LOAN

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1
INTERPRETATION
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2
FACILITY
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3
DRAWDOWN
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4
INTEREST
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5
INTERESTPERIODS
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6
DEFAULTINTEREST
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7
REPAYMENTAND PREPAYMENT
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8
CONDITIONSPRECEDENT
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9
REPRESENTATIONSAND WARRANTIES
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10
GENERALUNDERTAKINGS
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11
CORPORATEUNDERTAKINGS
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12
INSURANCE
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13
SHIPCOVENANTS
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14
SECURITYCOVER
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15
PAYMENTSAND CALCULATIONS
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16
APPLICATIONOF RECEIPTS
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17
EARNINGSACCOUNTS
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18
EVENTS OFDEFAULT
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19
FEES ANDEXPENSES
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20
INDEMNITIES
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21
NO SET-OFFOR TAX DEDUCTION
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22
ILLEGALITY,ETC
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23
INCREASEDCOSTS
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24
SET-OFF
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25
TRANSFERSAND CHANGES IN LENDING OFFICE
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26
VARIATIONSAND WAIVERS
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27
NOTICES
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28
JOINT ANDSEVERAL LIABILITY
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29
SUPPLEMENTAL
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30
LAW ANDJURISDICTION
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SCHEDULE1  DRAWDOWN NOTICE
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SCHEDULE2  CONDITION PRECEDENT DOCUMENTS
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SCHEDULE3  FINANCIAL COVENANTS
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SCHEDULE 4  FORMOF COMPLIANCE CERTIFICATE
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EXECUTIONPAGE
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| (1)   | CLAREMONT SHIPPING CORP.,      and YORKSHIRE      SHIPPING CORP.; and |
|-----------------|-----------------------------------------------------------------------|

| (2)   | CREDIT      SUISSE. |
|-----------------|---------------------|

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

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

| (b)   | if      earlier, the date on which the Commitment is fully borrowed, cancelled or      terminated; |
|-----------------|----------------------------------------------------------------------------------------------------|

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

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

| (ii)   | compensation      payable to the relevant Borrower in the event of requisition of the Ship      for hire; |
|------------------|-----------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

| (b)   | the      Guarantee; |
|-----------------|---------------------|

| (c)   | the      Mortgages; |
|-----------------|---------------------|

| (d)   | the      Accounts Security Deed; |
|-----------------|----------------------------------|

| (e)   | the      Multiparty Deeds; |
|-----------------|----------------------------|

| (f)   | the      Master Agreement Security Deed; |
|-----------------|------------------------------------------|

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

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

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

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

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

| (d)   | under      a financial lease, a deferred purchase consideration arrangement or any      other agreement having the commercial effect of a borrowing or raising of      money by the debtor (other than normal trade credit not exceeding 180      days); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

| (e)   | liens      for master’s disbursements incurred in the ordinary course of trading and      any other lien arising by operation of law or otherwise in the ordinary      course of the operation, repair or maintenance of a Ship, provided such      liens do not secure amounts more than 30 days overdue (unless the      overdue amount is being contested by the relevant Borrower in good faith      by appropriate steps) and subject, in the case of liens for repair or      maintenance, toClause 13.12(g); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

| (c)   | neither      any Borrower nor any Security Party has any future or contingent liability      under Clause 19, 20, or 21 or any other provision of this Agreement or      another Finance Document or the Master Agreement;  and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (c)   | any      arrest, capture, seizure or detention of the Ship (including any hijacking      or theft) unless it is within 30 days redelivered to the full control of      the Borrower owning the Ship; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| 2.1   | Amount of      facility.  Subject to the other provisions of this      Agreement, the Lender shall make a loan facility not exceeding $40,000,000      available to the Borrowers, which shall be available in the following      Advances: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | up      to $20,000,000 to enable Borrower A to finance the acquisition of Ship A;      and |
|-----------------|--------------------------------------------------------------------------------------------|

| (b)   | up      to $20,000,000 to enable Borrower B to finance the acquisition of Ship      B. |
|-----------------|----------------------------------------------------------------------------------------|

| 2.2   | Purpose of      Advances.  The Borrowers undertake with the Lender to use      each Advance only for the purpose stated in the preamble to this      Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 3.1   | Request for      Advance.  Subject to the following conditions, the      Borrowers may request an Advance to be made by ensuring that the Lender      receives a completed Drawdown Notice not later than 11.00 a.m. (London      time) 5 Business Days prior to the intended Drawdown  Date. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2   | Availability.  The      conditions referred to in Clause 3.1 arethat: |
|-----------------|---------------------------------------------------------------------------------|

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

| (b)   | an      Advance shall not exceed $20,000,000 or if lower 65% of the average of the      two valuations of the relevant Ship to be provided pursuant to item 6 of      Schedule 2 Part B and if such test is not met, the Advance shall be      reduced accordingly; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      aggregate amount of the Advances shall not exceed the      Commitment. |
|-----------------|---------------------------------------------------------------------------------|

| 3.3   | Drawdown Notice      irrevocable.  A Drawdown Notice must be signed by a      director officer or, if agreed by the Lender, a duly authorised      attorney-in-fact of a Borrower; and once served, a Drawdown Notice cannot      be revoked without the prior consent of the  Lender. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4   | Disbursement of      Advance.  Subject to the provisions of this Agreement,      the Lender shall on each Drawdown Date make the relevant Advance to the      Borrowers; and payment to the Borrowers shall be made to the account which      the Borrowers specify in the relevant Drawdown  Notice. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5   | Disbursement of Advance to      third party.  The payment by the Lender under      Clause 3.4 shall constitute the making of the Advance and the      Borrowers shall at that time become indebted, as principal and direct      obligors, to the Lender in an amount equal to that  Advance. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 4.1   | Payment of normal      interest.  Subject to the provisions of this Agreement,      interest on the Loan in respect of each Interest Period shall be paid by      the Borrowers on the last day of that Interest  Period. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2   | Normal rate of      interest.  Subject to the provisions of this Agreement,      the rate of interest on the Loan in respect of an Interest Period shall be      the aggregate of the Margin and LIBOR for that Interest      Period. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3   | Payment of accrued      interest.  In the case of an Interest Period longer than      3 months, accrued interest shall be paid every 3 months during that      Interest Period and on the last day of that Interest    Period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4   | Notification of market      disruption.  The Lender shall promptly notify the      Borrowers if no rate is quoted on Telerate Page 3750 or if for any reason      the Lender is unable to obtain Dollars in the London Interbank Market in      order to fund the Loan (or any part of it) during any Interest Period,      stating the circumstances which have caused such notice to be      given. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5   | Suspension of      drawdown.  If the Lender's notice under Clause 4.4      is served before an Advance is made, the Lender's obligation to make the      Advance shall be suspended while the circumstances referred to in the      Lender's notice continue. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6   | Negotiation of alternative rate      of interest.  If the Lender’s notice under      Clause 4.4 is served after an Advance is made, the Borrowers and the      Lender shall use reasonable endeavours to agree, within the 30 days after      the date on which the Lender serves its notice under Clause 4.4 (the      “Negotiation      Period”), an alternative interest rate or (as the case may be) an      alternative basis for the Lender to fund or continue to fund the Loan      during the Interest Periodconcerned. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.7   | Application of agreed      alternative rate of interest.  Any alternative interest      rate or an alternative basis which is agreed during the Negotiation Period      shall take effect in accordance with the terms  agreed. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.8   | Alternative rate of interest in      absence of agreement.  If an alternative interest rate or      alternative basis is not agreed within the Negotiation Period, and the      relevant circumstances are continuing at the end of the Negotiation      Period, then the Lender shall set an interest period and interest rate      representing the cost of funding of the Lender in Dollars or in any      available currency of the Loan plus the Margin; and the procedure provided      for by this Clause 4.8 shall be repeated if the relevant      circumstances are continuing at the end of the interest period so set by      the Lender. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.9   | Notice of      prepayment.  If the Borrowers do not agree with an      interest rate set by the Lender under Clause 4.8, the Borrowers may      give the Lender not less than 15 Business Days' notice of their intention      to prepay at the end of the interest period set by the    Lender. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.10   | Prepayment.  A      notice under Clause 4.9 shall be irrevocable; and on the last      Business Day of the interest period set by the Lender, the Borrowers shall      prepay (without premium or penalty) the Loan, together with accrued      interest thereon at the applicable rate plus the  Margin. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.11   | Application of      prepayment.  The provisions of Clause 7 shall apply      in relation to the prepayment. |
|------------------|----------------------------------------------------------------------------------------------------------------------------|

| 4.12   | Calculation of      Margin.  The rate of Margin that shall apply for each      period where the Loan to Value Ratio is less than or equal to 0.65:1 shall      be 1.05 per cent. per annum.  The rate of Margin that shall      apply for each period where the Loan to Value Ratio is greater than 0.65:1      shall be 1.2 per cent. per annum.  The Loan to Value Ratio shall      be calculated on the first Drawdown Date and at six monthly intervals      thereafter.  The Lender shall notify to the Borrowers the      applicable Margin for the period following the first Drawdown Date and      shall thereafter only notify the Borrowers in relation to subsequent      periods if there is a change to the relevant applicable Margin that shall      apply due to a change in the Loan to Value Ratio.  For the      purposes of this Clause 4.12 the Loan to Value Ratio shall mean the ratio      of the Loan to the aggregate of the market value (determined as provided      in Clause 14.3) of the Ships plus the net realisable value of any      additional security provided under Clause14. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5.1   | Commencement of Interest      Periods.  The first Interest Period applicable to an      Advance shall commence on the Drawdown Date and each subsequent Interest      Period shall commence on the expiry of the preceding Interest      Period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2   | Duration of normal Interest      Periods.  Subject to Clauses 5.3 and 5.4, each Interest      Period shall be: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| (a)   | 3,      6, 9 or 12 months as notified by the Borrowers to the Lender not later      than 11.00 a.m. (London time) 5 Business Days before the commencement of      the Interest Period; or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c)   | such      other period as the Lender may agree with the  Borrowers. |
|-----------------|---------------------------------------------------------------------|

| 5.3   | Duration of Interest Periods      for repayment instalments.  In respect of an amount due      to be repaid under Clause 7 on a particular Repayment Date, an Interest      Period shall end on that RepaymentDate. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4   | Non-availability of matching      deposits for Interest Period selected.  If, after the      Borrowers have selected and the Lender has agreed an Interest Period      longer than 6 months, the Lender notifies the Borrowers by 11.00 a.m.      (London time) on the third Business Day before the commencement of the      Interest Period that it is not satisfied that deposits in Dollars for a      period equal to the Interest Period will be available to it in the London      Interbank Market when the Interest Period commences, the Interest Period      shall be of 6 months. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 6.1   | Payment of default interest on      overdue amounts.  The Borrowers shall pay interest in      accordance with the following provisions of this Clause 6 on any amount      payable by the Borrowers under any Finance Document which the Lender does      not receive on or before the relevant date, that  is: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | if      such amount has become immediately due and payable under Clause 18.4, the      date on which it became immediately due and  payable. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2   | Default rate of      interest.  Interest shall accrue on an overdue amount      from (and including) the relevant date until the date of actual payment      (as well after as before judgment) at the rate per annum determined by the      Lender to be 1.5 per cent. above: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | in      the case of an overdue amount of principal, the higher of the rates set      out at Clauses 6.3(a) and (b); or |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      the case of any other overdue amount, the rate set out at Clause      6.3(b). |
|-----------------|---------------------------------------------------------------------------------------|

| 6.3   | Calculation of default rate of      interest.  The rates referred to in Clause 6.2      are: |
|-----------------|--------------------------------------------------------------------------------------------------------|

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

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

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

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

| 6.4   | Notification of interest      periods and default rates.  The Lender shall promptly      notify the Borrowers of each interest rate determined by it under Clause      6.3 and of each period selected by it for the purposes of paragraph (b) of      that Clause; but this shall not be taken to imply that the Borrowers are      liable to pay such interest only with effect from the date of the Lender's      notification. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5   | Payment of accrued default      interest.  Subject to the other provisions of this      Agreement, any interest due under this Clause shall be paid on the last      day of the period by reference to which it was  determined. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.6   | Compounding of default      interest.  Any such interest which is not paid at the end      of the period by reference to which it was determined shall thereupon be      compounded. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.7   | Application to Master      Agreement.  For the avoidance of doubt, this Clause 6      does not apply to any amount payable under the Master Agreement in respect      of any continuing Transaction as to which section 2(e) (Default Interest;      Other Amounts) of the Master Agreement shall  apply. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7.1   | Amount of repayment      instalments.  The Borrowers shall repay each Advance in      40 consecutive quarterly instalments being (i) eight consecutive quarterly      instalments of Seven hundred and fifty thousand Dollars ($750,000) each      followed by (ii) thirty one consecutive quarterly instalments of Four      hundred and thirty seven thousand Dollars ($437,000) each and followed by      (iii) a final instalment of Four hundred and fifty three thousand Dollars      ($453,000) provided however that if an Advance is not drawndown in full      such instalments shall be reduced prorata. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2   | Repayment      Dates.  The first instalment for each Advance shall be      repaid on the date falling three months after the Drawdown Date of that      Advance and the last instalment on the date falling 120 months after the      Drawdown Date of that Advance and in either case no later than 31 March      2018. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3   | Final Repayment      Date.  On the final Repayment Date, the Borrowers shall      additionally pay to the Lender all other sums then accrued or owing under      any Finance Document. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4   | Voluntary      prepayment.  Subject to the following conditions, the      Borrowers may prepay the whole or any part of the Loan on the last day of      an Interest Period. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5   | Conditions for voluntary      prepayment.  The conditions referred to in Clause 7.4 are      that: |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (a)   | a      partial prepayment shall be $100,000 or a multiple of      $100,000; |
|-----------------|-----------------------------------------------------------------------------|

| (b)   | the      Lender has received from the Borrowers at least 15 days’ prior written      notice specifying the amount to be prepaid and the date on which the      prepayment is to be made; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7.6   | Effect of notice of      prepayment.  A prepayment notice may not be withdrawn or      amended without the consent of the Lender and the amount specified in the      prepayment notice shall become due and payable by the Borrowers on the      date for prepayment specified in the prepayment  notice. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7   | Mandatory      prepayment.  Without prejudice to the provisions of      Clause 14, the Borrowers shall be obliged to make a prepayment in the      relevant amount if a Ship is sold or becomes a Total  Loss: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | in      the case of a Total Loss, on the earlier of the date falling 120 days      after the Total Loss Date and the date of receipt by the Security Trustee      of the proceeds of insurance relating to such Total  Loss; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.8   | Amounts payable on      prepayment.  A prepayment shall be made together with      accrued interest (and any other amount payable under Clause 20 or      otherwise) in respect of the amount prepaid and, if the prepayment is not      made on the last day of an Interest Period together with any sums payable      under Clause 20.1(b) but without premium or  penalty. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.9   | Application of partial      prepayment.  Other than in the case of mandatory      prepayment pursuant to Clause 7.7 which shall be applied in the manner      described in Clause 7.7 each partial prepayment shall be applied against      the repayment instalments specified in Clause 7.1 in inverse order of      maturity and pro rata each Advance. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.10   | No      reborrowing.  No amount prepaid may be      reborrowed. |
|------------------|---------------------------------------------------------------------------|

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

| 8.1   | Documents, fees and no      default.  The Lender's obligation to make an Advance is      subject to the following conditionsprecedent: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | that,      on or before the service of the first Drawdown Notice, the Lender receives      the documents described in Part A of Schedule 2 in form and substance      satisfactory to it and its lawyers; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | that,      on a Drawdown Date but prior to making the Advance, the Lender receives or      is satisfied that it will receive the documents described in Part B of      Schedule 2 in form and substance satisfactory to it and its      lawyers; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | that,      on before the relevant Drawdown Date the Lender has received the      arrangement fee referred to in Clause 19.1 and all accrued commitment fee      payable pursuant to Clause 19.1;and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (i)   | no      Event of Default or Potential Event of Default has occurred and is      continuing or would result from the borrowing of the    Advance; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the      representations and warranties in Clause 9.1 and those of any Borrower or      any Security Party which are set out in the other Finance Documents would      be true and not misleading if repeated on each of those dates with      reference to the circumstances then existing;  and |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | none      of the circumstances contemplated by Clause 4.4 has occurred and is      continuing; and |
|-------------------|----------------------------------------------------------------------------------------------------|

| (e)   | that,      if the ratio set out in Clause 14.1 were applied immediately following the      making of the Advance, the Borrowers would not be obliged to provide      additional security or prepay part of the Loan under that      Clause; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 8.2   | Waivers of conditions      precedent.  If the Lender, at its discretion, permits an      Advance to be borrowed before certain of the conditions referred to in      Clause 8.1 are satisfied, the Borrowers shall ensure that those conditions      are satisfied within 5 Business days after the Drawdown Date (or such      longer period as the Lender mayspecify). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 9.1   | General.  Each      Borrower represents and warrants to the Lender as  follows. |
|-----------------|-------------------------------------------------------------------------------------------|

| 9.2   | Status.  Each      Borrower is duly incorporated and validly existing and in good standing      under the laws of the MarshallIslands. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3   | Share capital and      ownership.  Each Borrower has an authorised share capital      of 500 registered and/or bearer shares without par value all of which      shares have been issued and the legal title and beneficial ownership of      all those shares is held, free of any Security Interest or other claim, by      the Shareholder. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.4   | Corporate      power.  Each Borrower has the corporate capacity, and has      taken all corporate action and obtained all consents necessary for      it: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      execute the MOAs, to purchase and pay for each Ship under the relevant MOA      and register each Ship in its name in the Panamanian Ship      Registry; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | to      execute the Finance Documents to which that Borrower is a party and the      Master Agreement; and |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (c)   | to      borrow under this Agreement, to enter into Transactions under the Master      Agreement and to make all the payments contemplated by, and to comply      with, those Finance Documents and the Master  Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5   | Consents in      force.  All the consents referred to in Clause 9.4 remain      in force and nothing has occurred which makes any of them liable to      revocation. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.6   | Legal validity; effective      Security Interests.  The Finance Documents to which each      Borrower is a party and the Master Agreement, do now or, as the case may      be, will, upon execution and delivery (and, where applicable, registration      as provided for in the FinanceDocuments): |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 9.7   | No third party Security      Interests.  Without limiting the generality of Clause      9.6, at the time of the execution and delivery of each Finance      Document: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 9.8   | No      conflicts.  The execution by each Borrower of each      Finance Document to which it is a party and the Master Agreement, and the      borrowing by that Borrower of the Loan, and its compliance with each      Finance Document and the Master Agreement to which it is a party will not      involve or lead to a contraventionof: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 9.9   | No withholding      taxes.  No tax is imposed in any jurisdiction in which      that Borrower is ordinarily resident for tax by way of withholding or      deduction or otherwise on any payment to be made under this      Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.10   | No      default.  No Event of Default or Potential Event of      Default has occurred and iscontinuing. |
|------------------|-------------------------------------------------------------------------------------------------------------------|

| 9.11   | Information.  All      information which has been provided in writing by or on behalf of the      Borrowers or any Security Party to the Lender in connection with any      Finance Document satisfied the requirements of Clause 10.5; all audited      and unaudited accounts which have been so provided satisfied the      requirements of Clause 10.7; and there has been no material adverse change      in the financial position or state of affairs of any Borrower from that      disclosed in the latest of thoseaccounts. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.12   | No      litigation.  No legal or administrative action involving      any Borrower (including action relating to any alleged or actual breach of      the ISM Code or the ISPS Code) has been commenced or taken or, to any      Borrower's knowledge, is likely to be commenced or taken which, in either      case, would be likely to have a material adverse effect on any Borrower's      financial position orprofitability. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.13   | Validity and completeness of      MOAs. The MOAs constitute valid, binding and enforceable      obligations of the Seller and the Borrower respectively in accordance with      its terms subject to any relevant insolvency laws affecting creditors’      rights generally; and: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | no      amendments or additions to either MOA have been agreed nor have either      Borrower or the Seller waived any of their respective rights under the      relevant MOA. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.14   | No rebates      etc.  There is no agreement or understanding to allow or      pay any rebate, premium, commission, discount or other benefit or payment      (howsoever described) to either Borrower, the Seller or a third party in      connection with the purchase by either Borrower of either Ship, other than      as disclosed to the Lender in writing on or prior to the date of this      Agreement. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.15   | Compliance with certain      undertakings.  At the date of this Agreement, the      Borrowers are in compliance with Clauses 10.2, 10.4, 10.9 and      10.13. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.16   | Taxes      paid.  Each Borrower has paid all taxes applicable to, or      imposed on or in relation to that Borrower, its business or the Ship owned      by it. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.17   | ISM Code and ISPS Code      compliance.  All requirements of the ISM Code and ISPS      Code as they relate to the Borrowers, the Approved Manager and each Ship      have been complied with. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | GENERAL      UNDERTAKINGS |
|----------------|---------------------------|

| 10.1   | General.  Each      Borrower undertakes with the Lender to comply with the following      provisions of this Clause 10 at all times during the Security Period,      except as the Lender may otherwisepermit. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2   | Title; negative      pledge.  Each Borrowerwill: |
|------------------|------------------------------------------------------------|

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

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

| 10.3   | No disposal of      assets.  Save pursuant to the relevant Bareboat Charter      or in the case of a disposal of a Ship where the provisions of Clause 7.7      are complied with, no Borrower will transfer, lease or otherwise dispose      of: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.4   | No other liabilities or      obligations to be incurred.  No Borrower will incur any      liability or obligation except: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | liabilities      and obligations under the MOA, the Master Agreement, the Bareboat Charter,      the First Sub-Time Charter, the Second Sub-Time Charter and the Finance      Documents to which it is a party; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | liabilities      or obligations reasonably incurred in the ordinary course of operating and      chartering the Ship owned by it;and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | provided      that the terms of Clause 11.3(d) are complied with, inter-company      Indebtedness from other companies which are in the same ultimate      beneficial ownership as theBorrowers. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5   | Information provided to be      accurate.  All financial and other information which is      provided in writing by or on behalf of a Borrower under or in connection      with any Finance Document will be true and not misleading and will not      omit any material fact orconsideration. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6   | Provision of financial      statements.  Each Borrower will procure that there is      sent to the Lender: |
|------------------|----------------------------------------------------------------------------------------------------------------------|

| (a)   | as      soon as possible, but in no event later than 30 June following the end of      each financial year of the Guarantor and of each Borrower, the annual      audited accounts of the Guarantor and of each Borrower;  and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | as      soon as possible, but in no event later than 30 days after the end of each      quarter in the Guarantor’s and each of the Borrower’s financial years the      unaudited accounts of the Guarantor and its consolidated subsidiaries and      the Borrowers which are certified as to their correctness by its chief      financial officer. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7   | Form of financial      statements.  All accounts (audited and unaudited)      delivered under Clause 10.6 will: |
|------------------|---------------------------------------------------------------------------------------------------------------------------|

| (a)   | be      prepared in accordance with all applicable laws and GAAP consistently      applied; |
|-----------------|---------------------------------------------------------------------------------------------|

| (b)   | give      a true and fair view of the financial condition of the Guarantor and      relevant Borrower at the date of those accounts and of its profit for the      period to which those accounts relate;and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | fully      disclose or provide for all significant liabilities of the Guarantor and      the relevant Borrower. |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| 10.8   | Shareholder and creditor      notices.  Each Borrower will send the Lender, at the same      time as they are despatched, copies of all communications which are      despatched to that Borrower's shareholders or creditors or any class of      them. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9   | Consents.  Each      Borrower will maintain in force and promptly obtain or renew, and will      promptly send certified copies to the Lender of, all consents      required: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | for      that Borrower to perform its obligations under any Finance Document to      which it is a party or the MasterAgreement; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

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

| (c)   | for      that Borrower to continue to own charter, and operate the Ship owned by      it; |
|-----------------|-------------------------------------------------------------------------------------------|

| 10.10   | Maintenance of Security      Interests.  Each Borrowerwill: |
|-------------------|-----------------------------------------------------------------------|

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

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

| 10.11   | Notification of      litigation.  Each Borrower will provide the Lender with      details of any legal or administrative action involving either Borrower,      any Security Party, the Approved Manager or the Ships, their Earnings or      Insurances promptly upon becoming aware of the same where such as legal or      administrative action might, if adversely determined, have a material      adverse effect on the ability of that Borrower to perform its obligations      under any Finance Document to which it is a  party. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12   | No amendment to the      MOAs.  The Borrowers will not agree to any amendment or      supplement to, or waive or fail to enforce, the MOAs or any of their      provisions. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13   | Chief Executive      Office.  Each Borrower will maintain its chief executive      office, and keep its corporate documents and records. at Suite 306,      Commerce Building, One Chancery Lane, Hamilton, MH12,    Bermuda. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14   | Confirmation of no      default.  Each Borrower will, within 2 Business Days      after service by the Lender of a written request, serve on the Lender a      notice which is signed by 2 directors of that Borrower and      which: |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.15   | Notification of      default.  Each Borrower will notify the Lender as soon as      that Borrower becomes aware of: |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.16   | Provision of further      information.  Each Borrower will, as soon as practicable      after receiving the request, provide the Lender with any additional      financial or other informationrelating: |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.17   | “Know your customer”      checks.  If: |
|-------------------|--------------------------------------------------------------|

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

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

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

| 10.18   | Financial      Covenants. |
|-------------------|---------------------------|

| (i)   | The      Borrowers undertake to comply at all times with the financial covenants      set out in Schedule 3; |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (ii)   | The      Borrowers shall provide to the Lender within 60 days after the end of each      financial quarter of the Guarantor’s financial year a compliance      certificate in the form set out in Schedule 4 executed by the chief      financial officer of the Guarantor and confirming that the financial      covenants set out in Schedule 3 have been complied with during each      financial quarter. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19   | Fixing of Interest      Rates.  The Borrowers undertake that at all times      throughout the Security Period they shall hedge against fluctuations in      the interest rate on the Loan which hedging shall be in respect of at      least 50 per cent of the Loan and shall be effected either by way of      interest rate swap transactions, hedging instalments or fixed rate      funding. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.20   | Minimum Free      Liquidity.  The Borrowers undertake to procure that they      shall maintain on accounts with the Lender a minimum aggregate balance of      $200,000 free of Security Interests other than those in favour of the      Lender. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | CORPORATE      UNDERTAKINGS |
|----------------|-----------------------------|

| 11.1   | General.  Each      Borrower also undertakes with the Lender to comply with the following      provisions of this Clause 11 at all times during the Security Period      except as the Lender may otherwisepermit. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2   | Maintenance of      status.  Each Borrower will maintain its separate      corporate existence and remain in good standing under the laws of the      Marshall Islands. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3   | Negative      undertakings.  No Borrower  will: |
|------------------|-----------------------------------------------------------|

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

| (b)   | pay      any dividend or make any other form of distribution if an Event of Default      has occurred and is continuing; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| (c)   | effect      any form of redemption, purchase or return of share capital;      or |
|-----------------|----------------------------------------------------------------------------------|

| (d)   | provide      any form of credit or financial assistanceto: |
|-----------------|------------------------------------------------------------|

| (i)   | a      person who is directly or indirectly interested in that Borrower's share      or loan capital; or |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (ii)   | any      company in or with which such a person is directly or indirectly      interested or connected; |
|------------------|---------------------------------------------------------------------------------------------------------|

| (e)   | open      or maintain any account with any bank or financial institution except      accounts with the Lender for the purposes of the Finance      Documents; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 12   | INSURANCE |
|----------------|-----------|

| 12.1   | General.  Each      Borrower also undertakes with the Lender to comply with the following      provisions of this Clause 12 in respect of each Ship at all times during      the Security Period after that Ship has been delivered to it under the      relevant MOA  except as the Lender may otherwise      permit. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2   | Maintenance of obligatory      insurances.  Each Borrower shall keep the Ship owned by      it insured at the expense of that Borrower  against: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | protection      and indemnity risks; and |
|-----------------|------------------------------------------|

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

| 12.3   | Terms of obligatory      insurances.   Such insurances in relation to a Ship      shall be effected by the Borrowers: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | in      the case of fire and usual marine risks and war risks, in an amount on an      agreed value basis at least the greater of (i) 120 per cent of the Advance      in respect of such Ship and (ii) the market value of such Ship;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (f)   | through      approved brokers and with approved insurance companies and/or underwriters      or, in the case of war risks and protection and indemnity risks, in      approved war risks and protection and indemnity risks associations and,      without prejudice to the Borrowers’ obligation to obtain the prior      approval of the Lender such approval not to be unreasonably withheld, at      all times with reputable international brokers, companies, underwriters      and mutual insurance associations. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4   | Further protections for the      Lender.  In addition to the terms set out in Clause 12.3,      each Borrower shall use its best endeavours to procure that the obligatory      insurances shall: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (d)   | provide      that such obligatory insurances shall be primary without right of      contribution from other insurances which may be carried by the Lender;      and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 12.5   | Renewal of obligatory      insurances.  Each Borrower  shall: |
|------------------|-------------------------------------------------------------------------|

| (a)   | at      least 14 days before the expiry of any obligatory insurance effected by      it: |
|-----------------|------------------------------------------------------------------------------------------|

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

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

| (b)   | at      least 7 days before the expiry of any obligatory insurance effected by it,      renew that obligatory insurance in accordance with the Lender's approval      pursuant to paragraph (a); and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 12.6   | Copies of policies; letters of      undertaking.  Each Borrower shall ensure that all      approved brokers provide the Lender with pro forma copies of all policies      relating to the obligatory insurances which they are to effect or renew      and of a letter or letters or undertaking in a form required by the Lender      and including undertakings by the approved brokers  that: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | they      will have endorsed on each policy, immediately upon issue, a loss payable      clause and a notice of assignment complying with the provisions of Clause      12.4; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (d)   | they      will notify the Lender, not less than 10 days before the expiry of the      obligatory insurances, in the event of their not having received notice of      renewal instructions from that Borrower or its agents and, in the event of      their receiving instructions to renew, they will promptly notify the      Lender of the terms of the instructions;and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 12.7   | Copies of certificates of      entry.  Each Borrower shall ensure that any protection      and indemnity and/or war risks associations in which the Ship owned by it      is entered provides the Lenderwith: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 12.8   | Deposit of original      policies.  Each Borrower shall ensure that all policies      relating to obligatory insurances effected by it are deposited with the      approved brokers through which the insurances are effected or      renewed. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.9   | Payment of      premiums.  Each Borrower shall punctually pay all      premiums or other sums payable in respect of the obligatory insurances      effected by it and produce all relevant receipts when so required by the      Lender. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.10   | Guarantees.  Each      Borrower shall ensure that any guarantees required by a protection and      indemnity or war risks association are promptly issued and remain in full      force and effect. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.11   | Compliance with terms of      insurances.  No Borrower shall do nor omit to do (nor      permit to be done or not to be done) any act or thing which would or might      render any obligatory insurance invalid, void, voidable or unenforceable      or render any sum payable under an obligatory insurance repayable in whole      or in part; and, in particular: |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | each      Borrower shall take all necessary action and comply with all requirements      which may from time to time be applicable to the obligatory insurances,      and (without limiting the obligation contained in Clause 12.7(c)) ensure      that the obligatory insurances are not made subject to any exclusions or      qualifications to which the Lender has not given its prior      approval; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 12.12   | Alteration to terms of      insurances.  No Borrower shall either make or agree to      any alteration to the terms of any obligatory insurance nor waive any      right relating to any obligatoryinsurance. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.13   | Settlement of      claims.  No Borrower shall settle, compromise or abandon      any claim under any obligatory insurance for Total Loss or for a Major      Casualty, and shall do all things necessary and provide all documents,      evidence and information to enable the Lender to collect or recover any      moneys which at any time become payable in respect of the obligatory      insurances. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.14   | Provision of copies of      communications.  Each Borrower shall provide the Lender,      at the time of each such communication, copies of all written      communications between that Borrowerand: |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 12.15   | Provision of      information.  In addition, each Borrower shall promptly      provide the Lender (or any persons which it may designate) with any      information which the Lender (or any such designated person) reasonably      requests for the purpose of: |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | effecting,      maintaining or renewing any such insurances as are referred to in Clause      12.16 below or dealing with or considering any matters relating to any      such insurances; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.16   | Mortgagee's interest and      additional perils insurances.  The Lender shall be      entitled from time to time to effect, maintain and renew a mortgagee’s      interest additional perils insurance in respect of any Ship and a      mortgagee’s interest marine insurance in such amounts, on such terms,      through such insurers and generally in such manner as the Lender may from      time to time consider appropriate and the Borrowers shall upon demand      fully indemnify the Lender in respect of all premiums and other expenses      which are incurred in connection with or with a view to effecting,      maintaining or renewing any such insurance or dealing with, or      considering, any matter arising out of any such  insurance. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.17   | Review of insurance      requirements.  The Lender shall at the Borrowers’ costs      and expense appoint an independent insurance consultant to review the      requirements of this Clause 12 annually in      order to take account of any changes in circumstances after the date of      this Agreement which are, in the reasonable opinion of the Lender      significant and capable of affecting the Borrowers or the Ships and their      insurance (including, without limitation, changes in the availability or      the cost of insurance coverage or the risks to which the Borrowers may be      subject). |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.18   | Modification of insurance      requirements.  The Lender shall notify the Borrowers of      any proposed modification under Clause 12.17 to the requirements of this      Clause 12 which the Lender or its Consultant      shall reasonably consider appropriate, in the circumstances and, after      consultation and taking full account of the Borrowers’ opinions, such      modification shall take effect on and from the date it is notified in      writing to the Borrowers as an amendment to this Clause 12 and shall bind the Borrowers      accordingly. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13   | SHIP      COVENANTS |
|----------------|---------------------|

| 13.1   | General.  Each      Borrower also undertakes with the Lender to comply with the following      provisions of this Clause 13 in respect of each Ship at all times during      the Security Period after that Ship has been delivered to it under the      relevant MOA except as the Lender may otherwise  permit. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2   | Ship's name and      registration.  Each Borrower shall keep the Ship owned by      it registered in the Panamanian Ship Registry; shall not do or omit to do      or allow to be done anything as a result of which such registration might      be cancelled or imperilled; and shall not change the name or port of      registry of the Ship owned by it. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3   | Repair and      classification.  Each Borrower shall keep the Ship owned      by it in a good and safe condition and state of  repair: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | so      as to maintain that Ship's class at the highest notation for that type of      ship free of recommendations and conditions affecting the Ship’s class;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | so      as to comply with all laws and regulations applicable to vessels      registered at ports in the Republic of Panama or to vessels trading to any      jurisdiction to which that Ship may trade from time to time, including but      not limited to the ISM Code and the ISPSCode. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4   | Modification.  No      Borrower shall make any modification or repairs to, or replacement of, any      Ship or equipment installed on the Ship which would or might materially      alter the structure, type or performance characteristics of any Ship or      materially reduce its value. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5   | Removal of      parts.  No Borrower shall remove any material part of any      Ship, or any item of equipment installed on any Ship, unless the part or      item so removed is forthwith replaced by a suitable part or item which is      in the same condition as or better condition than the part or item      removed, is free from any Security Interest or any right in favour of any      person other than the Lender and becomes on installation on the relevant      Ship the property of the relevant Borrower and subject to the security      constituted by the relevant Mortgage Provided that a Borrower      may install equipment owned by a third party if the equipment can be      removed without any risk of damage to the Ship owned by  it. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.6   | Surveys.  Each      Borrower shall submit the Ship owned by it regularly to all periodical or      other surveys which may be required for classification purposes and, if so      required by the Lender provide the Lender, with copies of all survey      reports. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.7   | Inspection.  Each      Borrower shall permit the Lender (by surveyors or other persons appointed      by it for that purpose at the Borrowers’ expense) to board the Ship owned      by it at all reasonable times to inspect its condition or to satisfy      themselves about proposed or executed repairs and shall afford all proper      facilities for such inspections.  The Lender shall also have the      right to inspect class records of the Ships from time to    time. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.8   | Prevention of and release from      arrest.  Each Borrower shall promptly      discharge: |
|------------------|-----------------------------------------------------------------------------------------------------|

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

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

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

| 13.9   | Compliance with laws      etc.  Each Borrowershall: |
|------------------|---------------------------------------------------------------|

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

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

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

| 13.10   | Provision of      information.  Each Borrower shall promptly provide the      Lender with any information which it reasonably requests      regarding: |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Ship owned by it, its employment, position and  engagements; |
|-----------------|-----------------------------------------------------------------------|

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

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

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

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

| 13.11   | Notification of certain      events.  Each Borrower shall immediately notify the      Lender by fax, confirmed forthwith, by letter  of: |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

| 13.12   | Restrictions on chartering,      appointment of managers etc.  No Borrower shall, in      relation to the Ship owned by it: |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | (other      than pursuant to a Related Party Charter) let or allow any charterer to      let that Ship on demise charter for anyperiod; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | (other      than pursuant to a Related Party Charter) enter or allow any charterer to      enter into any time or consecutive voyage charter in respect of that Ship      for a term which exceeds, or which by virtue of any optional extensions      may exceed, 13 months; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d)   | (other      than pursuant to a Related Charter) charter or allow any charterer to      charter that Ship otherwise than on bona fide arm's length terms at the      time when that Ship is fixed; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | appoint      a manager of that Ship other than the Approved Manager or agree to any      alteration to the terms of the Approved Manager's    appointment; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | de-activate      or lay up or allow any charterer to deactivate or lay up that Ship;      or |
|-----------------|----------------------------------------------------------------------------------------------|

| (g)   | put      that Ship into the possession of any person for the purpose of work being      done upon her in an amount exceeding or likely to exceed $500,000 (or the      equivalent in any other currency)unless: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | that      person has first given to the Lender and in terms satisfactory to it a      written undertaking not to exercise any lien on that Ship or the Earnings      for the cost of such work or any other reason;  or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the      cost of the work to be done on that Ship is covered by insurances and the      underwriters have agreed to make payment direct to the person who is to      carry out the work; or |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | the      Lender is otherwise satisfied that the amounts payable in respect of the      cost of the work will be paid on their relevant due date for      payment. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.13   | Notice of      Mortgage.  Each Borrower shall keep the relevant Mortgage      registered against the Ship owned by it as a valid first priority      mortgage, carry on board that Ship a certified copy of the relevant      Mortgage and place and maintain in a conspicuous place in the navigation      room and the Master's cabin of that Ship a framed printed notice stating      that that Ship is mortgaged by that Borrower to the  Lender. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.14   | Sharing of      Earnings.   Save as disclosed to the Mortgagee, no      Borrower shall enter into any agreement or arrangement for the sharing of      any Earnings. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14   | SECURITY      COVER |
|----------------|---------------------|

| 14.1   | Minimum required security      cover.  Clause 14.2 applies if the Lender notifies the      Borrowers that: |
|------------------|----------------------------------------------------------------------------------------------------------------------|

| (a)   | the      aggregate of the market values (determined as provided in Clause 14.3) of      the Ships; plus |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (b)   | the      net realisable value of any additional security previously provided under      this Clause 14; |
|-----------------|---------------------------------------------------------------------------------------------------------|

| 14.2   | Provision of additional      security; prepayment.  If the Lender serves a notice on      the Borrowers under Clause 14.1, the Borrowers shall, within 1 month after      the date on which the Lender's notice is served,  either: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | provide,      or ensure that a third party provides, additional security which is      acceptable to the Lender in its absolute discretion and which, in the      opinion of the Lender, has a net realisable value at least equal to the      shortfall and is documented in such terms as the Lender may approve or      require; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 14.3   | Valuation of      Ships.  The market value of a Ship at any date is that      shown by a valuation prepared: |
|------------------|------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 14.4   | Value of additional vessel      security.  The net realisable value of any additional      security which is provided under Clause 14.2 and which consists of a      Security Interest over a vessel shall be that shown by a valuation      complying with the requirements of Clause14.3. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5   | Valuations      binding.  Any valuation under Clause 14.2, 14.3 or 14.4      shall be binding and conclusive as regards the Borrowers, as shall be any      valuation which the Lender makes of any additional security which does not      consist of or include a SecurityInterest. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6   | Provision of      information.  The Borrowers shall promptly provide the      Lender and any shipbroker or expert acting under Clause 14.3 or 14.4 with      any information which the Lender or the shipbroker or expert may request      for the purposes of the valuation; and, if the Borrowers fail to provide      the information by the date specified in the request, the valuation may be      made on any basis and assumptions which the shipbroker or the Lender (or      the expert appointed by it) considersprudent. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7   | Payment of valuation      expenses.  Without prejudice to the generality of the      Borrowers' obligations under Clauses 19.2, 19.3 and 20.3, the Borrowers      shall, on demand, pay the Lender the amount of the fees and expenses of      any shipbroker or expert instructed by the Lender under this Clause and      all legal and other expenses incurred by the Lender in connection with any      matter arising out of this Clause. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8   | Application of      prepayment.  Clause 7 shall apply in relation to any      prepayment pursuant to Clause14.2(b). |
|------------------|-------------------------------------------------------------------------------------------------------------------------------|

| 15   | PAYMENTS      AND CALCULATIONS |
|----------------|--------------------------------|

| 15.1   | Currency and method of      payments.  All payments to be made by any Borrower to the      Lender under a Finance Document shall be made to the    Lender: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | to      such account as the Lender may from time to time notify to the      Borrowers. |
|-----------------|----------------------------------------------------------------------------------------|

| 15.2   | Payment on non-Business      Day.  If any payment by any Borrower under a Finance      Document would otherwise fall due on a day which is not a Business      Day: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 15.3   | Basis for calculation of      periodic payments.  All interest and commitment fee and      any other payments under any Finance Document which are of an annual or      periodic nature shall accrue from day to day and shall be calculated on      the basis of the actual number of days elapsed and a 360 day      year. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4   | Lender      accounts.  The Lender shall maintain an account showing      the amounts advanced by the Lender and all other sums owing to the Lender      from the Borrowers and each Security Party under the Finance Documents and      all payments in respect of those amounts made by the Borrowers and any      Security Party. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.5   | Accounts prima facie      evidence.  If the account maintained under Clauses 15.4      shows an amount to be owing by a Borrower or a Security Party to the      Lender, that account shall be prima facie evidence that that amount is      owing to the Lender. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16   | APPLICATION      OF RECEIPTS |
|----------------|------------------------------|

| 16.1   | Normal order of      application.  Except as any Finance Document may      otherwise provide, any sums which are received or recovered by any      Creditor Party under or by virtue of any Finance Document shall be      applied: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | FIRST:      in or towards payment pro rata of any unpaid fees, costs and expenses of      the Lender under the Finance Documents and the Master      Agreement; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | SECONDLY:      in or towards payment pro rata of any accrued interest or commission due      but unpaid under this Agreement; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (c)   | THIRDLY:      in or towards payment pro rata of any principal due but unpaid under this      Agreement; |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (d)   | FOURTHLY:      in or towards payment pro rata of any other amounts due but unpaid under      any Finance Document; |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| (e)   | FIFTHLY:      in retention of an amount equal to any amount not then due and payable      under any Finance Document or the Master Agreement but which the Lender,      by notice to the Borrowers and the Security Parties, states in its opinion      will or may become due and payable in the future and, upon those amounts      becoming due and payable, in or towards satisfaction of them in accordance      with the provisions of Clause 16.1(a), 16.1(b), 16.1(c) and 16.1(d);      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | SIXTHLY:      any surplus shall be paid to the Borrowers or to any other person      appearing to be entitled to it |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| 16.2   | Variation of order of      application.  The Lender may, by notice to the Borrowers      and the Security Parties, provide for a different manner of application      from that set out in Clause 16.1 either as regards a specified sum or      sums or as regards sums in a specified category or    categories. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3   | Notice of variation of order of      application.  The Lender may give notices under      Clause 16.1 from time to time; and such a notice may be stated to      apply not only to sums which may be received or recovered in the future,      but also to any sum which has been received or recovered on or after the      third Business Day before the date on which the notice is      served. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4   | Appropriation rights      overridden.  This Clause 16 and any notice which the      Lender gives under Clause 16.1 shall override any right of      appropriation possessed, and any appropriation made, by any Borrower or      any Security Party. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17   | EARNINGS      ACCOUNTS |
|----------------|------------------------|

| 17.1   | Payment of      Earnings.  Following the occurrence of an Event of      Default which is continuing and a direction from the Lender to do so, the      Borrowers shall procure that the Earning of the Ships are paid to the      Earnings Accounts. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2   | Interest accrued on the      Earnings Account.  Any credit balance on the Earnings      Accounts shall bear interest at the rate from time to time offered by the      Lender to its customers for Dollar deposits of similar amounts and for      periods similar to those for which such balances appear to the Lender      likely to remain on the EarningsAccounts. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3   | Monies on the Earnings      Accounts.  Following the occurrence of an Event of      Default which is continuing and a direction from the Lender under Clause      17.1 above any amounts standing to the credit of the Earnings Accounts      shall only be released with the approval of the  Lender. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4   | Location of      accounts.  The Borrowers shall promptly  : |
|------------------|-----------------------------------------------------------------------|

| (a)   | comply      with any requirement of the Lender as to the location or re-location of      the Earnings Accounts; |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

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

| 17.5   | Debits for expenses      etc.  Following the occurrence of an Event of Default      which is continuing and a direction from the Lender under Clause 17.1 above, the Lender shall be entitled (but      not obliged) from time to time to debit the Earnings Accounts without      prior notice in order to discharge any amount due and payable under Clause      19 or 20 or payment of which it has become entitled to demand under Clause      19 or 20. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18   | EVENTS      OF DEFAULT |
|----------------|------------------------|

| 18.1   | Events of      Default.  An Event of Default occurs  if: |
|------------------|--------------------------------------------------------------------|

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

| (b)   | any      breach occurs of Clause 8.2, 10.2, 10.3, 11.2, 11.3 or 14.1;      or |
|-----------------|-------------------------------------------------------------------------------|

| (c)   | any      breach occurs of Clause 10.18(i), 10.19 or 10.20;  or |
|-----------------|----------------------------------------------------------------|

| (d)   | any      breach by any Borrower or any Security Party occurs of any provision of a      Finance Document (other than a breach covered by paragraph (a) or (b) or      (c)) and if, in the opinion of the Lender, such default is capable of      remedy (and for these purposes any breach by either Borrower of its      obligations under Clause 12 in relation to insurances will be a default      not capable of remedy), such default continues unremedied 10 Business Days      after written notice from the Lender requesting action to remedy the same;      or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

| (ii)   | any      assets of a Relevant Person are subject to any form of execution,      attachment, arrest, sequestration or distress in respect of a sum of, or      sums aggregating, $500,000 or more or the equivalent in another currency;      or |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (iv)   | a      Relevant Person makes any formal declaration of bankruptcy or any formal      statement to the effect that it is insolvent or likely to become      insolvent, or a winding up or administration order is made in relation to      a Relevant Person, or the members or directors of a Relevant Person pass a      resolution to the effect that it should be wound up, placed in      administration or cease to carry on business, save that this paragraph      does not apply to a fully solvent winding up of a Relevant Person other      than a Borrower or the Guarantor which is, or is to be, effected for the      purposes of an amalgamation or reconstruction previously approved by the      Lender and effected not later than 3 months after the commencement of the      winding up; or |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | a      petition is presented in any Pertinent Jurisdiction for the winding up or      administration, or the appointment of a provisional liquidator, of a      Relevant Person unless the petition is being contested in good faith and      on substantial grounds and is dismissed or withdrawn within 30 days of the      presentation of the petition; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | a      Relevant Person petitions a court, or presents any proposal for, any form      of judicial or non-judicial suspension or deferral of payments,      reorganisation of its debt (or certain of its debt) or arrangement with      all or a substantial proportion (by number or value) of its creditors or      of any class of them or any such suspension or deferral of payments,      reorganisation or arrangement is effected by court order, contract or      otherwise; or |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | any      meeting of the members or directors of a Relevant Person is summoned for      the purpose of considering a resolution or proposal to authorise or take      any action of a type described in paragraphs (iii), (iv), (v) or (vi);      or |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii)   | in      a Pertinent Jurisdiction other than England, any event occurs or any      procedure is commenced which, in the opinion of the Lender, is similar to      any of the foregoing; or |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (i)   | it      becomes unlawful in any Pertinent Jurisdiction or    impossible: |
|-----------------|--------------------------------------------------------------------------|

| (i)   | for      any Borrower or any Security Party to discharge any liability under a      Finance Document or to comply with any other obligation which the Lender      considers material under a Finance Document unless provided that none of      the interests of the Lender is prejudiced in any way during the relevant      period, the discharge of that liability or compliance with that obligation      or exercise or enforcement of those rights ceases to be unlawful within 30      days; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | for      the Lender to exercise or enforce any right under, or to enforce any      Security Interest created by, a Finance Document;  or |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (i)   | any      Bareboat Charter is terminated or cancelled for whatever reason and, if      the Ship the subject of such Bareboat Charter is to remain parallel      registered under the Philippines flag, such Bareboat Charter is not      replaced with a similar bareboat charter on terms acceptable to the Lender      within a period of 15 days; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | any      of the circumstances described in Clause 18.1(g) or (h) occurs (mutatis      mutandis) in relation to the Bareboat Charterer or the Bareboat Charterer      breaches any provision of the Multiparty Deeds which the Lender considers      material and the Borrowers fail within a period of 15 days of them      becoming aware of the occurrence of such circumstances or breach or of the      receipt of a written notification from the Lender requesting the Borrowers      to remedy such circumstances or breach either to remedy such circumstances      or breach or to substitute the Bareboat Charterer with another bareboat      charterer acceptable to the Lender and which accedes to the terms of the      Multiparty Deeds; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | any      Time Charter or First Sub-Time Charter or Second Sub-Time Charter or TBS      Worldwide Time Charter is terminated or cancelled for whatever reason or      any of the circumstances described in Clause 18.1(g) or (h) occurs      (mutatis mutandis) in relation to the Time Charterer or TBS Worldwide or      the Time Charterer or TBS Worldwide breaches any provision of the      Multiparty Deeds which the Lender considers material and either such      breach is not remedied or the Ship the subject of such Time Charter or      First Sub-Time Charter or Second Sub-Time Charter or TBS Worldwide Time      Charter is not employed on alternative terms acceptable to the Lender      within a period of 15 days of the Borrowers becoming aware of the      occurrence of such breach or the receipt of a written notification from      the Lender requesting the Borrowers to remedy such breach;    or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)   | any      of the Ships ceases to be employed by the Approved Manager on terms      acceptable to the Lender or any of the circumstances described in Clause      18.1(g) or (h) occurs (mutatis mutandis) in relation to the Approved      Manager or the Approved Manager’s breach any provisions of the letters of      undertaking given to the Lender pursuant to Schedule 2 Part B, 5 which the      Lender considers material and the Borrowers fails within a period of 15      days of them becoming aware of the occurrence of such circumstances or      breach or of the receipt of a written notification from the Lender      requesting the Borrowers to remedy such circumstances or breach either to      remedy such circumstances or breach or to substitute the Approved Manager      with other Approved Manager which execute and deliver to the Lender      letters of undertaking similar to those referred to in Schedule 2 Part B,      5; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)   | it      appears to the Lender that, without its prior consent, a change has      occurred or probably has occurred after the date of this Agreement in the      ultimate beneficial ownership of any of the shares in any Borrower or in      the ultimate control of the voting rights attaching to any of those      shares; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)   | any      provision which the Lender considers material of a Finance Document proves      to have been or becomes invalid or unenforceable, or a Security Interest      created by a Finance Document proves to have been or becomes invalid or      unenforceable or such a Security Interest proves to have ranked after, or      loses its priority to, another Security Interest or any other third party      claim or interest; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (r)   | the      Master Agreement is terminated, cancelled, suspended, rescinded or revoked      or otherwise ceases to remain in full force and effect for any reason      except with the consent of the Lender;or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (ii)   | any      accident or other event involving any Ship or another vessel owned,      chartered or operated by a RelevantPerson; |
|------------------|------------------------------------------------------------------------------------------------------------------------------|

| 18.2   | Actions following an Event of      Default.  On, or at any time after, the occurrence of an      Event of Default the Lender may: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | take      any other action which, as a result of the Event of Default or any notice      served under paragraph (a) or (b), the Lender is entitled to take under      any Finance Document or any applicablelaw. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3   | Termination of      Commitment.  On the service of a notice under      Clause 18.2(a) the Commitment, and all other obligations of the      Lender to the Borrowers under this Agreement, shall be      cancelled. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4   | Acceleration of      Loan.  On the service of a notice under      Clause 18.2(b), the Loan, all accrued interest and all other amounts      accrued or owing from the Borrowers or any Security Party under this      Agreement and every other Finance Document shall become immediately due      and payable or, as the case may be, payable on  demand. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.5   | Multiple notices; action      without notice.  The Lender may serve notices Clauses      18.2(a) and (b) simultaneously or on different dates and it may take any      action referred to in Clause 18.2 if no such notice is served or      simultaneously with or at any time after the service of both or either of      such notices. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.6   | Exclusion of Lender      liability.  Neither the Lender nor any receiver or      manager appointed by the Lender, shall have any liability to a Borrower or      a Security Party: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 18.7   | Relevant      Persons.  In this Clause 18 a “Relevant Person” means      any Borrower and any SecurityParty. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------|

| 18.8   | Interpretation.  In      Clause 18.1(f) references to an event of default or a termination event      include any event, howsoever described, which is similar to an event of      default in a facility agreement or a termination event in a finance lease;      and in Clause 18.1(g) “petition” includes an      application. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19   | FEES      AND EXPENSES |
|----------------|------------------------|

| 19.1   | Arrangement and commitment      fees.  The Borrowers shall pay to the    Lender: |
|------------------|--------------------------------------------------------------------------------------------|

| (a)   | an      arrangement fee of $240,000 which to the extent not already paid prior to      the date of this Agreement shall be payable on 2 January 2008 or if later      on the date of this Agreement; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | quarterly      in arrears during the period from (and including) 1 November 2007 to the      earlier of (i) the second Drawdown Date and (ii) 31 March 2008 and on the      last day of that period a commitment fee at the rate of zero point two      five per cent. (0.25%) per annum on the undrawn amount of the      Loan. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2   | Costs of negotiation,      preparation etc.  The Borrowers shall pay to the Lender      on its demand the amount of all expenses incurred by the Lender in      connection with the negotiation, preparation, execution or registration of      any Finance Document or any related document or with any transaction      contemplated by a Finance Document or a related  document. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3   | Costs of variations,      amendments, enforcement etc.  The Borrowers shall pay to      the Lender, on the Lender's demand, the amount of all expenses incurred by      the Lender in connection with: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | any      consent or waiver by the Lender concerned under or in connection with a      Finance Document, or any request for such a consent or    waiver; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      valuation of any security provided or offered under Clause 14 or any      other matter relating to such security;or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

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

| 19.4   | Documentary      taxes.  The Borrowers shall promptly pay any tax payable      on or by reference to any Finance Document, and shall, on the Lender's      demand, fully indemnify the Lender against any claims, expenses,      liabilities and losses resulting from any failure or delay by the      Borrowers to pay such a tax. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.5   | Certification of      amounts.  A notice which is signed by 2 officers of the      Lender, which states that a specified amount, or aggregate amount, is due      to the Lender under this Clause 19 and which indicates (without      necessarily specifying a detailed breakdown) the matters in respect of      which the amount, or aggregate amount, is due shall be prima facie      evidence that the amount, or aggregate amount, is  due. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20   | INDEMNITIES |
|----------------|-------------|

| 20.1   | Indemnities regarding borrowing      and repayment of Loan.  The Borrowers shall fully      indemnify made or brought against the Lender on its demand in respect of      all claims, expenses, liabilities and losses which are incurred by the      Lender, or which the Lender reasonably and with due diligence estimates      that it will incur, as a result of or in connection  with: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | any      failure (for whatever reason) by the Borrowers to make payment of any      amount due under a Finance Document on the due date or, if so payable, on      demand (after giving credit for any default interest paid by the Borrowers      on the amount concerned underClause 6); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      occurrence and/or continuance of an Event of Default or a Potential Event      of Default and/or the acceleration of repayment of the Loan under      Clause 18; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2   | Breakage      costs.  Without limiting its generality, Clause 20.1      covers any claim, expense, liability or loss, including a loss of a      prospective profit, incurred by theLender: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | in      terminating, or otherwise in connection with, any interest and/or currency      swap or any other transaction entered into (whether with another legal      entity or with another office or department of the Lender) to hedge any      exposure arising under this Agreement or a number of transactions of which      this Agreement is one. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3   | Miscellaneous      indemnities.  The Borrowers shall fully indemnify the      Lender on its demand in respect of all claims, expenses, liabilities and      losses which may be made or brought against or incurred by the Lender, in      any country, as a result of or in connection with any action taken, or      omitted or neglected to be taken, under or in connection with any Finance      Document by the Lender or by any receiver appointed under a Finance      Document other than claims, expenses, liabilities and losses which are      shown to have been directly and mainly caused by the dishonesty or wilful      misconduct of the officers or employees of the  Lender. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.4   | Currency      indemnity.  If any sum due from any Borrower or any      Security Party to the Lender under a Finance Document or under any order      or judgment relating to a Finance Document has to be converted from the      currency in which the Finance Document provided for the sum to be paid      (the “Contractual      Currency”) into another currency (the “Payment Currency”) for      the purpose of: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 20.5   | Application to Master      Agreement.  For the avoidance of doubt, Clause 20.4 does      not apply in respect of sums due from the Borrowers to the Swap Bank under      or in connection with the Master Agreement as to which sums the provisions      of section 8 (Contractual Currency) of the Master Agreement shall      apply. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 21   | NO      SET-OFF OR TAX DEDUCTION |
|----------------|----------------------------------|

| 21.1   | No      deductions.  All amounts due from the Borrowers under a      Finance Document shall be paid: |
|------------------|----------------------------------------------------------------------------------------------------------------|

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

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

| 21.2   | Grossing-up for      taxes.  If a Borrower is required by law to make a tax      deduction from any payment: |
|------------------|------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 21.3   | Evidence of payment of      taxes.  Within one month after making any tax deduction,      the Borrower concerned shall deliver to the Lender documentary evidence      satisfactory to the Lender that the tax had been paid to the appropriate      taxation authority. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4   | Tax      Credits.  If the Lender receives for its own account a      repayment or credit in respect of tax on account of which a Borrower has      made an increased payment under Clause 21.2, it shall pay to that Borrower      a sum equal to the proportion of the repayment or credit which it      allocates to the amount due from that Borrower in respect of which that      Borrower made the increasedpayment: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Lender shall not be obliged to allocate to this transaction any part of a      tax repayment or credit which is referable to a class or number of      transactions; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | nothing      in this Clause 21.4 shall oblige the Lender to arrange its tax affairs in      any particular manner, to claim any type of relief, credit, allowance or      deduction instead of, or in priority to, another or to make any such claim      within any particular time; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | nothing      in this Clause 21.4 shall oblige the Lender to make a payment which would      leave it in a worse position than it would have been in if the Borrower      had not been required to make a tax deduction from a payment;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | any      allocation or determination made by the Lender under or in connection with      this Clause 21.4 shall be conclusive and binding on      that Borrower. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.5   | Exclusion of tax on overall net      income.  In this Clause 21 “tax deduction” means any      deduction or withholding for or on account of any present or future tax      except tax on the Lender's overall netincome. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.6   | Application to Master      Agreement.  For the avoidance of doubt, Clause 21 does      not apply in respect of sums due from the Borrowers to the Swap Bank under      or in connection with the Master Agreement as to which sums the provisions      of section 2(d) (Deduction or Withholding for Tax) of the Master Agreement      shall apply. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22   | ILLEGALITY,      ETC |
|----------------|----------------------|

| 22.1   | Illegality.  This      Clause 22 applies if the Lender notifies the Borrowers that it has      become, or will with effect from a specified date,  become: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 22.2   | Notification and effect of      illegality.  On the Lender notifying the Borrowers under      Clause 22.1, the Commitment shall terminate; and thereupon or, if      later, on the date specified in the Lender's notice under Clause 22.1      as the date on which the notified event would become effective the      Borrowers shall prepay the Loan in full in accordance with      Clause 7. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.3   | Mitigation.  If      circumstances arise which would result in a notification under      Clause 22.1 then, without in any way limiting the rights of the      Lender under Clause 22.3, the Lender shall use reasonable endeavours      to transfer its obligations, liabilities and rights under this Agreement      and the Finance Documents to another office or financial institution not      affected by the circumstances but the Lender shall not be under any      obligation to take any such action if, in its opinion, to do would or      might: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | have      an adverse effect on its business, operations or financial condition;      or |
|-----------------|-----------------------------------------------------------------------------------------|

| (b)   | involve      it in any activity which is unlawful or prohibited or any activity that is      contrary to, or inconsistent with, any regulation;  or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | involve      it in any expense (unless indemnified to its satisfaction) or tax      disadvantage. |
|-----------------|---------------------------------------------------------------------------------------------------|

| 23   | INCREASED      COSTS |
|----------------|----------------------|

| 23.1   | Increased      costs.  This Clause 23 applies if the Lender      notifies the Borrowers that it considers that as a result    of: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      introduction or alteration after the date of this Agreement of a law or an      alteration after the date of this Agreement in the manner in which a law      is interpreted or applied (disregarding any effect which relates to the      application to payments under this Agreement of a tax on the Lender's      overall net income); or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | complying      with any regulation (including any which relates to capital adequacy or      liquidity controls or which affects the manner in which the Lender      allocates capital resources to its obligations under this Agreement) which      is introduced, or altered, or the interpretation or application of which      is altered, after the date of thisAgreement, |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.2   | Meaning of “increased      cost”.  In this Clause 23, “increased cost”      means: |
|------------------|----------------------------------------------------------------------------------------------------------------------|

| (a)   | an      additional or increased cost incurred as a result of, or in connection      with, the Lender having entered into, or being a party to, this Agreement      or having taken an assignment of rights under this Agreement, of funding      or maintaining the Commitment or performing its obligations under this      Agreement, or of having outstanding all or any part of the Loan or other      unpaid sums; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | a      reduction in the amount of any payment to the Lender under this Agreement      or in the effective return which such a payment represents to the Lender      or on its capital; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | an      additional or increased cost of funding all or maintaining all or any of      the advances comprised in a class of advances formed by or including the      Loan or (as the case may require) the proportion of that cost attributable      to the Loan; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | a      liability to make a payment, or a return foregone, which is calculated by      reference to any amounts received or receivable by the Lender under this      Agreement; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3   | Payment of increased      costs.  The Borrowers shall pay to the Lender, on its      demand, the amounts which the Lender from time to time notifies the      Borrowers that it has specified to be necessary to compensate it for the      increased cost. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.4   | Notice of      prepayment.  If the Borrowers are not willing to continue      to compensate the Lender for the increased cost under Clause 23.3,      the Borrowers may give the Lender not less than 14 days' notice of their      intention to prepay the Loan at the end of an Interest    Period. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.5   | Prepayment.  A      notice under Clause 23.4 shall be irrevocable; and on the date      specified in the Borrowers' notice of intended prepayment, the Commitment      shall terminate and the Borrowers shall prepay (without premium or      penalty) the Loan, together with accrued interest thereon at the      applicable rate plus the Margin. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.6   | Application of      prepayment.  Clause 7 shall apply in relation to the      prepayment. |
|------------------|----------------------------------------------------------------------------------------------------------|

| 24   | SET-OFF |
|----------------|---------|

| 24.1   | Application of credit      balances.  The Lender may without prior notice following      the occurrence of an Event of Default which is  continuing: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | apply      any balance (whether or not then due) which at any time stands to the      credit of any account in the name of a Borrower at any office in any      country of the Lender in or towards satisfaction of any sum then due from      that Borrower to the Lender under any of the Finance Documents;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (iii)   | enter      into any other transaction or make any entry with regard to the credit      balance which the Lender considersappropriate. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| 24.2   | Existing rights      unaffected.  The Lender shall not be obliged to exercise      any of its rights under Clause 24.1; and those rights shall be      without prejudice and in addition to any right of set-off, combination of      accounts, charge, lien or other right or remedy to which the Lender is      entitled (whether under the general law or any  document). |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3   | No Security      Interest.  This Clause 24 gives the Lender a contractual      right of set-off only, and does not create any equitable charge or other      Security Interest over any credit balance of the  Borrower. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25   | TRANSFERS      AND CHANGES IN LENDING OFFICE |
|----------------|----------------------------------------------|

| 25.1   | Transfer by      Borrowers.  No Borrower may, without the consent of the      Lender transfer any of its rights or obligations under any Finance      Document. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2   | Assignment by      Lender.  The Lender may assign all or any of the rights      and interests which it has under or by virtue of the Finance Documents      without the consent of anyBorrower. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.3   | Rights of      assignee.  In respect of any breach of a warranty,      undertaking, condition or other provision of a Finance Document, or any      misrepresentation made in or in connection with a Finance Document, a      direct or indirect assignee of any of the Lender's rights or interests      under or by virtue of the Finance Documents shall be entitled to recover      damages by reference to the loss incurred by that assignee as a result of      the breach or misrepresentation irrespective of whether the Lender would      have incurred a loss of that kind oramount. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.4   | Sub-participation; subrogation      assignment.  The Lender may sub-participate all or any      part of its rights and/or obligations under or in connection with the      Finance Documents without the consent of, or any notice to, any Borrower;      and the Lender may assign, in any manner and terms agreed by it, all or      any part of those rights to an insurer or surety who has become subrogated      to them. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.5   | Disclosure of      information.  The Lender may disclose to a potential      assignee or sub-participant any information which the Lender has received      in relation to any Borrower, any Security Party or their affairs under or      in connection with any Finance Document, unless the information is clearly      of a confidential nature. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.6   | Change of lending      office.  The Lender may change its lending office by      giving notice to the Borrowers and the change shall become effective on      the later of: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      date on which the Borrowers receive the notice;  and |
|-----------------|---------------------------------------------------------------|

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

| 26   | VARIATIONS      AND WAIVERS |
|----------------|-----------------------------|

| 26.1   | Variations, waivers etc. by      Lender.  A document shall be effective to vary, waive,      suspend or limit any provision of a Finance Document, or the Lender's      rights or remedies under such a provision or the general law, only if the      document is signed, or specifically agreed to by fax or telex, by the      Borrowers and the Lender and, if the document relates to a Finance      Document to which a Security Party is party, by that Security      Party. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.2   | Exclusion of other or implied      variations.  Except for a document which satisfies the      requirements of Clause 26.1, no document, and no act, course of      conduct, failure or neglect to act, delay or acquiescence on the part of      the Lender (or any person acting on its behalf) shall result in the Lender      (or any person acting on its behalf) being taken to have varied, waived,      suspended or limited, or being precluded (permanently or temporarily) from      enforcing, relying on orexercising: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | an      Event of Default; or |
|-----------------|------------------------------|

| (c)   | a      breach by a Borrower or a Security Party of an obligation under a Finance      Document or the general law; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

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

| 27   | NOTICES |
|----------------|---------|

| 27.1   | General.  Unless      otherwise specifically provided, any notice under or in connection with      any Finance Document shall be given by letter or fax; and references in      the Finance Documents to written notices, notices in writing and notices      signed by particular persons shall be construed    accordingly. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.2   | Addresses for      communications.  A notice shall be  sent: |
|------------------|------------------------------------------------------------------------|

| (a)   | to      the Borrowers:Suite 306 |
|-----------------|---------------------------------|

|   | Commerce      Building |
|--------|------------------------|

|   | One      Chancery Lane |
|--------|------------------------|

|   | Hamilton      HM12 |
|--------|--------------------|

|   | Bermuda |
|--------|---------|

|   | Mailing      Address: |
|--------|-----------------------|

|   | P.O.      Box HM 2522 |
|--------|-----------------------|

|   | Hamilton      HMGX |
|--------|--------------------|

|   | Bermuda |
|--------|---------|

| (b)   | to      the      Lender:                                           Credit      Suisse |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | St      Alban-Graben 1-3 |
|--------|--------------------------|

|   | PO      Box CH-4002 |
|--------|---------------------|

|   | Basel |
|--------|-------|

|   | Switzerland |
|--------|-------------|

| 27.3   | Effective date of      notices.  Subject to Clauses 27.4      and 27.5: |
|------------------|---------------------------------------------------------------------------------------------|

| (a)   | a      notice which is delivered personally or posted shall be deemed to be      served, and shall take effect, at the time when it is      delivered; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | a      notice which is sent by fax shall be deemed to be served, and shall take      effect, 2 hours after its transmission is  completed. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 27.4   | Service outside business      hours.  However, if under Clause 27.3 a notice would      be deemed to be served: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------|

| (a)   | on      a day which is not a business day in the place of receipt;    or |
|-----------------|--------------------------------------------------------------------------|

| (b)   | on      such a business day, but after 5 p.m. local  time; |
|-----------------|------------------------------------------------------------|

| 27.5   | Illegible      notices.  Clauses 27.3 and 27.4 do not apply if      the recipient of a notice notifies the sender within 1 hour after the time      at which the notice would otherwise be deemed to be served that the notice      has been received in a form which is illegible in a material      respect. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.6   | English      language.  Any notice under or in connection with a      Finance Document shall be inEnglish. |
|------------------|----------------------------------------------------------------------------------------------------------------------|

| 27.7   | Valid      notices.  A notice under or in connection with a Finance      Document shall not be invalid by reason that its contents or the manner of      serving it do not comply with the requirements of this Agreement or, where      appropriate, any other Finance Document under which it is served      if: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      failure to serve it in accordance with the requirements of this Agreement      or other Finance Document, as the case may be, has not caused any party to      suffer any significant loss or prejudice;or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      the case of incorrect and/or incomplete contents, it should have been      reasonably clear to the party on which the notice was served what the      correct or missing particulars should havebeen. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.8   | Meaning of      “notice”.  In this Clause 27 “notice” includes any      demand, consent, authorisation, approval, instruction, waiver or other      communication. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28   | JOINT      AND SEVERAL LIABILITY |
|----------------|----------------------------------|

| 28.1   | General.  All      liabilities and obligations of the Borrowers under this Agreement shall,      whether expressed to be so or not, be several and, if and to the extent      consistent with Clause 28.2,joint. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.2   | No impairment of Borrower's      obligations.  The liabilities and obligations of a      Borrower shall not be impaired by: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | this      Agreement being or later becoming void, unenforceable or illegal as      regards any other Borrower; |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (b)   | the      Lender entering into any rescheduling, refinancing or other arrangement of      any kind with any other Borrower; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Lender releasing any other Borrower or any Security Interest created by a      Finance Document; or |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (d)   | any      combination of the foregoing. |
|-----------------|----------------------------------------|

| 28.3   | Principal      debtors.  Each Borrower declares that it is and will,      throughout the Security Period, remain a principal debtor for all amounts      owing under this Agreement and the Finance Documents and no Borrower shall      in any circumstances be construed to be a surety for the obligations of      any other Borrower under thisAgreement. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.4   | Subordination.  Subject      to Clause 28.5, during the Security Period, no Borrower      shall: |
|------------------|-----------------------------------------------------------------------------------------------------------------|

| (a)   | claim      any amount which may be due to it from any other Borrower whether in      respect of a payment made, or matter arising out of, this Agreement or any      Finance Document, or any matter unconnected with this Agreement or any      Finance Document; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 28.5   | Borrower's required      action.  If during the Security Period, the Lender, by      notice to a Borrower, requires it to take any action referred to in      paragraphs (a) to (d) of Clause 28.4, in relation to any other      Borrower, that Borrower shall take that action as soon as practicable      after receiving the Lender'snotice. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29   | SUPPLEMENTAL |
|----------------|--------------|

| 29.1   | Rights cumulative,      non-exclusive.  The rights and remedies which the Finance      Documents give to the Lender are: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 29.2   | Severability of      provisions.  If any provision of a Finance Document is or      subsequently becomes void, unenforceable or illegal, that shall not affect      the validity, enforceability or legality of the other provisions of that      Finance Document or of the provisions of any other Finance      Document. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.3   | Counterparts.  A      Finance Document may be executed in any number of      counterparts. |
|------------------|------------------------------------------------------------------------------------------------------|

| 29.4   | Third party      rights.  A person who is not a party to this Agreement      has no right under the Contracts (Rights of Third Parties) Act 1999 to      enforce or to enjoy the benefit of any term of this    Agreement. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30   | LAW      AND JURISDICTION |
|----------------|---------------------------|

| 30.1   | English      law.  This Agreement shall be governed by, and construed      in accordance with, English law. |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

| 30.2   | Exclusive English      jurisdiction.  Subject to Clause 30.3, the courts of      England shall have exclusive jurisdiction to settle any disputes which may      arise out of or in connection with this  Agreement. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.3   | Choice of forum for the      exclusive benefit of the Lender.  Clause 30.2 is for      the exclusive benefit of the Lender, which reserves the      rights: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      commence proceedings in relation to any matter which arises out of or in      connection with this Agreement in the courts of any country other than      England and which have or claim jurisdiction to that matter;      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | to      commence such proceedings in the courts of any such country or countries      concurrently with or in addition to proceedings in England or without      commencing proceedings in England.  Neither Borrower shall      commence any proceedings in any country other than England in relation to      a matter which arises out of or in connection with this      Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.4   | Process      agent.  Each Borrower irrevocably appoints Globe Maritime      Limited its registered office for the time being, presently at 5th Floor,      St. Magnus House, 3 Lower Thames  Street, London EC3R 6HE, to      act as its agent to receive and accept on its behalf any process or other      document relating to any proceedings in the English courts which are      connected with this Agreement. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.5   | Lender's rights      unaffected.  Nothing in this Clause 30 shall exclude      or limit any right which the Lender may have (whether under the law of any      country, an international convention or otherwise) with regard to the      bringing of proceedings, the service of process, the recognition or      enforcement of a judgment or any similar or related matter in any      jurisdiction. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.6   | Meaning of      “proceedings”.  In this Clause 30, “proceedings” means      proceedings of any kind, including an application for a provisional or      protective measure. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1   | We      refer to the loan agreement (the “Loan Agreement”) dated      [l] 2007 and      made between ourselves, as Borrowers, and yourselves, as Lender, in      connection with a facility of up to US$40,000,000.  Terms      defined in the Loan Agreement have their defined meanings when used in      this Drawdown Notice. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | We      request to borrow an Advance in respect of Ship [A][B] as      follows:- |
|---------------|----------------------------------------------------------------------------------|

| (a)   | Amount:      US$[l]; |
|-----------------|----------------------|

| (b)   | Drawdown      Date:  [l]; |
|-----------------|-------------------------------------|

| (c)   | [Duration      of the first Interest Period shall be [l]      months;] |
|-----------------|------------------------------------------------------------------------|

| (d)   | Payment      instructions : account in our name and numbered [l] with [l] of [l]. |
|-----------------|-----------------------------------------------------------------------------------|

| 3   | We      represent and warrant that: |
|---------------|-------------------------------------|

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

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

| 4   | This      notice cannot be revoked without the prior consent of the      Lender. |
|---------------|----------------------------------------------------------------------------------|

| 5   | We      authorise you to deduct the arrangement fee referred to in Clause 19      from the amount of the Advance. |
|---------------|------------------------------------------------------------------------------------------------------------------------|

| 1   | A      duly executed original of each Finance Document (and of each document      required to be delivered by each Finance Document) other than those      referred to in Part B. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | Copies      of the certificate of incorporation and constitutional documents of each      Borrower and each Security Party. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------|

| 3   | Copies      of resolutions of the directors of each Borrower and each Security Party      and copies of the resolutions of the shareholders of each Borrower in each      case authorising the execution of each of the Finance Documents and the      Master Agreement to which that Borrower or that Security Party is a party      and, in the case of a Borrower, authorising named officers to give the      Drawdown Notices and other notices under this Agreement and ratifying the      execution of the MOAs. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | The      original of any power of attorney under which any Finance Document or the      Master Agreement is executed on behalf of the Borrower or a Security      Party. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | Copies      of all consents which any Borrower or any Security Party requires to enter      into, or make any payment under, any Finance Document or the MOAs or the      Master Agreement. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | The      originals of any mandates or other documents required in connection with      the opening or operation of the Earnings  Accounts. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | Documentary      evidence that the agent for service of process named in Clause 30 has      accepted its appointment. |
|---------------|-----------------------------------------------------------------------------------------------------------------------|

| 8   | Evidence      satisfactory to the Lender of the persons holding the ultimate beneficial      ownership of the shares in each Borrower and of the identity of the person      or persons controlling the voting rights attached to those      shares. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1   | A      copy of the relevant MOA. |
|---------------|----------------------------------|

| 2   | A      duly executed original of the Mortgage and Multiparty Deed relating to the      Ship (and of each document to be delivered by each of    them). |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | Documentary      evidence that: |
|---------------|---------------------------------|

| (a)   | the      Ship has been or on the relevant Drawdown Date will be unconditionally      delivered by the Seller to, and accepted by, the relevant Borrower under      the relevant MOA and the full purchase price payable under the relevant      MOA has been duly paid; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Ship is or on the relevant Drawdown Date will be registered in the name of      the relevant Borrower with the Panamanian ship  registry; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Ship is or on the relevant Drawdown Date will be in the absolute and      unencumbered ownership of the relevant Borrower save as contemplated by      the Finance Documents; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      Ship maintains or on the relevant Drawdown Date will maintain its      classification with its classification society, free of all      recommendations and qualifications of such classification      society; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | the      relevant Mortgage has been or on the Drawdown Date will be duly registered      against the Ship as a valid first preferred Panamanian ship mortgage in      accordance with the laws of Panama; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | the      Ship is insured in accordance with the provisions of this Agreement and      all requirements therein in respect of insurances have been complied with      and a certified copy of the certificate of financial responsibility for      pollution by oil or other Environmentally Sensitive Material issued by the      relevant certifying authority in relation to that  Ship; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | the      Ship has been or on the relevant Drawdown Date will be unconditionally      delivered by the relevant Borrower to, and accepted by, the Bareboat      Charterer under the relevant Bareboat Charter and the Ship has been      bareboat registered under the Philippine’s flag (with details of the      Mortgage duly noted on the Ship’s bareboat  register); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | the      Ship has been or on the relevant Drawdown Date will be unconditionally      delivered by the Bareboat Charter to, and accepted by, the Time Charterer      under the relevant Time Charter; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | Documents      establishing that the Ship will, as from the relevant Drawdown Date, be      managed by the Approved Manager on terms acceptable to the Lender,      together with: |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | a      letter or letters of undertaking executed by the Approved Manager in      favour of the Lender in the terms required by the Lender agreeing certain      matters in relation to the management of that Ship and subordinating the      rights of the Approved Manager against the Borrowers and that Ship to the      rights of the Lender under the Finance Documents;  and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | copies      of the Approved Manager’s Document of Compliance and of the Ship Safety      Management Certificate (together with any other details of the applicable      safety management system which the Lender  requires). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | Documentary      evidence that the existing bareboat charter over the Ship has been      cancelled or discharged and that the Ship has been deleted from the      existing flag free from all registered encumbrances or, in the      alternative, evidence that it will be so deleted within 28 days after the      Drawdown Date or any such longer period as the Lender shall require and      that, in any event, there are no encumbrances registered against it on the      flag from which the Ship is beingdeleted. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | Two      valuations of the Ship the subject of the said Advance each addressed to      the Lender stated to be for the purpose of this Agreement and dated not      earlier than 10 days before the relevant Drawdown Date from an independent      London sale and purchase shipbroker which the Lender has approved or      appointed (such valuations to be at the expense of the      Borrowers). |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | Favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the law of Marshall Islands, Panama, Philippines, Switzerland      and such other relevant jurisdictions as the Lender may      require. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | A      favourable opinion from an independent insurance consultant acceptable to      the Lender on such matters relating to the insurances for the Ship as the      Lender may require. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9   | Documents      of the kind referred to in Schedule 2 Part A 2, 3 and 4 in relation to the      Bareboat Charterer, the Time Charterer, the Approved Manager and TBS      Worldwide and their execution of the Finance Documents to which they are a      party. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Minimum Consolidated Tangible      Net Worth.  Permit Consolidated Tangible Net Worth at any      time to be less than the sum of (i) $170,000,000, plus (ii) an amount      equal to 75% of the Consolidated Net Income earned in each full fiscal      quarter ending after 30 June 2007 (with no deduction for a net loss in any      such fiscal quarter) and (iii) an amount equal to 100% of the aggregate      increases in Shareholders’ Equity of Holdings and its Subsidiaries after      the date hereof by reason of the issuance and sale of Equity Interests of      Holdings or any Subsidiary (other than issuances to Holdings or a      wholly-owned Subsidiary), including upon any conversion of debt securities      of Holdings into such EquityInterests. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Minimum Cash      Liquidity.  For each calendar month ending on or after      the date hereof, permit Qualified Cash, plus Availability in an average      daily amount during such calendar month to be less than      $10,000,000. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Maximum Consolidated Leverage      Ratio.  Permit the Consolidated Leverage Ratio at any      time during any period of four fiscal quarters of Holdings and its      Subsidiaries to be greater than2.50:1.00. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Minimum Consolidated Fixed      Charge Coverage Ratio.  Permit the Consolidated Fixed      Charge Coverage Ratio as of the end of any fiscal quarter of Holdings to      be less than the ratio set forth below opposite such fiscal      quarter: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Trading      4 Financial Quarters                           | Minimum      ConsolidatedFixed      Charge Coverage Ratio |
|-------------------------------------------------------------|-----------------------------------------------------------|
| First      Drawdown Date until 31 December 2007             | 1.4      : 1.0                                            |
| 31      December 2007 and eachfixed      quarter thereafter | 1.5      : 1.0                                            |

| (e)   | Overall leverage      ratio.  Permit the Total Debt to exceed 75% of Total      Assets as adjusted at Fair Market Values. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | readily      marketable obligations issued or directly and fully guaranteed or insured      by the United States of America or any agency or instrumentality thereof      having maturities of not more than 360 days from the date of acquisition      thereof; provided that the full faith and credit of the United States of      America is pledged in supportthereof; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | time      deposits with, or insured certificates of deposit or bankers’ acceptances      of, any commercial bank that (i) (A) is a Lender or (B) is organised under      the laws of the United States of America, any state thereof or the      District of Columbia or is the principal banking subsidiary of a bank      holding company organised under the laws of the United States of America,      any state thereof or the District of Columbia, and is a member of the      Federal Reserve System, (ii) issues (or the parent of which issues)      commercial paper rated as described in Clause (c) of this definition and      (iii) has combined capital and surplus of at least $1,000,000,000, in each      case with maturities of not more than 90 days from the date of acquisition      thereof; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | commercial      paper issued by any Person organised under the laws of any state of the      United States of America and rated at least “Prime-1” (or the then      equivalent grade) by Moody’s or at least “A-1” (or the then equivalent      grade) by S&P, in each case with maturities of not more than 180 days      from the date of acquisition thereof;and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Investments,      classified in accordance with GAAP as current assets of the Borrowers or      any of their Subsidiaries, in money market investment programs registered      under the Investment Company Act of 1940, which are administered by      financial institutions that have the highest rating obtainable from either      Moody’s or S&P, and the portfolios of which are limited solely to      Investments of the character, quality and maturity described in Clauses      (a), (b) and (c) of thisdefinition; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      following to the extent deducted in calculating such Consolidated Net      Income (and without duplication): (i) Consolidated Interest Charges, (ii)      the provision for federal, state, local and foreign income taxes payable,      (iii) depreciation and amortisation expense and (iv) prepayment of fees      and write-offs of deferred financing fees in connection with the      refinancing of the Existing Credit Agreements (as defined in the Bank of      America Facilities), (v) consulting fees in respect of the business      re-engineering incurred in the second and third fiscal quarters of the      2006 fiscal year in an aggregate amount not to exceed $2,500,000 and (vi)      net losses from the sales of vessels as permitted under the Bank of      America Facilities (in each case of or by Holdings and its Subsidiaries      for such Measurement Period) andminus; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      following to the extent included in calculating such Consolidated Net      Income, all net gains from the sales of vessels as permitted under the      Bank of America Facilities (in each case of or by Holdings and its      Subsidiaries for such MeasurementPeriod); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      result of (i) Consolidated EBITDA, less (ii) the sum of (x) federal,      state, local and foreign income taxes paid in cash and (y) Restricted      Payments made, in each case, for the most recently completed Measurement      Period, to |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      sum of (i) Consolidated Interest Charges for the most recently completed      Measurement Period, (ii) the aggregate principal amount of all regularly      scheduled principal payments or redemptions or similar acquisitions for      value of outstanding debt for borrowed money for the period of twelve (12)      consecutive months following such date of determination, but excluding any      principal payments scheduled to be made in respect of the Revolving Credit      Facility (as defined in the Bank of America  Facilities); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      outstanding principal amount of all obligations, whether current or      long-term, for borrowed money (including Obligations under and as defined      in the Bank of America Facilities) and all obligations evidenced by bonds,      debentures, notes, loan agreements or other similar      instruments; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all      purchase money Indebtedness; |
|-----------------|---------------------------------------|

| (c)   | all      direct obligations arising under letters of credit (including standby and      commercial), bankers’ acceptances, bank guaranties, surety bonds and      similar instruments; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | all      obligations in respect of the deferred purchase price of property or      services (other than trade accounts payable in the ordinary course of      business); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | all      Attributable Indebtedness; |
|-----------------|-------------------------------------|

| (f)   | without      duplication, all Guarantees with respect to outstanding Indebtedness of      the types specified in Clauses (a) through (e) above of Persons other than      the Borrowers or any Subsidiary;and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | all      Indebtedness of the types referred to in Clauses (a) through (f) above of      any partnership or joint venture (other than a joint venture that is      itself a corporation or limited liability company) in which a Borrower or      a Subsidiary is a general partner or joint venturer, unless such      Indebtedness is expressly made non-recourse to such Borrower or such      Subsidiary; provided, however, for purposes of calculating the      Consolidated Leverage Ratio, Consolidated Funded Indebtedness shall not      include any portion of Permitted New Vessel Construction Indebtedness in      an aggregate amount up to $75,000,000 at any time outstanding and used to      finance a multi-purpose tweendeck or bulk carrier shipping vessel so long      as such vessel remains in the construction phase (i.e., such vessel has      not been delivered to Holdings or its Subsidiaries ready for fleet service      and operation); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | all      interest, premium payments, debt discount, fees, charges and related      expenses in connection with borrowed money (including capitalised interest      but excluding capitalised interest on Permitted New Vessel Construction      Indebtedness) or in connection with the deferred purchase price of assets,      in each case to the extent treated as interest in accordance with      GAAP; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all      interest paid or payable with respect to discontinued operations;      and |
|-----------------|-------------------------------------------------------------------------------------|

| (c)   | the      portion of rent expense under Capitalised Leases that is treated as      interest in accordance with GAAP, in each case, of or by Holdings and its      Subsidiaries on a consolidated basis for the most recently completed      Measurement Period; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Consolidated      Funded Indebtedness as of such dateto, |
|-----------------|----------------------------------------------------------|

| (b)   | Consolidated      EBITDA of Holdings and its Subsidiaries on a consolidated basis for the      most recently completed MeasurementPeriod; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | extraordinary      gains and extraordinary losses for such Measurement  Period; |
|-----------------|---------------------------------------------------------------------------------|

| (b)   | the      net income of any Subsidiary during such Measurement Period to the extent      that the declaration or payment of dividends or similar distributions by      such Subsidiary of such income is not permitted by operation of the terms      of its Organisation Documents or any agreement, instrument or law      applicable to such Subsidiary during such Measurement Period, except that      Holdings’ equity in any net loss of any such Subsidiary for      such-Measurement Period shall be included in determining Consolidated Net      Income; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      income (or loss) for such Measurement Period of any Person if such Person      is not a Subsidiary, except that Holdings’ equity in the net income of any      such Person for such Measurement Period shall be included in Consolidated      Net Income up to the aggregate amount of cash actually distributed by such      Person during such Period to Holdings or a Subsidiary as a dividend or      other distribution (and in the case of a dividend or other distribution to      a Subsidiary, such Subsidiary is not precluded from further distributing      such amount to Holdings as described in Clause (b) of this      proviso); |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      obligation, contingent or otherwise, of such Person guaranteeing or having      the economic effect of guaranteeing any Indebtedness or other obligation      payable or performable by another Person (the “primary obligor”) in any      manner, whether directly or indirectly, and including any obligation of      such Person, direct or indirect,_ (i) to purchase or pay (or advance or      supply funds the purchase or payment of) such Indebtedness or other      obligation, (ii) to purchase or lease property, securities or services for      the purpose of assuring the obligee in respect of such Indebtedness or      other obligation of the payment or performance of such Indebtedness or      other obligation, (iii) to maintain working capital, equity capital or any      other financial statement condition or liquidity or level of income or      cash flow of the primary obligor so as to enable the primary obligor to      pay such Indebtedness or other obligation, or (iv) entered into for the      purpose of assuring in any other manner the obligee in respect of such      Indebtedness or other obligation of the payment or performance thereof or      to protect such obligee against loss in respect thereof (in whole or in      part), or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      Security Interest on any assets of such Person securing any Indebtedness      or other obligation of any other Person, whether or not such Indebtedness      or other obligation is assumed by such Person (or any right, contingent or      otherwise, of any holder of such Indebtedness to obtain any such Security      Interest).  The amount of any Guarantee shall be deemed to be an      amount equal to the stated or determinable amount of the related primary      obligation, or portion thereof, in respect of which such Guarantee is made      or, if not stated or determinable, the maximum reasonably anticipated      liability in respect thereof as determined by the guaranteeing Person in      good faith.  The term “Guarantee” as a verb has      a corresponding meaning; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | all      obligations of such Person for borrowed money and all obligations of such      Person evidenced by bonds, debentures, notes, loan agreements or other      similar instruments; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      maximum amount of all direct or contingent obligations of such Person      arising under letters of credit (including standby and commercial),      bankers’ acceptances, bank guaranties, surety bonds and similar      instruments; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | net      obligations of such Person under any Swap  Contract; |
|-----------------|---------------------------------------------------------------|

| (d)   | all      obligations of such Person to pay the deferred purchase price of property      or services (other than trade accounts payable in the ordinary course of      business and not past due for more than 60 days after the date on which      such trade account was created); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | indebtedness      (excluding prepaid interest thereon) secured by a Security Interest on      property owned or being purchased by such Person (including indebtedness      arising under conditional sales or other title retention agreements),      whether or not such indebtedness shall have been assumed by such Person or      is limited in recourse; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | all      Attributable Indebtedness in respect of Capitalised Lease and Synthetic      Lease Obligations of such Person and all Synthetic Debt of such      Person; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | all      obligations of such Person to purchase, redeem, retire, defease or      otherwise make any payment in respect of any Equity Interest in such      Person or any other Person or any warrant, right or option to acquire such      Equity Interest, valued, in the case of a redeemable preferred interest,      at the greater of its voluntary or involuntary liquidation preference plus      accrued and unpaid dividends; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | all      Guarantees of such Person in respect of any of the    foregoing. |
|-----------------|---------------------------------------------------------------------------|

| (b)   | a      loan, advance or capital contribution to, Guarantee or assumption of debt      of, or purchase or other acquisition of any other debt or interest in,      another Person; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      purchase or other acquisition (in one transaction or a series of      transactions) of assets of another Person that constitute a business unit      or all or a substantial part of the business of, such Person;      or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      acquisition or construction of a vessel. For purposes of covenant      compliance, the amount of any Investment shall be the amount actually      invested, without adjustment for subsequent increases or decreases in the      value of such Investment; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | with      respect to any corporation, the certificate or articles of incorporation      and the bylaws (or equivalent or comparable constitutive documents with      respect to any non-U.S.jurisdiction); |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | with      respect to any limited liability company, the certificate or articles of      formation or organisation and operating agreement;  and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | with      respect to any partnership, joint venture, trust or other form of business      entity, the partnership, joint venture or other applicable agreement of      formation or organisation and any agreement, instrument, filing or notice      with respect thereto filed in connection with its formation or      organisation with the applicable governmental authority in the      jurisdiction of its formation or organisation and, if applicable, any      certificate or articles of formation or organisation of such      entity; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      and all rate swap transactions, basis swaps, credit derivative      transactions, forward rate transactions, commodity swaps, commodity      options, forward commodity contracts, equity or equity index swaps or      options, bond or bond price or bond index swaps or options or forward bond      or forward bond price or forward bond index transactions, interest rate      options, forward foreign exchange transactions, cap transactions, floor      transactions, collar transactions, currency swap transactions,      cross-currency rate swap transactions, currency options, spot contracts,      or any other similar transactions or any combination of any of the      foregoing (including any options to enter into any of the foregoing),      whether or not any such transaction is governed by or subject to any      master agreement; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      and all transactions of any kind, and the related confirmations, which are      subject to the terms and conditions of, or governed by, any form of master      agreement published by the International Swaps and Derivatives      Association, Inc., any International Foreign Exchange Master Agreement, or      any other master agreement (any such master agreement, together with any      related schedules, a “Master Agreement”), including any such obligations      or liabilities under any MasterAgreement; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | for      any date on or after the date such Swap Contracts have been closed out and      termination value(s) determined in accordance therewith, such termination      value(s); and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | for      any date prior to the date referenced in clause (a), the amount(s)      determined as the mark-to-market value(s) for such Swap Contracts, as      determined based upon one or more mid-market or other readily available      quotations provided by any recognised dealer in such Swap      Contracts; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | a      so-called synthetic, off-balance sheet or tax retention lease;      or |
|-----------------|-------------------------------------------------------------------------------|

| (b)   | an      agreement for the use or possession of property (including sale and      leaseback transactions), in each case, creating obligations that do not      appear on the balance sheet of such Person but which, upon the application      of any Debtor Relief Laws to such Person, would be characterised as the      indebtedness of such Person (without regard to accounting      treatment); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1   | Attached      to this Certificate are the latest [audited][unaudited] accounts of the      Guarantor and its consolidated subsidiaries for the financial year      [quarter] ending on [l]. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | Set      out below are the respective amounts, in US Dollars, of Cash Equivalents,      Consolidated EBITDA, Consolidated Interest Charges, Consolidated Net      Income, Consolidated Tangible Net Worth and Qualified  Cash: |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                | US      Dollars |
|-----------------------------------------------------|-----------------|
| Cash      Equivalents                               | [l]             |
| Consolidated      EBITDA                            | [l]             |
| Consolidated      Interest Charges                  | [l]             |
| Consolidated      Net Income                        | [l]             |
| Consolidated      Tangible Net Worth                | [l]             |
| Qualified      Cash                                 | [l]             |
| Total      Debt                                     | [l]             |
| Total      Assets as adjusted at Fair Market Values | [l]             |

| 3   | Accordingly,      as at the date of this Certificate the financial covenants set out in      Schedule 3 of the Loan Agreement [are][are not] complied with, in that as      at [l]: |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Minimum      Consolidated Tangible Net      Worth                                                                                     US$[l]; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Minimum      Cash      Liquidity                                                                                US$[l]; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Maximum      Consolidated Leverage      Ratio                                                                                [x.xx] |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Minimum      Consolidated Fixed Charge Coverage      Ratio                                                                                                           [x.xx] |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Overall      Leverage      Ratio                                                                                [x.xx] |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | As      at [l] no      Event of Default has occurred and is continuing [or, specify / identify      any Event of Default].  The Borrowers are in compliance with      Clause 14.1 of the Loan Agreement. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|