a      notice which is signed by 2 directors of that Borrower and      which: |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 11.16 | Notification of      default.  Each Borrower will notify the Agent as soon as      that Borrower becomes aware of: |
|-------|------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | and      will keep the Agent fully up-to-date with all  developments. |
|--------|-----------------------------------------------------------------------|

| 11.17 | Provision of further      information.  Each Borrower will, as soon as practicable      after receiving the request, provide the Agent with any additional      financial or other informationrelating: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 11.18 | Provision of copies and      translation of documents.  Each Borrower will supply the      Agent with a sufficient number of copies of the documents referred to      above to provide 1 copy for each Creditor Party; and if the Agent so      requires in respect of any of those documents, the Borrowers will provide      a certified English translation prepared by a translator approved by the      Agent. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.19 | "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 Borrowers or any Security Party after the date      of this Agreement; or |
|-----|----------------------------------------------------------------------------------------------------------------|

| (c) | a      proposed assignment or transfer by a Lender of any of its rights and      obligations under this Agreement to a party that is not a Lender prior to      such assignment or transfer, |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.20 | Splitting      of the Loan. |
|-------|-----------------------------|

| (a) | The      Borrowers agree that the Agent (acting with the authorisation of the      Lenders) has the right at any time to request that the Loan is split into      two tranches, which may or may not be ranked pari passu and which may or      may not have identical pricing, so long as the blended margin on the Loan      as split is equal to the Margin and the repayment profile of each tranche      is the same as that of the Loan prior to the  split. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | If      the Agent notifies the Borrowers that the Agent is exercising the right in      this Clause: |
|-----|------------------------------------------------------------------------------------------------------|

|   | (i) | the      Borrowers will, and will procure that each Security Party will. at the      Borrowers' cost promptly enter into any documentation in a form reasonably      required by the Agent to implement such split required by the Agent      (including, without limitation, any documentation required to amend the      Finance Documents and to secure the Borrower's and the Security Parties'      liabilities and obligations under the Finance Documents as amended and/or      supplemented); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      Borrower shall also at the same time procure that the Agent is promptly      provided with favourable legal opinions from lawyers appointed by the      Agent on such matters concerning the laws of such relevant jurisdictions      as the Agent may require; corporate authorities of the Borrowers and the      Security Parties each in a form approved by the Agent authorising the      execution of any documentation; a process agent letter confirming the      acceptance of appointment of any process agent appointed by the Borrowers      and the Security Parties; and evidence that any filings required in      relation to any Borrower and/or any Security Party and/or any new Finance      Document have been made; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      Borrowers shall fully indemnify the Agent and each Lender on the Agent's      demand and the Security Trustee on its demand in respect of all reasonable      expenses incurred by that Creditor Party as a result of or in connection      with such splitting of the Loan. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.21 | Subordination.  Without      prejudice to the generality of Clause 11.4, each Borrower shall procure      that any claim of the Guarantor and/or any Approved Manager against either      Borrower shall at all times be fully subordinated to the Secured      Liabilities to the satisfaction of theAgent. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.22 | Bank account      statements.  Each Borrower will procure that the Agent is      sent at its request all of the bank statement for each Earnings Account      (with such statements to be, if available, in electronic      format). |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.23 | Capital      expenditure.  The Borrowers will not, and shall procure      that none of their respective subsidiaries (whether direct or indirect)      will, acquire or permit to be acquired any investments or other assets, or      make or permit to be made any capital expenditure save for any investment      or any other asset acquired by, or any capital expenditure by,      a |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.24 | No petition for      insolvency.  Each Borrower will procure that each of its      material creditors will not petition for that Borrower's insolvency nor      take any related proceedings. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.25 | Separateness.  Each      Borrower will: |
|-------|---------------------------------------------------|

| (a) | keep      its own separate books and records; |
|-----|-----------------------------------------------|

| (b) | maintain      its own separate accounts; |
|-----|------------------------------------------|

| (c) | not      co-mingle its assets with any otherperson; |
|-----|-----------------------------------------------------|

| (d) | conduct      business in its own name; |
|-----|----------------------------------------|

| (e) | observe      all corporate and other formalities required by its constitutional      documents; |
|-----|-------------------------------------------------------------------------------------------------|

| (f) | prepare      its own separate financialstatements; |
|-----|----------------------------------------------------|

| (g) | pay      its liabilities out of its ownfunds; |
|-----|-----------------------------------------------|

| (h) | maintain      adequate capital for the business carried out or to be carried out by that      Borrower; |
|-----|---------------------------------------------------------------------------------------------------------|

| (i) | not      pledge any Creditor Party's credit; |
|-----|----------------------------------------------|

| (j) | (if      applicable) use its own separate stationery, invoices and cheque      books; |
|-----|---------------------------------------------------------------------------------------|

| (k) | hold      itself out as a separate legal entity;and |
|-----|-----------------------------------------------------|

| (l) | correct      any known misunderstanding regarding its separate  identity. |
|-----|---------------------------------------------------------------------------|

| 11.26 | No VAT      group.  Neither Borrower shall be a member of a VAT      (value added tax) group. |
|-------|---------------------------------------------------------------------------------------------------------|

| 11.27 | Change of ownership or control      of a Charter Guarantor.  As soon as it becomes aware,      each Borrower shall notify (and each Borrower shall procure that the      Guarantor notifies) the Agent of any material change in the beneficial or      legal ownership of any of the shares in either Charter Guarantor or in the      ultimate control of the voting rights attaching to any of those      shares. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.28 | Charter Assignments and      Quadripartite Agreements.  The Borrowers shall procure      that no later than 90 days after the first Drawdown Date (or such later      date as the Agent may, with the authorisation of the Lenders, agree with      the Borrowers) the Agent receives in relation to each Ship the following      documents and evidence in form and substance satisfactory to the Agent and      its lawyers: |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | duly      executed originals of the Quadripartite Agreement and the Charter      Assignment (and of each document to be delivered by each of      them); |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | such      documentary evidence as the Agent and its legal advisers may require in      relation to the due authorisation and execution by any party to that      Quadripartite Agreement or that Charter Assignment of that document and of      all documents to be executed by that party under that document;      and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | in      relation to each of that Quadripartite Agreement and that Charter      Agreement, such legal opinions required by the Agent and each in a form      approved by the Agent. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.29 | Charters and Charter      Guarantees.  The Borrowers shall procure that no later      than 90 days after the first Drawdown Date (or such later date as the      Agent may, with the authorisation of the Lenders, agree with the      Borrowers) the Agent receives the following documents and evidence in form      and substance satisfactory to the Agent and its  lawyers: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | copies      of each Charter and each Charter Guarantee and of all documents signed or      issued by any party to that document under or in connection with      it; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | evidence      that the relevant Borrower has been nominated as the charterer under each      Charter; |
|-----|-------------------------------------------------------------------------------------------------------|

| (c) | evidence      that the relevant Borrower is the beneficiary under each Charter      Guarantee; |
|-----|------------------------------------------------------------------------------------------------|

| (d) | such      documentary evidence as the Agent and its legal advisers may require in      relation to the due authorisation and execution by any party to a Charter      or a Charter Guarantee of that document and of all documents to be      executed by that party under that document;and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | in      relation to each Charter and each Charter Guarantee, such legal opinions      required by the Agent and each in a form approved by the      Agent. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12 | CORPORATE      UNDERTAKINGS |
|----|-----------------------------|

| 12.1 | General.  Each      Borrower also undertakes with each Creditor Party to comply with the      following provisions of this Clause 12 at all times during the Security      Period except as the Agent may, with the authorisation of the Majority      Lenders, otherwise permit. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Maintenance of      status.  Each Borrower will maintain its separate      corporate existence and remain in good standing under the laws of the      Republic of Liberia. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | Negative      undertakings.  No Borrower  will: |
|------|-----------------------------------------------------------|

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

| (b) | change      its constitutional documents; or |
|-----|----------------------------------------------|

| (c) | pay      any dividend or make any other form of distribution (whether of a revenue      or capital nature or otherwise) or effect any form of redemption, purchase      or return of share capital or (re)pay any principal, interest or any other      amount on any loan from a shareholder or any other connected person;      or |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | provide      any form of credit or financial assistance to any person or enter into any      transaction with or involving any person which is not in the normal course      of business of that Borrower or on terms which are, in any respect, less      favourable to that Borrower than those which it could obtain in a bargain      made at arms' length; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | open      or maintain any account with any bank or financial institution except any      account with a bank or financial institution approved by the Agent and      then only Provided      that a Security Interest created by an Account Security Deed exists      over such account; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

| 13 | INSURANCE |
|----|-----------|

| 13.1 | General.  Each      Borrower also undertakes with each Creditor Party to comply with the      following provisions of this Clause 13 at all times during the Security      Period (after the Ship to be owned by it has been delivered to it under      the Shipbuilding Contract for that Ship) except as the Agent may, with the      authorisation of the Majority Lenders, otherwise permit Provided that to the      extent that a Charterer, by its performance of the Charter of a Ship,      performs and discharges the obligations of the Borrower owning that Ship      contained in this Clause, then such performance and discharge shall, to      that extent, be deemed due performance and discharge of that Borrower's      corresponding obligations under thisClause. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | Maintenance of obligatory      insurances.  Each Borrower shall keep the Ship owned by      it insured at the expense of that Borrower  against: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | protection      and indemnity risks (including, without limitation, freight, demurrage and      defence cover); |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (d) | risk      of loss of Earnings; and |
|-----|------------------------------------|

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

| 13.3 | Terms of obligatory      insurances.  Each Borrower shall effect such      insurances: |
|------|--------------------------------------------------------------------------------------------------|

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

| (b) | in      the case of fire and usual marine risks and war risks, in an amount on an      agreed value basis (determined at the time of taking out such insurances      or upon the latest renewal) at least the greater of (i) together with the      Ship owned by the other Borrower, 120 per cent. of the aggregate of the      Loan and the Swap Exposure of each Swap Counterparty and (ii) the market      value of the Ship owned by it; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in      the case of oil pollution liability risks, for an aggregate amount equal      to the highest level of cover from time to time available under basic      protection and indemnity club entry and in the international marine      insurance market; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (e) | in      the case of risk of loss of Earnings insurance, in an amount of at least      equal to the daily rate under the Charter of the Ship owned by it for the      best market cover available and a minimum waiting  period; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| 13.4 | Further protections for the      Creditor Parties.  In addition to the terms set out in      Clause 13.3, each Borrower shall procure that the obligatory insurances      shall: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (d) | provide      that such obligatory insurances shall be primary without right of      contribution from other insurances which may be carried by the Security      Trustee or any other Creditor Party;and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | provide      that the Security Trustee may make proof of loss if the Borrowers fail to      do so. |
|-----|----------------------------------------------------------------------------------------------------|

| 13.5 | Renewal of obligatory      insurances.  Each Borrower  shall: |
|------|-------------------------------------------------------------------------|

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

|   | (i) | notify      the Security Trustee of the brokers (or other insurers) and any protection      and indemnity or war risks association through or with whom that Borrower      proposes to renew that obligatory insurance and of the proposed terms of      renewal; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | obtain      the Security Trustee's approval to the matters referred to in paragraph      (i); |
|--------|------|-----------------------------------------------------------------------------------------------|

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

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

| 13.6 | Copies of policies; letters of      undertaking.  Each Borrower shall ensure that all      approved brokers provide the Security Trustee with pro forma copies of all      policies relating to the obligatory insurances which they are to effect or      renew and of a letter or letters or undertaking in a form required by the      Security Trustee and including undertakings by the approved brokers      that: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | they      will have endorsed on each policy, immediately upon issue, a loss payable      clause and a notice of assignment complying with the provisions of Clause      13.4; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

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

| 13.7 | Copies of certificates of      entry.  Each Borrower shall ensure that any protection      and indemnity and/or war risks associations in which the Ship owned by it      is entered provides the Security Trusteewith: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | a      certified copy of each certificate of financial responsibility for      pollution by oil or other Environmentally Sensitive Material issued by the      relevant certifying authority in relation to that  Ship. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.8 | Deposit of original      policies.  Each Borrower shall ensure that all policies      relating to obligatory insurances effected by it are deposited with the      approved brokers through which the insurances are effected or      renewed. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.9 | Payment of      premiums.  Each Borrower shall punctually pay all      premiums or other sums payable in respect of the obligatory insurances      effected by it and produce all relevant receipts when so required by the      Security Trustee. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.10 | Guarantees.  Each      Borrower shall ensure that any guarantees required by a protection and      indemnity or war risks association are promptly issued and remain in full      force and effect. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.11 | Compliance with terms of      insurances.  No Borrower shall do nor omit to do (nor      permit to be done or not to be done) any act or thing which would or might      render any obligatory insurance invalid, void, voidable or unenforceable      or render any sum payable under an obligatory insurance repayable in whole      or in part; and, in particular: |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | each      Borrower shall take all necessary action and comply with all requirements      which may from time to time be applicable to the obligatory insurances,      and (without limiting the obligation contained in Clause 13.6(c)) ensure      that the obligatory insurances are not made subject to any exclusions or      qualifications to which the Security Trustee has not given its prior      approval; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

| 13.12 | Alteration to terms of      insurances.  No Borrower shall either make or agree to      any alteration to the terms of any obligatory insurance nor waive any      right relating to any obligatoryinsurance. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.13 | Settlement of      claims.  No Borrower shall settle, compromise or abandon      any claim under any obligatory insurance for Total Loss or for a Major      Casualty, and shall do all things necessary and provide all documents,      evidence and information to enable the Security Trustee to collect or      recover any moneys which at any time become payable in respect of the      obligatory insurances. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.14 | Provision of copies of      communications.  Each Borrower shall provide the Security      Trustee, at the time of each such communication, copies of all written      communications between that Borrowerand: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 13.15 | Provision of      information.  In addition, each Borrower shall promptly      provide the Security Trustee (or any persons which it may designate) with      any information which the Security Trustee (or any such designated person)      requests for the purpose of: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | obtaining      or preparing any report from an independent marine insurance broker as to      the adequacy of the obligatory insurances effected or proposed to be      effected; and/or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | effecting,      maintaining or renewing any such insurances as are referred to in Clause      13.16 or dealing with or considering any matters relating to any such      insurances, |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13.16 | Mortgagee's interest and      additional perils insurances.  The Security Trustee shall      be entitled from time to time to effect, maintain and renew a mortgagee's      interest additional perils insurance and a mortgagee's interest marine      insurance in an amount not more than 120 per cent. of the aggregate of the      Loan and the Swap Exposure of eachSwap |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14 | SHIP      COVENANTS |
|----|---------------------|

| 14.1 | General.  Each      Borrower also undertakes with each Creditor Party to comply with the      following provisions of this Clause 14 at all times during the Security      Period (after the Ship to be owned by it has been delivered to it under      the Shipbuilding Contract for that Ship) except as the Agent, with the      authorisation of the Majority Lenders (such consent not to be unreasonably      withheld in the case of a change of flag, class, management or bareboat      charter and subject to such conditions as the Majority Lenders may      reasonably require), may otherwise permit Provided that to the      extent that a Charterer, by its performance of the Charter of a Ship,      performs and discharges the obligations of the Borrower owning that Ship      contained in this Clause, then such performance and discharge shall, to      that extent, be deemed due performance and discharge of that Borrower's      corresponding obligations under thisClause. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Ship's name and      registration.  Each Borrower shall keep the Ship owned by      it registered in its name as a Maltese ship (in the case of Ship A) or a      Liberian ship (in the case of Ship B); shall not do, omit to do or allow      to be done anything as a result of which such registration might be      cancelled or imperilled; and shall not change the name or port of registry      of the Ship owned by it Provided that if the      Agent notifies the Borrower that the country of the flag of either Ship is      affected by instability (as determined by the Majority Lenders acting      reasonably), the Borrower shall within 30 days of such notification      procure that that Ship is reflagged to another flag approved by the      Majority Lenders and shall also: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | execute      and register a first priority ship mortgage (and, if applicable,      collateral deed of covenant) on that Ship in favour of the Security      Trustee or the Lenders in a form approved by the Security      Trustee; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | execute      a supplement to this Agreement and the other Finance Documents in a form      approved by the Security Trustee making necessary amendments to this      Agreement and the other FinanceDocuments; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | provide      such corporate authorities, legal opinions and other conditions precedent      documents required by the Security Trustee and each in a form approved by      the Security Trustee; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | pay      all of the Creditor Parties' reasonable expenses in relation to such      re-flagging; and |
|-----|-----------------------------------------------------------------------------------------------------|

| (e) | comply      with such other conditions as the Security Trustee may reasonably      require. |
|-----|---------------------------------------------------------------------------------------------|

| 14.3 | Repair and      classification.  Each Borrower shall keep the Ship owned      by it in a good and safe condition and state of  repair: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | so      as to maintain that Ship in the highest classification available for ships      of the same type, age and specification as the Ship with Det norske      Veritas free of recommendations and conditions;  and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | so      as to comply with all laws and regulations applicable to vessels      registered under Maltese flag (in the case of Ship A) or Liberian flag (in      the case of Ship B) or to vessels |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.4 | Modification.  No      Borrower shall make any modification or repairs to, or replacement of, any      Ship or equipment installed on it which would or might materially alter      the structure, type or performance characteristics of that Ship or      materially reduce its value. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5 | Removal of      parts.  No Borrower shall remove any material part of any      Ship, or any item of equipment installed on, any Ship unless the part or      item so removed is forthwith replaced by a suitable part or item which is      in the same condition as or better condition than the part or item      removed, is free from any Security Interest or any right in favour of any      person other than the Security Trustee and becomes on installation on the      relevant Ship the property of the relevant Borrower and subject to the      security constituted by the relevant Mortgage Provided that a Borrower      may install equipment owned by a third party if the equipment can be      removed without any risk of damage to the Ship owned by  it. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6 | Surveys.  Each      Borrower shall submit the Ship owned by it regularly to all periodical or      other surveys which may be required for classification purposes and, if so      required by the Security Trustee provide the Security Trustee, with copies      of all survey reports. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7 | Inspection.  Each      Borrower shall permit the Security Trustee (by surveyors or other persons      appointed by it for that purpose) to board the Ship owned by it at all      reasonable times and without unduly interfering with that Ship's operation      to inspect its condition or to satisfy themselves about proposed or      executed repairs and shall afford all proper facilities for such      inspections. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8 | Prevention of and release from      arrest.  Each Borrower shall promptly      discharge: |
|------|-----------------------------------------------------------------------------------------------------|

| (a) | all      liabilities which give or may give rise to maritime or possessory liens on      or claims enforceable against the Ship owned by it, the Earnings or the      Insurances; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 14.9 | Compliance with laws      etc.  Each Borrowershall: |
|------|---------------------------------------------------------------|

| (a) | comply,      or procure compliance with the ISM Code, the ISPS Code, all Environmental      Laws and all other laws or regulations relating to the Ship owned by it,      its ownership, operation and management or to the business of that      Borrower; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c) | in      the event of hostilities in any part of the world (whether war is declared      or not), not cause or permit the Ship owned by it to enter or trade to any      zone which is declared a war zone by any government or by the Ship's war      risks insurers unless the prior written consent of the Security Trustee      has been given and that Borrower has (at its expense) effected any      special, additional or modified insurance cover which the Security Trustee      may require. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.10 | Provision of      information.  Each Borrower shall promptly provide the      Security Trustee with any information which it requests      regarding: |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      Ship owned by it, its employment, position and engagements (including,      without limitation, the provision of the latest complete technical report      from any Approved Manager); |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (e) | its      compliance, any Approved Manager's compliance and the compliance of the      Ship owned by it with the ISM Code and the ISPS  Code, |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | and,      upon the Security Trustee's request, provide copies of any current charter      relating to the Ship owned by it, of any current charter guarantee and      copies of the Borrower's or any Approved Manager's Document of      Compliance. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.11 | Notification of certain      events.  Each Borrower shall immediately notify the      Security Trustee by fax, confirmed forthwith by letter,  of: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | any      casualty which is or is likely to be or to become a Major      Casualty; |
|-----|-----------------------------------------------------------------------------------|

| (b) | any      occurrence as a result of which the Ship owned by it has become or is, by      the passing of time or otherwise, likely to become a Total      Loss; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

| 14.12 | Restrictions on chartering,      appointment of managers etc.  No Borrower shall, in      relation to the Ship owned by it: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| (a) | save      for a Charter, let that Ship on demise charter (or permit that Ship to be      let on demise charter) for anyperiod; |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (e) | agree      to any assignment of any charter of that Ship or any charter hire review      of any such charter; |
|-----|---------------------------------------------------------------------------------------------------------------|

| (f) | appoint      a manager of that Ship other than an Approved Manager (which, each      Borrower represents and warrants to each Creditor Party, has the ability      to carry out such appointment) or agree to any alteration to the terms of      an Approved Manager's appointment; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | de-activate      or lay up that Ship or permit that Ship to be de-activated or laid up;      or |
|-----|-------------------------------------------------------------------------------------------------|

| (h) | put      that Ship (or permit that Ship to be put) into the possession of any      person for the purpose of work being done upon it in an amount exceeding      or likely to exceed $500,000 (or the equivalent in any other currency)      unless that person has first given to the Security Trustee and in terms      satisfactory to it a written undertaking not to exercise any lien on that      Ship or its Earnings for the cost of such work or for any other      reason. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.13 | Notice of      Mortgage.  Each Borrower shall keep the relevant Mortgage      registered against the Ship owned by it as a valid first priority      mortgage, carry on board that Ship a certified copy of the relevant      Mortgage and place and maintain in a conspicuous place in the navigation      room and the Master's cabin of that Ship a framed printed notice stating      that that Ship is mortgaged by that Borrower to the Security      Trustee. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.14 | Sharing of      Earnings.   No Borrower shall enter into any      agreement or arrangement for the sharing of any  Earnings. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------|

| 14.15 | ISPS      Code.  Each Borrower shall comply with the ISPS Code and      in particular, without limitation,shall: |
|-------|----------------------------------------------------------------------------------------------------------------------------|

| (a) | procure      that the Ship owned by that Borrower and the company responsible for that      Ship's compliance with the ISPS Code comply with the ISPS Code;      and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | maintain      for that Ship anISSC;  and |
|-----|----------------------------------------------------|

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

| 15 | SECURITY      COVER |
|----|---------------------|

| 15.1 | Minimum required security      cover.  Clause 15.2 applies if the Agent notifies the      Borrowers of any of the following: |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

| (a) | at      the earlier of (i) the end of November 2008 or (ii) the Drawdown Date in      relation to the launching instalment under the Shipbuilding Contract for      the first Ship to reach that stage, the aggregate  of: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (i) | the      aggregate of the market value (each determined as provided in Clause 15.3      on a resale basis on the basis of a valuation carried out not more than 2      weeks prior to the Drawdown Date (or as the case may be) the end of      November 2008) of each Ship less the aggregate amount of the instalment(s)      to be paid to the Builder under the Shipbuilding Contract for that Ship      (save that if that Shipbuilding Contract is the subject of the      circumstances described in either Clauses 8.8(c) or 8.8(e), the market      value of that Ship for the purposes of this paragraph (i) shall be zero);      plus |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      net realisable value of any additional security previously provided under      this Clause 15, |
|--------|------|---------------------------------------------------------------------------------------------------------|

| (b) | at      any time following the Delivery Date of the first Ship but prior to the      Delivery Date of the second Ship, the aggregate  of: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      market value (determined as provided in Clause 15.3) of the Ship which has      delivered (save that if that Ship is not subject to a Mortgage, the market      value for the purposes of this paragraph (i) shall be zero);      plus |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      market value (determined as provided in Clause 15.3 on a resale basis) of      the Ship which has not yet delivered less the aggregate amount of the      instalment(s) to be paid to the Builder under the Shipbuilding Contract      for that Ship (save that if that Shipbuilding Contract is the subject of      the circumstances described in either Clauses 8.8(c) or 8.8(e), the market      value of that Ship for the purposes of this paragraph (ii) shall be zero);      plus |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      net realisable value of any additional security previously provided under      this Clause 15, |
|--------|-------|---------------------------------------------------------------------------------------------------------|

| (c) | at      any time following the Delivery Date of both Ships, the aggregate      of: |
|-----|------------------------------------------------------------------------------------|

|   | (i) | the      aggregate of the market value (each determined as provided in Clause 15.3)      of each Ship subject to a Mortgage;plus |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      net realisable value of any additional security previously provided under      this Clause 15, |
|--------|------|---------------------------------------------------------------------------------------------------------|

|   | is      below 115 per cent. (during the period commencing from the final Delivery      Date and ending on the date falling 5 years after the first Delivery Date)      or 125 per cent. (during the period commencing from the date falling 5      years after the first Delivery Date and ending on the end of the Security      Period) of the aggregate of the Loan and of the Swap Exposure of each Swap      Counterparty. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2 | Provision of additional      security; prepayment.  If the Agent serves a notice on      the Borrowers under Clause 15.1, the Borrowers shall, within 30 days after      the date on which the Agent's notice is served,  either: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| 15.3 | Valuation of      Ships.  The market value of a Ship at any date is that      shown by a valuation prepared: |
|------|------------------------------------------------------------------------------------------------------------------------|

| (a) | as      at a date not more than 14 dayspreviously; |
|-----|----------------------------------------------------|

| (b) | by      an independent sale and purchase shipbroker which the Agent has approved      or appointed for the purpose; |
|-----|---------------------------------------------------------------------------------------------------------------------|

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

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

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

| 15.4 | Value of additional vessel      security.  The net realisable value of any additional      security which is provided under Clause 15.2 and which consists of a      Security Interest over a vessel shall be that shown by a valuation      complying with the requirements of Clause15.3. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.5 | Valuations      binding.  Any valuation under Clause 15.2, 15.3 or 15.4      shall be binding and conclusive as regards the Borrowers, as shall be any      valuation which the Majority Lenders make of any additional security which      does not consist of or include a Security  Interest. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.6 | Provision of      information.  The Borrowers shall promptly provide the      Agent and any shipbroker or expert acting under Clause 15.3 or 15.4 with      any information which the Agent or the shipbroker or expert may request      for the purposes of the valuation; and, if the Borrowers fail to provide      the information by the date specified in the request, the valuation may be      made on any basis and assumptions which the shipbroker or the Majority      Lenders (or the expert appointed by them) consider  prudent. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.7 | Payment of valuation      expenses.  Without prejudice to the generality of the      Borrowers' obligations under Clauses 20.2, 20.3 and 21.3, the Borrowers      shall, on demand, pay the Agent the amount of the fees and expenses of any      shipbroker or expert instructed by the Agent under this Clause and all      legal and other expenses incurred by any Creditor Party in connection with      any matter arising out of thisClause. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.8 | Application of      prepayment.  Clause 8 shall apply in relation to any      prepayment pursuant to Clause15.2(b). |
|------|-------------------------------------------------------------------------------------------------------------------------------|

| 16 | PAYMENTS      AND CALCULATIONS |
|----|--------------------------------|

| 16.1 | Currency and method of      payments.  All payments to be made by the Lenders or by      any Borrower under a Finance Document shall be made to the Agent or to the      Security Trustee, in the case of an amount payable to  it: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| (c) | in      the case of an amount payable by a Lender to the Agent or by any Borrower      to the Agent or any Lender, to such account with such bank as the Agent      may from time to time notify to the Borrowers and the other Creditor      Parties; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | in      the case of an amount payable to the Security Trustee, to such account as      it may from time to time notify to the Borrowers and the other Creditor      Parties. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | Payment on non-Business      Day.  If any payment by any Borrower under a Finance      Document would otherwise fall due on a day which is not a Business      Day: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 16.3 | Basis for calculation of      periodic payments.  All interest and commitment fee and      any other payments under any Finance Document which are of an annual or      periodic nature shall accrue from day to day and shall be calculated on      the basis of the actual number of days elapsed and a 360 day      year. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4 | Distribution of payments to      Creditor Parties.  Subject to Clauses 16.5, 16.6 and      16.7: |
|------|------------------------------------------------------------------------------------------------------------|

| (a) | any      amount received by the Agent under a Finance Document for distribution or      remittance to a Lender, a Swap Counterparty or the Security Trustee shall      be made available by the Agent to that Lender, that Swap Counterparty or,      as the case may be, the Security Trustee by payment, with funds having the      same value as the funds received, to such account as the Lender, the Swap      Counterparty or the Security Trustee may have notified to the Agent not      less than 5 Business Days previously;and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | amounts      to be applied in satisfying amounts of a particular category which are due      to the Lenders and/or the Swap Counterparties generally shall be      distributed by the Agent to each Lender and each Swap Counterparty pro      rata to the amount in that category which is due to  it. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.5 | Permitted deductions by      Agent.  Notwithstanding any other provision of this      Agreement or any other Finance Document, the Agent may, before making an      amount available to a Lender or a Swap Counterparty, deduct and withhold      from that amount any sum which is then due and payable to the Agent from      that Lender or that Swap Counterparty under any Finance Document or any      sum which the Agent is then entitled under any Finance Document to require      that Lender or that Swap Counterparty to pay on  demand. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6 | Agent only obliged to pay when      monies received.  Notwithstanding any other provision of      this Agreement or any other Finance Document, the Agent shall not be      obliged to make available to any Borrower or any Lender or any Swap      Counterparty any sum which the Agent is expecting to receive for      remittance or distribution to that Borrower or that Lender or that Swap      Counterparty until the Agent has satisfied itself that it has received      that sum. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7 | Refund to Agent of monies not      received.  If and to the extent that the Agent makes      available a sum to a Borrower, a Lender or a Swap Counterparty, without      first having received that sum, that Borrower or (as the case may be) the      Lender or the Swap Counterparty concerned shall, on  demand: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| 16.8 | Agent may assume      receipt.  Clause 16.7 shall not affect any claim which      the Agent has under the law of restitution, and applies irrespective of      whether the Agent had any form of notice that it had not received the sum      which it made available. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.9 | Creditor Party      accounts.  Each Creditor Party shall maintain accounts      showing the amounts owing to it by the Borrowers and each Security Party      under the Finance Documents and all payments in respect of those amounts      made by the Borrowers and any SecurityParty. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.10 | Agent's memorandum      account.  The Agent shall maintain a memorandum account      showing the amounts advanced by the Lenders and all other sums owing to      the Agent, the Security Trustee and each Lender from the Borrowers and      each Security Party under the Finance Documents and all payments in      respect of those amounts made by the Borrowers and any Security      Party. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.11 | Accounts prima facie      evidence.  If any accounts maintained under Clauses 16.9      and 16.10 show an amount to be owing by a Borrower or a Security Party to      a Creditor Party, those accounts shall be prima facie evidence that that      amount is owing to that CreditorParty. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17 | APPLICATION      OF RECEIPTS |
|----|------------------------------|

| 17.1 | Normal order of      application.  Except as any Finance Document may      otherwise provide, any sums which are received or recovered by any      Creditor Party under or by virtue of any Finance Document after service of      notice on the Borrowers under Clause 19.2(a)(i) or (ii) shall be      applied: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (i) | first,      in or towards satisfaction pro rata of all amounts then due and payable to      the Creditor Parties under the Finance Documents other than those amounts      referred to at paragraphs (ii) to (v) inclusive below (including, but      without limitation, all amounts payable by any Borrower under Clauses 20,      21 and 22 of this Agreement or by any Borrower or any Security Party under      any corresponding or similar provision in any other Finance Document or in      any Master Agreement); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (iii) | thirdly,      in or towards satisfaction pro rata of each  Tranche; |
|--------|-------|---------------------------------------------------------------------|

|   | (iv) | fourthly,      in or towards satisfaction pro rata of any and all amounts of interest or      default interest payable to the Creditor Parties under the Master      Agreements (and, for this purpose, the expression "interest" shall include      any net amount which any Borrower shall have become liable to pay or      deliver under section 2(e) (Obligations) of any      Master Agreement but shall have failed to pay or deliver to the relevant      Swap Counterparty at the time of application or distribution under this      Clause 17); and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | fifthly,      in or towards satisfaction pro rata of he Swap Exposure of each Swap      Counterparty (in the case of the latter, calculated as at the actual Early      Termination Date applying to each particular Designated Transaction, or if      no |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | SECONDLY:      in retention of an amount equal to any amount not then due and payable      under any Finance Document or any Master Agreement but which the Agent, by      notice to the Borrowers, the Security Parties and the other Creditor      Parties, states in its opinion will or may become due and payable in the      future and, upon those amounts becoming due and payable, in or towards      satisfaction of them in accordance with the provisions of Clause 17.1(a);      and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 17.2 | Variation of order of      application.  The Agent may, with the authorisation of      the Majority Lenders and the Swap Counterparties, by notice to the      Borrowers, the Security Parties and the other Creditor Parties provide for      a different manner of application from that set out in Clause 17.1 either      as regards a specified sum or sums or as regards sums in a specified      category or categories. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3 | Notice of variation of order of      application.  The Agent may give notices under Clause      17.2 from time to time; and such a notice may be stated to apply not only      to sums which may be received or recovered in the future, but also to any      sum which has been received or recovered on or after the third Business      Day before the date on which the notice is  served. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4 | Appropriation rights      overridden.  This Clause 17 and any notice which the      Agent gives under Clause 17.2 shall override any right of appropriation      possessed, and any appropriation made, by any Borrower or any Security      Party. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18 | APPLICATION      OF EARNINGS |
|----|------------------------------|

| 18.1 | Payment of      Earnings.  Each Borrower undertakes with each Creditor      Party to ensure that, throughout the Security Period and subject only to      the provisions of the General Assignment and the Charter Assignment, all      the Earnings of the Ship owned by it are paid to the Earnings Account for      that Ship. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | Location of      accounts.  Each Borrower shall  promptly: |
|------|----------------------------------------------------------------------|

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

| (b) | execute      any documents which the Agent specifies to create or maintain in favour of      the Security Trustee a Security Interest over (and/or rights of set-off,      consolidation or other rights in relation to) the Earnings Accounts (or      either of them). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | Debits for expenses      etc.  The Agent shall be entitled (but not obliged) from      time to time to debit any Earnings Account without prior notice in order      to discharge any amount due and payable under Clause 20 or 21 to a      Creditor Party or payment of which any Creditor Party has become entitled      to demand under Clause 20 or 21. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19 | EVENTS      OF DEFAULT |
|----|------------------------|

| 19.1 | Events of      Default.  An Event of Default occurs  if: |
|------|--------------------------------------------------------------------|

----

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

| (b) | any      breach occurs of Clause 9.2, 11.2, 11.3, 12.2, 12.3 or 15.2;      or |
|-----|-------------------------------------------------------------------------------|

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

| (d) | (subject      to any applicable grace period specified in the Finance Document) any      breach by any Borrower or any Security Party occurs of any provision of a      Finance Document (other than a breach falling within paragraphs (a), (b)      or (c)); or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (f) | any      of the following occurs in relation to any secured Financial Indebtedness      (including, without limitation, leases) of $2,500,000 or more in aggregate      of a Relevant Person: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      Financial Indebtedness of a Relevant Person is not paid when due;      or |
|--------|-----|------------------------------------------------------------------------------------|

|   | (ii) | any      Financial Indebtedness of a Relevant Person becomes due and payable or      capable of being declared due and payable prior to its stated maturity      date as a consequence of any event of default;  or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | a      lease, hire purchase agreement or charter creating any Financial      Indebtedness of a Relevant Person is terminated by the lessor or owner or      becomes capable of being terminated as a consequence of any termination      event; or |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | any      overdraft, loan, note issuance, acceptance credit, letter of credit,      guarantee, foreign exchange or other facility relating to any Financial      Indebtedness of a Relevant Person ceases to be available or becomes      capable of being terminated as a result of any event of default, or cash      cover is required, or becomes capable of being required, in respect of      such a facility as a result of any event of default;  or |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | any      Security Interest securing any Financial Indebtedness of a Relevant Person      becomes enforceable; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

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

|   | (i) | a      Relevant Person becomes, in the opinion of the Majority Lenders, unable to      pay its debts as they fall due; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any      assets of a Relevant Person are subject to any form of execution,      attachment, arrest, sequestration or distress in respect of a sum of, or      sums aggregating, $100,000 or more or the equivalent in another currency      Provided that in      the case of the arrest of a Ship, it shall only be an Event of Default if      the Borrowers have not procured the release of that Ship by the date      falling 40 days after the commencement of the arrest;  or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

|   | (v) | any      formal declaration of bankruptcy or any formal statement to the effect      that a Relevant Person is insolvent or likely to become insolvent is made      by a Relevant Person or by the directors of a Relevant Person or, in any      proceedings, by a lawyer acting for a Relevant Person;  or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | a      provisional liquidator is appointed in respect of a Relevant Person, a      winding up order is made in relation to a Relevant Person or a winding up      resolution is passed by a Relevant Person;or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | a      resolution is passed, an administration notice is given or filed, an      application or petition to a court is made or presented or any other step      is taken by (aa) a Relevant Person, (bb) the members or directors of a      Relevant Person, (cc) a holder of Security Interests which together relate      to all or substantially all of the assets of a Relevant Person, or (dd) a      government minister or public or regulatory authority for or with a view      to the winding up of that or another Relevant Person or the appointment of      a provisional liquidator or administrator in respect of that or another      Relevant Person, or that or another Relevant Person ceasing or suspending      business operations or payments to creditors, save that this paragraph      does not apply to a fully solvent winding up of a Relevant Person other      than a Borrower or the Guarantor which is, or is to be, effected for the      purposes of an amalgamation or reconstruction previously approved by the      Majority Lenders and effected not later than 3 months after the      commencement of the winding up; or |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      (viii) | an      administration notice is given or filed, an application or petition to a      court is made or presented or any other step is taken by a creditor of a      Relevant Person (other than a holder of Security Interests which together      relate to all or substantially all of the assets of a Relevant Person) for      the winding up of a Relevant Person or the appointment of a provisional      liquidator or administrator in respect of a Relevant Person, unless the      proposed winding up, appointment of a provisional liquidator or      administration is being contested in good faith, on substantial grounds      and not with a view to some other insolvency law procedure being      implemented instead and either (aa) the application or petition is      dismissed or withdrawn within 30 days of being made or presented, or (bb)      within 30 days of the administration notice being given or filed, or the      other relevant steps being taken, other action is taken which will ensure      that there will be no administration and (in both cases (aa) or (bb)) the      Relevant Person will continue to carry on business in the ordinary way and      without being the subject of any actual, interim or pending insolvency law      procedure; or |
|--------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | a      Relevant Person or its directors take any steps (whether by making or      presenting an application or petition to a court, or submitting or      presenting a document setting out a proposal or proposed terms, or      otherwise) with a view to obtaining, in relation to that or another      Relevant Person, any form of moratorium, suspension or deferral of      payments, reorganisation of debt (or certain debt) or arrangement with all      or a substantial proportion (by number or value) of creditors or of any      class of them or any such moratorium, suspension or deferral of payments,      reorganisation or arrangement is effected by court order, by the filing of      documents with a court, by means of a contract or in any other way at all;      or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | any      meeting of the members or directors, or of any committee of the board or      senior management, of a Relevant Person is held or summoned for the      purpose of considering a resolution or proposal to authorise or take any      action of a type |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (xi) | in      a country other than England, any event occurs, any proceedings are opened      or commenced or any step is taken which, in the opinion of the Majority      Lenders is similar to any of the foregoing;or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (i) | it      becomes unlawful or impossible: |
|-----|-----------------------------------------|

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

|   | (ii) | for      the Agent, the Security Trustee, the Lenders or the Swap Banks to exercise      or enforce any right under, or to enforce any Security Interest created      by, a Finance Document; or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | any      official consent necessary to enable any Borrower to own, operate or      charter the Ship owned by it or to enable any Borrower or any Security      Party to comply with any provision which the Majority Lenders consider      material of a Finance Document or a Transaction Document is not granted,      expires without being renewed, is revoked or becomes liable to revocation      or any condition of such a consent is not fulfilled;  or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | it      appears to the Majority Lenders that, without their prior consent, at any      time: |
|-----|----------------------------------------------------------------------------------------------|

|   | (i) | either      Borrower is not a wholly owned direct subsidiary of the Guarantor;      or |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (ii) | a      change has occurred or probably has occurred after the date of this      Agreement in the beneficial or legal ownership of any of the shares in      either Borrower or any Security Party (other than the Charterers, the      Charter Guarantors and the Guarantor) or in the ultimate control of the      voting rights attaching to any of those shares;  or |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | either      Charter Guarantor ceases to hold directly or indirectly at least 51 per      cent. of the ultimate beneficial ownership of, or at least 51 per cent. of      the ultimate control of the voting rights in, the shares of the Charterer      under the Charter guaranteed by that Charter Guarantor or ceases to have      sufficient control over that Charterer to remove and appoint a majority to      the board of directors of that Charterer and otherwise exercise control of      that Charterer; or |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Mr      Evangelos Pistiolis is not the chief executive officer of the Guarantor;      or |
|--------|------|------------------------------------------------------------------------------------------|

|   | (v) | the      person(s) having control of the Guarantor on the date of this Agreement      cease to have sufficient control over the Guarantor to remove and appoint      a majority to the board of directors of the Guarantor and otherwise      exercise control of the Guarantor;or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l) | any      provision which the Majority Lenders consider material of a Finance      Document proves to have been or becomes invalid or unenforceable or a      Borrower or a Security Party repudiates any such provision, or a Security      Interest created by a Finance Document proves to have been or becomes      invalid or unenforceable or such a Security  Interest |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| (n) | any      Charter or any Charter Guarantee is terminated (other than by the      effluxion of time or the sale (with the consent of the Lenders) or Total      Loss of the relevant Ship), becomes invalid or unenforceable or otherwise      ceases to be in full force and effect for any reason or any amount payable      under any Charter or any Charter Guarantee is not paid when due and      payable or any other default (howsoever described) occurs under any      Charter or any Charter Guarantee;or |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o) | an      Event of Default (as defined in section 14 of a Master Agreement) occurs;      or |
|-----|-------------------------------------------------------------------------------------------|

| (p) | a      Master Agreement is terminated, cancelled, suspended, rescinded or revoked      or otherwise ceases to remain in full force and effect for any reason      except with the consent of the Agent, acting with the authorisation of the      Majority Lenders; or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (ii) | any      accident or other event involving either Ship or another vessel owned,      chartered or operated by theGuarantor, |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Actions following an Event of      Default.  On, or at any time after, the occurrence of an      Event of Default: |
|------|------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      Agent may, and if so instructed by the Majority Lenders, the Agent      shall: |
|-----|-----------------------------------------------------------------------------------------|

|   | (i) | serve      on the Borrowers a notice stating that the Commitments and all other      obligations of each Lender to the Borrowers under this Agreement are      cancelled; and/or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | serve      on the Borrowers a notice stating that the Loan, all accrued interest and      all other amounts accrued or owing under this Agreement are immediately      due and payable or are due and payable on demand;  and/or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | take      any other action which, as a result of the Event of Default or any notice      served under paragraph (i) or (ii), the Agent and/or the Lenders are      entitled to take under any Finance Document or any applicable law;      and/or |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      Security Trustee may, and if so instructed by the Agent, acting with the      authorisation of the Majority Lenders, the Security Trustee shall take any      action which, as a result of the Event of Default or any notice served      under paragraph (a) (i) or (ii), the Security Trustee, the Agent and/or      the Lenders and/or the Swap Counterparties are entitled to take under any      Finance Document or any applicablelaw. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.3 | Termination of      Commitments.  On the service of a notice under Clause      19.2(a)(i), the Commitments and all other obligations of each Lender to      the Borrowers under this Agreement shall be  cancelled. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4 | Acceleration of      Loan.  On the service of a notice under Clause      19.2(a)(ii), the Loan, all accrued interest and all other amounts accrued      or owing from the Borrowers or any Security Party under this Agreement and      every other Finance Document shall become immediately due and payable or,      as the case may be, payable ondemand. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5 | Multiple notices; action      without notice.  The Agent may serve notices under      Clauses 19.2(a)(i) or (ii) simultaneously or on different dates and it      and/or the Security Trustee may take any action referred to in Clause 19.2      if no such notice is served or simultaneously with or at any time after      the service of both or either of suchnotices. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.6 | Notification of Creditor      Parties and Security Parties.  The Agent shall send to      each Lender, each Swap Counterparty, the Security Trustee and each      Security Party a copy or the text of any notice which the Agent serves on      the Borrowers under Clause 19.2; but the notice shall become effective      when it is served on any Borrower, and no failure or delay by the Agent to      send a copy or the text of the notice to any other person shall invalidate      the notice or provide any Borrower or any Security Party with any form of      claim or defence. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.7 | Creditor Parties' rights      unimpaired.  Nothing in this Clause shall be taken to      impair or restrict the exercise of any right given to individual Lenders      or Swap Counterparties under a Finance Document, a Master Agreement or the      general law; and, in particular, this Clause is without prejudice to      Clause 3.1. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.8 | Exclusion of Creditor Party      liability.  No Creditor Party, and no receiver or manager      appointed by the Security Trustee, shall have any liability to a Borrower      or a Security Party: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | for      any loss caused by an exercise of rights under, or enforcement of a      Security Interest created by, a Finance Document or by any failure or      delay to exercise such a right or to enforce such a Security Interest;      or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | as      mortgagee in possession or otherwise, for any income or principal amount      which might have been produced by or realised from any asset comprised in      such a Security Interest or for any reduction (however caused) in the      value of such an asset, |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.9 | Relevant      Persons.  In this Clause 19, a "Relevant Person" means a      Borrower, a Security Party or any Principal  Subsidiary. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.10 | Interpretation.  In      Clause 19.1(f) references to an event of default or a termination event      include any event, howsoever described, which is similar to an event of      default in a facility agreement or a termination event in a finance lease;      and in Clause 19.1(g) "petition" includes an      application. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.11 | Position of Swap      Counterparties.  Neither the Agent nor the Security      Trustee shall be obliged, in connection with any action taken or proposed      to be taken under or pursuant to the foregoing provisions of this Clause      19, to have any regard to the requirements of a Swap Counterparty except      to the extent that such Swap Counterparty is also a  Lender. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20 | FEES      AND EXPENSES |
|----|------------------------|

| 20.1 | Fees.  The      Borrowers shall pay to the Agent: |
|------|-------------------------------------------------------------|

----

| (a) | on      the date of this Agreement, an upfront fee of an amount previously agreed      in writing between the Agent and the Borrowers, for distribution among the      Lenders in the proportions agreed by the Agent and the      Lenders; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | quarterly      in arrears (with the first payment due on the first end of calendar      quarter after the date of this Agreement) during the period from (and      including) the date of this Agreement to the earlier of (i) the second      Delivery Date and (ii) the end of the Availability Period and on the last      day of that period for the account of the Lenders, a commitment fee at the      rate of 0.50 per cent. per annum on the amount of the Total Commitments      less the amount of the Loan, for distribution among the Lenders pro rata      to their Commitments; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | on      the date of this Agreement and on each anniversary thereof during the      Security Period, an annual agency fee of an amount previously agreed in      writing between the Agent and the Borrowers, such agency fee to be payable      to the Agent in advance for its own account;and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      other fees in the amounts, and on the dates, set out in the Fee      Letter. |
|-----|---------------------------------------------------------------------------------------|

| 20.2 | Costs of negotiation,      preparation etc.  The Borrowers shall pay to the Agent on      its demand the amount of all expenses incurred by the Agent or the      Security Trustee in connection with the negotiation, preparation,      execution or registration of any Finance Document or any related document      or with any transaction contemplated by a Finance Document or a related      document. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3 | Costs of variations,      amendments, enforcement etc.  The Borrowers shall pay to      the Agent, on the Agent's demand, for the account of the Creditor Party      concerned the amount of all expenses incurred by a Creditor Party in      connection with: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | any      amendment or supplement to a Finance Document, or any proposal for such an      amendment to be made; |
|-----|----------------------------------------------------------------------------------------------------------------|

| (b) | any      consent or waiver by the Lenders, the Swap Banks, the Majority Lenders or      the Creditor Party concerned under or in connection with a Finance      Document, or any request for such a consent or  waiver; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      valuation of any security provided or offered under Clause 15 or any other      matter relating to such security;or |
|-----|------------------------------------------------------------------------------------------------------------------------------|

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

| 20.4 | Extraordinary management      time.  The Borrowers shall pay to the Agent on its demand      compensation in respect of the reasonable and documented amount of time      which the management of either Servicing Bank has spent in connection with      a matter covered by Clause 20.3 and which exceeds the amount of time which      would ordinarily be spent in the performance of the relevant Servicing      Bank's routine functions.  Any such compensation shall be based      on such reasonable daily or hourly rates as the Agent  may |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20.5 | Documentary      taxes.  The Borrowers shall promptly pay any tax payable      on or by reference to any Finance Document, and shall, on the Agent's      demand, fully indemnify each Creditor Party against any claims, expenses,      liabilities and losses resulting from any failure or delay by the      Borrowers to pay such a tax. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.6 | Certification of      amounts.  A notice which is signed by 2 officers of a      Creditor Party, which states that a specified amount, or aggregate amount,      is due to that Creditor Party under this Clause 20 and which indicates      (without necessarily specifying a detailed breakdown) the matters in      respect of which the amount, or aggregate amount, is due shall be prima      facie evidence that the amount, or aggregate amount, is    due. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21 | INDEMNITIES |
|----|-------------|

| 21.1 | Indemnities regarding borrowing      and repayment of Loan.  The Borrowers shall fully      indemnify the Agent and each Lender on the Agent's demand and the Security      Trustee on its demand in respect of all claims, expenses, liabilities and      losses which are made or brought against or incurred by that Creditor      Party, or which that Creditor Party reasonably and with due diligence      estimates that it will incur, as a result of or in connection      with: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | any      failure (for whatever reason) by the Borrowers to make payment of any      amount due under a Finance Document on the due date or, if so payable, on      demand (after giving credit for any default interest paid by the Borrowers      on the amount concerned under Clause 7);and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      occurrence of an Event of Default or a Potential Event of Default and/or      the acceleration of repayment of the Loan under Clause  19, |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2 | Breakage      costs.  Without limiting its generality, Clause 21.1      covers any claim, expense, liability or loss, including a loss of a      prospective profit, incurred by aLender: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 21.3 | Miscellaneous      indemnities.  The Borrowers shall fully indemnify each      Creditor Party severally on their respective demands in respect of all      claims, expenses, liabilities and |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a) | any      action taken, or omitted or neglected to be taken, under or in connection      with any Finance Document by the Agent, the Security Trustee or any other      Creditor Party or by any receiver appointed under a Finance Document;      or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any      other Pertinent Matter, |
|-----|----------------------------------|

| 21.4 | Currency      indemnity.  If any sum due from any Borrower or any      Security Party to a Creditor Party under a Finance Document or under any      order or judgment relating to a Finance Document has to be converted from      the currency in which the Finance Document provided for the sum to be paid      (the "Contractual      Currency") into another currency (the "Payment Currency") for      the purpose of: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | making      or lodging any claim or proof against any Borrower or any Security Party,      whether in its liquidation, any arrangement involving it or otherwise;      or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 21.5 | Application to Master      Agreements.  For the avoidance of doubt, Clause 21.4 does      not apply in respect of sums due from a Borrower to a Swap Counterparty      under or in connection with a Master Agreement as to which sums the      provisions of section 8 (Contractual Currency)      of that Master Agreement shallapply. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.6 | Certification of      amounts.  A notice which is signed by 2 officers of a      Creditor Party, which states that a specified amount, or aggregate amount,      is due to that Creditor Party under this Clause 21 and which indicates      (without necessarily specifying a detailed breakdown) the matters in      respect of which the amount, or aggregate amount, is due shall be prima      facie evidence that the amount, or aggregate amount, is    due. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.7 | Sums deemed due to a      Lender.  For the purposes of this Clause 21, a sum      payable by the Borrowers to the Agent or the Security Trustee for      distribution to a Lender shall be treated as a sum due to that      Lender. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22 | NO      SET-OFF OR TAX DEDUCTION |
|----|----------------------------------|

----

| 22.1 | No      deductions.  All amounts due from the Borrowers under a      Finance Document shall be paid: |
|------|----------------------------------------------------------------------------------------------------------------|

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

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

| 22.2 | Grossing-up for      taxes.  If a Borrower is required by law to make a tax      deduction from any payment: |
|------|------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 22.3 | Evidence of payment of      taxes.  Within 1 month after making any tax deduction,      the Borrower concerned shall deliver to the Agent documentary evidence      satisfactory to the Agent that the tax had been paid to the appropriate      taxation authority. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.4 | Exclusion of tax on overall net      income.  In this Clause 22 "tax deduction" means any      deduction or withholding for or on account of any present or future tax      except tax on a Creditor Party's overall net  income. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.5 | Application to Master      Agreements.  For the avoidance of doubt, Clause 22 does      not apply in respect of sums due from a Borrower to a Swap Counterparty      under or in connection with a Master Agreement as to which sums the      provisions of section 2(d) (Deduction or Withholding for      Tax) of that Master Agreement shall  apply. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23 | ILLEGALITY,      ETC |
|----|----------------------|

| 23.1 | Illegality.  This      Clause 23 applies if a Lender (the "Notifying Lender")      notifies the Agent that it has become, or will with effect from a      specified date, become: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 23.2 | Notification of      illegality.  The Agent shall promptly notify the      Borrowers, the Security Parties, the Security Trustee and the other      Lenders of the notice under Clause 23.1 which the Agent receives from the      Notifying Lender. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | Prepayment; termination of      Commitment.  On the Agent notifying the Borrowers under      Clause 23.2, the Notifying Lender's Commitment shall terminate; and      thereupon or, if later, on the date specified in the Notifying Lender's      notice under Clause 23.1 as the |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 23.4 | Mitigation. If      circumstances arise which would result in a notification under      Clause 23.1 then, without in any way limiting the rights of the      Notifying Lender under Clause 23.3, the Notifying Lender shall use      reasonable endeavours to transfer its obligations, liabilities and rights      under this Agreement and the Finance Documents to another office or      financial institution not affected by the circumstances but the Notifying      Lender shall not be under any obligation to take any such action if, in      its opinion, to do would or might: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | have      an adverse effect on its business, operations or financial condition;      or |
|-----|-----------------------------------------------------------------------------------------|

| (b) | involve      it in any activity which is unlawful or prohibited or any activity that is      contrary to, or inconsistent with, any regulation;  or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | involve      it in any expense (unless indemnified to its satisfaction) or tax      disadvantage. |
|-----|---------------------------------------------------------------------------------------------------|

| 24 | INCREASED      COSTS |
|----|----------------------|

| 24.1 | Increased      costs.  This Clause 24 applies if a Lender (the "Notifying Lender")      notifies the Agent that the Notifying Lender considers that as a result      of: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      introduction or alteration after the date of this Agreement of a law or an      alteration after the date of this Agreement in the manner in which a law      is interpreted or applied (disregarding any effect which relates to the      application to payments under this Agreement of a tax on the Lender's      overall net income); or |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | complying      with any regulation (including any which relates to capital adequacy or      liquidity controls or which affects the manner in which the Notifying      Lender allocates capital resources to its obligations under this      Agreement) which is introduced, or altered, or the interpretation or      application of which is altered, after the date of this      Agreement, |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.2 | Meaning of "increase      cost".  In this Clause 24, "increased cost" means,      in relation to a Notifying Lender: |
|------|--------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | an      additional or increased cost of funding all or maintaining all or any of      the advances comprised in a class of advances formed by or including the      Notifying Lender's Contribution or (as the case may require) the      proportion of that cost attributable to the Contribution;    or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 24.3 | Notification to Borrowers of      claim for increased costs.  The Agent shall promptly      notify the Borrowers and the Security Parties of the notice which the      Agent received from the Notifying Lender under Clause  24.1. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.4 | Payment of increased      costs.  The Borrowers shall pay to the Agent, on the      Agent's demand, for the account of the Notifying Lender the amounts which      the Agent from time to time notifies the Borrowers that the Notifying      Lender has specified to be necessary to compensate the Notifying Lender      for the increased cost. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.5 | Notice of      prepayment.  If the Borrowers are not willing to continue      to compensate the Notifying Lender for the increased cost under Clause      24.4, the Borrowers may give the Agent not less than 14 days' notice of      their intention to prepay the Notifying Lender's Contribution at the end      of an Interest Period. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.6 | Prepayment; termination of      Commitment.  A notice under Clause 24.5 shall be      irrevocable; the Agent shall promptly notify the Notifying Lender of the      Borrowers' notice of intended prepayment;and: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | on      the date on which the Agent serves that notice, the Commitment of the      Notifying Lender shall be cancelled;and |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (b) | on      the date specified in its notice of intended prepayment, the Borrowers      shall prepay (without premium or penalty) the Notifying Lender's      Contribution, together with accrued interest thereon at the applicable      rate plus the Margin. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.7 | Application of      prepayment.  Clause 8 shall apply in relation to the      prepayment. |
|------|-----------------------------------------------------------------------------------------------------|

| 25 | SET-OFF |
|----|---------|

| 25.1 | Application of credit      balances.  Each Creditor Party may without prior      notice: |
|------|----------------------------------------------------------------------------------------------------|

| (a) | apply      any balance (whether or not then due) which at any time stands to the      credit of any account in the name of a Borrower at any office in any      country of that Creditor Party in or towards satisfaction of any sum then      due from that Borrower to that Creditor Party under any of the Finance      Documents; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | (iii) | enter      into any other transaction or make any entry with regard to the credit      balance which the Creditor Party concerned considers      appropriate. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Existing rights      unaffected.  No Creditor Party shall be obliged to      exercise any of its rights under Clause 25.1; and those rights shall be      without prejudice and in additionto |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 25.3 | Sums deemed due to a      Lender.  For the purposes of this Clause 25, a sum      payable by the Borrowers to the Agent or the Security Trustee for      distribution to, or for the account of, a Lender shall be treated as a sum      due to that Lender; and each Lender's proportion of a sum so payable for      distribution to, or for the account of, the Lenders shall be treated as a      sum due to such Lender. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.4 | No Security      Interest.  This Clause 25 gives the Creditor Parties a      contractual right of set-off only, and does not create any equitable      charge or other Security Interest over any credit balance of any      Borrower. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26 | TRANSFERS      AND CHANGES IN LENDING OFFICES |
|----|-----------------------------------------------|

| 26.1 | Transfer by      Borrowers.  No Borrower may, without the consent of the      Agent, given on the instructions of all the Lenders transfer any of its      rights, liabilities or obligations under any Finance    Document. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.2 | Transfer by a      Lender.  Subject to Clause 26.4, a Lender (the "Transferor Lender") may      at any time, with the consent of the Borrowers (such consent not to be      unreasonably withheld or delayed; and such consent not to be required in      connection with or in contemplation of a securitisation (or similar      transaction)) but otherwise without needing the consent of any Security      Party, cause: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | its      rights in respect of all or part of its Contribution;  or |
|-----|--------------------------------------------------------------------|

| (b) | its      obligations in respect of all or part of its Commitment;  or |
|-----|-----------------------------------------------------------------------|

| (c) | a      combination of (a) and (b), |
|-----|------------------------------------|

| 26.3 | Transfer Certificate, delivery      and notification.  As soon as reasonably practicable      after a Transfer Certificate is delivered to the Agent, it shall (unless      it has reason to believe that the Transfer Certificate may be      defective): |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | sign      the Transfer Certificate on behalf of itself, the Borrowers, the Security      Parties, the Security Trustee, each of the other Lenders and each of the      Swap Banks; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | on      behalf of the Transferee Lender, send to each Borrower and each Security      Party letters or faxes notifying them of the Transfer Certificate and      attaching a copy of it; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | send      to the Transferee Lender copies of the letters or faxes sent under      paragraph (b) above, |
|-----|--------------------------------------------------------------------------------------------------------|

----

| 26.4 | Effective Date of Transfer      Certificate.  A Transfer Certificate becomes effective on      the date, if any, specified in the Transfer Certificate as its effective      date, Provided      that it is signed by the Agent under Clause 26.3 on or before that      date. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.5 | No transfer without Transfer      Certificate.  No assignment or transfer of any right or      obligation of a Lender under any Finance Document is binding on, or      effective in relation to, any Borrower, any Security Party, the Agent or      the Security Trustee unless it is effected, evidenced or perfected by a      Transfer Certificate. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.6 | Lender re-organisation; waiver      of Transfer Certificate.  However, if a Lender enters      into any merger, de-merger or other reorganisation as a result of which      all its rights or obligations vest in another person (the "successor"), the Agent      may, if it sees fit, by notice to the successor and the Borrowers and the      Security Trustee waive the need for the execution and delivery of a      Transfer Certificate; and, upon service of the Agent's notice, the      successor shall become a Lender with the same Commitment and Contribution      as were held by the predecessorLender. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.7 | Effect of Transfer      Certificate.  A Transfer Certificate takes effect in      accordance with English law asfollows: |
|------|------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      the extent specified in the Transfer Certificate, all rights and interests      (present, future or contingent) which the Transferor Lender has under or      by virtue of the Finance Documents are assigned to the Transferee Lender      absolutely, free of any defects in the Transferor Lender's title and of      any rights or equities which any Borrower or any Security Party had      against the Transferor Lender; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      Transferor Lender's Commitment is discharged to the extent specified in      the Transfer Certificate; |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (c) | the      Transferee Lender becomes a Lender with the Contribution previously held      by the Transferor Lender and a Commitment of an amount specified in the      Transfer Certificate; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      Transferee Lender becomes bound by all the provisions of the Finance      Documents which are applicable to the Lenders generally, including those      about pro-rata sharing and the exclusion of liability on the part of, and      the indemnification of, the Agent and the Security Trustee and, to the      extent that the Transferee Lender becomes bound by those provisions (other      than those relating to exclusion of liability), the Transferor Lender      ceases to be bound by them; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | any      part of the Loan which the Transferee Lender advances after the Transfer      Certificate's effective date ranks in point of priority and security in      the same way as it would have ranked had it been advanced by the      transferor, assuming that any defects in the transferor's title and any      rights or equities of any Borrower or any Security Party against the      Transferor Lender had not existed; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | the      Transferee Lender becomes entitled to all the rights under the Finance      Documents which are applicable to the Lenders generally, including but not      limited to those relating to the Majority Lenders and those under Clause      5.7 and Clause 20, and to the extent that the Transferee Lender becomes      entitled to such rights, the Transferor Lender ceases to be entitled to      them; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | in      respect of any breach of a warranty, undertaking, condition or other      provision of a Finance Document or any misrepresentation made in or in      connection with a Finance Document, the Transferee Lender shall be      entitled to recover damages by reference tothe |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 26.8 | Maintenance of register of      Lenders.  During the Security Period the Agent shall      maintain a register in which it shall record the name, Commitment,      Contribution and administrative details (including the lending office)      from time to time of each Lender holding a Transfer Certificate and the      effective date (in accordance with Clause 26.4) of the Transfer      Certificate; and the Agent shall make the register available for      inspection by any Lender, the Security Trustee and the Borrowers during      normal banking hours, subject to receiving at least 3 Business Days' prior      notice. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.9 | Reliance on register of      Lenders.  The entries on that register shall, in the      absence of manifest error, be conclusive in determining the identities of      the Lenders and the amounts of their Commitments and Contributions and the      effective dates of Transfer Certificates and may be relied upon by the      Agent and the other parties to the Finance Documents for all purposes      relating to the Finance Documents. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.10 | Authorisation of Agent to sign      Transfer Certificates.  Each Borrower, the Security      Trustee, each Lender and each Swap Bank irrevocably authorise the Agent to      sign Transfer Certificates on itsbehalf. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.11 | Registration      fee.  In respect of any Transfer Certificate, the Agent      shall be entitled to recover a registration fee of $1,000 from the      Transferor Lender or (at the Agent's option) the Transferee      Lender. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.12 | Sub-participation;      securitisation; subrogationassignment. |
|-------|----------------------------------------------------------------|

| (a) | A      Lender may sub-participate or include in a securitisation or similar      transaction all or any part of its rights and/or obligations under or in      connection with the Finance Documents without the consent of, or any      consultation with or notice to, any Borrower, any Security Party, the      Agent or the Security Trustee; and the Lenders may assign, in any manner      and terms agreed by the Majority Lenders, the Agent and the Security      Trustee, all or any part of those rights to an insurer or surety who has      become subrogated to them. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Each      Borrower shall, and shall procure that each Security Party shall, do      everything desirable or necessary to assist the Creditor Parties (or any      of them) to achieve a successful (in the opinion of the Creditor Parties      concerned) securitisation (or similar transaction) Provided only that the      Borrowers' third party costs are met by the Creditor Parties      concerned. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.13 | Disclosure of      information.  In relation to any information which a      Creditor Party has received in relation to either Borrower, any Security      Party or their affairs under or in connection with any Finance Document or      any Master Agreement, that Creditor Party may disclose any such      information as it considers in its absolute discretion appropriate      to: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | a      potential Transferee Lender, sub-participant, affiliate, any other      assignee or transferee or any other person who may propose entering into a      contractual relation with that Creditor Party in relation to this      Agreement; and/or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any      direct or indirect subsidiary, any direct or indirect parent company      (including, for the avoidance of doubt in the case of the DVB Group, DZ      Bank A.G.), any affiliate or any other company in its group;      and/or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | any      authorities or any party to any Finance Document or any professional      adviser to that Creditor Party;and/or |
|-----|--------------------------------------------------------------------------------------------------------------------------|

----

| (d) | any      other person regarding the funding, operational arrangement or other      transaction in relation thereto, |
|-----|---------------------------------------------------------------------------------------------------------------------|

| 26.14 | Change of lending      office.  A Lender may change its lending office by giving      notice to the Agent and the change shall become effective on the later      of: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      date on which the Agent receives the notice;and |
|-----|----------------------------------------------------------|

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

| 26.15 | Notification.  On      receiving such a notice, the Agent shall notify the Borrowers and the      Security Trustee; and, until the Agent receives such a notice, it shall be      entitled to assume that a Lender is acting through the lending office of      which the Agent last had notice. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.16 | Replacement of Reference      Bank.  If any Reference Bank ceases to be a Lender or is      unable on a continuing basis to supply quotations for the purposes of      Clause 5 then, unless the Borrowers, the Agent and the Majority Lenders      otherwise agree, the Agent, acting on the instructions of the Majority      Lenders, and after consulting the Borrowers, shall appoint another bank      (whether or not a Lender) to be a replacement Reference Bank; and, when      that appointment comes into effect, the first-mentioned Reference Bank's      appointment shall cease to beeffective. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.17 | Syndication. |
|-------|--------------|

| (a) | If      the Borrowers agree to the syndication of this Agreement but after a      period of at least 3 months after the date of this Agreement has elapsed,      it appears likely (in the Agent's reasonable opinion) that the normal      syndication process of this Agreement on the basis of the agreed,      structure, terms and pricing will not be successful, the Borrowers      acknowledge that the Agent has the right at any time to change any or all      of the terms, structure and/or pricing of the Loan if the Agent determines      that such changes are advisable in order to ensure a successful      syndication of this Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | If      the Agent determines such changes are necessary, the Agent will consult      with the Borrowers for a period of up to 5 Business Days about such      changes and, following such period of consultation but subject to Clause      26.17(c), the Borrowers will and will procure that each Security Party      will enter into any documentation in a form required by the Agent to      implement such changes required by the Agent (including, without      limitation, any documentation required to amend the Finance Documents and      to secure the Borrowers' and the Security Parties' liabilities and      obligations under the Finance Documents as amended and/or      supplemented). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | If      either Borrower or any Security Party does not agree with such changes      required by the Agent, the Borrowers may give the Agent within a period of      5 days following the expiry of the consultation period not less than 14      days' notice of its intention to terminate the Commitments and prepay the      Loan in full at the end of the current Interest  Period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | A      notice under Clause 26.17(c) shall be irrevocable; the Agent shall      promptly notify the Lenders of the Borrowers' notice of intended      prepayment; and: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | on      the date on which the Agent serves that notice, the Total Commitments      shall be cancelled; and |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (ii) | on      the date specified in its notice of intended prepayment, the Borrowers      shall prepay (without premium or penalty) the Loan, together with accrued      interest thereon at the applicable rate plus the  Margin. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Clause      8 shall apply in relation to any such  prepayment. |
|-----|----------------------------------------------------------------|

| 27 | VARIATIONS      AND WAIVERS |
|----|-----------------------------|

----

| 27.1 | Variations, waivers etc. by      Majority Lenders.  Subject to Clause 27.2, a document      shall be effective to vary, waive, suspend or limit any provision of a      Finance Document, or any Creditor Party's rights or remedies under such a      provision or the general law, only if the document is signed, or      specifically agreed to by fax, by the Borrowers, by the Agent on behalf of      the Majority Lenders, by the Agent and the Security Trustee in their own      rights, and, if the document relates to a Finance Document to which a      Security Party is party, by that SecurityParty. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.2 | Variations, waivers etc.      requiring agreement of all Lenders.  However, as regards      the following, Clause 27.1 applies as if the words "by the Agent on behalf      of the Majority Lenders" were replaced by the words "by or on behalf of      every Lender and every Swap Bank": |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | a      change in the Margin or in the definition of  LIBOR; |
|-----|-------------------------------------------------------------|

| (b) | a      change to the date for, the amount of, any payment of principal, interest,      fees, or other sum payable under thisAgreement; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| (c) | a      change to any Lender's Commitment; |
|-----|-------------------------------------------|

| (d) | an      extension of Availability Period; |
|-----|-------------------------------------------|

| (e) | a      change to the definition of "Majority Lenders" or      "Finance      Documents"; |
|-----|-----------------------------------------------------------------------------------------|

| (f) | a      change to the preamble or to Clause 2, 3, 4, 5.1, 17, 18 or      30; |
|-----|-----------------------------------------------------------------------------|

| (g) | a      change to this Clause 27; |
|-----|----------------------------------|

| (h) | any      release of, or material variation to, a Security Interest, guarantee,      indemnity or subordination arrangement set out in a Finance Document;      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | any      other change or matter as regards which this Agreement or another Finance      Document expressly provides that each Lender's consent is      required. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.3 | Exclusion of other or implied      variations.  Except for a document which satisfies the      requirements of Clauses 27.1 and 27.2, no document, and no act, course of      conduct, failure or neglect to act, delay or acquiescence on the part of      the Creditor Parties or any of them (or any person acting on behalf of any      of them) shall result in the Creditor Parties or any of them (or any      person acting on behalf of any of them) being taken to have varied,      waived, suspended or limited, or being precluded (permanently or      temporarily) from enforcing, relying on or  exercising: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 28 | NOTICES |
|----|---------|

----

| 28.1 | General.  Unless      otherwise specifically provided, any notice under or in connection with      any Finance Document shall be given by letter or fax; and references in      the Finance Documents to written notices, notices in writing and notices      signed by particular persons shall be construed    accordingly. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.2 | Addresses for      communications.  A notice by letter or fax shall be      sent: |
|------|---------------------------------------------------------------------------------------------|

| (a)    | to      the Borrowers:                                                                                                                                                                                                 | c/o      Top Tanker Management Inc.                                                                                                                                                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                   | 1      Vassilissis Sofias Str. & Meg. Alexandrou Str.                                                                                                                                        |
|   |                                                                                                                                                                                                                   | 151      24, Maroussi                                                                                                                                                                            |
|   |                                                                                                                                                                                                                   | Greece                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                   |                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                   | Fax      No:  +30 210 614 1204;                                                                                                                                                        |
|   |                                                                                                                                                                                                                   |                                                                                                                                                                                             |
| (b)    | to      a Lender or a Swap Bank                                                                                                                                                                                        | at      the address below its name in Schedule 1 (in the case of a Lender),      Schedule 2 (in the case of a Swap Bank) or (as the case may require) in      the relevant Transfer Certificate; |
|   |                                                                                                                                                                                                                   |                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                   |                                                                                                                                                                                             |
| (c)    | to      the Agent:                                                                                                                                                                                                     | Zeelandia      Office Park                                                                                                                                                                       |
|   | and/or      the Security Trustee:                                                                                                                                                                                      | Kaya      W.F.G. Mensing 14                                                                                                                                                                      |
|   |                                                                                                                                                                                                                   | P.O.      Box 3107, Curaçao                                                                                                                                                                 |
|   |                                                                                                                                                                                                                   | Netherlands      Antilles                                                                                                                                                                        |
|   |                                                                                                                                                                                                                   | Attention:      Natacha Bloem                                                                                                                                                                    |
|   |                                                                                                                                                                                                                   |                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                   | Fax      No: +599 9 465 2366                                                                                                                                                                     |
|   |                                                                                                                                                                                                                   |                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                   | with      a copy to:                                                                                                                                                                             |
|   |                                                                                                                                                                                                                   | DVB      Bank SE, Rep. Office Greece                                                                                                                                                             |
|   |                                                                                                                                                                                                                   | 95      Akti Miaouli                                                                                                                                                                             |
|   |                                                                                                                                                                                                                   | 185      38 Piraeus                                                                                                                                                                              |
|   |                                                                                                                                                                                                                   | Greece                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                   | Attention:      Nikolas Chontzopoulos                                                                                                                                                            |
|   |                                                                                                                                                                                                                   | Fax      No: +30 210 455 7420                                                                                                                                                                    |
|   |                                                                                                                                                                                                                   |                                                                                                                                                                                             |
|   | or      to such other address as the relevant party may notify the Agent or, if      the relevant party is the Agent or the Security Trustee, the Borrowers,      the Lenders, the Swap Banks and the SecurityParties. |

| 28.3 | Effective date of      notices.  Subject to Clauses 28.4 and    28.5: |
|------|---------------------------------------------------------------------------------|

| (a) | a      notice which is delivered personally or posted shall be deemed to be      served, and shall take effect, at the time when it is delivered;      and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | a      notice which is sent by fax shall be deemed to be served, and shall take      effect, 2 hours after its transmission is  completed. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| 28.4 | Service outside business      hours.  However, if under Clause 28.3 a notice would be      deemed to be served: |
|------|---------------------------------------------------------------------------------------------------------------------------|

----

| (a) | on      a day which is not a business day in the place of receipt;    or |
|-----|--------------------------------------------------------------------------|

| (b) | on      such a business day, but after 5 p.m. local  time, |
|-----|------------------------------------------------------------|

| 28.5 | Illegible      notices.  Clauses 28.3 and 28.4 do not apply if the      recipient of a notice notifies the sender within 1 hour after the time at      which the notice would otherwise be deemed to be served that the notice      has been received in a form which is illegible in a material      respect. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.6 | Valid      notices.  A notice under or in connection with a Finance      Document shall not be invalid by reason that its contents or the manner of      serving it do not comply with the requirements of this Agreement or, where      appropriate, any other Finance Document under which it is served      if: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      failure to serve it in accordance with the requirements of this Agreement      or other Finance Document, as the case may be, has not caused any party to      suffer any significant loss or  prejudice;  or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | in      the case of incorrect and/or incomplete contents, it should have been      reasonably clear to the party on which the notice was served what the      correct or missing particulars should havebeen. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.7 | Electronic      communication.  Any communication to be made between the      Agent and a Lender under or in connection with the Finance Documents may      be made by electronic mail or other electronic means, if the Agent and the      relevant Lender: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | agree      that, unless and until notified to the contrary, this is to be an accepted      form of communication; |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (b) | notify      each other in writing of their electronic mail address and/or any other      information required to enable the sending and receipt of information by      that means; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | notify      each other of any change to their respective addresses or any other such      information supplied to them. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| 28.8 | English      language.  Any notice under or in connection with a      Finance Document shall be inEnglish. |
|------|----------------------------------------------------------------------------------------------------------------------|

| 28.9 | Meaning of      "notice".  In this Clause 28, "notice" includes any      demand, consent, authorisation, approval, instruction, waiver or other      communication. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29 | JOINT      AND SEVERAL LIABILITY |
|----|----------------------------------|

| 29.1 | General.  All      liabilities and obligations of the Borrowers under this Agreement shall,      whether expressed to be so or not, be several and, if and to the extent      consistent with Clause 29.2, joint. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.2 | No impairment of Borrower's      obligations.  The liabilities and obligations of a      Borrower shall not be impaired by: |
|------|---------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

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

| 29.3 | Principal      debtors.  Each Borrower declares that it is and will,      throughout the Security Period, remain a principal debtor for all amounts      owing under this Agreement and the Finance Documents and no Borrower shall      in any circumstances be construed to be a surety for the obligations of      any other Borrower under thisAgreement. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.4 | Subordination.  Subject      to Clause 29.5, during the Security Period, no Borrower    shall: |
|------|----------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 29.5 | Borrower's required      action.  If during the Security Period, the Agent, by      notice to a Borrower, requires it to take any action referred to in      paragraphs (a) to (d) of Clause 29.4, in relation to any other Borrower,      that Borrower shall take that action as soon as practicable after      receiving the Agent's notice. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30 | SUPPLEMENTAL |
|----|--------------|

| 30.1 | Rights cumulative,      non-exclusive.  The rights and remedies which the Finance      Documents give to each Creditor Partyare: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 30.2 | Severability of      provisions.  If any provision of a Finance Document is or      subsequently becomes void, unenforceable or illegal, that shall not affect      the validity, enforceability or legality of the other provisions of that      Finance Document or of the provisions of any other Finance      Document. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.3 | Counterparts.  A      Finance Document may be executed in any number of      counterparts. |
|------|------------------------------------------------------------------------------------------------------|

| 30.4 | Third party      rights.  A person who is not a party to this Agreement      has no right under the Contracts (Rights of Third Parties) Act 1999 to      enforce or to enjoy the benefit of any term of this    Agreement. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31 | LAW      AND JURISDICTION |
|----|---------------------------|

----

| 31.1 | English      law.  This Agreement shall be governed by, and construed      in accordance with, English law. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| 31.2 | Exclusive English      jurisdiction.  Subject to Clause 31.3, the courts of      England shall have exclusive jurisdiction to settle any disputes which may      arise out of or in connection with this  Agreement. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.3 | Choice of forum for the      exclusive benefit of the Creditor Parties.  Clause 31.2      is for the exclusive benefit of the Creditor Parties, each of which      reserves the right: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      commence proceedings in relation to any matter which arises out of or in      connection with this Agreement in the courts of any country other than      England and which have or claim jurisdiction to that matter;      and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | to      commence such proceedings in the courts of any such country or countries      concurrently with or in addition to proceedings in England or without      commencing proceedings in England. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.4 | Process      agent.  Each Borrower irrevocably appoints Top Tankers      (U.K.) Limited at its registered office for the time being, presently at      3rd Floor, 8 Duke Street, London W1U 3EW, to act as its agent to      receive and accept on its behalf any process or other document relating to      any proceedings in the English courts which are connected with this      Agreement. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.5 | Creditor Party rights      unaffected.  Nothing in this Clause 31 shall exclude or      limit any right which any Creditor Party may have (whether under the law      of any country, an international convention or otherwise) with regard to      the bringing of proceedings, the service of process, the recognition or      enforcement of a judgment or any similar or related matter in any      jurisdiction. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.6 | Meaning of      "proceedings".  In this Clause 31, "proceedings" means      proceedings of any kind, including an application for a provisional or      protective measure. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Lender                     | Lending      Office                                                                                          | Commitment(US      Dollars) |
|----------------------------|--------------------------------------------------------------------------------------------------------------|-----------------------------|
|                       |                                                                                                         |                        |
| DVB      Bank America N.V. | Zeelandia      Office ParkKaya      W.F.G. Mensing 14P.O.      Box 3107CuraçaoNetherlands      Antilles | 80,000,000                  |

----

| Swap      Bank         | Booking      Office                                       |
|------------------------|-----------------------------------------------------------|
|                   |                                                      |
|  DVB      Bank SE | Platz      der Republik 6D-60325 Frankfurt am MainGermany |

----

|  Attention:      Loans Administration |   [date] |
|--------------------------------------------|--------------------|

| 1 | We      refer to the loan agreement (the "Loan Agreement") dated      [l] October      2008 and made between ourselves, as Borrowers, the Lenders referred to      therein, the Swap Banks referred to therein, and yourselves as Agent and      as Security Trustee in connection with a facility of up to      US$80,000,000.  Terms defined in the Loan Agreement have their      defined meanings when used in this Drawdown  Notice. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | We      request to borrow an Advance relating to the Ship with hull number      S-[l] as      follows: |
|---|--------------------------------------------------------------------------------------------------------|

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

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

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

| (d) | Payment      instructions: [l]. |
|-----|---------------------------------|

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

| (a) | the      representations and warranties in Clause 10 of the Loan Agreement would      remain true and not misleading if repeated on the date of this notice with      reference to the circumstances now existing;and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 5 | [We      authorise you to deduct the fees referred to in Clause 20 from the amount      of the Advance.] |
|---|----------------------------------------------------------------------------------------------------------|

----

| 1 | A      duly executed original of each Finance Document (and of each document      required to be delivered by each Finance Document) other than those      referred to in Part B or Part C. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 3 | Copies      of resolutions of the shareholders and directors of each Borrower and each      Security Party authorising the execution of each of the Finance Documents      and the Transaction Documents to which that Borrower or that Security      Party is a party and, in the case of a Borrower, authorising named      officers to give the Drawdown Notices and other notices under this      Agreement and ratifying the execution of the Transaction Documents to      which it is a party. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | The      original of any power of attorney under which any Finance Document is      executed on behalf of a Borrower or a Security  Party. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------|

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

| 6 | Copies      of each Shipbuilding Contract and of all documents signed or issued by any      party to that Shipbuilding Contract under or in connection with      it. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Such      documentary evidence as the Agent and its legal advisers may require in      relation to the due authorisation and execution by any party to a      Shipbuilding Contract of that Shipbuilding Contract and of all documents      to be executed by that party under that Shipbuilding    Contract. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | The      original of each Refund Guarantee together with such documentary evidence      as the Agent and its legal advisers may require in relation to the due      authorisation and execution by the Refund Guarantor of each Refund      Guarantee. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | Documentary      evidence that the agent for service of process named in Clause 31 has      accepted its appointment. |
|---|-----------------------------------------------------------------------------------------------------------------------|

| 10 | Favourable      legal opinions from lawyers appointed by the Agent on such matters      concerning the laws of Liberia, the Marshall Islands and Korea and such      other relevant jurisdictions as the Agent may  require. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11 | A      duly completed DVB LAM Form signed by the  Borrowers. |
|----|--------------------------------------------------------------|

| 12 | All      documentation required by each Lender in respect of either Borrower or any      Security Party pursuant to that Lender's "Know your customer"      requirements. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | If      the Agent so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Agent. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1 | A      duly executed original of the Mortgage, the Quadripartite Agreement (if      not already executed), the Charter Assignment (if not already executed),      the Account Security Deed and of the General Assignment relating to Ship A      (and of each document to be delivered by each of  them). |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The      originals of any mandates or other documents required in connection with      the opening or operation of the Earnings Account relation to Ship      A. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Documentary      evidence that: |
|---|---------------------------------|

| (a) | Ship      A has been unconditionally delivered by the Builder to, and accepted by,      Banksy under the Shipbuilding Contract, and the full purchase price      payable under the Shipbuilding Contract (in addition to the part to be      financed by the Loan) has been dulypaid; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Ship      A has been unconditionally delivered by Banksy to, and accepted by, the      relevant Charterer under theCharter; |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (c) | Ship      A is definitively and permanently registered in the name of Banksy under      Maltese flag; |
|-----|-------------------------------------------------------------------------------------------------------|

| (d) | Ship      A is in the absolute and unencumbered ownership of Banksy save as      contemplated by the FinanceDocuments; |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (e) | Ship      A maintains the class set out in article 1(b)(i) of the Shipbuilding      Contract with Det norske Veritas free of all recommendations and      conditions of such Classification Society (with the Agent being advised of      such class and classification society at least 15 days prior to the      Drawdown Date); |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | the      Mortgage relating to Ship A has been duly registered against Ship A as a      valid first priority Maltese ship mortgage in accordance with the laws of      Malta; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Ship      A is insured in accordance with the provisions of this Agreement and all      requirements therein in respect of insurances have been complied      with. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Copies      of the Document of Compliance relating to Ship A and of Ship A's Safety      Management Certificate (together with any other details of the applicable      safety management system which the Agent requires), ISSC and      IAPPC. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Favourable      legal opinions from lawyers appointed by the Agent on such matters      concerning the law of Malta, Liberia and such other relevant jurisdictions      as the Agent may require. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | A      favourable opinion from an independent insurance consultant acceptable to      the Agent on such matters relating to the insurances for Ship A as the      Agent may require (with the Agent being advised with whom such insurances      will be placed and upon what main terms they will be effected at least 15      days prior to the Drawdown Date). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Such      documentary evidence as the Agent and its legal advisers may require in      relation to the due authorisation and execution by any party to the      Quadripartite Agreement of that Quadripartite Agreement and of all      documents to be executed by that party under that Quadripartite      Agreement. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | Copies      of all charters of Ship A and relateddocuments. |
|---|-------------------------------------------------------------|

----

| 9 | A      survey report addressed to the Agent and the Lenders, stated to be for the      purposes of this Agreement and dated not earlier than 7 days before the      Drawdown Date from an independent marine surveyor selected by the Agent in      respect of the physical condition of theShip. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | If      the Agent so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Agent. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | A      duly executed original of the Mortgage, the Quadripartite Agreement (if      not already executed), the Charter Assignment (if not already executed),      the Account Security Deed and of the General Assignment relating to Ship B      (and of each document to be delivered by each of  them). |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The      originals of any mandates or other documents required in connection with      the opening or operation of the Earnings Account relation to Ship      B. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Documentary      evidence that: |
|---|---------------------------------|

| (a) | Ship      B has been unconditionally delivered by the Builder to, and accepted by,      Hongbo under the Shipbuilding Contract, and the full purchase price      payable under the Shipbuilding Contract (in addition to the part to be      financed by the Loan) has been dulypaid; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Ship      B has been unconditionally delivered by Hongbo to, and accepted by, the      relevant Charterer under theCharter; |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (c) | Ship      B is definitively and permanently registered in the name of Hongbo under      Liberian flag; |
|-----|--------------------------------------------------------------------------------------------------------|

| (d) | Ship      B is in the absolute and unencumbered ownership of Hongbo save as      contemplated by the FinanceDocuments; |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (e) | Ship      B maintains the class set out in article 1(b)(i) of the Shipbuilding      Contract with Det norske Veritas free of all recommendations and      conditions of such Classification Society (with the Agent being advised of      such class and classification society at least 15 days prior to the      Drawdown Date); |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | the      Mortgage relating to Ship B has been duly recorded against Ship B as a      valid first preferred Liberian ship mortgage in accordance with the laws      of Liberia; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Ship      B is insured in accordance with the provisions of this Agreement and all      requirements therein in respect of insurances have been complied      with. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Copies      of the Document of Compliance relating to Ship B and of Ship B's Safety      Management Certificate (together with any other details of the applicable      safety management system which the Agent requires), ISSC and      IAPPC. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Favourable      legal opinions from lawyers appointed by the Agent on such matters      concerning the law of Liberia and such other relevant jurisdictions as the      Agent may require. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6 | A      favourable opinion from an independent insurance consultant acceptable to      the Agent on such matters relating to the insurances for Ship B as the      Agent may require (with the Agent being advised with whom such insurances      will be placed and upon what main terms they will be effected at least 15      days prior to the Drawdown Date). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Such      documentary evidence as the Agent and its legal advisers may require in      relation to the due authorisation and execution by any party to the      Quadripartite Agreement of that Quadripartite Agreement and of all      documents to be executed by that party under that Quadripartite      Agreement. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | Copies      of all charters of Ship B and relateddocuments. |
|---|-------------------------------------------------------------|

| 9 | A      survey report addressed to the Agent and the Lenders, stated to be for the      purposes of this Agreement and dated not earlier than 7 days before the      Drawdown Date from an independent marine surveyor selected by the Agent in      respect of the physical condition of theShip. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | If      the Agent so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Agent. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| To: | DVB      Bank America N.V. for itself and for and on behalf of each Borrower, each      Security Party, the Security Trustee, each Lender and each Swap Bank, as      defined in the Loan Agreement referred tobelow. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | This      Certificate relates to a Loan Agreement (the "Loan Agreement") dated      [l] October 2008      and made between (1) Banksy Shipping Company Limited and Hongbo Shipping      Company Limited as joint and several borrowers (together, the "Borrowers"), (2) the      banks and financial institutions named therein as Lenders, (3) the banks      and financial institutions named therein as Swap Banks, (4) DVB Bank      America N.V. as Agent and (5) DVB Bank America N.V. as Security Trustee      for a loan facility of up toUS$80,000,000. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | In      this Certificate, terms defined in the Loan Agreement shall, unless the      contrary intention appears, have the same meanings  and: |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | "Relevant Parties" means      the Agent, each Borrower, each Security Party, the Security Trustee, each      Lender and each Swap Bank; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | "Transferor" means [full      name] of [lending      office]; and |
|--------|-------------------------------------------------------------------|

|   | "Transferee" means [full      name] of [lending      office]. |
|--------|---------------------------------------------------------------|

| 3 | The      effective date of this Certificate is [l] Provided that this      Certificate shall not come into effect unless it is signed by the Agent on      or before that date. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | The      Transferor assigns to the Transferee absolutely all rights and interests      (present, future or contingent) which the Transferor has as Lender under      or by virtue of the Loan Agreement and every other Finance Document in      relation to [l] per cent. of its      Contribution, which percentage represents $[l]. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | By      virtue of this Certificate and Clause 26 of the Loan Agreement, the      Transferor is discharged [entirely from its Commitment which amounts to      $[l]] [from      [l] per cent.      of its Commitment, which percentage represents $[l]] and the      Transferee acquires a Commitment of $[l].] |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | The      Transferee undertakes with the Transferor and each of the Relevant Parties      that the Transferee will observe and perform all the obligations under the      Finance Documents which Clause 26 of the Loan Agreement provides will      become binding on it upon this Certificate taking  effect. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7 | The      Agent, at the request of the Transferee (which request is hereby made)      accepts, for the Agent itself and for and on behalf of every other      Relevant Party, this Certificate as a Transfer Certificate taking effect      in accordance with Clause 26 of the Loan  Agreement. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | The      Transferor: |
|---|----------------------|

| (a) | warrants      to the Transferee and each Relevant Partythat: |
|-----|--------------------------------------------------------------|

|   | (i) | the      Transferor has full capacity to enter into this transaction and has taken      all corporate action and obtained all consents which are in connection      with this transaction; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | this      Certificate is valid and binding as regards the  Transferor; |
|--------|------|------------------------------------------------------------------------|

| (b) | warrants      to the Transferee that the Transferor is absolutely entitled, free of      encumbrances, to all the rights and interests covered by the assignment in      paragraph 4 above; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | undertakes      with the Transferee that the Transferor will, at its own expense, execute      any documents which the Transferee reasonably requests for perfecting in      any relevant jurisdiction the Transferee's title under this Certificate or      for a similar purpose. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | The      Transferee: |
|---|----------------------|

| (a) | confirms      that it has received a copy of the Loan Agreement and each of the other      Finance Documents; |
|-----|---------------------------------------------------------------------------------------------------------------|

| (b) | agrees      that it will have no rights of recourse on any ground against either the      Transferor, the Agent, the Security Trustee, any Lender or any Swap Bank      in the event that: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      of the Finance Documents prove to be invalid or    ineffective; |
|--------|-----|--------------------------------------------------------------------------|

|   | (ii) | any      Borrower or any Security Party fails to observe or perform its      obligations, or to discharge its liabilities, under any of the Finance      Documents; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | it      proves impossible to realise any asset covered by a Security Interest      created by a Finance Document, or the proceeds of such assets are      insufficient to discharge the liabilities of the Borrowers or Security      Party under the Finance Documents; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | agrees      that it will have no rights of recourse on any ground against the Agent,      the Security Trustee, any Lender or any Swap Bank in the event that this      Certificate proves to be invalid orineffective; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | warrants      to the Transferor and each Relevant Partythat: |
|-----|--------------------------------------------------------------|

|   | (i) | it      has full capacity to enter into this transaction and has taken all      corporate action and obtained all consents which it needs to take or      obtain in connection with this transaction;and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | this      Certificate is valid and binding as regards the Transferee;      and |
|--------|------|--------------------------------------------------------------------------------|

| (e) | confirms      the accuracy of the administrative details set out below regarding the      Transferee. |
|-----|-------------------------------------------------------------------------------------------------------|

| 10 | The      Transferor and the Transferee each undertake with the Agent and the      Security Trustee severally, on demand, fully to indemnify the Agent and/or      the Security Trustee in respect of any claim, proceeding, liability or      expense (including all legal expenses) which they or either of them may      incur in connection with this Certificate or any matter arising out of it,      except such as are shown to have been mainly and directly caused by the      gross and culpable negligence or dishonesty of the Agent's or the Security      Trustee's own officers oremployees. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11 | The      Transferee shall repay to the Transferor on demand so much of any sum paid      by the Transferor under paragraph 10 as exceeds one-half of the amount      demanded by the Agent or the Security Trustee in respect of a claim,      proceeding, liability or expense which was not reasonably foreseeable at      the date of this Certificate; but nothing in this paragraph shall affect      the liability of each of the Transferor and the Transferee to the Agent or      the Security Trustee for the full amount demanded by  it. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| [Name      of Transferor] | [Name      of Transferee] |
|---------------------------|---------------------------|
|                      |                      |
|  By:                 |  Date:               |
|                      |                      |
|  By:                 | Date:                |

----

| Note: | This      Transfer Certificate alone may not be sufficient to transfer a      proportionate share of the Transferor's interest in the security      constituted by the Finance Documents in the Transferor's or Transferee's      jurisdiction.  It is the responsibility of each Lender to      ascertain whether any other documents are required for this      purpose. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Attn: Loans      Administration | [date] |
|---------------------------------------|--------|

| 1 | the      Loan Agreement; |
|---|--------------------------|

| 2 | the      Master Agreement dated as of [l] October 2008      made between ourselves and DVB Bank SE;and |
|---|--------------------------------------------------------------------------------------------------------|

| 3 | a      Confirmation delivered pursuant to the said Master Agreement dated [l] and addressed by      DVB Bank SE to us. |
|---|------------------------------------------------------------------------------------------------------------------------|

----

|  Attn: Loans      Administration | [date] |
|---------------------------------------|--------|

----

----

| SIGNEDby                        | ) |
|---------------------------------|---|
| /s/      Eirini Alexandropoulou | ) |
| for      and on behalf of       | ) |
| BANKSY      SHIPPING            | ) |
| COMPANY      LIMITED            | ) |
| in      the presence of:        | ) |

| SIGNEDby                        | ) |
|---------------------------------|---|
| /s/      Eirini Alexandropoulou | ) |
| for      and on behalf of       | ) |
| HONGBO      SHIPPING            | ) |
| COMPANY      LIMITED            | ) |
| in      the presence of:        | ) |

| SIGNEDby                         | ) |
|----------------------------------|---|
| /s/      Alexandra Michalopoulou | ) |
| for      and on behalf of        | ) |
| DVB      BANK AMERICA N.V.       | ) |
| in      the presence of:         | ) |

| SIGNEDby                         | ) |
|----------------------------------|---|
| /s/      Alexandra Michalopoulou | ) |
| for      and on behalf of        | ) |
| DVB      BANK SE                 | ) |
| in      the presence of:         | ) |

| SIGNEDby                         | )      |
|----------------------------------|--------|
| /s/      Alexandra Michalopoulou | )      |
| for      and on behalf of        | )      |
| DVB      BANK AMERICA N.V.       | )      |
| in      the presence of:         | )      |
|                             |   |

| SIGNEDby                         | ) |
|----------------------------------|---|
| /s/      Alexandra Michalopoulou | ) |
| for      and on behalf of        | ) |
| DVB      BANK AMERICA N.V.       | ) |
| in      the presence of:         | ) |