----

| Clause Page                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| 1           INTERPRETATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| 2           FACILITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| 3           DRAWDOWN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
| 4           CONDITIONS      PRECEDENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| 5           FEES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |
| 6           INTEREST [INSERT      PAGE NUMBER]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |
| 7           DEFAULT      INTEREST                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| 8           REPAYMENT      AND PREPAYMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
| 9           REPRESENTATIONS      AND WARRANTIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |
| 10           COVENANTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| 11           SECURITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |
| 12           PAYMENTS      AND CALCULATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| 13           EVENTS      OF DEFAULT [INSERT PAGE NUMBER]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |
| 14           EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| 15           INDEMNITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| 16           NO      SET-OFF OR TAX DEDUCTION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |
| 17           INCREASED      COSTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |
| 18           TRANSFERS      AND CHANGES IN LENDING OFFICES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |
| 19           NOTICES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| 20           SUPPLEMENTAL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| 21           LAW      AND JURISDICTION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| APPENDIX      A                                                                                            Accounts      Pledge                      |   |   |
| APPENDIX      B                                                                                            Guarantees                                |   |   |
| APPENDIX      C                                                                                            Assignment      of Insurances             |   |
| APPENDIX      D                                                                                            Assignment      of Earnings               |   |
| APPENDIX      E                                                                                            Mortgage                                  |   |   |
| APPENDIX      F                                                                                            Managers'      Subordination Undertakings |
| APPENDIX      G                                                                                            Quadripartite      Agreement              |   |
| APPENDIX      H                                                                                            Drawdown      Notice                      |   |
| APPENDIX      I                                                                                            General      Business Conditions          |   |

----

| (1)   | Grainger Maritime Corp.,      a corporation established in Marshall Islands whose registered      office is at Trust Company Complex, Ajeltake Road, Ajeltake Island,      Majuro, Marshall Islands, MH 96960 (the "Borrower");      and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Joh. Berenberg, Gossler &      Co. KG, a financial institution established under the laws of      Germany with its registered office at Neuer Jungfernstieg 20, 20354      Hamburg, Germany (the "Lender"). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | The      Borrower is the registered owner of the 22.800 dwt vessel mv "OTTAWA      PRINCESS", built 1987 with Austin & Pickersgill Ltd.,      Sunderland,  IMO no. 8503046 (the "Ship"). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | The      Ship is registered in the name of the Borrower with the Panamanian ship      registry. By virtue of a bareboat charter dated 23 January 2008 (the      "Bareboat      Charter") made between the Borrower and Intermodal Shipping, Inc.,      Ground Floor, Casa Maritima, 651 Gen. Luna Street, Intramuros, Manila,      Philippines (the "Bareboat Charterer") the      Ship is flying the flag of thePhilippines. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C)   | The      Bareboat Charterer has concluded a time-charter contract dated      23 January 2008 with PACIFIC RIM SHIPPING CORP. of Majuro, Marshall      Islands (the "PACIFIC      RIM") for a      fixed period of 24 months ("PACIFIC RIM      Charter"). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D)   | By      time charter dated 23 January 2008 made between PACIFIC RIM and the      Borrower the Borrower chartered the Ship from PACIFIC RIM for a charter      period of 24 months +/- 2 months (the "Grainger      Charter"). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (E)   | By      time charter dated 23 January 2008 made between the Borrower and TBS      Worldwide Services Inc. of Majuro, Marshall Islands ("TBS") TBS chartered the      Ship from the Borrower for a charter period of 24 months +/-      2 months (the "TBS      Charter"). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (F)   | The      Borrower has concluded a management contract in respect of the technical      management of the Ship dated 20 March 2008 (the "Management Contract")      with Roymar Ship Management Inc., 455 Central Park Avenue, Scarsdale New      York 10583, USA (the "Manager"). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (G)   | TBS      has concluded a management contract in respect of the commercial      management of the Ship dated 8 February 2004 (the "Management Contract"),      inter alia, with TBS Shipping Services Inc. of New York, USA (the "Manager"). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (H)   | The      renewal of the special survey of the Ship by Germanischer Lloyd (the      "Classification      Society") is due in July 2012 (the "Special      Survey"). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (I)   | The      Borrower has requested the Lender to grant a facility of up to      USD 13,000,000.00 for the purpose to refinance part of the      acquisition costs of the Ship. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| (a)   | this      Agreement, the Security Documents, the Charter Guarantee, and the Master      Agreement; |
|-----------------|----------------------------------------------------------------------------------------------------|

| (b)   | any      other document (whether creating a security interest or not) which is      executed at any time by the 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 under this Agreement or any      of the documents referred to in this definition;  and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      Managers' SubordinationUndertakings; |
|-----------------|-----------------------------------------------|

| (d)   | the      Quadripartite Agreement; |
|-----------------|-----------------------------------|

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

| (b)   | requisition      for title or other compulsory acquisition of the Ship otherwise than by      requisition for hire, |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (c)   | capture,      seizure, arrest, detention or confiscation of the Ship by any government      or by persons acting or purporting to act on behalf of any government      unless the Ship be released and restored to the Owner from such capture,      seizure, arrest, detention or confiscation within 1 month after the      occurrence thereof. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 2.1   | Amount of      facility.  The Lender, subject to the terms of this      Agreement, shall make available to the Borrower a term loan in the amount      of the lower of (i) up to USD 13,000,000.00  and (ii) 57 %      of the Market Value of the Ship (the "Loan"). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2   | Purpose.  The      Loan shall be used for the sole purpose to refinance part of the      acquisition costs of the Ship. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| 2.3   | Currency.  The      currency of the Loan is United StatesDollars. |
|-----------------|-----------------------------------------------------------------------------|

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

| 3.1   | Request for advance of      Loan.  Subject to the other provisions of this Agreement,      the Borrower may request the Loan to be made by ensuring that the Lender      receives a completed drawdown notice in the form of Appendix H (the "Drawdown Notice") not      later than 11.00 a.m. (Hamburg time) 5 (five) Business Days prior to the      drawdown date. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2   | Disbursement. The Lender      shall disburse the Loan directly to the Borrower in one amount upon all      conditions precedent for the disbursement according to Clause 4 having      been met (the "Disbursement"). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3   | Termination      Date.  The Lender shall be entitled to refuse to make the      Disbursement of the Loan if the Loan is not being drawn on or before      23 June 2008 ("Termination      Date"). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | CONDITIONS      PRECEDENT |
|---------------|---------------------------|

| 4.1   | Receipt of      documents.  On, or before the service of the Drawdown      Notice, the Lender shall receive the following documents in form and      substance satisfactory to it: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | copies      of the certificate of incorporation, goodstanding certificate and      constitutional documents (including Articles of Association) of each      Security Party; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | copies      of resolutions of the shareholders and directors of each Security Party      authorising the execution of each of the Finance Documents to which each      Security Party is a party; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the      original of any power of attorney under which any Finance Document is      executed on behalf of each SecurityParty; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (d)   | copies      of all consents which the Borrower requires to enter into, or make any      payment under, any FinanceDocument; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| (e)   | a      duly executed original of each Finance Document together with all notices      of assignment and acknowledgements required to be delivered to the Lender      pursuant to their terms; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | copies      of the Bareboat Charter, the PACIFIC RIM Charter, the Grainger Charter and      the TBS Charter; |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (g)   | copies      of the Management Contracts; |
|-----------------|------------------------------------------|

| (h)   | documentary      evidence that the Mortgage has been duly registered against the Ship as a      valid first priority ship mortgage in accordance with the laws of      Panama; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | a      valuation and inspection report of the Ship, carried out by Ingenieurbüro      Weselmann, Hamburg, confirming the value of the Ship to be at least      USD 23,000,000.00 and confirming that the Ship is in an acceptable      condition (the "Valuation      Report"); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | certificate      of entry of a first-class Protection and Indemnity Association of the      International Group, rated at least BBB- (with S&P) and acceptable to      the Lender evidencing the entry of the Ship with the respective      association; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | cover      notes of the respective insurances for the Ship evidencing satisfactory      insurance cover of the Ship by a western insurance company or western      insurance companies; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | an      insurance opinion on the insurances effected for the Ship satisfactory to      the Lender; |
|-----------------|----------------------------------------------------------------------------------------------------|

| (m)   | subordination      undertakings duly executed by each Manager whereby each Manager      subordinates all its claims under the respective Management Contract to      all of the Lender’s claims under this Agreement and the Security Documents      (the "Managers'      SubordinationUndertakings"); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)   | a      process agent agreement duly signed and executed on behalf of the Borrower      and by authorised representatives of the process agent in Germany whereby      the Borrower appoints an agent for the purposes of accepting service of      legal documents in Germany and the agent accepts such      appointment; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)   | copy      of the balance sheet and profit and loss account of the Borrower and the      Guarantors of the year 2007; |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (p)   | favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the laws of Panama and such other relevant jurisdictions other      than Germany as the Lender may reasonably require;  and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (q)   | such      other documents that the Lender may request pursuant to this Agreement or      another Finance Document. |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| 4.2   | Fulfilment of other conditions      precedent.  On, or before the service of the Drawdown      Notice, the additional conditions precedent must be    present: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      Lender having received such of the fees referred to in Clauses 5 and 14.1      that are payable prior to theDisbursement; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | [intentionally left      blank] |
|-----------------|---------------------------------|

| (c)   | the      Borrower having opened the OperatingAccounts; |
|-----------------|--------------------------------------------------------|

| (d)   | the      Ship being acceptable to theLender; |
|-----------------|----------------------------------------------|

| (e)   | no      Event of Default having occurred or potentially resulting from the      borrowing of the Loan; and |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (f)   | the      representations and warranties in Clause 9 and those of any other 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. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | FEES |
|---------------|------|

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

| 6.1   | When      due.  Interest on the Loan in respect of each Interest      Period shall be due and payable by the Borrower on the last day of that      Interest Period. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2   | Rate of      interest.  Subject to the other 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. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3   | Commencement of Interest      Periods.  The first Interest Period shall commence on the      drawdown date and each subsequent Interest Period shall commence on the      expiry of the preceding InterestPeriod. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4   | Duration of Interest      Periods.  Each Interest Period shall be 3, 6, 9 or 12      months. Should the Borrower fail to select an Interest Period, the Lender      has the option to select an Interest Period in his reasonable      discretion. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5   | Non-availability of      deposits.  If, after the Borrower has selected an      Interest Period longer than 3 months, the Lender notifies the Borrower by      11.00 a.m. (Hamburg time) on the third Business Day before the      commencement of the Interest Period that it is not satisfied that deposits      in United States 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 3  months. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.6   | Interest Rate Swap      Facility.  The Borrower has the option to hedge the risk      of fluctuations of the interest payable by the Borrower under this      Agreement. Any interest rate swaps may only be concluded with the Lender      as swap bank on terms of the master agreement for financial derivatives      transactions (together with any transactions concluded thereunder the      "Master      Agreement") ("Rahmenvertrag für      Finanztermingeschäfte"). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7.1   | Payment of default      interest.  The Borrower shall pay interest in accordance      with the following provisions on any amount payable by the Borrower under      any Finance Document which the Lender does not receive on or before the      date on which that amount is due forpayment. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2   | Default rate of      interest.  Interest shall accrue on an overdue amount      from (and including) the date on which that amount is due for payment      until the date of actual payment (as well after as before judgment) at the      rate of 2 per cent. per annum above (i) in the case of an overdue amount      of principal, the higher of the rates set out at Clauses 7.3(a) and (b)      and (ii) in the case of any other overdue amount, the rate set out at      Clause 7.3(b); provided      that the Borrower shall be permitted to prove that the damage      suffered by the Lender on account of the default is less than the rates      referred to in Clause 7.3, in which case the Borrower shall compensate the      actual damage so proven, if any. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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,      LIBOR. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7.5   | Payment of accrued default      interest.  Subject to the other provisions of this      Agreement, any interest due under this Clause shall be paid on the last      day of the period by reference to which it was  determined. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 8.1   | Term of the Loan. The      term of the Loan is limited to 48 months after the Disbursement, but      not later than 30 June 2012. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2   | Repayment. The Loan      shall be repaid in sixteen (16) consecutive quarterly instalments of      USD 812,500.00 each. The first repayment instalment shall be due and      payable 3 months after drawdown. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3   | Prepayment.  The      Borrower may prepay the whole or any part of the Loan on the last day of      an Interest Period, provided that (i) any partial prepayments shall be at      least USD 100,000.00 or a higher multiple thereof and (ii) the Lender      has received from the Borrower at least 10 Business Days’ prior written      notice specifying the amount to be prepaid and the date on which the      prepayment is to be made. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4   | Compulsory      prepayment.  The Borrower shall be obliged to prepay the      entire Loan if the Ship is (i) sold or (ii) a Total  Loss.i |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5   | Amounts payable on      prepayment.  A prepayment shall be made together with      accrued interest (and any other amount payable) 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  15. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.6   | Application of partial      prepayment.  Any prepayments shall be applied against the      repayment instalments specified in Clause 8.2 in inverse order of      maturity. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.7   | No      reborrowing.  Loan amounts may not be      reborrowed. |
|-----------------|--------------------------------------------------------------------------|

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

| 9.1   | Status.  The      Borrower is duly established as a private company under the laws of the      Marshall Islands and it is beneficially owned by Westbrook Holdings Ltd.,      a Marshall Islands company(the "Beneficial      Shareholder"). The Beneficial Shareholder itself is a wholly owned      subsidiary of TBS International Limited, Suite 306, Commerce Building, One      Chancery Lane, Hamilton HM 12,Bermuda. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2   | Corporate      power.  The Borrower has the corporate capacity, and has      taken all corporate action and obtained all consents necessary for      it: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      own and operate the Ship and have it registered under its name at the      Panamanian register; |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (b)   | to      execute the Finance Documents to which it is a party;  and |
|-----------------|--------------------------------------------------------------------|

| (c)   | to      borrow under this Agreement and to make all the payments contemplated by,      and to comply with, the FinanceDocuments. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| 9.3   | Legal validity; effective      security interests.  The Finance Documents to which the      Borrower is a party, do now or, as the case may be, will, upon execution      and delivery (and, where applicable, registration as provided for in the      Finance Documents): |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | create      legal, valid and binding security interests enforceable in accordance with      their respective terms; |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

|   | subject      to any relevant insolvency laws affecting creditors' rights      generally. |
|--------|------------------------------------------------------------------------------------------|

| 9.4   | No      conflicts.  The execution by the Borrower of each Finance      Document to which it is a party, and the borrowing by the Borrower of the      Loan, and its compliance with each Finance Document to which it is a party      will not involve or lead to a contraventionof: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      law or other requirement; or |
|-----------------|---------------------------------------|

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

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

| 9.5   | Fulfilment of classification      requirements. The Vessel complies with all requirements imposed by      the Classification Society. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

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

| 10.1   | Corporate      Covenants.  The Borrowershall |
|------------------|--------------------------------------------------------|

| (a)   | maintain      its ownership structure and its separate corporate existence under the      laws of the Marshall Islands and will not enter into any form of      amalgamation, merger or de-merger or any form of reconstruction or      reorganisation; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | not      carry on any business other than the ownership and operation of the Ship;      and |
|-----------------|---------------------------------------------------------------------------------------------|

| (c)   | procure      that the Beneficial Shareholder shall not dispose of its interest without      the Lender’s prior consent. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (a)   | maintain      the Ship at all times during the Security Period in a good and seaworthy      condition and arrange to have any damages to the Ship repaired without      delay; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if      at any time the Market Value of the Ship falls short of 177 per cent. of      the Secured Liabilities, promptly upon the Lender’s request either (i)      prepay such part of the Loan which is equal to the shortfall, together      with prepayment compensation as defined in Clause 15 or (ii) provide such      additional ship mortgage or other security in favour of the Lender as is      acceptable to the Lender and having a market value which is equal to the      shortfall or (iii) effect a      combination of (i) and (ii) above; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | not      change the name, registry or flag of the Ship or make any modification to      the Ship which would or might materially alter the structure, type or      performance characteristics of the Ship or materially reduce the value of      the Ship; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | bear      the expense of an annual valuation of the Ship by an independent surveyor      acceptable to the Lender; |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| (e)   | ensure      that the Ship remains with class societies acceptable to the Lender      including the ClassificationSociety; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (f)   | upon      the Lender’s request submit evidence of employment of the      Ship; |
|-----------------|--------------------------------------------------------------------------------------|

| (g)   | ensure      that the Ship shall not trade or embark ports in countries on which trade      constraints or other limitations have been  imposed; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | ensure      that the commercial and technical management of the Ship shall be carried      out by the respective Manager and not effect any changes to the management      of the Ship without the Lender’s priorapproval; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | not      enter into any charter agreement for the Ship with a term of more than      24 months without the Lender’s prior approval with the exception of      charter agreements with companies which are under indirect or direct      control of the BeneficialShareholder; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | at      all times comply, and cause each Manager to comply, with International      Safety Management Code (ISM)requirements; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (k)   | notify      the Lender forthwith by fax, confirmed by letter, of any occurrence in      consequence whereof the Ship has become or is, by the passing of time or      otherwise, likely to become a TotalLoss; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | ensure      that the next Special Survey is not due before 30 June      2012. |
|-----------------|------------------------------------------------------------------------------------|

| (a)   | effect      insurances against fire and usual marine risks, including hull and      machinery (including drugs), war risks and excess risks, with western      insurance companies or brokers which are approved by the Lender, such      insurances to be the higher of (i) 120 per cent.  of the Secured      Liabilities or (ii) 100 per cent. of the Market Value of the      Vessel; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | enter      the Ship with a P&I-Club of the International Group Insurance, rated      at least BBB- (with S&P); |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| (c)   | bear      the costs of a Mortgagee’s Interest Insurance including Mortgagee’s      Additional Perils (Pollution) in the amount of 120 per cent. each of the      maximum amount of the Loan, which will be arranged through the Lender’s      broker; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | evidence      the renewal of the insurances by providing cover notes from the insurers      two weeks prior to the end of each insurance  period. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | as      soon as possible, but in no event later than 180 calendar days after the      end of each financial year of TBS International Ltd., the accounts      (balance sheet and profit and loss accounts) of TBS International Ltd.;      such accounts to be prepared in accordance with all applicable laws and      accounting principles generally accepted in Bermuda consistently applied,      to give a true and fair view of the state of affairs of TBS International      Ltd. at the date of those accounts and of its profit for the period to      which those accounts relate and fully to disclose or provide for all      significant liabilities of TBS International Ltd.;  and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | as      soon as possible, but in no event later than 60 days after the end of each      quarter in each financial year of TBS International Ltd., management      accounts (in a format approved by the Lender) which show the results of      the operation of the Ship during the preceding financial      quarter. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | hold      the legal title to, and own the entire beneficial interest in, the Ship      free from all security interests and other interests and rights of every      kind, except for those created by the Finance Documents, and not create or      permit to arise any security interest over any other asset, present or      future; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | not      without the Lender’s prior written consent assign, transfer, lease or      otherwise dispose of (otherwise than to the Lender) all or a substantial      part of its assets, whether by one transaction or a number of      transactions, whether related or not, or any debt payable to it or any      other right (present, future or contingent right) to receive a payment,      including any right to damages orcompensation; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | not      incur any liability or obligation except liabilities and obligations under      the Bareboat Charter, the Grainger Charter and/or the TBS Charter and the      Finance Documents and liabilities or obligations incurred in the ordinary      course of operating and chartering the Ship or provide any form of credit      or financial assistance to any person;and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | notify      the Lender as soon as it becomes aware of the occurrence of an Event of      Default or any matter which indicates that an Event of Default may have      occurred and thereafter keep the Lender fully up-to-date with all      developments. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | SECURITIES |
|----------------|------------|

| (a)   | the      Mortgage; |
|-----------------|--------------------|

| (b)   | the      Guarantees; |
|-----------------|----------------------|

| (c)   | the      General Assignment; and |
|-----------------|----------------------------------|

| (d)   | the      Accounts Pledge. |
|-----------------|---------------------------|

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

| 12.1   | Currency and method of      payments  All payments to be made by the Borrower to the      Lender under a Finance Document shall be made to the    Lender: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | by      not later than 11.00 a.m. (Hamburg 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); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | to      such account of the Lender as the Lender may from time to time notify to      the Borrower; and |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (d)   | any      amounts payable to be received free of any  charges. |
|-----------------|---------------------------------------------------------------|

| 12.2   | Payment on non-Business      Day.  If any payment by the 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; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | and      interest shall be payable during any extension under paragraph (a) at the      rate payable on the original duedate. |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

| 12.3   | 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. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4   | Lender      account.  The Lender shall maintain an account showing      the amounts advanced by the Lender and all other sums owing to the Lender      from the Borrower and any other Security Party under the Finance Documents      and all payments in respect of those amounts made by the Borrower and any      other Security Party. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5   | Account prima facie      evidence.  If the account maintained under Clause 12.4      shows an amount to be owed by the Borrower or any other Security Party to      the Lender, that account shall be prima facie evidence that that amount is      owed to the Lender. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13   | EVENTS      OF DEFAULT |
|----------------|------------------------|

| 13.1   | Events of      Default.  An Event of Default is present if any event      constituting an important reason under German law shall occur, such      as: |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b)   | any      breach by any Security Party occurs of any provision of a Finance Document      (other than a breach covered by paragraph (a));  or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      representation, warranty or statement made by, or by an officer of any      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 when it is made; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | any      financial indebtedness of any Security Party is not paid when due or      becomes prematurely payable or capable of being prematurely declared      payable as a consequence of a default with respect thereto or any security      interest over any assets of any Security Party is enforced or becomes      capable of being enforced; or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | any      order shall be made by any competent court or resolution passed by any      Security Party for the appointment of a liquidator, administrator or      receiver of, or for the winding-up of any Security Party;    or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | an      encumbrancer takes possession of or a receiver is appointed of the whole      or, in the opinion of the Lender, any material part of the assets of any      Security Party or a distress, execution or other process is levied or      enforced upon or sued out against the whole or, in the opinion of the      Lender, a material part of the assets of any Security Party;      or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | any      Security Party shall stop payment or shall be unable to, or shall admit      inability to, pay its debts as they fall due, or shall be adjudicated or      found bankrupt or insolvent, or shall enter into any composition or other      arrangement with its creditors generally;or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | any      event shall occur which under the law of any jurisdiction to which any      Security Party is subject has an effect equivalent or similar to any of      the events referred to in Clause 13.1(e), (f) or (g);  or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | any      Security Party 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 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | it      becomes unlawful or impossible (i) for 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 or (ii) for      the Lender to exercise or enforce any right under, or to enforce any      security interest created by, a Finance Document;  or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | the      Ship becomes a Total Loss and, within 90 days (or any longer period agreed      to by the Lender) after the date on which Total Loss occurs, the Lender      does not receive insurance proceeds relating to the Total Loss in at least      the amount for which the Ship is required to be insured under Clause 11 as      at the date of the event or circumstances giving rise to the Total Loss;      or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | any      material provision of a Finance Document proves to have been or becomes      invalid or unenforceable, or a security interest created by a Security      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 |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (n)   | arrest      of the Ship and the arrest is not lifted latest within 10 calendar days;      or |
|-----------------|----------------------------------------------------------------------------------------------|

| (o)   | any      breach by the Borrower, the Bareboat Charterer, PACIFIC RIM and/or TBS      occurs of any provision under the Quadripartite  Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2   | 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 Borrower a notice terminating this Agreement;  and/or |
|-----------------|-------------------------------------------------------------------------|

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

| 13.3   | Termination of      obligations.  On the service of a notice under Clause      13.2 (a), all the obligations of the Lender to the Borrower under      this Agreement shall terminate. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4   | Acceleration of      Loan.  On the service of a notice under Clause      13.2 (b), the Loan, all accrued interest and all other amounts      accrued or owing from the Borrower 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. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14   | EXPENSES |
|----------------|----------|

| 14.1   | Costs of preparation and      enforcement.  The Borrower shall pay to the Lender on its      demand the amount of all expenses incurred by the Lender, including      reasonable legal fees, in connection with (i) the negotiation,      preparation, amendment, implementation, execution or registration of any      Finance Document or any related document or with any transaction      contemplated by a Finance Document or a related document and the valuation      of any security provided or offered under the terms of this Agreement or      any other matter relating to such security and (ii) any steps 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 similar      purpose, whether or not such as would be allowed under rules of court or      any taxation or other procedure carried out under such    rules. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2   | Documentary      taxes.  The Borrower 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 liabilities and expenses      resulting from any failure or delay by the Borrower to pay such a      tax. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15   | INDEMNITIES |
|----------------|-------------|

| 15.1   | Indemnities regarding the      borrowing and repayment of Loan.  The Borrower shall      fully indemnify the Lender on its demand in respect of all claims,      expenses, liabilities and losses which are made or brought against or      incurred by the Lender as a result of or in connection    with: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (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 Borrower 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 that Borrower      on the amount concerned under Clause8); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      occurrence and/or continuance of an Event of Default and/or the      acceleration of repayment of the Loan under Clause  13; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | and      in respect of any tax (other than tax on its overall net income) for which      the Lender is liable in connection with any amount paid or payable to the      Lender (whether for its own account or otherwise) under any Finance      Document. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2   | Breakage      costs.  Without limiting its generality, Clause 15.1      covers any claim, expense, liability or loss, including a loss of a      prospective profit, incurred by the Lender 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 overdueamount). |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3   | Currency      indemnity.  If any sum due from 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 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; |
|-----------------|--------------------------------------------|

|   | the      Borrower shall indemnify the Lender against the loss arising when the      amount of the payment actually received by the Lender is converted at the      rate of exchange then available to the Lender into the Contractual      Currency. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16   | NO      SET-OFF OR TAX DEDUCTION |
|----------------|----------------------------------|

| 16.1   | No      deductions.  All amounts due from the Borrower under a      Finance Document shall be paid without any form of set-off, cross-claim or      condition and free and clear of any tax deduction except a tax deduction      which the Borrower is required by law tomake. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2   | Grossing-up for      taxes.  If the Borrower is required by law to make a tax      deduction from any payment: |
|------------------|--------------------------------------------------------------------------------------------------------------------------|

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

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

| (c)   | the      amount due in respect of the payment shall be increased by the amount      necessary to ensure that 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, |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17   | INCREASED      COSTS |
|----------------|----------------------|

| 17.1   | Increased      costs.  This Clause 17 applies if the Lender notifies the      Borrower that as a result of: |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

| (a)   | the      introduction or alteration after the date of this Agreement of a law, or      an official requirement 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 official requirement (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 this      Agreement, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | the      Lender (or a parent company of it) has incurred or will incur an "increased      cost". |
|--------|--------------------------------------------------------------------------------------------------|

| (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 Loan 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; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | but      not an item attributable to a change in the rate of tax on the overall net      income of the Lender (or a parent company of  it). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3   | Payment of increased      costs.  The Borrower shall pay to the Lender, on its      demand, the amounts which the Lender from time to time notifies the      Borrower that it has specified to be necessary to compensate it for the      increased cost. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4   | Notice of      prepayment.  If the Borrower is not willing to continue      to compensate the Lender for the increased cost under Clause 17.3, the      Borrower may give the Lender not less than 14 days' notice of its      intention to prepay the Loan at the end of an Interest    Period. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.5   | Prepayment.  A      notice under Clause 17.4 shall be irrevocable; and on the date specified      in its notice of intended prepayment, the Borrower shall prepay (without      premium or penalty) the Loan, together with accrued interest thereon at      the applicable rate plus theMargin. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18   | TRANSFERS      AND CHANGES IN LENDING OFFICES |
|----------------|-----------------------------------------------|

| 18.1   | Transfer by      Borrower.  The Borrower may not, without the consent of      the Lender transfer or assign any of its rights, liabilities or      obligations under any FinanceDocument. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2   | Transfer by      Lender.  The Lender may transfer and/ or assign and/or      deal with all or any of the rights and interests which it has under or by      virtue of the Finance Documents or change its lending office. The Borrower      agrees and consents to the sale or transfer by the Lender, whether now or      later, of the Loan in whole or in part to one or more banks and/or      financing institutions, and to its assignment of all or portion of the      Loan to one or more assignees that are purchasers, whether related or      unrelated to the Lender. The Lender may provide to any purchaser, or      potential purchaser, any information the Lender may have about the      Borrower or about any other matter relating to the Loan. Any bank and/or      financing institution to whom such information is disclosed shall be      obliged to keep all information disclosed to it confidential, and shall      not disclose it to any entity or person not in its employment other than      its professional consultants such as attorneys and accountants, and shall      agree to return to the Lender copies of any materials provided to it by      the Lender should it elect not to purchase part or whole of the Loan. In      the event of an assignment by the Lender, the Borrower agrees to execute      and deliver such amendments to this Agreement and the Finance Documents as      the Lender reasonably may request. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19   | NOTICES |
|----------------|---------|

| 19.1   | General.  Unless      otherwise specifically provided, any notice under or in connection with      any Finance Document shall be given by letter, fax or telex and shall be      effective upon receipt; and references in the Finance Documents to written      notices, notices in writing and notices signed by particular persons shall      be construed accordingly. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20   | SUPPLEMENTAL |
|----------------|--------------|

| 20.1   | Rights      cumulative.  The rights and remedies which the Finance      Documents give to the Lender are cumulative, may be exercised as often as      appears expedient and 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. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2   | Severability.  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. The parties      hereto agree in such event to substitute valid, legal and enforceable      provisions for the invalid, illegal or unenforceable provisions so as to      implement the intentions of the parties hereto to the extent that this is      legally permitted. The same applies in case of  lacunae. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3   | General Business      Conditions.  The General Business Conditions of the      Lender as per Appendix I hereto shall apply to and form an integral part      of this loan agreement as if fully set forth herein. In case of any      discrepancy between the provisions of this Agreement and the General      Business Conditions the provisions of this Loan Agreement shall      prevail |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21   | LAW      AND JURISDICTION |
|----------------|---------------------------|

| 21.1   | German      law.  This Agreement shall be governed by, and construed      in accordance with, German law. If a term has a specific English legal      meaning that - when translated into German - differs from or is not      reflected in the laws of Germany, such meaning shall be disregarded.      Instead, the German meaning of such term shall  prevail. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2   | Exclusive German      jurisdiction.  Subject to Clause 21.3, the courts of      Hamburg, Germany, shall have exclusive jurisdiction to settle any disputes      which may arise out of or in connection with this Agreement and any      Finance Document. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3   | Lender's rights      unaffected.  Nothing in this Clause 21 shall derogate,      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. The Borrower shall not commence any proceedings in any      country other than Germany in relation to a matter which arises out of or      in connection with this Agreement. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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