**                                                                                        EXHIBIT    10.3**
| 1.                Shipbroker N/A                                                                                                                                                                                                                                                                                                                                                                                   | EXECUTION**THE                BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) STANDARD BAREBOAT                CHARTER CODE NAME: "BARECON 89"****PART                1**                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                    | 2.                Place and date: New York, NY, as of January 24, 2007                                                                                                                                                                                 |
| 3.                Owners/Place of businessAdirondack                Shipping LLCTrust                Company ComplexAjeltake                RoadAjeltake                IslandMajuro,                Marshall Islands MH96960                                                                                                                                                                                           | 4.                Bareboat charterers (Charterers)/Place of BusinessFairfax                Shipping Corp.Trust                Company ComplexAjeltake                RoadAjeltake                IslandMajuro,                Marshall Islands MH96960 |
| 5.                Vessel's name, Call Sign and Flag (Cl.9(c)) SEMINOLE                PRINCESS, Call Sign DYPD, Philippine Bareboat Charter Registry (Panamanian                Underlying Registry)                                                                                                                                                                                                                    |
| 6.                Type of Vessel: Multipurpose Dry Cargo and Container                                                                                                                                                                                                                                                                                                                                                  | 7.                GRT/NRT: 19,354 / 9,614                                                                                                                                                                                                              |
| 8.                When/Where built: 1997/Dalian                S.B. Heavy Industries Co., Ltd                                                                                                                                                                                                                                                                                                                           | 9.                Total DWT (abt.) 29,516                                                                                                                                                                                                              |
| 10.                Class (Cl. 9): Lloyds Register, or such other classification society                approved by Owner                                                                                                                                                                                                                                                                                                | 11.                Date of last special survey by the Vessel's classification                societyMarch                23, 2002.                                                                                                                     |
| 12.                Further particulars of Vessel (also indicate number of months' validity                of                class certificates agreed acc. to Cl. 14) Gross                Tonnage: 19,354.00 Net                Tonnage: 9,614.00Length:                173.19 MBreadth:                26.00Depth:                14.40Class                certificate validity upon redelivery: Six (6) months |
|  13.                Port or Place of delivery (Cl. 2) Wherever                located at time of Closing                                                                                                                                                                                                                                                                                                      |  14.                Time for delivery (Cl. 3)No                later than January 31, 2007                                                                                                                                                        |  15.                Cancelling date (Cl.4) February 1, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |  16.                Port or Place of redelivery (Cl. 14): Worldwide in Owner’s                option                                                                                                                                        |
|  17.                Running days' notice if other than stated in Cl. 3N/A                                                                                                                                                                                                                                                                                                                                          |  18.                Frequency of dry-docking if other than stated in Cl. 9(f) As                per Class and flag requirements                                                                                                              |
|  19.                Trading Limits (Cl. 5): Worldwide, subject to Clause 5 and Rider                Clause                45                                                                                                                                                                                                                                                                                  |
|  20.                Charter period84                months from the date of delivery under this Charter                                                                                                                                                                                                                                                                                                            |  21.                Charter hire (C1. 10) See                Rider Clause 31                                                                                                                                                                      |
|  22.                Rate of interest payable acc. to Cl. 10(f) and, if applicable, acc.                to                PART IV. Twelve percent (12%) per annum                                                                                                                                                                                                                                                   |  23.                Currency and method of payment (Cl. 10) US                DOLLARS - by wire transfer                                                                                                                                |

**"BARECON        89" STANDARD BAREBOAT CHARTER**

**PART        1**

|  24.                  Place of payment; also state beneficiary and bank account (Cl.                  10). See                  Schedule II                                                                                                                                                                                                                                                                                                            |  25.                  Bank guarantee/bond (sum and place) (Cl. 22) (optional)                  N/A                                                                                                                                                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  26.                  Mortgage(s), if any, (state whether Cl. 11(a) or (b) applies, state                  date                  of Mortgage and name of Mortgagee(s)/Place of business) (Cl. 11).                  Clause                  11 (b) applies. Mortgage dated January , 2007 in favor of DVB Bank                  America                  N.V, Zeelandia Office Park, Kaya W.F.G. Mensing 14, Curacao, Netherland                  Antilles. |  27.                  Insurance (marine and war risks) (state value acc. to Cl. 12(f)                  or, if                  applicable, acc. to Cl. 13(k) (also state if Cl. 13 applies): See                  Rider                  Clause 33 |
|  28.                  Additional insurance cover, if any, for Owners' account limited                  to (Cl.                  12(b)) or, if applicable, (Cl. 13(g)). N/A                                                                                                                                                                                                                                                                             |  29.                  Additional insurance cover, if any, for Charterers' account limited                  to                  (Cl. 12(b)) or, if applicable, (Cl. 13(g))See                  Rider Clause 33                                      |
|  30.                  Latent defects (only to be filled in if period other than stated                  in Cl. 2)                  N/A                                                                                                                                                                                                                                                                                                                      |  31.                  War cancellation (indicate countries agreed)(Cl. 24)See                  Clause 24, and Rider Clause 33                                                                                                                      |
|  32.                  Brokerage commission and to whom payable (Cl. 25) N/A                                                                                                                                                                                                                                                                                                                                                                            |
|  33.                  Law and arbitration (state 26.1., 26.2., or 26.3. agreed, also                  state place                  of arbitration)(Cl. 26): New York Law. New York arbitration per                  Clause                  26.2                                                                                                                                                                                                            |  34.                  Number of additional clauses covering special provisions, if                  agreedRider                  Clauses 27 - 53                                                                                                   |
|  35.                  Newbuilding Vessel (indicate with "yes" or "no" whether Part III                  applies):                  No                                                                                                                                                                                                                                                                                                                       |  36.                  Name and place of Builders:  N/A                                                                                                                                                                                        |
|  37.                  Vessel's Yard Building No. : N/A                                                                                                                                                                                                                                                                                                                                                                                                      |  38.                  Date of Building Contract : N/A                                                                                                                                                                                              |
|  39.                  Hire/Purchase agreement (indicate with "yes" or "no" whether Part                  IV                  applies) (optional):                  No                                                                                                                                                                                                                                                                                       |  40.                  Bareboat Charter Registry~~(indicate with "yes" or "no" whether Part V applies)                  (~~optional~~)~~:                  Yes                                                                                      |
|  41.                  Flag and Country of the Bareboat Charter Registry ~~(only                  to be filled in if Part V applies)~~:                  Philippine Flag/Philippines                                                                                                                                                                                                                                                                    |  42.                  Country of the Underlying Registry ~~(only                  to be filled in if Part V applies)~~:                  Panama                                                                                               |

~~It        is further mutually agreed that PART III and/or PART IV and/or PART V shall        only        apply and shall only form part of this Charter if expressly agreed and stated        in        the Boxes 35, 39 and 40. If PART III and/or PART IV and/or PART V apply,        it is        further mutually agreed that in the event of a conflict of conditions, the        provisions of PART I and PART II shall prevail over those of PART III and/or        PART IV and/or PART V to the extent of such conflict but no        further~~

|  Initials                  (Owners)   (See                  Execution Page) ADIRONDACK                  SHIPPING LLC  |  Initials                  (Charterers) Initials (Guarantor)   (See                  Execution Page) (See Execution Page) FAIRFAX                  SHIPPING CORP. TBS INTERNATIONAL LIMITED   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**PART        II**

**“BARECON        89" Standard Bareboat Charter**

| 1. | **Definitions**  |
|----|-----------------------|

| 2. | **Delivery**                  (*not                  applicable to newbuilding vessels*) |
|----|------------------------------------------------------------------------------------------|

~~at        the port of place~~
~~,        in such ready berth as the Charterers may direct. The Owners shall before        and at        the time of delivery exercise due diligence to make the Vessel seaworthy        and in        every respect ready in hull, machinery and equipment for service under this        Charter. The Vessel shall be properly documented at time of        delivery~~

~~but        the Owners shall be responsible for repairs or renewals occasioned by latent        defects in the Vessel, her machinery or appurtenances, existing at the time        of        delivery under the Charter, provided such defects have manifested themselves        within 18 6 months after delivery unless otherwise provided in Box        30~~

| 3. | **Time                  for Delivery**                  (*not                  applicable in newbuilding vessels*)                  (See Box 14) |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

~~The        Vessel to be delivered not before the date indicated in Box 14 unless with        the        Charterers’ consent.~~

~~Unless        otherwise agreed in Box 17, the Owners to give the Charterers not less than        30        running days~~
~~=~~
~~        preliminary and not less than 14 days~~
~~=~~
~~        definite notice of the date on which the Vessel is expected to be ready for        delivery.~~

~~The        Owners to keep the Charterers closely advised of possible changes in the        Vessel~~
~~=~~
~~s        position.~~

| 4. | **Cancelling**                  (*not                  applicable to newbuilding vessels*) |
|----|--------------------------------------------------------------------------------------------|

~~without        prejudice to any claim the Charterers may otherwise have on the Owners under        the        Charter.~~

~~If        it appears that the Vessel will be delayed beyond the cancelling date, the        Owners shall, as soon as they are in a position to state with reasonable        certainty the day on which the Vessel should be ready, give notice thereof        to        the Charterers asking whether they will exercise their option of cancelling,        and        the option must then be declared within one hundred and sixty-eight (168)        hours        of the receipt by the Charterers of such notice. If the Charterers do not        then        exercise their option of cancelling, the seventh day after the readiness        date        stated in the Owners~~
~~=~~
~~        notice shall be regarded as a new cancelling date for the purpose of this        Clause~~

| 5. | **Trading                  Limits** |
|----|-------------------------------------|

~~If        required, the Charterers shall keep the Owners and the Mortgagees advised        of the        intended employment of the Vessel.~~

| 6. | **Surveys**                  (*not                  applicable to newbuilding vessels*) |
|----|-----------------------------------------------------------------------------------------|

***Survey        on Delivery and Redelivery***
~~Owners~~

| 7. | **Inspection**                  (See also Rider Clause 38) |
|----|------------------------------------------------------------|

***Inspection***

| 8. | **Inventories                  and Consumable Oil and                  Stores** |
|----|---------------------------------------------------------------------------------|

| 9. | **Maintenance                  and Operation** |
|----|------------------------------------------------|

~~except        as provided for in Clause 13(1),~~

~~        costing more than 5 percent of the Vessel’s marine insurance value as stated in        Box 27, then the extent, if any, to which the rate of hire shall be varied        and        the ratio in which the cost of compliance shall be shared between the parties        concerned in order to achieve a reasonable distribution thereof as between        the        Owners and the Charterers having regard, inter alia, to the length of the        period        remaining under the Charter, shall in the absence of agreement, be referred        to        arbitration according to Clause 26~~

~~**TOVALOP        SCHEME.**~~
~~        (~~
~~*Applicable        to oil tank vessels only*~~
~~).-The        Charterers are required to enter the Vessel under the ~~
~~**TOVALOP        SCHEME**~~
~~        or under any similar compulsory scheme upon delivery under this Charter and        to        maintain her so during the currency of this Charter.~~

| 10. | **Hire**(See                  Rider Clause 31) |
|-----|------------------------------------------------|

~~(a)~~
~~The        Charterers shall pay to the Owners for the hire of the Vessel at the lump        sum        per calendar month as indicated in Box 21 commencing on and from the date        and        hour of her delivery to the Charterers and at and after the agreed lump sum        for        any part of a month. Hire to continue until the date and hour when the Vessel        is        redelivered by the Charterers to her Owners.~~

~~(b)~~
~~Payment        of Hire, except for the first and last month~~
~~=~~
~~s        Hire, if sub-clause (c) of this Clause is applicable, shall be made in cash        without discount every month in advance on the first day of each month in        the        currency and in the manner indicated in Box 23 and at the place mentioned        in Box        24.~~

~~(c)~~
~~Payment        of Hire for the first and last month~~
~~=~~
~~s        Hire if less than a full month shall be calculated proportionally according        to        the number of days in the particular calendar month and advance payment to        be        effected accordingly.~~

~~(d)~~
~~Should        the Vessel be lost or missing, Hire to cease from the date and time when        she was        lost or last heard of. Any Hire paid in advance to be adjusted        accordingly.~~

~~agreed        in Box 22. If Box 22 has not been filled in the current market rate in the        country where the Owners have their Principal Place of Business shall        apply.~~

| 11. | **Mortgage                  (**See                  Rider Clause 43) |
|-----|----------------------------------------------------------------------|

| *) | ~~(a)                  Owners warrant that they have not effected any mortgage of the                  Vessel.~~ |
|----|------------------------------------------------------------------------------------------------------------------|

~~(b)~~
~~The        Vessel chartered under this Charter will be financed by a mortgage according        to        the Mortgage annexed to this Charter and as stated in Box 26. By their        counter-signature on the Mortgage, the Charterers undertake to have acquainted        themselves with all terms, conditions and provisions of the said        Mortgage.~~

~~The        Charterers undertake that they will comply with all such instructions or        directions in regard to the employment, insurances, repairs and maintenance        of        the Vessel, etc. as laid down in the Mortgage or as may be directed from        time to        time during the currency of the Charter by the Mortgagee(s) in conformity        with        the Mortgage.~~

~~(c)~~
~~The        Owners warrant that they have not effected any mortgage(s) other than stated        in        Box 26 and that they will not effect any other mortgage(s) without the prior        consent of the Charterers, such consent not to be unreasonably        withheld.~~

| ~~*)~~ | ~~(~~~~*Optional                  Clauses 11(a) and 11(b) are alternatives; indicate alternative                  agreed in                  Box 26*~~~~)~~ |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | **Insurance                  and Repairs**                  (See also Rider Clause 33) |
|-----|----------------------------------------------------------------------------------------|

~~(a)~~
~~During        the Charter period the Vessel shall be kept insured by the Charterers at        their        expense against hull and machinery, marine, war and Protection and indemnity        risks in such form as the Owners shall in writing approve which approval        shall        not be unreasonably withheld. Such hull and machinery, marine, war and P        and I        insurance shall be arranged by the Charterers to protect the interests of        both        the Owners and the Charterers and mortgagees (if any), and the Charterers        shall        be at liberty to protect under such insurances the interests of any managers        they may appoint. All insurance policies shall be in the joint names of the        Owners and the Charterers as their interests may appear.~~

~~If        the Charterers fail to arrange and keep any of the insurances provided for        under        the provisions of sub-clause (a) above in the manner described therein, the        Owners shall notify the Charterers whereupon the Charterers shall rectify        the        position within seven running days, failing which Owners shall have the right        to        withdraw the Vessel from the service of the Charterers without prejudice        to any        claim the Owners may otherwise have against the        Charterers.~~

~~All        time used for repairs under the provisions of sub-clause (a) of this Clause        and        for repairs of latent defects according to Clause 2 above including any        deviation shall count as time on hire and shall form part of the Charter        period.~~

~~(b)~~
~~If        the conditions of the above insurances permit additional insurance to be        placed        by the parties, such cover shall be limited to the amount for each party        set out        in Box 28 and Box 29, respectively. The Owners or the Charterers as the case        may        be shall immediately furnish the other party with particulars of any additional        insurance effected, including copies of any cover notes or policies and the        written consent of such insurers is necessary.~~

~~(c)~~
~~Should        the Vessel become an actual, constructive, compromised or agreed total loss        under the insurances required under sub-clause (a) of Clause 12, all insurance        payments for such loss shall be paid to the Mortgagee, if any, in the manner        described in the Mortgage, who shall distribute the moneys between themselves,        the Owners and the Charterers according to their respective interests. The        Charterers undertake to notify the Owners and the Mortgagee, if any, of any        occurrences in consequence of which the Vessel is likely to become a Total        Loss        as defined in this Clause.~~

~~(d)~~
~~If        the Vessel becomes an actual, constructive, compromised or agreed total loss        under the insurances arranged by the Charterers in accordance with sub-clause        (a) of this Clause, this Charter shall terminate as of the date of such        loss.~~

~~(e)~~
~~The        Owners shall, upon the request of the Charterers, promptly execute such        documents as may be required to enable the Charterers to abandon the Vessel        to        insurers and claim a constructive total loss.~~

~~(f)~~
~~For        the purpose of insurance coverage against marine and war risks under the        provisions of sub-clause (a) of this Clause, the value of the Vessel is the        sum        indicated in Box 27.~~

~~(g)~~
~~In        the event that any act of negligence of the Charterers vitiate any of the        insurance herein provided, the Charterers shall pay to the Owners all losses        and        indemnify Owners against all claims and demands which would otherwise have        been        covered by such insurance. ~~

~~(h)~~
~~P        + I terms of cover to be no less favorable than the cover provided by the        UK        club rule book 2001 including wreck removal provisions. Owners to be referred        to        as co -assured on the certificate of entry. It is hereby warranted that the        balance of the collision liability (1/4th) is insured with a P+I Group that        is a        member of the international group. ~~

~~(i)~~
~~War        cover and risk to be no less favorable than the cover provided by the Institute        of War and Strike clause hull 1 October 1983. Owners referred as co assured        on        certificate of entry. Hull and Machinery insurance cover to be as per institute        time clauses hulls and Owners referred to as co-assured on the cover        note.~~

| 13. | ~~**Insurance,                  Repairs and                  Classification**~~ |
|-----|---------------------------------------------------------------------------------|

~~(~~
*Optional*
~~*,        only to apply if expressly agreed and stated in Box 27, in which event Clause        12        shall be considered deleted*~~
~~).~~

~~(a)        During the Charter period the Vessel shall be kept insured by the Owners        at        their expense against marine and war risks under the form of policy or policies        attached hereto. The Owners and/or insurers shall not have any right of recovery        or subrogation against the Charterers on account of loss of or any damage        to the        Vessel or her machinery or appurtenances covered by such insurance, or on        account of payments made to discharge claims against or liabilities of the        Vessel or the Owners covered by such insurance. All insurance policies shall        be        in the joint names of the Owners and the Charterers as their interests may        appear.~~

~~(b)        During the Charter period the Vessel shall be kept insured by the Charterers        at        their expense against Protection and Indemnity risks in such form as the        Owners        shall in writing approve which approval shall not be unreasonably withheld.        If        the Charterers fail to arrange and keep any of the insurances provided for        under        the provisions of sub-clause (b) in the manner described therein, the Owners        shall notify the Charterers whereupon the Charterers shall rectify the position        within even running days, failing which the Owners shall have the right to        withdraw the Vessel from the service of the Charterers without prejudice        to any        claim the Owners may otherwise have against the Charterers without prejudice        to        any claim the Owners may otherwise have against the        Charterers.~~

~~(c)        In the Event that any act or negligence of the Charterers shall vitiate any        of        the insurance herein provided, the Charterers shall pay to the Owners all        losses        and indemnify the Owners against all claims and demands which would otherwise        have been covered by such insurance.~~

~~(d)        The Charterers shall, subject to the approval of the Owners or Owners'        Underwriters, effect all insured repairs, and the Charterers shall undertake        settlement of all miscellaneous expenses in connection with such repairs        as well        as all insured charges, expenses and liabilities, to the extent of coverage        under the insurances provided for under the provisions of sub-clause(a) of        this        Clause. The Charterers to be secured reimbursement through the Owners'        Underwriters for such expenditures upon presentation of        accounts.~~

~~(e)        The Charterers to remain responsible for and to effect repairs and settlement        of        costs and expense incurred thereby in respect of all other repairs not covered        by the insurances and/or not exceeding any possible franchise(s) or deductibles        provided for in the insurances.~~

~~(f)        All time used for repairs under the provisions of sub-clause (d) and (e)        of this        Clause and for repairs of latent defects according to Clause 2 above, including        any deviation, shall count as time on hire and shall form part of the Charter        period.~~

~~The        Owners shall not be responsible for any expense as are incident to the use        and        operation of the Vessel for such time as may be required to make such        repairs.~~

~~(g)        If the conditions of the above insurances permit additional insurance to        be        placed by the parties such cover shall be limited to the amount for each        party        set out in Box 28 and Box 29, respectively. The Owners of the Charterers        as the        case may be shall immediately furnish the other party with particulars of        any        additional insurance effected, including copies of any cover notes or policies        and the written consent of the insurers of any such required insurance in        any        case where the consent of such insurers is necessary.~~

~~(h)        Should the Vessel become an actual, constructive, compromised or agreed total        loss under the insurances required under sub-clause (a) of this Clause, all        insurance payments for such loss shall be paid to the Owners, who shall        distribute the moneys between themselves and the Charterers according to        their        respective interests.~~

~~(i)        If the Vessel becomes an actual, constructive, compromised or agreed total        loss        under the insurances arranged by the Owners in accordance with sub-clause        (a) of        this Clause, this Charter shall terminate as of the date of such        loss.~~

~~(j)        The Charterers shall upon the request of the Owners, promptly execute such        documents as may be required to enable the Owners to abandon the Vessel to        Insurers and claim a constructive total loss.~~

~~(k)        For the purpose of insurance coverage against marine and war risks under        the        provisions of sub-clause (a) of this Clause, the value of the Vessel is the        sum        indicated in Box 27.~~

~~(l)        Notwithstanding anything contained in Clause 9(a), it is agreed that under        the        provisions of Clause 13, if applicable, the Owners shall keep the Vessel        with        unexpired classification in force at all times during the Charter        period.~~

| 14. | **Redelivery**                  (See also Rider Clause 49) |
|-----|------------------------------------------------------------|

~~,        range of ports of redelivery or port or place of redelivery~~

| 15. | **Non-Lien                  and Indemnity** |
|-----|---------------------------------------------|

~~The        Charterers shall indemnify and hold the Owners harmless against any lien        of        whatsoever nature arising upon the Vessel during the Charter period while        she is        under the control of the Charterers, and against any claims against the Owners        arising out of or in relation to the operation of the Vessel by the Charterers.        Should the Vessel be arrested by reason of claims or liens arising out of        her        operation hereunder by the Charterers, the Charterers shall at their own        expense        take all reasonable steps to secure that within a reasonable time the Vessel        is        released and at their own expense put up bail to secure release of the        Vessel.~~

| 16. | **Lien** |
|-----|----------|

| 17. | **Salvage** |
|-----|-------------|

| 18. | **Wreck                  Removal** |
|-----|------------------------------------|

| 19. | **General                  Average** |
|-----|--------------------------------------|

| 20. | **Assignment                  and Sub-Demise**                  (See Rider Clause 45) |
|-----|---------------------------------------------------------------------------------------|

~~The        Charterers shall not assign this Charter nor sub-demise the Vessel except        with        the prior consent in writing of the Owners which shall not be unreasonably        withheld and subject to such terms and conditions as the Owners shall        approve.~~

| 21. | **Bills                  of Lading** |
|-----|--------------------------------------|

| 22. | ~~**Bank                  Guarantee**~~ |
|-----|-----------------------------------------|

~~The        Charterers undertake to furnish, before delivery of the Vessel, a first class        bank guarantee or bond in the sum and at the place as indicated in Box 25        as        guarantee for full performance of their obligations under this        Charter.~~

~~(~~
~~*Optional,        only to apply if Box 25 filled in*~~
~~)~~

| 23. | **Requisition/Acquisition**                  (See Rider Clause 44) |
|-----|--------------------------------------------------------------------|

~~In        the event of the Requisition for Hire of the Vessel by any governmental or        other        competent authority (hereinafter referred to as ~~
~~A~~
~~Requisition        for Hire~~
~~@~~
~~)        irrespective of the date during the Charter period when ~~
~~A~~
~~Requisition        for Hire~~
~~@~~
~~        may occur and irrespective of the length thereof and whether or not it be        for an        indefinite or a limited period of time, and irrespective of whether it may        or        will remain in force for the remainder of the Charter period, this Charter        shall        not be deemed thereby or thereupon to be frustrated or otherwise terminated        and        the Charterers shall continue to pay the stipulated hire in the manner provided        by this Charter until the time when the Charter would have terminated pursuant        to any of the provisions hereof always provided however that in the event        of~~
~~A~~
~~Requisition        for Hire~~
~~@~~
~~        any Requisition Hire or compensation received or receivable by the Owners        shall        be payable to the Charterers during the remainder of the Charter period or        the        period of the ~~
~~A~~
~~Requisition        for Hire~~
~~@~~
~~        whichever be the shorter.~~

~~The        Hire under this Charter shall be payable to the Owners from the same time        as the        Requisition Hire is payable to the Charterers.~~

~~(b)~~
~~In        the event of the Owners being deprived of their ownership in the Vessel by        any        Compulsory Acquisition of the Vessel or requisition for title by any        governmental or other competent authority (hereinafter referred to as~~
~~A~~
~~Compulsory        Acquisition~~
~~@~~
~~)        then, irrespective of the date during the Charter period when~~
~~A~~
~~Compulsory        Acquisition~~
~~@~~
~~        may occur, this Charter shall be deemed terminated as of the date of such        ~~
~~A~~
~~Compulsory        Acquisition.~~
~~@~~
~~        In such event Charter Hire to be considered as earned and to be paid up to        the        date and time of such ~~
~~A~~
~~Compulsory        Acquisition.~~
~~@~~

| 24. | **War** |
|-----|---------|

~~(c)~~
~~In        the event of outbreak of war (whether there be a declaration of war or not)        between any two or more of the countries as stated in Box 31, both the Owners        and the Charterers shall have the right to cancel this Charter whereupon        the        Charterers shall redeliver the Vessel to the Owners in accordance with Clause        14, if she has cargo on board after discharge thereof at destination or if        debarred under this Clause from reaching or entering it at a near open and        safe        port as directed by the Owners, or if she has no cargo on board, at the port        at        which she then is or if at sea at a near open and safe port as directed by        the        Owners, in all cases hire shall continue to be paid in accordance with Clause        10        and except as aforesaid all other provisions of this Charter shall apply        until        redelivery.~~

| 25. | ~~**Commission**~~~~ ~~ |
|-----|------------------------------|

~~The        Owners to pay a commission at the rate indicated in Box 32 to the Brokers        named        in Box 32 on any Hire paid under the Charter but in no case less than is        necessary to cover the actual expenses of the Brokers and a reasonable fee        for        their work. If the full Hire is not paid owing to breach of Charter by either        of        the parties the party liable therefor to indemnify the Brokers against their        loss of commission.~~
~~        Should the parties agree to cancel the Charter, the Owners to indemnify the        Brokers against any loss of commission but in such case the commission not        to        exceed the brokerage on one year's Hire~~

| 26. | **Law                  and Arbitration** |
|-----|------------------------------------------|

| *) | ~~26.1.                  This Charter shall be governed by English law and any dispute arising                  out                  of this Charter shall be referred to arbitration in London, one                  arbitrator                  being appointed by each party, in accordance with the Arbitration                  Acts                  1950 and 1979 or any statutory modification or re-enactment thereof                  for                  the time being in force. On the receipt by one party of the nomination                  in                  writing of the other party's arbitrator, that party shall appoint                  their                  arbitrator within fourteen days, failing which the decision of                  the single                  Arbitrator appointed shall apply. If two Arbitrators properly appointed                  shall not agree they shall appoint an umpire whose decision shall                  be                  final.~~ |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *) | ~~26.3.                  Any dispute arising out of this Charter shall be referred to arbitration                  at the place indicated in Box 33, subject to the law and procedures                  applicable there.~~ |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ~~*)~~ | ~~26.3.                  Any dispute arising out of this Charter shall be referred to arbitration                  at the place indicated in Box 33, subject to the law and procedures                  applicable there.~~ |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

~~26.4.        If Box 33 in Part I is not filled in, sub-clause 26.1 of this Clause shall        apply. ~~

| *) | *26.1,                  26.2 And 26.3 are alternatives: indicate alternative agreed in                  Box                  33.* |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

**EXECUTION**

**M/V        SEMINOLE PRINCESS - C/P DATED AS OF JANUARY 24, 2007**

**RIDER        CLAUSES 27 - 53**

**Clause        27 - Names and Definitions**

**Adirondack        Shipping LLC**

**Rushmore        Shipping LLC**

**Fairfax        Shipping Corp.**

**Beekman        Shipping Corp.**

**TBS        International Limited**

**Filscan        Shipping, Inc.**

**DVB        Bank America N.V., **

**Roymar        Ship Management, Inc., **

**TBS        Shipping Services Inc.**

**Bareboat        Charter Registry”**

**“Business        Day”**

**“Charter”        **

**“Charterer”        **

**“Charterers”        **

**“Charters”        **

**“Charter        Hire**

**Charter        Party Guarantee**

**Charter        Period**

**Charterparty        Event of Default**

**“Charter        Party Obligations”**

**Classification        Society**

**Closing”        **

**“Commitments”        **

**“Default        Rate”**

**“Delivery”        **

**Delivery        Date**

**“Filscan        Charter”**

**Guarantor**

**“ISM        Code”**
**“**
**”**
**“**
**”**

**“ISPS        Code”**
**“**

**Insurances**

**“LAGUNA        BELLE Charter”**

**“LAGUNA        BELLE MOA”**

**“Memorandum        of Three-Party Agreement”**

**MOA**

**“MOAs”        **

**Managers**

**“Mortgage”        **

**“Mortgages”**

**NSP**

**“Owner”**

**“Owners”**

**“Redelivery        Date”**

**Seller**

**Sellers**

**“TBS        Group” **

**“Total        Loss”**

**“Underlying        Registry” **

**“Vessel”        **

**“Vessels”        **

**Clause        28.**

| (a)   | The                execution and delivery of the separate, valid and binding MOAs (on                NSF                ’93) in form and substance acceptable to the                Owners. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | The                execution and delivery of the separate, valid and binding Charters                (on                Barecon ’89) in form and substance acceptable to the Owners, and                guaranteed by the Guarantor. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | All                conditions precedent have been satisfied with respect to any document,                action or performance as may be required of the Charterers and Guarantor,                respectively, as set forth herein or on Schedule                III. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | Copies                of the Charterers’ and Guarantor’s constitutional documents, and each                amendment thereto, certified as of a date reasonably near the date                of the                Closing by the president or secretary of such party as being a true                and                correct copy thereof. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)   | Originals                of the following, in form and substance satisfactory to the Owners,                have                been delivered to the Owners: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (i)   | certificates                of each of the Charterers and Guarantor dated as of a date reasonably                near                the date of the Closing, certifying that each is duly incorporated                and in                goodstanding under the laws of such party’s jurisdiction of                incorporation. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | resolutions                of the directors and shareholders of each of the Charterers, and                resolutions of the directors of the Guarantor (x) approving the                transactions contemplated by MOAs and the Charters; (y) authorizing                the                execution of the MOAs and the Charters to which each is a party (or                to be                a party), and such other documents, notices and consents as may be                necessary in connection therewith; (z) authorizing named officers                or                attorneys-in-fact to execute such documents, together with such other                documents, notices and consents as may be necessary or desirable                to carry                out the transactions contemplated by such                resolutions, |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iii)   | The                original of any power of attorney under which the MOAs, Charters                and any                other documents in connection therewith is to be executed on behalf                of                each of the Charterers and Guarantor to which each is a party (or                to be a                party). |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iv)   | Copies                of the management agreements between Charterers and the                Managers. |
|------------------|--------------------------------------------------------------------------------------------------------|
| (v)   | Copies                of all consents which the Charterer and/or the Guarantor requires                to enter                into, or make any payment or perform any of its obligations under                or in                connection with the transactions contemplated by this Charter, each                certified as of a date reasonably near the date of the Closing by                the                president or the secretary (or equivalent officer) of such party                as being                a true and correct copy thereof, or certification by such president                or                secretary (or equivalent officer) that no such consents or approvals                are                required. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (vi)   | A                copy of the Filscan Charter, certified as of a date reasonably near                the                date of the Closing by the president or the secretary (or equivalent                officer) of the Charterer as being a true and correct copy thereof,                such                charter to be in form and substance acceptable to the                Owner. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (vii)   | A                bringdown certificate by each of the Charterers and the Guarantor                in                accordance with Schedule III hereto. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)   | evidence                in form and substance satisfactory to the Owners and the Mortgagee                that: |
|-----------------|-----------------------------------------------------------------------------------------------------------------|
| (i)   | The                Vessels are insured in accordance with Clause 33 with insurers acceptable                to the Owners; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|
| (ii)   | The                Vessels are classed in the highest classification and rating for                vessels                of the same age and type with a classification society acceptable                to the                Owners which shall be established by means of a confirmation of class                certificate; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iii)   | At                the Closing under the respective MOAs and Charters, the Vessels are                properly registered: (x) in the name of the respective Owners under                the                Underlying Registry, and (y) in the name of Filscan under the Bareboat                Charter Registry, with such approvals and consents as may be required                by                the Underlying Registry; such registrations to be free of all liens                and                encumbrances save for the lien of the respective                Mortgages. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iv)   | The                Vessels are managed by the Managers, or such other managers acceptable                to                the Owners, and a copy of the Technical Manager’s ISM Document of                Compliance, the ISM Safety Management Certificate of each Vessel,                the ISM                ISPS Certificate of each Vessel, and the identification of the ISM                Responsible Person(s) is provided to the                Owners. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (v)   | The                Charterers and the Guarantor are in good standing in their respective                jurisdictions of incorporation, and all necessary corporate action                has                been taken on the part of the Charterers and Guarantor, authorizing                the                execution, delivery and performance of the MOAs and Charters, as                applicable. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)   | There                shall have been no material adverse change, as determined in the                Owners’                sole discretion, with respect to: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (i)   | Each                Charterer’s ability to perform its obligations under the respective                Charters. |
|-----------------|------------------------------------------------------------------------------------------------------------------------|
| (ii)   | The                Guarantor’s ability to perform its obligations under the guaranty                provisions of the Charters; |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------|
| (iii)   | The                business, property, assets, liabilities, operations and financial                condition of the Charterers and the Guarantor taken as a                whole. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iv)   | The                condition of the Vessels. |
|------------------|----------------------------------------------|

|   |                           (h) | The                  Owners shall have received: (i) such additional documents and agreements                  as may be required by the Owners and the Mortgagee; (ii) the opinions                  of                  counsel for the Charterers and Guarantor in form and substance                  satisfactory to Owners. |
|--------|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        29.**

| **Clause 30. ** | Delivery                  and Acceptance. |
|---------------------------|-------------------------------------------|

*as        is        where is*

**Clause        31.**
** **

| (a)   | any                unavailability of the Vessel for any reason including but not limited                to                requisition, or any prohibition or interpretation of or other restriction                against the Charterer’s or any other person's use, operation or possession                of the Vessel, any interference with such use, operation or possession                or                failure to deliver any part of the Vessel or any lack or invalidity                of                title or any other defect in the title, registration, seaworthiness,                merchantability, suitable or satisfactory quality, fitness for any                purpose, condition, design or operation of any kind or nature of                the                Vessel or the eligibility of the Vessel for any particular use or                trade or                for want of registration or the absence or withdrawal of any permit,                license, authorization, consent, approval or other documentation                required                under the applicable law of any relevant jurisdiction for the ownership,                chartering, use, operation or location of the Vessel, or any damage                to the                Vessel or any part thereof; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | any                insolvency, bankruptcy, winding-up, administration, reorganization,                reconstruction, arrangement, readjustment or rescheduling of debt,                dissolution, liquidation or similar proceedings by or against the                Charterer; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c) ** ** | any                invalidity or unenforceability or lack of due authorization of, or                other                defect in, this Charter or any particular provision hereof or thereof                including but not limited to the Vessel being held to be the property                of                the Charterer or any person other than the Owner or any incapacity,                disability or defect in the powers of the                Charterer. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        32.**

**Clause        33.**

** **

|   | (c) | protection                  and indemnity risks (including pollution risks and freight, demurrage                  and                  defense cover); and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | any                  other risks against which the Owner                  may advise, having regard to practices and other circumstances                  prevailing                  at the relevant time, and with the Charterer’s consent, such consent not                  to be unreasonably withheld, that it would be reasonable for the                  Charterer                  to insure, as specified by the Owner                  by                  notice to the Charterer. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**.**

|   | (b) | in                  the case of fire and usual marine risks and war risks, in an amount                  on the                  day of Closing on an agreed value basis of thirty million dollars                  (US$30,000,000), as such amount may be increased at the request                  of the                  Charterer following the Conversion                  Work; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 the international marine                  insurance                  market; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | in                  relation to protection and indemnity risks in respect of the full                  tonnage                  of the Vessel; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | through                  well                  known marine insurance                  brokers and with insurance                  companies and/or underwriters with                  a Standard & Poor’s Rating of not less than A- or,                  in the case of war risks and protection and indemnity risks, in                  approved                  war risks and protection and indemnity risks associations, and                  without                  prejudice to the Charterer’s obligation                  to obtain the prior approval of the                  Owner, at all times with reputable international brokers, companies,                  underwriters and mutual insurance                  associations. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if                  so required by the Owner                  (i) except in relation to risks referred to in Section (2)(c),                  name (or be                  amended to name) the Mortgagee and Owner as additional named assureds                  for                  their rights and interests, warranted no operational interest and                  with                  full waiver of rights of subrogation against the Mortgagee and                  Owner, and                  (ii) in relation to risks referred to in Section (2)(c), name (or                  be                  amended to name) the Mortgagee and Owner as co-assureds or co-assureds                  under a misdirected arrows clause, but in all cases without the                  Mortgagee                  and Owner thereby being liable to pay (but having the right to                  pay)                  premiums, calls or other assessments in respect of such                  insurance; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | name                  the Mortgagee as loss payee in accordance with the loss payable                  clause                  referred to in Section (6)(b) below and with such directions for                  payment                  as the Mortgagee may specify; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (d) | provide                  (on a reasonable efforts basis)                  that the insurers shall waive, to the fullest extent permitted                  by                  applicable law, their entitlement (if any) (whether by statute,                  common                  law, equity, or otherwise) to be subrogated to the rights and remedies                  of                  the Mortgagee and Owner in respect of any rights or interests (secured                  or                  not) held by or available to the Mortgagee under the Mortgage,                  until the                  liabilities set forth in the Mortgage shall have been fully repaid                  and                  discharged, except that the insurers shall not be restricted by                  the terms                  of this paragraph (d) from making personal claims against persons                  (other                  than the Mortgagee and Owner) in circumstances where the insurers                  have                  fully discharged their liabilities and obligations under the relevant                  Insurances; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | provide                  that such Insurances shall be primary without right of contribution                  from                  other insurances which may be carried by the Mortgagee or                  Owner; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | provide                  that if any such Insurances are cancelled, or if any substantial                  change is                  made in the coverage which adversely affects the interest of the                  Mortgagee                  or Owner, or if any of the Insurances are allowed to lapse for                  non-payment                  of premium, such cancellation, charge or lapse shall not be effective                  with                  respect to the Mortgagee and Owner for 14 days (or 7 days in the                  case of                  war risks) after receipt by the Mortgagee and Owner of prior written                  notice from the insurers of such cancellation, change or lapse;                  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | apply                  all sums receivable under the Insurances (other than in respect                  of a Total                  Loss and any Major Casualty, which shall be payable to the Mortgagee                  in                  accordance with the provisions of the Insurance Assignment) as                  are paid to                  the Charterer for the purpose of making good the loss and fully                  repairing                  all damage in respect of which such sums shall have been                  received. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | notify                  the Owner                  of                  (1) the brokers (or other insurers) and any protection and indemnity                  or                  war risks association through or with whom the Charterer proposes                  to renew                  that insurance and (2) the proposed terms of renewal;                  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | obtain                  the consent of the Owner,                  such consent not to be unreasonably withheld, to the matters referred                  to                  in paragraph (i) above; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | at                  least 7                  days before the expiry of any Insurance effected by it, renew the                  Insurance in accordance with the Owner’s                  approval pursuant to paragraph (a)(ii) above;                  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                  notify                  the Mortgagee                  and the Owner                  in                  writing of the terms and conditions of the renewal promptly after                  the                  renewal. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | they                  will have endorsed on each policy, immediately upon issue, a loss                  payable                  clause and a notice of assignment in such form as the Mortgagee                  may                  require and complying with the provisions of Section                  (4); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (c) | they                  will advise the Mortgagee and Owner immediately of any material                  change to                  the terms of the Insurances; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | they                  will notify the Mortgagee and Owner, not less than 7                  days before the expiry of the obligatory insurances, in the event                  of their                  not having received notice of renewal instructions from the Charterer                  or                  its agents and, in the event of their receiving instructions to                  renew,                  they will promptly notify the Mortgagee and Owner 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 Vessel under such Insurances any premiums or other                  amounts                  due to them or any other person whether in respect of the Vessel                  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 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 the Vessel forthwith upon being so requested                  by the                  Owner. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (c) | where                  required to be issued under the terms of insurance/indemnity provided                  by                  the Charterer’s protection and indemnity association, but only if and when                  so requested by the Owner,                  a                  certified copy of each United States of America voyage quarterly                  declaration (or other similar document or documents) made by the                  Charterer                  in relation to the Vessel in accordance with the requirements of                  such                  protection and indemnity association; and  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a                  certified copy of each certificate of financial responsibility                  for                  pollution by oil or other environmentally sensitive material issued                  by the                  relevant certifying authority in relation to such Vessel, but only                  if and                  when so requested by the Owner. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the                  Charterer                  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 Section (7)(c)) ensure that                  the                  Insurances are not made subject to any exclusions or qualifications                  to                  which the Owner                  has not given its prior approval; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                  Charterer shall not make any changes relating to the classification                  or                  classification society or manager or operator of the Vessel unless                  approved by the underwriters of the Insurances (and as otherwise                  provided                  in this Charter); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                  Charterer shall make all quarterly or other voyage declarations                  which may                  be required by the protection and indemnity risks association 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) | the                  Charterer shall not employ the Vessel, nor allow it to be employed,                  otherwise than in conformity with the terms and conditions of the                  Insurances, without first obtaining the consent of the insurers                  (and as                  otherwise provided in this Charter) and complying with any requirements                  (as to extra premium or otherwise) which the insurers                  specify. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | obtaining                  or preparing any report from an independent marine insurance broker                  or                  the Mortgagee’s in-house insurance consultant 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 Section                  (17) below or dealing with or considering any matters relating                  to any such                  Insurances, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

** **

|   | (a) | a                  mortgagee’s interest marine insurance covering the Vessel and providing                  for the indemnification of the Mortgagee for any losses under or                  in                  connection with the Mortgage which directly or indirectly result                  from loss                  of or damage to the Vessel covered by such insurance or a liability                  of                  such Vessel or of the Owner or Charterer, being a loss or damage                  which is                  prima facie covered by an Insurance but in respect of which there                  is a                  non-payment (or reduced payment) by the underwriters by reason                  of, or on                  the basis of an allegation concerning, among other                  things: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any                  act or omission on the part of the Owner                  or Charterer,                  or any operator, sub-charterer, manager or sub-manager of such                  Vessel or                  of any officer, employee or agent of the Owner                  or Charterer                  or of any such person, including any breach of warranty or condition                  or                  any non-disclosure relating to such                  Insurance; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any                  act or omission, whether deliberate, negligent or accidental, or                  any                  knowledge or privity of the Owner                  or Charterer,                  any other person referred to in paragraph (i) above, or of any                  officer,                  employee or agent of the                  Owner or                  Charterer or of such a person, including the casting away or damaging                  of                  such Vessel and/or such Vessel being unseaworthy;                  and/or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any                  other matter capable of being insured against under a mortgagee’s interest                  marine insurance policy whether or not similar to the foregoing;                  and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a                  mortgagee’s interest additional perils policy providing for the                  indemnification of the Mortgagee against, among other things, any                  possible                  losses or other consequences of any Environmental Claim, including                  the                  risk of expropriation, arrest or any form of detention of the Vessel                  and/or of any insurance recoveries which are or may be paid or                  payable                  under the Insurances relative to the Vessel covered by such insurance,                  or                  the imposition of any Security Interest over such Vessel and/or                  any such                  insurances and/or any other matter capable of being insured against                  under                  a mortgagee's interest additional perils                  policy, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        34.**

|   | (a) | Assign                  to the Owner the Filscan Charter (the “Assignment of Charter”), subject to                  the Memorandum of Three-Party                  Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Assign                  the Insurances to the Mortgagee and the Owner, as their interests                  may                  appear, in accordance with the terms and conditions set forth in                  Clause 33                  (the “Insurance Assignment”). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Cause                  the Technical Manager and the Commercial Manager to each execute                  and                  deliver to the Owner or Mortgagee a subordination agreement with                  respect                  to any claim or privilege arising under the respective management                  agreements (the “Subordination                  Agreements”). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        35.**

|   | (i) | is                  duly formed and is validly existing and in good standing under                  the laws of                  its jurisdiction of incorporation; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | has                  full power to carry on its business as now being conducted and                  to enter                  into and perform its obligations under this Charter;                  and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | has                  complied with all statutory, regulatory and other requirements                  relative to                  such business and such agreements; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Authorization                and Consents. All necessary corporate action has been taken to authorize,                and all necessary consents and authorities have been obtained and                remain                in full force and effect to permit each of the Charterer and Guarantor                to                enter into and perform its respective obligations under this Charter                and,                as of the date hereof, no further consents or authorities are necessary                in                connection herewith; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | Binding                Obligations. This Charter constitutes or will, when executed and                delivered, constitute the legal, valid and binding obligations of                the                Charterer and Guarantor, enforceable against each in accordance with                its                terms; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | No                Violation. The execution and delivery of this Charter, and the performance                of its provisions by each of the Charterer and Guarantor does not                violate                or contravene (i) any applicable law or regulation existing at the                date                hereof ; (ii) the articles of incorporation or by-laws of either                company;                or (iii) any contractual restriction binding upon either the Charterer                or                the Guarantor under any other agreement of whatever                nature. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)   | Control.                The Guarantor owns or controls the                Charterers. |
|-----------------|---------------------------------------------------------------------------------------|
| (f)   | The                registration of the Vessel under the Bareboat Charter Registry, and                its                operation thereunder, shall in not any way affect or threaten: (i)                the                validity or quality of title ownership of the Owner under the Underlying                Registry, (ii) the validity or enforceability of the Mortgage as                a first                priority Panamanian naval Mortgage. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | to                  keep the Vessel in compliance with all national and international                  laws,                  conventions and regulations, including but not limited to SOLAS,                  the ISM                  Code and the ISPS Code, free of any liens and encumbrances (except                  the                  lien of the Mortgage), and to promptly inform the Owner of any                  change in                  the status of such compliance. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to                  pay and discharge all debts, damages, liabilities and outgoings                  whatsoever                  which have given or may give rise to maritime, statutory or possessory                  liens on, or claims enforceable against, the Vessel and, in the                  event of a                  writ or libel being filed against the Vessel or the Vessel being                  arrested                  pursuant to legal process or purported legal process or in the                  event of                  detention of the Vessel in exercise or purported exercise of any                  such lien                  or claim as aforesaid, the                  Charterer shall procure the discharge of such writ or libel or                  the release                  of the Vessel from such arrest or detention within 30 days of receiving                  notice thereof by providing bail or procuring the provision of                  security or                  otherwise as the circumstances may                  require. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | to                  keep the Vessel classified in the highest classification and rating                  for                  vessels of the same flag, age and type, free of conditions and                  recommendations (other than those for which the time prescribed                  by class                  for curing the condition or recommendation has not passed), with                  all                  certificates valid and up to date, and to: (i) submit the Vessel                  to                  continuous surveys and such periodical or other surveys as may                  be required                  for classification purposes and shall supply to the Mortgagee and/or                  Owner, as they may reasonably request, copies of all survey and                  class                  reports issued in respect thereof, and; (ii) promptly inform the                  Owner of                  the withdrawal of any of the Vessel’s ratings by its classification                  society or the imposition or issuance by said classification society                  of                  any condition or recommendation affecting class which is not complied                  or                  otherwise dealt with in accordance with its                  terms. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | to                  keep the Vessel properly registered under the Underlying Registry                  and the                  Bareboat Charter Registry (or such other registration as may be                  agreed by                  the Owner), with all national and international trading certificates                  valid                  and up to date, and to (i) provide copies of all registration certificates                  and similar documents issued by the Underlying Registry and the                  Bareboat                  Charter Registry, and all trading certificates, and; (ii) to promptly                  inform the Owner of any change in the status of such registration                  or                  certification. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | cause                  a cautionary notice with respect to the existence of the Mortgage                  on the                  Vessel to                  be filed on the day of the Closing,                  or as soon thereafter as is feasible,                  with the Philippine Maritime Industry Authority                  of                  the Bareboat Charter Registry, such notice to be in form and substance                  acceptable to the Owner. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | deliver                  to the Owner as                  soon as possible, but in no event                  later than 60 days,                  following the day of the Closing, evidence acceptable to the Owner                  that                  the Philippine Maritime Industry Authority has recognized the existence                  of                  the Mortgage with respect to the Vessel and that such Mortgage                  is governed                  by the law of the Republic of Panama, and has duly noted the same                  in the                  Bareboat                  Charter Registry.  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | to                  take any and all action necessary to ensure : (i) the validity                  and quality                  of title ownership of the Owner under the Underlying Registry,                  and; (ii)                  the validity and enforceability of the Mortgage as a first preferred                  Mortgage. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Unless                  otherwise agreed by the Owner, upon termination of the Filscan                  Charter the                  Charterer shall cause: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                  cancellation and deletion of the Vessel from the Bareboat Charter                  Registry, and the Mortgagee shall be entitled to do all such acts                  and                  things in the name of the Charterer                  and                  Filscan, as                  may be required to effect such cancellation and deletion and to                  comply                  with any requirements of the Philippine                  Maritime                  Industry Authority for                  the purpose of ensuring that the registration of the                  Vessel in the Mercantile (Marine) Section of the Public Registry                  of the                  Republic of Panama is valid in every respect;                  and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the                  delivery or cause to be delivered to the Owner or its designee                  the                  following documents, in each case in form and substance acceptable                  to the                  Owner: |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | a                  certificate of deletion in respect of the Vessel from the Philippine                  Maritime Industry Authority; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (w) | the                  original Temporary Certificate of Vessel Registry issued for the                  Vessel by                  the Philippine                  Maritime                  Industry Authority; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | the                  original of each certificate issued by any governmental entity                  of the                  Republic of the Philippines, including the certificate of the National                  Telecommunications Commission of the Republic of the Philippines                  on the                  Vessel’s call sign and all SOLAS                  certificates; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (y) | an                  original certificate issued the Bureau of Internal Revenue of the                  Republic                  of the Philippines that all applicable withholding taxes shall                  have been                  paid; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | such                  other documents and instruments as may be necessary or advisable                  to effect                  such cancellation and deletion and to comply with any requirements                  of the                  Philippine                  Maritime                  Industry Authority                  for the purpose of ensuring that the registration of the Vessel                  in the                  Mercantile (Marine) Section of the Public Registry of the Republic                  of                  Panama is valid in every respect. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | to                  promptly inform the Owner, upon becoming aware of same, of the                  occurrence                  of a Charter Party Event of Default or of any circumstance which,                  with the                  giving of notice and the lapse of time, would constitute a Charter                  Party                  Event of Default. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | to                  procure and deliver to the Mortgagee, with copy to Owner, an annual                  written appraisal report and such other interim valuations as the                  Mortgagee may request, prepared by Broker, at the expense of the                  Charterer, setting forth the Fair Market Value of the                  Vessel. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | to                  notify the Mortgagee forthwith by fax, with copy to the Owner                  of: |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (i) | any                  damage to the Vessel requiring repairs the cost of which will or                  might                  exceed five hundred thousand dollars ($500,000) (or the equivalent                  in any                  other currency); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any                  occurrence in consequence of which the Vessel has or may become                  a Total                  Loss; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any                  requisition of the Vessel for hire; |
|--------|-------|----------------------------------------------------------|

|   | (iv) | any                  requirement or recommendation made by any insurer or classification                  society or by any competent authority which is not complied or                  otherwise                  dealt with in accordance with its                  terms; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | any                arrest or detention of the Ship or any exercise or purported exercise                of a                lien or other claim on the Ship or the Earnings within three (3)                business                days thereof; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (vi)   | any                petition or notice of meeting to consider any resolution to wind                up the                Charterer or Guarantor (or any event analogous thereto under the                laws of                their respective jurisdictions of                incorporation); |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (vii)   | the                occurrence of a Charterparty Event of                Default; |
|-------------------|----------------------------------------------------------------------------------|
| (viii)   | any                claim for breach of the ISM Code or the ISPS Code in connection with                the                Vessel being made against the Vessel, Charterer, Technical Manager                or                otherwise; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ix)   | any                other material 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 as regards the Vessel. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | to                  be in compliance with the financial covenants set forth in the                  TBS Credit                  Facility (Section 7.13) dated July 31, 2006, regardless of whether                  such                  Credit Facility is in effect or not, and to promptly inform the                  Owner in                  the event the Charterer is not in compliance with any of such financial                  covenants. The Guarantor shall provide a quarterly compliance certificate                  with respect to the within covenant, in such form to be provided                  by Owner,                  or such other form acceptable to                  Owner. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to                  subordinate to the Owner any and all claims of whatever nature                  which the                  Guarantor has or may have against the Owner during the Charter                  Period, and                  until all Charter Party Obligations have been fulfilled and satisfied. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The                  Owner represents, warrants and covenants for the duration of the                  Charter                  Period: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | it                  is a single purpose limited liability company formed solely to                  enter into                  the MOA and Charter, and the financing in connection                  therewith. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it                  will not engage in any operations other than as contemplated to                  be                  performed by the Owner under the MOA, the Charter, and any financing                  in                  connection therewith. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        36.**

**Clause        37.**

**Clause        38.**

**Clause        39.**

**Clause        40.**

*inter        alia*

| (a)   | Non-Payment:                the Charterer fails to pay Charter Hire or other financial obligation                as                and when due under this Charter in the currency and in the manner                stipulated; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | Insolvency                events:** **if                the Charterer or Guarantor: |
|-----------------|------------------------------------------------------------------------------------------|
| (i)   | is                unable or admits its inability to pay its debts as they fall due;                or |
|-----------------|-------------------------------------------------------------------------------------------------------|
| (ii)   | resolve                to appoint, or apply for or consent to the appointment of, a receiver,                administrative receiver, trustee, administrator or liquidator of                itself or                of all or part of its assets; or |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iii)   | if                any proceedings are commenced or threatened, or any order of judgment                is                given by any court, for the bankruptcy, liquidation, winding up,                administration or re-organization of the Charterer; or |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                  Charterer commits any breach or default on any of its obligations,                  undertakings or covenants under this Charter, and such breach or                  default                  is not cured within 10 business days of receipt of a written notice                  from                  the Owner; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | if                  the Charterer or Guarantor defaults in the payment of any other                  indebtedness or obligation for borrowed money as and when due,                  or is                  capable of being declared due prior to its stated maturity by reason                  of a                  default on the part of the Charterer or Guarantor, and such default                  is not                  cured within 30 days thereof; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | if                  a Charterparty Event of Default occurs under the LAGUNA BELLE Charter;                  or |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (f) | Misrepresentation:                  any representation or warranty made or deemed to be made or repeated                  by                  the Charterer or the Guarantor in this Charter or the MOA, or in                  any                  notice, certificate or statement referred to in or delivered under                  either                  of those documents is or proves to have been incorrect or misleading                  in                  any material respect; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the                  Guarantor commits any breach or default on any of its obligations,                  undertakings or covenants under this Charter; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | If                  the guarantee of this Charter as set forth in Clause 53 ceases                  for any                  reason whatsoever to be the legal, valid, and enforceable obligation                  of                  the Guarantor. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | If                  the Vessel is arrested, seized or detained (other than constituting                  a                  Total Loss), and the Vessel is not released from such arrest, seizure                  or                  detention within 30 days thereof by providing bail or procuring                  the                  provision of security or otherwise as the circumstances may                  require. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | If                  the Vessel becomes a Total Loss and payment of all insurance proceeds                  is                  not received by the Mortgagee from insurance underwriters within                  one                  hundred twenty (120) days of the date of the Total                  Loss. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        41.**

|   | (a) | the                  Owner shall be entitled (but is not bound), by notice to the Charterer,                  and without prejudice to any other rights or claims of the Owner,                  immediately or on such date as the Owner may specify, terminate                  the                  chartering by the Charterer of the Vessel under this Charter, whereupon                  the Vessel shall no longer be in the possession of the Charterer                  with the                  consent of the Owner. In the event the Owner exercises its right                  to                  terminate as set forth above, the Charterer shall, unless otherwise                  agreed                  by the Owner: (i) terminate the Filscan Charter and all Sub-Charters;                  (ii)                  cause the redelivery of the Vessel under the Filscan Charter and                  all                  Sub-Charters. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                  Charterer shall, upon receipt of a written notice from the Owner,                  move the                  Vessel to such place or places within such jurisdiction as the                  Owner shall                  direct in such notice, and shall fully comply with any orders given                  by the                  Owner in connection therewith. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                  Charterer shall, upon receipt of written notice from the Owner,                  cause the                  cancellation and deletion of the Vessel from the Bareboat Charter                  Registry, and the Owner shall be entitled to do all such acts and                  things                  in the name of the Charterer and Filscan as may be required to                  effect such                  cancellation and deletion, including but not limited to the delivery                  to                  the Owner or its designee the documents listed in Clause 35(2)(i)(v)                  -                  (z), and to comply with any requirements of the Philippine                  Maritime                  Industry Authority and/or the Panama Maritime Authority for the                  purpose of                  ensuring that the registration of the Vessel in the Mercantile                  (Marine)                  Section of the Public Registry of the Republic of Panama is valid                  in every                  respect. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | upon                  notice given by the Owner pursuant to Clause 41(1)(a), the Charterer                  shall                  continue to pay Charter Hire until the Vessel is redelivered to                  the Owner,                  and thereafter the Charter shall terminate and the Charterer shall                  pay, or                  reimburse, to the Owner on demand all losses suffered or incurred                  by the                  Owner in connection with such termination, including but not limited                  to                  all liabilities, costs and expenses incurred in recovering possession                  of                  the Vessel, and shall pay to Owner all damages of whatever nature                  arising                  out of the breach of this Charter. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        42.**

| (a)   | Option                Schedule and Price: |
|-----------------|-------------------------------------------|
| (i)   | End                Option Year 5 Price:US$11,100,000,                NSP. |
|-----------------|---------------------------------------------------------------------------|
| (ii)   | End                Option Year 6 Price:US$9,150,000,                NSP. |
|------------------|--------------------------------------------------------------------------|
| (iii)   | End                Option Year 7 Price:US$6,750,000,                NSP. |
|-------------------|--------------------------------------------------------------------------|
| (iv)   | Interim                Period Option and Price: The Call Option may be exercised during                the                Option Period on a date prior to the expiration of the relevant Option                Year, at a pro-rata price. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | The                Call Option may be exercised by the Charterer during the Option Period                upon thirty (30) days prior written notice delivered to the Owner                (the                “Call Option Notice”), setting forth the date the Call Option will be                exercised (the “Call Option Date”); provided, however, that if the Call                Option is exercised any time after the end of Option Year 6, the                Call                Option Notice shall be delivered one hundred twenty (120) days prior                to                the Call Option Date; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | The                Call Option Notice shall specify the proposed place and date for                the                purchase of the Vessel, which in no event shall be more than thirty                (30)                days after the Call Option Date; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | In                the event the Call Option is exercised: (i) the Owner and the Charterer                shall execute and deliver a memorandum of agreement in the form attached                to the Document Appendix as Exhibit “A” which shall govern the terms and                conditions of sale of the Vessel (the “Option MOA”), and; (ii) the                Charterer shall within three (3) business days from the delivery                of the                Call Option Notice, place a deposit in the amount of 10% of the purchase                price in a joint account at the Owner’s bank in the names of the Owner and                the Charterer. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)   | Upon                the delivery of the Vessel under the Option MOA, the obligation to                pay                unaccrued Charter Hire shall cease, and the Charter Period shall                expire. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)   | The                Charterer’s right to exercise the Call Option pursuant to this Clause 42                is subject to and conditioned upon the simultaneous exercise and                performance by Beekman of the identical Call Option under the LAGUNA                BELLE                Charter. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        43.**

*inter        alia*

|   | (a) | carry                  on board the Vessel with its papers a certified copy of the Mortgage                  and                  cause that certified copy of this Mortgage to be exhibited to any                  person                  having business with the Vessel which might give rise to a lien                  on the                  Vessel other than a lien for crew's wages and salvage and to any                  representative of the Mortgagee on demand;                  and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | place                  and maintain in a conspicuous place in the navigation room and                  the                  Master’s cabin of the Vessel a framed printed notice in plain type in                  English of such size that the paragraph of reading matter shall                  cover a                  space not less than 6 inches wide and 9 inches high reading as                  follows: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        44.**

| (a)   | so                long as the Charterer shall duly comply with all of its obligations                under                this Charter, the Charterer shall be entitled to all requisition                hire paid                to the Owner or to the Charterer by such government or other competent                authority or by any person acting by the authority of the same on                account                of such requisition; and, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | as                soon as practical after the end of any requisition for hire the Charterer                shall, cause the condition of the Vessel to comply in all respects                with                the provisions of this Charter; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | should                the Vessel be under requisition for hire at the end of the Charter                Period,                this Charter shall nevertheless terminate but without prejudice to                the                accrued rights of the parties hereto, and all requisition hire shall                be                paid to the Owner; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | the                Charterer shall if it is prevented from redelivering the Vessel at                the end                of the Charter Period by reason of the said requisition, be relieved                of                its obligation to do so. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | the                Vessel is insured in accordance with the terms of this Charter; |
|-----------------|------------------------------------------------------------------------------------|
| (b)   | no                insurer has refused to meet or has disputed the claim for Total Loss;                and, |
|-----------------|-------------------------------------------------------------------------------------------------------------|
| (c)   | payment                of all insurance proceeds in respect of the Total Loss is made in                full and                in an amount at least equal to the amounts set out in Clause 33,                and such                proceeds are received within one hundred twenty (120) days of the                date                that the Total Loss in question is deemed to have occurred or such                longer                period as the Owner may, in its absolute discretion, agree. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Total        Loss**

| (a)   | an                actual, constructive, arranged, agreed or compromised total loss                of the                Vessel; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|
| (b)   | the                requisition (whether                or not for                title)                of                the Vessel by or on behalf of any government or other authority (other                than by way of requisition for hire for a fixed period not exceeding                one                year without any right to an extension); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | the                capture, seizure, arrest, detention, confiscation, expropriation                or                condemnation of the Vessel (other than where the same amounts to                requisition                (whether or not for title)                of                the Vessel) by any governmental authority, or by any person claiming                to be                or purporting to act on behalf of any governmental authority, unless                the                Vessel is released and returned to the possession of the Charterer                within                12                months                after the capture, seizure, arrest, detention, confiscation, expropriation                or condemnation in question;                or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | assailing                thievery                or                piracy                of                the Vessel, which deprives the Charterer of the use of the Vessel                for a                period of 90 days.  |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | in                the case of an actual loss of the Vessel on the actual date or at                the time                the Vessel was lost or, if such date is not known, on the date on                which                the Vessel was last reported; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | in                the case of a constructive total loss of the Vessel, on                the date and at the time notice of abandonment of the Vessel is given                to                the insurers of the Vessel; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | in                the case of an                arranged, agreed or                compromised                total loss, on the date upon which a binding agreement as to such                arranged,                agreed or compromised                total loss is entered into by the insurers of the                Vessel; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | in                the case of any                requisition (whether or not for title) of the Vessel by or on behalf                of                any government or other authority (other than by way of requisition                for                hire for a fixed period not exceeding one year without any right                to an                extension), on the date on which such requisition                occurred; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)   | in                the case of the                capture, seizure, arrest, detention, confiscation, expropriation                or                condemnation of the Vessel (other than where the same amounts to                requisition                (whether or not for title)                of                the Vessel) by any governmental authority, or by any person claiming                to be                or purporting to act on behalf of any governmental authority, which                deprives the Charterer of the use of the Vessel for more than 12                months,                upon the expiry of the period of 12                months                after the date upon which the capture, seizure, arrest, detention,                confiscation, expropriation or condemnation of the Vessel                occurred; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)   | in                the case of assailing                thievery or piracy                of                the Vessel, which deprives the Charterer of the use of the Vessel                for a                period of more than 90 days, upon the expiry of the period of 90                days                after the date upon which the assailing                thievery                or                piracy                occurred;                and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)   | in                the case of any other type of total loss, on the date (or the most                likely                date) on which it appears to the Owner that the event constituting                the                total loss occurred. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the                  amount of Charter Hire that would have been paid (but for the Total                  Loss)                  from the date of occurrence of the Total Loss until the next Call                  Option                  Year under Clause 42(1)(a)(i) - (iii);                  plus |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        45.**

**Clause        46.**

|   | (b) | in                  accordance with plans and specifications approved by (i) the Vessel’s                  classification society, and; (ii) the Owner, said Owner’s approval not to                  be unreasonably withheld; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | in                  conformity with all national and international laws, conventions                  and                  regulations; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | approved                  by (i) the Vessel’s classification society, and; (ii) the Owner, said                  Owner’s approval not to be unreasonably                  withheld. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        47.**

**Clause        48.**

| (a)   | The                Vessel shall have the classification specified in Box 10 unexpired,                and                with no conditions or recommendations, with no less than six (6)                months’                validity from the Redelivery Date; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | The                Vessel shall have on board and installed the machinery and other                equipment                as installed at the time of Delivery or replacements for same made                in                accordance with Classification Society requirements and the provisions                of                this Charter; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | The                Vessel shall have the same or equivalent inventory of spare parts                as on                board the Vessel at the time of Delivery, not to be less than                Classification Society requirements; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | The                Vessel shall be seaworthy and in such state and condition so as to                demonstrate compliance by the Charterer with its obligations under                this                Charter in accordance with its terms. Without limiting the foregoing,                all                damage and/or defects, which, if unrectified or unrepaired and brought                to                the attention of the Classification Society would lead to the imposition                of a condition of class, must be repaired or rectified prior to                redelivery. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The                  Charterer shall deliver to the Owner all of the manuals and technical                  records on board the Vessel and in the Charterer’s office at the time of                  redelivery. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | All                  trading certificates (including applicable SOLAS certification)                  shall be                  delivered to the Owner in each case with no less than six (6) months'                  validity from the Redelivery Date. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The                  Vessel shall be redelivered to the Owner charter free, in a worldwide                  port, in Owner’s option. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | The                  Vessel to be free of any lien whatsoever other than liens created                  by the                  Owner, if any, during the Charter Period, including the mortgage                  lien of                  the Mortgage. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        49.**

|   | (a) | $200,000                  shall be paid upon Charterers’ receipt of written notice confirming the                  Owners have entered into an interest rate swap                  agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        50.**
** **

**Clause        51.**

|   | (a) | all                  costs and expenses of ownership, possession, chartering, operating                  and                  maintaining the Vessel or any part thereof including (but without                  prejudice to the generality of the foregoing) all port charges,                  fees,                  taxes, levies, fines, penalties, charges, insurance premiums, fuel,                  oil,                  victualling crew, management, navigation, manning, operating and                  freight                  expenses, and any other outgoings                  whatsoever; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all                  liabilities, claims, proceedings, (whether civil or criminal),                  damages,                  penalties, fines, or other sanctions, judgments, charges, taxes                  (other                  than taxes due from the Owner on its profits or corporate good                  standing                  taxes), impositions, liens, salvage, general average, costs and                  expenses                  whatsoever which may at any time be made or claimed by any employee,                  servant, agent or sub-contractor of the Charterer, sub-charterer,                  passenger, owner, shipper, consignee and receiver of goods or any                  third                  party (including without prejudice to the foregoing, and governments,                  governmental taxation or other authorities) or by their respective                  dependents, arising directly or indirectly in any manner out of                  the                  ownership, possession, management, navigation, operation, employment,                  use,                  maintenance, repair, certification, manning, provisioning, supply                  or                  servicing of the Vessel (whether at sea or not) or the chartering                  thereof                  hereunder whether such liability, claims, proceedings, penalties,                  fines,                  sanctions, judgments, charges, taxes, impositions, liens, salvage,                  general                  average, costs or expenses may be attributable to any defect in                  the Vessel                  or the design, testing or use thereof or from any maintenance,                  service,                  repair, overhaul or otherwise and regardless of when the same shall                  arise                  and whether or not the Vessel or the relevant part thereof is in                  the                  possession or control of the Charterer and wherever the Vessel                  is located,                  and without prejudice the its generality the provisions of this                  paragraph                  (ii) shall extend to claims of persons (including governments or                  other                  persons whether corporate or otherwise) who have suffered or allege                  that                  they have suffered loss (whether of property or person), damage                  or injury                  in connection with anything done or not done by the Vessel, including                  in                  connection with any oil or other substance emanating from the Vessel                  or                  arising from its operations and shall extend to levies, impositions,                  calls                  or contributions required to be made by the Owner during or in                  respect of                  the Charter Period; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any                loss, damage, liability, costs or expenses incurred by the Owner                arising                out of or in connection with the Charterer’s ownership of or demise                charter of any vessel other than the Vessel and the operation and                employment of such vessel. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | Notwithstanding                any sub-letting of the Vessel by the Charterer, the Charterer shall                remain                shall remain responsible for the due fulfillment of all the terms                and                conditions of this Charter. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iii)   | No                failure or delay on the part of the Owner in exercising any power                or                rights hereunder shall operate as a waiver thereof nor shall any                single or                partial exercise of any such right or power preclude any other or                further                exercise of any such right or power. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iv)   | This                Charter shall not be varied in its terms by any oral agreement or                representation or otherwise than by an instrument in writing of even                date                herewith or subsequent date hereto executed by the parties hereto                by their                duly authorized representatives. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (v)   | If                any term or provision of this Charter or the application thereof                to any                person or circumstance shall to any extent be invalid or unenforceable,                the remainder of this Charter or application of such term or provision                to                persons or circumstances other than those as to which it is already                invalid or unenforceable shall not be affected thereby and each term                and                provision of this Charter shall be valid and be enforceable to the                fullest                extent permitted by law. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Clause        52.**

**Clause        53.**

|   | (a) | In                  consideration of the Commitments of the Owner, the Guarantor hereby                  unconditionally and irrevocably guarantees to the Owner, as primary                  obligor and not as mere surety (i) the full and prompt payment                  of all                  amounts payable by the Charterer under the terms of this Charter,                  including but not limited to Charter Hire; insurance premiums and                  P&I                  calls; costs and fees, as the same shall become due and payable,                  whether                  at the stated time for payment thereof, or by acceleration upon                  a                  Charterparty Event of Default; (ii) the full and prompt payment                  of any                  indemnity for loss, claim, expense or liability that the Owner                  may suffer                  or incur by reason of or in connection with this Charter, or the                  operation, use or employment of the Vessel; and (iii) the full                  and prompt                  performance and observance by the Charterer of all obligations,                  undertakings, covenants and agreements required to be performed                  and                  observed by the Charterer under the terms of this Charter (items                  (i)                  through (iii), the “Guarantee Obligations”). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | All                  payments by the Guarantor shall be paid in the lawful currency                  of the                  United States. Each and every default in the payment or performance                  of the                  Guarantee Obligations, shall give rise to a separate cause of action                  hereunder, and separate suits may be brought as each cause of action                  arises. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                  Guarantor further agrees that the Guarantee Obligations constitute                  an                  absolute, unconditional, present and continuing guarantee of performance                  and payment and not of collection, and waives any right to require                  that                  any resort be had by the Owner to (i) any security held by or for                  the                  benefit of the Owner for payment or performance of the Guaranteed                  Obligations; (ii) the Owner’s right against any other person, or (iii) any                  other right or remedy available to the Owner by contract, applicable                  law,                  or otherwise. The Guarantee Obligations are direct, unconditional                  and                  completely independent of the obligations of any other person or                  entity,                  and a separate cause of action or separate causes of action may                  be brought                  and prosecuted against the Guarantor without the necessity of any                  other                  party or previous proceeding with or exhausting any other remedy                  against                  any other person who might have become liable for the Guarantee                  Obligations or of realizing upon any security held by or for the                  benefit                  of the Owner. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The                  Guarantor shall pay to the Owner all reasonable costs and expenses                  (including, without limitation, reasonable attorneys’ fees) incurred by                  the Owner upon the occurrence of a Charterparty Event of Default                  under the                  terms of this Charter. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | the                invalidity, irregularity, illegality, frustration or unenforceability                of,                or any defect in this Charter or any collateral document related                hereto; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | any                present or future law or order of any government (*de                jure*                or                *de                facto*)                or of any agency thereof purporting to reduce, amend or otherwise                affect                this Charter or or to vary any terms of                payment; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iii)   | the                waiver, compromise, settlement, release, extension, change, modification                or termination of any or all of the obligations of (x) the Charterer                under                this Charter (except by payment in full of all amounts due or payable                under this Charter) or (y) the Guarantor with respect to the Guarantee                Obligations (except by payment in full of all the Guarantee Obligations                hereunder); |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iv)   | the                failure to give notice to the Guarantor of the occurrence of a                Charterparty Event of Default under the                Charter; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (v)   | the                modification or amendment (whether material or otherwise) of any                Guarantee                Obligation under this Charter; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (vi)   | the                taking of, or the omission to take, any of the actions referred to                in this                Charter; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| (vii)   | any                failure, omission, delay, or lack on the part of the Owner to enforce,                assert or exercise any right, power or remedy conferred on the Owner                in                this Charter; |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (viii)   | the                voluntary or involuntary liquidation, dissolution, sale or other                disposition of all or substantially all the assets, marshalling of                assets                and liabilities, receivership, insolvency, bankruptcy, assignment                for the                benefit of creditors, reorganization, arrangement or composition                with                creditors or readjustment of, or other similar proceedings affecting                the                Guarantor or any of its assets; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ix)   | any                event or action that would, in the absence of this Clause, result                in the                release or discharge of the Guarantor from the performance or observance                of any of the Guarantee Obligations, other than the performance                thereof; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (x)   | the                default or failure of the Guarantor to fully perform any of its Guarantee                Obligations; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|
| (xi)   | any                other circumstances which might otherwise constitute a legal or equitable                discharge or defense of a surety or a                guarantor; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (xii)   | the                actual or purported assignment of this Charter or of any of the Guarantee                Obligations; |
|-------------------|--------------------------------------------------------------------------------------------------------------------------|
| (xiii)   | to                the extent permitted by law, the release or discharge of the Guarantor                from the performance or observance of any guaranteed obligation,                covenant                or agreement contained herein by operation of                law; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (xiv)   | any                limitation on the liability or obligations of the Charterer under                this                Charter or any termination, cancellation, frustration, invalidity                or                unenforceability, in whole or in part, of this Charter, or any term                thereof; |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (xv)   | the                merger or consolidation or any sale, lease or transfer of any or                all of                the assets of the Charterer or the Guarantor to any person;                or |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (xvi)   | any                other occurrence whatsoever, whether similar or dissimilar to the                foregoing. |
|-------------------|----------------------------------------------------------------------------------------------------------------|

**NOTARIAL        CERTIFICATE**

**NOTARIAL        CERTIFICATE**

**NOTARIAL        CERTIFICATE**

**SCHEDULE        I**

**SCHEDULE        II**

**SCHEDULE        III**

| A. | Manager’s                  Undertaking (Technical and Commercial), and each document required                  to be                  delivered thereunder; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Deletion                  Letter (undated) with respect to the deletion of the Vessel from                  the                  Bareboat Charter Registry; and |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Deletion                  Power of Attorney, duly executed                  in counterparts (and,                  if executed by any party thereto outside of the Republic of the                  Philippines, duly consularized before a consulate of the Republic                  of the                  Philippines in the jurisdiction of                  execution). |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | Insurance                  Assignment with respect to the Insurances, and Notice of Assignment                  thereof. |
|----|--------------------------------------------------------------------------------------------------------------------------|

| E. | A                  certificate by the president or secretary of the Technical Manager                  identifying and giving the address and other communication details                  of the                  ISM Responsible Person(s) as defined in the ISM Code, and attaching                  copies                  of (i) the Document of Compliance; (ii) the Safety Management Certificate                  of the Vessels; (iii) such other ISM documentation as may be requested                  by                  the Owner. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|