----

| 1      | INTERPRETATION                                                       |        1 |
|--------|----------------------------------------------------------------------|---------------|
|   |                                                                 |          |
| 2      | FACILITY                                                             | 17            |
|   |                                                                 |          |
| 3      | POSITION      OF THE LENDERS, THE SWAP BANK AND THE MAJORITY LENDERS | 18            |
|   |                                                                 |          |
| 4      | DRAWDOWN                                                             | 19            |
|   |                                                                 |          |
| 5      | INTEREST                                                             | 20            |
|   |                                                                 |          |
| 6      | INTEREST      PERIODS                                                | 22            |
|   |                                                                 |          |
| 7      | DEFAULT      INTEREST                                                | 23            |
|   |                                                                 |          |
| 8      | REPAYMENT      AND PREPAYMENT                                        | 24            |
|   |                                                                 |          |
| 9      | CONDITIONS      PRECEDENT                                            | 26            |
|   |                                                                 |          |
| 10     | REPRESENTATIONS      AND WARRANTIES                                  | 27            |
|   |                                                                 |          |
| 11     | GENERAL      UNDERTAKINGS                                            | 29            |
|   |                                                                 |          |
| 12     | CORPORATE      UNDERTAKINGS                                          | 33            |
|   |                                                                 |          |
| 13     | INSURANCE                                                            | 34            |
|   |                                                                 |          |
| 14     | SHIP      COVENANTS                                                  | 39            |
|   |                                                                 |          |
| 15     | SECURITY      COVER                                                  | 43            |
|   |                                                                 |          |
| 16     | PAYMENTS      AND CALCULATIONS                                       | 44            |
|   |                                                                 |          |
| 17     | APPLICATION      OF RECEIPTS                                         | 46            |
|   |                                                                 |          |
| 18     | APPLICATION      OF EARNINGS                                         | 47            |
|   |                                                                 |          |
| 19     | EVENTS      OF DEFAULT                                               | 48            |
|   |                                                                 |          |
| 20     | FEES      AND EXPENSES                                               | 52            |
|   |                                                                 |          |
| 21     | INDEMNITIES                                                          | 53            |
|   |                                                                 |          |
| 22     | NO      SET-OFF OR TAX DEDUCTION                                     | 56            |

----

| 23                                                | ILLEGALITY,      ETC                          | 56     |
|---------------------------------------------------|-----------------------------------------------|--------|
|                                              |                                          |   |
| 24                                                | INCREASED      COSTS                          | 57     |
|                                              |                                          |   |
| 25                                                | SET-OFF                                       | 58     |
|                                              |                                          |   |
| 26                                                | TRANSFERS      AND CHANGES IN LENDING OFFICES | 59     |
|                                              |                                          |   |
| 27                                                | VARIATIONS      AND WAIVERS                   | 62     |
|                                              |                                          |   |
| 28                                                | NOTICES                                       | 63     |
|                                              |                                          |   |
| 29                                                | SUPPLEMENTAL                                  | 64     |
|                                              |                                          |   |
| 30                                                | LAW      AND JURISDICTION                     | 65     |
|                                              |                                          |   |
| SCHEDULE      1 LENDERS AND COMMITMENTS           | 66                                            |
|                                              |                                          |
| SCHEDULE      2 DETAILS OF INITIAL CHARTERPARTIES | 67                                            |
|                                              |                                          |
| SCHEDULE      3 DRAWDOWN NOTICE                   | 68                                            |
|                                              |                                          |
| SCHEDULE      4 CONDITION PRECEDENT DOCUMENTS     | 69                                            |
|                                              |                                          |
| SCHEDULE      5 TRANSFER CERTIFICATE              | 72                                            |
|                                              |                                          |
| SCHEDULE      6 FORM OF COMPLIANCE CERTIFICATE    | 76                                            |

----

|   | (1) | STAR BULK CARRIERS CORP.      a corporation incorporated in the Marshall Islands whose registered      office is at Trust Company Complex, Ajeltake Road, Ajeltake Island,      Majuro, The Marshall Islands MH 96960 as Borrower; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (3) | PIRAEUS BANK A.E. acting      through its office at 47-49 Akti Miaouli, Piraeus, Greece, as Agent; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (4) | PIRAEUS BANK A.E. acting      through its office at 47-49 Akti Miaouli, Piraeus, Greece, as Security Trustee;      and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (5) | PIRAEUS BANK A.E. acting      through its office at 47-49 Akti Miaouli, Piraeus, Greece, as Swap    Bank. |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

| (a) | financing      part of the acquisition cost of m.v.“SINFONIA”; |
|-----|----------------------------------------------------------------------------|

| (b) | providing      the Borrower with liquidity for the acquisition of the 2005-built 53,489      metric tons      deadweight geared bulk carrier m.v. “NORD WAVE” (tbr “STAR OMICRON”));      and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | providing      the Borrower with liquidity for its general corporate purposes. IT IS AGREED as      follows: |
|-----|--------------------------------------------------------------------------------------------------------------|

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

| 1.2 | Definitions. Subject to      Clause 1.6 in this Agreement: |
|-----|------------------------------------------------------------|

----

|   | (a) | in      the case of Tranche A and Tranche B, 30 May  2008; |
|--------|-----|------------------------------------------------------------|

|   | (b) | in      the case of Tranche C, 30 August2008; |
|--------|-----|-----------------------------------------------|

|   | (c) | (or,      in each case, such later date as the Agent may, with the authorisation of      all the Lenders, agree with the Borrower);or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

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

----

|   | (a) | all      freight, hire and passage moneys, compensation payable to the relevant      Owner or the Security Trustee in the event of requisition of that 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 (including, but not limited to, the      Charterparties) or other contract for the employment of the      Ship; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|   | (c) | if      and whenever that Ship is employed on terms whereby any moneys falling      within paragraphs (a) or (b) above 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 that  Ship; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | plus,      to the extent deducted in computing consolidated net income of the Group      for that accounting period, the sum, without duplication,    of: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | all      federal, state, local and foreign taxes and tax    distributions; |
|--------|-----|----------------------------------------------------------------------------|

|   | (ii) | Net      Interest Expenses; and |
|--------|------|---------------------------------|

|   | (iii) | depreciation,      depletion, amortisation of intangibles and other non-cash charges or      non-cash losses (including non-cash transaction expenses and the      amortisation of debt discounts) and any extraordinary losses not incurred      in the ordinary course of business; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | minus,      to the extent added in computing consolidated net income of the Group for      that accounting period, any non-cash income or non-cash gains and any      extraordinary gains not incurred in the ordinary course of      business; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

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

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

|   | (b) | the      Master Agreement; |
|--------|-----|----------------------------|

|   | (c) | the      Master Agreement Assignment; |
|--------|-----|---------------------------------------|

|   | (d) | the      Agency and Trust Deed; |
|--------|-----|---------------------------------|

|   | (e) | the      Guarantees; |
|--------|-----|----------------------|

|   | (f) | the      Mortgages; |
|--------|-----|---------------------|

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

|   | (h) | the      Earnings Account Pledges; |
|--------|-----|------------------------------------|

|   | (i) | the      Charterparty Assignments; |
|--------|-----|------------------------------------|

|   | (j) | the      Manager’s Undertakings; and |
|--------|-----|--------------------------------------------|

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

----

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

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

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

|   | (d) | under      a financial lease, a deferred purchase consideration arrangement or any      other agreement having the commercial effect of a borrowing or raising of      money by the debtor; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

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

|   | (a) | ‘The      International Management Code for the Safe Operation of Ships and for      Pollution Prevention’, currently known or referred to as the ‘ISM Code’,      adopted by the Assembly of the International Maritime Organisation by      Resolution A.741(18) on 4 November 1993 and incorporated on 19 May 1994      into chapter IX of the International Convention for the Safety of Life at      Sea 1974 (SOLAS 1974); and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      further resolutions, circulars, codes, guidelines, regulations and      recommendations which are now or in the future issued by or on behalf of      the International Maritime Organisation or any other entity with      responsibility for implementing the ISM Code, including without      limitation, the ‘Guidelines on implementation or administering of the      International Safety Management (ISM) Code by Administrations’ produced by      the International Maritime Organisations pursuant to Resolution A.788(19)      adopted on 25 November 1995, |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      document of compliance (DOC) and safety management certificate (SMC)      issued pursuant to the ISM Code in relation to that Ship within the      periods specified by the ISM Code;and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      other documents and data which are relevant to the ISM SMS and its      implementation and verification which the Agent may require;      and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | any      other documents which are prepared or which are otherwise relevant to      establish and maintain the Ship’s or the compliance of its Owner with the      ISM Code which the Agent mayrequire; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      International Ship      Security Certificate issued pursuant to the ISPS Code in relation      to each Ship within the      period specified in the ISPS Code;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all      other documents and data which are relevant to the ISPS Code and its implementation      and verification which the Agent may  require; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | a      bank or financial institution listed in Schedule 1 and acting through its      branch indicated in Schedule 1 (or through another branch notified to      the Borrower under Clause 26.14) unless it has delivered a Transfer      Certificate or Certificates covering the entire amounts of its Commitment      and its Contribution; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      holder for the time being of a Transfer  Certificate; |
|--------|-----|----------------------------------------------------------------|

|   | (a) | the      Total Liabilities (less all Liquid Funds;and |
|--------|-----|-------------------------------------------------------|

|   | (b) | the      Market Value Adjusted Total Assets (including, without limitation, the      Ships) |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (a) | the      rate per annum equal to the offered quotation for deposits in Dollars for      a period equal to, or as near as possible equal to, the relevant Interest      Period which appears on REUTERS BBA Page LIBOR 01 at or about 11.00 a.m.      (London time) on the second Business Day prior to the commencement of that      Interest Period (and, for the purposes of this Agreement, “REUTERS BBA      Page LIBOR 01” means the display designated as “REUTERS BBA Page LIBOR 01”      on the Reuters Money News Services or such other page as may replace      REUTERS BBA Page LIBOR 01 on that service for the purpose of displaying      rates comparable to that rate or on such other service as may be nominated      by the      British Bankers’ Association for the purpose of displaying British      Bankers’ Association Interest Settlement Rates for Dollars); or  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|   | (a) | before      a Tranche has been advanced, Lenders whose Commitments total at least 66      2/3 per cent. of the Total Commitments;and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | after      a Tranche has been advanced, Lenders whose Contributions total 66 2/3 per      cent. of the Loan; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

----

|   | (a) | “ALPHA”,      Star A; |
|--------|-----|-----------------------------------|

|   | (b) | “BETA”,      Star B; and |
|--------|-----|--------------------------------------|

|   | (c) | “SINFONIA”,      Star L; |
|--------|-----|--------------------------------------|

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

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

----

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

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

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

|   | (f) | any      Security Interest created in favour of a plaintiff or defendant in any      action of the court or tribunal before whom such action is brought as      security for costs and expenses where the relevant Owner is prosecuting or      defending such action in good faith by appropriate steps;    and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

----

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

|   | (b) | the      rights of the plaintiff under an action in rem in which the      vessel concerned has been arrested or a writ has been issued or similar      step taken; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

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

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

----

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

|   | (b) | any      expropriation, confiscation, requisition or acquisition of that Ship,      whether for full consideration, a consideration less than her proper      value, a nominal consideration or without any consideration, which is      effected by any government or official authority or by any person or      persons claiming to be or to represent a government or official authority,      excluding a requisition for hire for a fixed period not exceeding one year      without any right to an extension; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      condemnation of that Ship by any tribunal or by any person or person      claiming to be a tribunal; |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (d) | any      arrest, capture, seizure or detention of that Ship (including any      hijacking or theft) unless she is within 30 days redelivered to the full      control the relevant Owner; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

----

| 1.3 | Construction of certain      terms. In this Agreement: |
|-----|--------------------------------------------------------|

----

| 1.4 | Meaning of “month”. Aperiod of one or more “months”      ends on the day in the relevant calendar month numerically corresponding      to the day of the calendar month on which the period started (“the numerically corresponding      day”), but: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

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

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

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

| 1.6 | General      Interpretation. |
|-----|------------------------------|

| (a) | In      this Agreement: |
|-----|-------------------------|

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

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

|   | (iii) | words      denoting the singular number shall include the plural and vice      versa. |
|--------|-------|---------------------------------------------------------------------------------------|

| (b) | Clauses      1.2 to 1.5 and paragraph (a) of this Clause 1.6 apply unless the contrary      intention appears. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (c) | References      in Clause 1.2 to a document being in a particular form include references      to that form with any modifications to that form which the Agent (with the      authorisation of the Majority Lenders in the case of substantial      modifications) approves or reasonablyrequires. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The      clause headings shall not affect the interpretation of this      Agreement. |
|-----|--------------------------------------------------------------------------------------|

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

| 2.1 | Amount of facility.      Subject to the other provisions of this Agreement, the Lenders      shall make available to the Borrower a term loan facility not exceeding      $170,000,000 in three Tranches, Tranche A, Tranche B and Tranche      C. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 2.3 | Purpose of Loan. The      Borrower undertakes with each Creditor Party to use each Tranche only for      the purpose stated in the preamble to this Agreement and Clause      2.1. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.4 | Limit of initial Total      Commitments. |
|-----|------------------------------------------|

| (a) | The      Borrower hereby acknowledges that until Piraeus Bank A.E. transfers      $85,000,000 of its Commitments (“Excess Commitment”) to      one or more Transferee Lenders it may only draw down Tranche A in the      maximum principal amount of $65,000,000. Until such time as Piraeus Bank      A.E. transfers the Excess Commitment the reference to Total Commitments in      this Agreement shall be construed to mean  $65,000,000. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | As      from the date of this Agreement the Borrower shall assist the Agent to      find banks or financial institutions to whom Piraeus Bank A.E. will      transfer the Excess Commitment in order to permit the Borrower to draw      down Tranche B and Tranche C and to increase the maximum amount of the      Loan to be made available hereunder to  $170,000,000. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)    | The      transfer of the Excess Commitment will (inter alia) operate to reduce      Piraeus Bank |
|--------|--------------------------------------------------------------------------------------------------|
|   | A.E.’s      Contribution in Tranche A to 50 per cent of such  Tranche.                     |

| 3 | POSITION      OF THE LENDERS, THE SWAP BANK AND THE MAJORITY  LENDERS |
|---|-----------------------------------------------------------------------|

| 3.1 | Interests of Lenders and Swap      Bank several. The rights of the Lenders and the Swap Bank under      this Agreement and the Master Agreement are several; accordingly (a) each      Lender shall be entitled to sue for any amount which has become due and      payable by the Borrower to it under this Agreement; and (b) the Swap Bank      shall be entitled to sue for any amount which has become due and payable      by the Borrower to it under the Master Agreement without joining the      Agent, the Security Trustee or any other Lender or the Swap Bank as      additional parties in theproceedings. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Proceedings by individual      Lender or Swap Bank. However, without the prior consent of the      Majority Lenders, neither a Lender nor a Swap Bank may bring proceedings      in respect of: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | any      other liability or obligation of the Borrower or a Security Party under or      connected with a Finance Document or the Master Agreement;    or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any      misrepresentation or breach of warranty by the Borrower or a Security      Party in or connected with a Finance Document or the Master      Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Obligations several. The      obligations of the Lenders under this Agreement and of the Swap Bank under      the Master Agreement are several; and a failure of a Lender to perform its      obligations under this Agreement or of the Swap Bank to perform its      obligations under the Master Agreement shall not result  in: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | the      Borrower, any Security Party or any other Creditor Party being discharged      (in whole or      in part) from its obligations under any Finance      Document; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Parties bound by certain      actions of Majority Lenders. Every Lender, the Swap Bank, the      Borrower and each Security Party shall be bound  by: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a) | any      determination made, or action taken, by the Majority Lenders under any      provision of a      Finance Document; |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (b) | any      instruction or authorisation given by the Majority Lenders to the Agent or      the Security      Trustee under or in connection with any Finance      Document; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | any      action taken (or in good faith purportedly taken) by the Agent or the      Security Trustee in      accordance with such an instruction or    authorisation. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | Reliance on action of Agent.      However, the Borrower and each Security  Party: |
|-----|-----------------------------------------------------------------------------------|

| (a) | shall      be entitled to assume that the Majority Lenders have duly given any      instruction or |
|-----|----------------------------------------------------------------------------------------------------|

|   | authorisation      which, under any provision of a Finance Document, is required in relation      to any action which the Agent has taken or is about to take;      and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | shall      not be entitled to require any evidence that such an instruction or      authorisation has been      given. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| 3.6 | Construction. In Clauses      3.4 and 3.5 references to action taken include (without limitation) the      granting of any waiver or consent, an approval of any document and an      agreement to any matter. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| (b) | the      amount of each Tranche shall notexceed: |
|-----|--------------------------------------------------|

|   | (i) | in      the case of Tranche A, an amount equal to the lesser of (i) $65,000,000      and (ii) 77.63 per cent. of the Contract Price of “SINFONIA” which shall      be made available in a single advance to the Borrower for the purpose of      financing part of the Contract Price of that Ship payable by Star L to the      Seller pursuant to the MOA; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in      the case of Tranche B, an amount of $55,000,000 which shall be made      available in a single advance to the Borrower for the purpose of providing      the Borrower with liquidity for the acquisition of “OMICRON”;      and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | in      the case of Tranche C, an amount of $50,000,000 which shall be made      available to the Borrower for the purpose of providing the Borrower with      liquidity for its general corporatepurposes; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Tranche      B shall be made available to theBorrower: |
|-----|--------------------------------------------------------|

|   | (i) | after      the Drawdown Date of Tranche A; and |
|--------|-----|------------------------------------------------|

|   | (ii) | if      Piraeus Bank A.E. has transferred to one or more Transferee Lenders the      Excess Commitment; |
|--------|------|---------------------------------------------------------------------------------------------------------|

----

| (d) | Tranche      C shall be made available to the Borrower after the Drawdown Date of      Tranche B; and |
|-----|-------------------------------------------------------------------------------------------------------|

| (e) | the      aggregate of the Tranches shall not exceed the Total      Commitments. |
|-----|---------------------------------------------------------------------------------|

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

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

| (b) | the      amount of that Lender’s participation in the Tranche;  and |
|-----|---------------------------------------------------------------------------|

| (c) | the      duration of the first Interest Period applicable to that      Tranche. |
|-----|---------------------------------------------------------------------------------|

| 4.4 | Drawdown Notice irrevocable.      A Drawdown Notice must be signed by an authorized signatory or a      director of theBorrower; and once served, a      Drawdown Notice cannot be revoked without the prior consent of the Agent,      acting on the authority of the MajorityLenders. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Lenders to make available      Contributions. Subject to the provisions of this Agreement, each      Lender shall, on and with value on each Drawdown Date, make available to      the Agent for the account of the Borrower the amount due from that Lender      on that Drawdown Date under Clause2.1. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a) | to      the account which the Borrower specifies in the relevant Drawdown Notice;      and |
|-----|--------------------------------------------------------------------------------------------|

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

| 4.7 | Disbursement of Tranche to      third party. The payment by the Agent under Clause 4.6 to a third      party specified in the relevant Drawdown Notice shall constitute the      making of the Tranche, or any part thereof, and the Borrower shall      thereupon become indebted, as principal and direct obligor, to each Lender      in an amount equal to that Lender’s  Contribution. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 5.2 | Normal rate of interest.      Subject to the provisions of this Agreement, the rate of interest      on the Loan and each part thereof in respect of an Interest Period shall      be the aggregate of (i) the applicable Margin and (ii)    LIBOR. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 5.4 | Notification of Interest      Periods and rates of normal interest. The Agent shall notify the      Borrower and each Lender of |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

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

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

| 5.5 | Market disruption. The      following provisions of this Clause 5 applyif: |
|-----|----------------------------------------------------------------------------|

| (a) | at      least one Business Day before the start of an Interest Period, Lenders      having Contributions      together in an amount equal to or more than 50 per cent. of the Loan (or,      if a Tranche has not been advanced, Commitments amounting to more than 50      per cent. of the Total Commitments) notify the Agent that LIBOR fixed by the Agent      would not accurately reflect the cost to those Lenders of funding their      respective Contributions (or any part of them) during the Interest Period      in the London Interbank Dollar Market at or about 11.00 a.m. (London time)      on the second Business Day before the commencement of the Interest Period;      or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5.6 | Notification of market      disruption. The Agent shall promptly notify the Borrower and each      of the Lenders stating the circumstances falling within Clause 5.5 which      have caused its notice to be given. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | Suspension of drawdown.      If the Agent’s notice under Clause 5.6 is served before a Tranche      is advanced: |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (a) | in      a case falling within paragraph (a) of Clause 5.5, the Lenders’      obligations to advance the relevantTranche; |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| (b) | in      a case falling within paragraph (b) of Clause 5.5, the Affected Lender’s      obligation to participate in the relevant  Tranche; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | Negotiation of alternative rate      of interest.  If the Agent’s notice under Clause 5.6 is      served after a Tranche has been advanced, the Borrower, the Agent and the      Lenders or (as the case may be) the Affected Lender shall use reasonable      endeavours to agree, within the 30 days after the date on which the Agent      serves its notice under Clause 5.6 (the “Negotiation Period”),      an alternative interest rate or (as the case may be) an alternative      basis for the Lenders or (as the case may be) the Affected Lender to fund      or continue to fund their or its Contribution to the relevant Tranche or      Tranches during the Interest Periodconcerned. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.9 | Application of agreed      alternative rate of interest.  Any alternative interest      rate or an alternative basis which is agreed during the Negotiation Period      shall take effect in accordance with the terms  agreed. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.10 | Alternative rate of interest in      absence of agreement.  If an alternative interest rate or      alternative basis is not agreed within the Negotiation Period, and the      relevant circumstances are continuing at the end of the Negotiation      Period, then the Agent shall, with the agreement of each Lender or (as the      case may be) the Affected Lender, set an interest period and interest rate      representing the cost of funding of the Lenders or (as the case may be)      the Affected Lender in Dollars or in any available currency of their or      its Contribution to the relevant Tranche or Tranches plus the applicable      Margin; and the procedure provided for by this Clause 5.10 shall be      repeated if the relevant circumstances are continuing at the end of the      interest period so set by theAgent. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.11 | Notice of      prepayment.  If the Borrower does not agree with an      interest rate set by the Agent under Clause 5.10, the Borrower may give      the Agent not less than 15 Business Days’ notice of its intention to      prepay the relevant Tranche or Tranches at the end of the interest period      set by the Agent. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.12 | Prepayment; termination of      Commitments.  A notice under Clause 5.11 shall be      irrevocable; the Agent shall promptly notify the Lenders or (as the case      may require) the Affected Lender of the Borrower’s notice of intended      prepayment; and: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | on      the date on which the Agent serves that notice, the Total Commitments or      (as the case |
|-----|----------------------------------------------------------------------------------------------------|

|   | may      require) the Commitment of the Affected Lender shall be cancelled;      and |
|--------|--------------------------------------------------------------------------------------|

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

| 5.13 | Application of      prepayment.  The provisions of Clause 8 shall apply in      relation to the prepayment. |
|------|-----------------------------------------------------------------------------------------------------------------------|

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

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

| 6.2 | Duration of normal Interest      Periods.  Subject to Clause 6.3, each Interest Period in      respect of the Loan shall be: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| (a) | 1,      3, 6 or 9 months as notified by the Borrower to the Agent not later than      11.00 a.m. (Piraeus      time) 3 Business Days before the commencement of the Interest      Period; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | in      the case of the first Interest Period applicable to the second and any      subsequent Tranche, a period ending on the last day of the then current      Interest Period for the previous Tranche or Tranches, whereupon all of the      Tranches shall be consolidated and treated as a single      Tranche; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d) | such      other period as the Agent may, with the Majority Lenders’ authority, agree      with the Borrower. |
|-----|--------------------------------------------------------------------------------------------------------------------|

----

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

| 6.4 | Non-availability of matching      deposits for Interest Period selected.  If, after the      Borrower has selected an Interest Period longer than 6 months, any Lender      notifies the Agent by 11.00 a.m. (Piraeus time) on the third Business Day      before the commencement of the Interest Period that it is not satisfied      that deposits in Dollars for a period equal to the Interest Period will be      available to it in the London Interbank Market when the Interest Period      commences, the Interest Period shall be of 3  months. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

----

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

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

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

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

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

| 8.1 | Repayment instalments.      The Borrower shall repay the Loan by (a) 24 consecutive      three-monthly instalments of (i) in the case of the first instalment in      the amount of $8,000,000, (ii) in the case of the second to fourth      instalments (inclusive), in the amount of $12,000,000 each, (iii) in the      case of the fifth to eighth instalments (inclusive), in the amount of      $10,000,000 each, (iv) in the case of the ninth to sixteenth instalments      (inclusive), in the amount of $5,000,000 each, (v) in the case of the      seventeenth to twentieth instalments (inclusive), in the amount of      $3,000,000, (vi) in the case of the twenty-first to twenty-fourth      instalments (inclusive), in the amount of $2,500,000 each and (b) a      balloon payment in the amount of $24,000,000 (the “Balloon Instalment”) Provided      that if the Loan is drawdown in less than the maximum available      amount thereof, each repayment instalment (including the Balloon      Instalment) shall be reduced pro rata by an amount in aggregate equal to      such undrawn amount. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Repayment Dates. The      first repayment instalment for the Loan shall be repaid on the date      falling 3 months after the Drawdown Date of Tranche A, each subsequent      repayment instalment shall be repaid at 3-monthly intervals thereafter and      the last instalment shall be repaid, together with the Balloon Instalment,      on the date falling on the sixth anniversary of such Drawdown      Date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | Final Repayment Date. On      the final Repayment Date, the Borrower shall additionally pay to the Agent      all other sums then accrued or owing under any Finance      Document. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Voluntary prepayment.      Subject to the following conditions, the Borrower may prepay the      whole or any part of the Loan on the last day of an Interest Period in      respect thereof. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a) | a      partial prepayment shall be $1,000,000 or a multiple of      $1,000,000; |
|-----|---------------------------------------------------------------------------------|

| (b) | the      Agent has received from the Borrower at least 30 days’ prior written      notice specifying the amount to be prepaid and the date on which the      prepayment is to be made (such date shall be the last day of an Interest      Period); and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

| 8.8 | Mandatory prepayment. If      a Ship is sold or becomes a Total Loss the Borrower shall be obliged to      prepay the Relevant Amount of theLoan: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | if      that Ship becomes a, Total Loss, on the earlier of the date falling 180      days after the |
|-----|-----------------------------------------------------------------------------------------------------|

|   | relevant      Total Loss Date and the date of receipt by the Lender of the proceeds of      insurance relating to such Total Loss, and in this Clause    8.8: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | “Relevant Amount” means      the higher of (aa) the Relevant Percentage of the Loan and (bb) an amount      which after giving credit for the amount of the prepayment made pursuant      to this Clause 8.8, results in the Security Cover Percentage being equal      to the applicable Security Cover Percentage referred to in Clause 15.1;      and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | “Relevant Percentage”      means: |
|--------|------|-----------------------------------------------|

|   | (aa) | in      the case of a Collateral Ship, the Market Value of the Collateral Ship      which has been sold or become a Total Loss (on the date on which the sale      of such Ship is completed by delivery to its buyer or, as the case may be,      on the Total Loss Date in respect of the Ship) expressed as a percentage      of the aggregate Market Value (on the same date) of all the Ships then      subject to a Mortgage; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | in      the case of “SINFONIA”; |
|--------|------|---------------------------------------------|

|   | (1) | if      that Ship is sold or becomes a Total Loss in the period commencing on the      Drawdown Date of Tranche A and ending on its fourth anniversary, a      percentage which may be mutually agreed between the Borrower and the Agent      (acting on the instructions of all the Lenders), or failing such agreement      50 per cent. Provided      that if an Event of Default or Potential Event of Default has      occurred and is continuing at the relevant time the Relevant Percentage      shall be a percentage of up to 100 per cent. specified by the Agent in a      notice to the Borrower; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | if      that Ship is sold or becomes a Total Loss at any time thereafter the      Market Value of “SINFONIA” on the date on which such sale is completed or      (as the case may be) the Total Loss Date in respect thereof expressed as a      percentage of the aggregate Market Value (on the same date) of all the      Ships then subject to a Mortgage. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.9 | Amounts payable on prepayment.      A prepayment shall be made together with accrued interest (and any      other amount payable under Clause 21 below or otherwise) in respect of the      amount prepaid and, if the prepayment is not made on the last day of an      Interest Period together with any sums payable under Clause 21.1(b) but      without premium or penalty. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.10 | Application of partial      prepayment. Any sum received by the Agent pursuant    to: |
|------|---------------------------------------------------------------------------------------|

| (a) | Clause      8.8 shall be applied pro rata against the repayment instalments which are      at the time being outstanding (including the Balloon Instalment);      and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Clause      8.4 shall be applied in inverse order of maturity against the repayment      instalments (including the Balloon Instalment) which are outstanding at      the relevant time. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.11 | Reborrowing. No amount      prepaid in respect of the Loan may be  reborrowed. |
|------|--------------------------------------------------------------------------------|

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

| 9.1 | Documents, fees and no default.      Each Lender’s obligation to contribute to a Tranche is subject to      the following conditions precedent: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | that,      on or before the Drawdown Date relative to Tranche A, the Agent receives      the documents      described in Part B of Schedule 4 in form and substance satisfactory to      the Agent (acting on the authority of the Majority Lenders) and its      lawyers; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | that,      on or before the Drawdown Date relative to Tranche B, the Agent has      transferred the Excess      Commitment in accordance with Clauses 2.4 and  26.3; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | that,      on or before the Drawdown Date relative to Tranche C, the Agent receives      all accrued      commitment fee referred to in Clause  20.1; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | that,      on or before the service of the first Drawdown Notice, the Agent receives      any accrued      fees referred to in Clause 20.1 which are payable at that time and has      received payment of the expenses referred to in Clause      20.2; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (ii) | the      representations and warranties in Clause 10 and those of the Borrower or      any Security Party which are set out in the other Finance Documents would      be true and not misleading if repeated on each of those dates with      reference to the circumstances thenexisting; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | none      of the circumstances contemplated by Clause 5.5 has occurred and is      continuing; and |
|--------|-------|----------------------------------------------------------------------------------------------------|

|   | (iv) | there      has been no material adverse change in the financial position, state of      affairs or prospects of the Borrower, any Security Party or any member of      the Group since the date of the Agent’s commitment letter (dated 8 April      2008) to the Borrower for the Loan, in the light of which the Agent      considers that there is a significant risk that the Borrower or any other      Security Party will later become unable to discharge its liabilities under      the Finance Documents to which it is a party as they fall    due; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | that,      if the ratio set out in Clause 15.1 were applied immediately following the      advance of a Tranche, the Borrower would not be obliged to provide      additional security or prepay part of the Loan under that Clause;      and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 10.2 | Status. The Borrower is      duly incorporated and validly existing and in good standing under the laws      of the Marshall Islands. |
|------|---------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Share capital and ownership.      The Borrower has an authorised share capital divided into      45,988,670 common shares and 19,080,036 warrants each of $0.01 par value      and issued in registered form. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Corporate power. The      Borrower has the corporate capacity, and has taken all corporate action      and obtained all      consents necessary for it: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 10.6 | 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 over all the assets to which they, by their terms,      relate, subject to any relevant insolvency laws affecting creditors’      rights generally. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | No third party Security      Interests. Without limiting the generality of Clause 9.6, at the      time of the execution and delivery of each Finance    Document: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.8 | No conflicts. The      execution by 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      contravention of |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | any      law or regulation; 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 including, without limitation, its      shareholding in the Owners. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9 | No withholding taxes.      All payments which the Borrower is liable to make under the Finance      Documents may be made without deduction or withholding for or on account      of any tax payable under any law of any Pertinent      Jurisdiction. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.12 | Validity and completeness of      the MOA and InitialCharterparties. |
|-------|----------------------------------------------------------------------|

| (a) | the      copies of the MOA and the Initial Charterparties delivered to the Agent      before the date      of this Agreement are true and complete  copies; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      MOA and each Initial Charterparty constitutes valid, binding and      enforceable obligations      of the parties thereto respectively in accordance with its terms;      and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | no      amendments or additions to the MOA or any Initial Charterparty have been      agreed nor has      any party thereto waived any of their respective rights under the MOA or      any Initial Charterparty. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | No litigation. No legal      or administrative action involving the Borrower, the Owners or any other      member of the Group (including, without limitation, any action relating to      any alleged or actual breach of the ISM Code and the ISPS code and/or any      action relating to the MOA) has been commenced or taken or, to the      Borrower’s knowledge, is likely to be commenced or  taken. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 | No rebates etc. There is      no agreement or understanding to allow or pay any rebate, premium,      commission, discount or other benefit or payment (howsoever described) to      the Owners, the Seller or any third party in connection with the purchase      by Star L of “SINFONIA”, other than as disclosed to the Lenders in writing      on or prior to the date of this Agreement (including, without limitation,      any information disclosed in the Form F-1 registration statement and      prospectus filed with the US Securities and Exchange Commission, a copy of      which has been delivered to theLenders). |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15 | Compliance with certain      undertakings. At the date of this Agreement, the Borrower is in      compliance with Clauses 11.2, 11.4,11,9 and      11.13. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 | Taxes paid. The Borrower      has paid all taxes applicable to, or imposed on or in relation to the      Borrower or its business. |
|-------|------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 | ISM Code and ISPS Code      compliance. The Borrower will procure that the Owners and each      Approved Manager obtain all necessary ISM Code Documentation and ISPS Code      Documentation in connection with the Ships and comply with the ISM Code      and the ISPS Code. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18 | No money laundering.      Without prejudice to the generality of Clause 2.3, the Borrower      confirms that, by entering into this Agreement and the other Finance      Documents, it is acting on its own behalf and for its own account and it      is obtaining the Loan for its own account. In relation to the borrowing by      the Borrower of the Loan, the performance and discharge of its obligations      and liabilities under this Agreement or any of the Finance Documents and      the transactions and other arrangements effected or contemplated by this      Agreement or any of the Documents to which the Borrower is a party, the      Borrower is acting for its own account and that the foregoing will not      involve or lead to a contravention of any law, official requirement or      other regulatory measure or procedure which has been implemented to combat      “money laundering” (as defined in Article 1 of the Directive (91/308/EEC)      of the Council of the EuropeanCommunity). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 11.2 | Title; negative pledge and pari      passu ranking. The Borrowerwill: |
|------|-----------------------------------------------------------------------|

| (a) | own      (directly or indirectly) the entire beneficial interest in each Owner free      from all Security Interests and other interests and rights of every kind,      except for those created by the Finance  Documents; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | not      create or permit to arise any Security Interest (except for Permitted      Security Interests) over any other asset, present or future;      and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | procure      that its liabilities under the Finance Documents to which it is a party do      and will rank at least pari passu with all its other present and future      unsecured liabilities, except for liabilities which are mandatorily      preferred by law. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | No disposal of assets.      The Borrower will not transfer, lease or otherwise dispose      of: |
|------|-------------------------------------------------------------------------------------------------|

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

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

| 11.4 | Restriction on other      liabilities or obligations to be incurred. The Borrower will not      incur, and will procure that none of the Owners will, incur, any liability      or obligation except liabilities and  obligations: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | under      the Finance Documents to which each is aparty; |
|-----|-----------------------------------------------------------|

| (b) | under      the MOA (in the case of Star L) and the Initial      Charterparty to which each Owner is a party and incurred in the normal      course of its business of owning, operating and chartering its Ship;      and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | (in      the case of the Borrower) incurred in the normal course of its business      (which shall include, without limitation, incurring Financial Indebtedness      for the financing of the vessels owned by its subsidiaries guaranteeing      the obligations of its subsidiaries and all other matters reasonably      incidental thereto). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5 | Information provided to be      accurate. All financial and other information which is provided in      writing by or on behalf of the Borrower under or in connection with any      Finance Document will be true and not misleading and will not omit any      material fact or consideration. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6 | Provision of financial      statements. The Borrower will send to the  Agent: |
|------|-------------------------------------------------------------------------------|

| (a) | as      soon as possible, but in no event later than 180 days after the end of      each Financial Year of the Borrower (commencing with the Financial Year      ended 31 December 2007), the audited consolidated accounts of the Group      for that Financial Year; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | as      soon as possible, but in no event later than 60 days after the end of each      quarterly period in each Financial Year of the Borrower (commencing with      the financial quarter ended on 31 March 2008), the combined unaudited      accounts of the Group for that 3-month period certified in each case as to      their correctness by the chief financial officer of the Borrower;      and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | promptly      after each request by the Agent, such further financial information about      the Borrower, each Owner, the Group and/or the Ships including, but not      limited to, charter arrangements, Financial Indebtedness, operating      expenses and loan repayment profiles, as the Agent may      require. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| (b) | give      a true and fair view of the state of affairs of the Group at the date of      those accounts and of its profit for the period to which those accounts      relate; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | fully      disclose or provide for all significant      liabilities of the Group; and |
|-----|---------------------------------------------------------------------------------------|

| (d) | be      accompanied by a certificate signed by a certificate signed by the chief      financial |
|-----|-------------------------------------------------------------------------------------------------|

|   | officer      of the Borrower confirming that, as at the date of the certificate, no      Event of Default has occurred and iscontinuing. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

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

| 11.9 | Consents. The Borrower      will maintain in force and promptly obtain or renew, and will promptly      send certified copies to the Agent of, all consents    required: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | for      the Borrower and each Owner to perform its obligations under any Finance      Document; |
|-----|--------------------------------------------------------------------------------------------------|

| (b) | for      the validity or enforceability of any Finance  Document; |
|-----|-------------------------------------------------------------------|

| (c) | for      each Owner to continue to own and operate the Ship owned by      it, |
|-----|-------------------------------------------------------------------------------|

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

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

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

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

| 11.12 | Principal place of business.      The Borrower will maintain its place of business, and keep its      corporate documents and records, at the address stated at Clause 28.2(a)      and the Borrower shall not establish, or do anything as a result of which      it would be deemed to have a place of business in the United Kingdom or      the United States of America. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.13 | Confirmation of no default.      The Borrower will, within 2 Business Days after service by the      Agent of a written request, serve on the Agent a notice which is signed by      an officer or director of the Borrower and which (based on its most recent      annual or interim financialstatements): |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 11.14 | Notification of default.      The Borrower will notify the Agent as soon as the Borrower becomes      aware of: |
|-------|-----------------------------------------------------------------------------------------------------------------|

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

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

| 11.15 | Provision of further      information. The Borrower will, as soon as practicable after      receiving the request, provide the Agent with any additional financial or      other information relating: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      the Borrower, any Owner, any other member of the Group, any Ship, each      Approved Manager or any other Security Party, the Insurances or the      Earnings; or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | to      any other matter relevant to, or to any provision of, a Finance Document,      which may be requested by the Agent, the Security Trustee or any Lender at      any time. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.16 | Provision of copies and      translation of documents. The Borrower will supply the Agent with a      sufficient number of copies of the documents referred to above to provide      l copy for each Creditor Party; and if the Agent so requires in respect of      any of those documents, the Borrower will provide a certified English      translation prepared by a translator approved by the  Agent. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.17 | No amendment to the MOA or      Initial Charterparties. The Borrower shall procure that no Owner      shall agree to an amendment or change or supplement to (in the case of      Star L) the MOA or the Initial Charterparty to which it is a      party. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.18 | Ownership. The Borrower      shall ensure that (a) it shall remain the direct or indirect owner of all      of the limited liability company interests in each Owner and (b) there      shall be no change in the legal and beneficial ownership of the shares in      each Owner. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.19 | General and administrative      costs. The Borrower shall ensure that the payment of all the      general and administrative costs of the Borrower and the Owners in      connection with the ownership and operation of the Ships (including,      without limitation, the payment of the management fees pursuant to the      Management Agreements) shall be fully subordinated to the payment      obligations of the Borrower and the Owners under this Agreement and the      other Finance Documents throughout the Security  Period. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.20 | Money laundering.      Promptly upon the Agent’s request the Borrower will supply, or      procure the supply of, such documentation and other evidence as is      reasonably requested by the Agent in order for each Creditor Party to      carry out and be satisfied with the results of all necessary “know your      client” or other checks which it is required to carry out in relation to      the transactions contemplated by the Finance Documents and to the identity      of any parties to the Finance Documents (other than Creditor Parties) and      their directors and officers. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.21 | Master Agreement and Master      Agreement Assignment. Subject to the prior consent of all the      Lenders being obtained, the Borrower and the Swap Bank may enter into the      Master Agreement. If the Master Agreement is entered into, the Borrower      shall execute in favour of the Security Trustee the Master Agreement      Assignment and shall deliver to the Agent such other documents equivalent      to those referred to at paragraphs 3, 4 and 5 of Part A of Schedule 4      thereof. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 12.2 | Maintenance of status.      The Borrower will maintain its      separate corporate existence and remain in good standing under the laws of the      Marshall Islands. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | Negative undertakings.      The Borrower will not: |
|------|----------------------------------------------------|

| (a) | change      the nature of its business; or |
|-----|--------------------------------------------|

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

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

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

| (c) | allow      any Owner to open or maintain any account with any bank or financial      institution except accounts with the Agent and the Security Trustee for      the purpose of the Finance Documents;or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | cause      the shares of the Borrower to cease to be listed on the Nasdaq National      Market in New York; or |
|-----|----------------------------------------------------------------------------------------------------------------|

| (e) | issue,      allot or grant any person a right to any shares in its capital or      repurchase (other than through the share repurchase schemes disclosed by      the Borrower to the Lender on or prior to the date of this Agreement) or      release its issued share capital;or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 12.4 | Subordination of rights of      Borrower. All rights which the Borrower at any time has (whether in      respect of the Loan or any other transaction) against any Owner or its      assets shall be fully subordinated to the rights of the Creditor Parties      under the Finance Documents; and in particular, the Borrower shall not      during the Security Period: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | claim,      or in a bankruptcy of any Owner or prove for any amount payable to the      Borrower by an Owner, whether in respect of the Loan or any other      transaction; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | take      or enforce any Security Interest for any such amount;  or |
|-----|---------------------------------------------------------------------|

| (c) | claim      to set-off any such amount against any amount payable by the Borrower to      any Owner. |
|-----|-----------------------------------------------------------------------------------------------------|

| 12.5 | Financial Covenants. The      Borrower undertakes that at alltimes: |
|------|---------------------------------------------------------------------|

| (a) | the      Interest Coverage Ratio shall not be less than  2:1; |
|-----|---------------------------------------------------------------|

| (b) | the      Leverage Ratio shall not be greater than 0.6:1;  and |
|-----|---------------------------------------------------------------|

| (c) | the      Borrower will maintain Liquid Funds in an aggregate amount of at least      $500,000 per Fleet Vessel. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| 12.6 | Compliance Check.      Compliance with the undertakings contained in Clause 12.5 shall be      determined as at each Compliance Date by reference to, in the case of the      compliance check as at each of 31 March, 30 June and 30 September in each      financial year, the unaudited consolidated accounts of the Group for the      financial quarters ending on such date in each financial year delivered by      the Agent pursuant to this Agreement and for the compliance check as at 31      December in each financial year, the audited consolidated accounts for      that financial year of the Group delivered to the Agent pursuant to this      Agreement. At the same time as it delivers those consolidated accounts,      the Borrower shall deliver to the Agent a Compliance Certificate signed by      the chief financial officer of theBorrower. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7 | Dividends. The Borrower      may pay dividends or make any other form of distribution subject to the      satisfaction of the followingconditions: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      Agent has received a certificate issued by the chief financial officer of      the Borrower on the date on which the payment of the dividend is declared      which confirms that no Event of Default has occurred which is continuing      and that no Event of Default or Potential Event of Default will result      from the payment of the dividend or the making of the distribution;      and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      Agent is satisfied that on the date on which the certificate referred to      in paragraph (a) is issued, the Security Cover Percentage is equal to at      least 125 per cent. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13.1 | General. The Borrower      also undertakes with each Creditor Party to procure that each Owner will      comply with the following provisions of this Clause 13 at all times during      the Security Period (in the case of “SINFONIA” after that Ship has been      delivered to Star L pursuant to the MOA) except as the Agent may, with the      authority of the Majority Lenders, otherwise  permit. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

| (b) | war      risks (including protection and indemnity war  risks); |
|-----|-----------------------------------------------------------------|

| (c) | in      the case of protection and indemnity war risks, in an amount equal to the      amount for which the war risks under the hull policies are effected      (including, without limitation, protection and indemnity war risks in      excess of the amount of war risks(hull)); |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | protection      and indemnity risks in excess of the limit of cover for oil pollution      liability risks included within the protection and indemnity risks;      and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13.3 | Terms of obligatory insurances.      The Borrower shall procure that each Owner shall effect such      insurances: |
|------|--------------------------------------------------------------------------------------------------------------------|

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

| (b) | in      the case of fire and usual marine risks and war risks, in an amount on an      agreed value basis at least the greater of (i) an amount, which when      aggregated with the insured value of the other Ships at the relevant time      subject to a Mortgage, is equal to 125 per cent. of the Loan and (ii) the      Market Value of the Ship owned byit; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in      the case of oil pollution liability risks, for an aggregate amount equal      to the highest level of cover from time to time available under basic      protection and indemnity club entry (with the international group of      protection and indemnity clubs) and the international marine insurance      market (currently $1,000,000,000); |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

----

| (c) | provide      that the insurers shall waive, to the fullest extent permitted by English      law, their |
|-----|--------------------------------------------------------------------------------------------------------|

|   | entitlement      (if any) (whether by statute, common law, equity, or otherwise) to be      subrogated to the rights and remedies of the Security Trustee in respect      of any rights or interests (secured or not) held by or available to the      Security Trustee in respect of the Secured Liabilities, until the Secured      Liabilities shall have been fully repaid and discharged, except that the      insurers shall not be restricted by the terms of this paragraph from      making personal claims against persons (other than the relevant Owner or      any Creditor Party) in circumstances where the insurers have fully      discharged their liabilities and obligations under the relevant obligatory      insurances; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (e) | provide      that the Security Trustee may make proof of loss if the relevant Owner      fails to do so; and |
|-----|--------------------------------------------------------------------------------------------------------------|

| (f) | provide      that if any obligatory insurance is cancelled, or if any substantial      change is made in the coverage which adversely affects the interest of the      Security Trustee, or if any obligatory insurance is allowed to lapse for      non-payment of premium, such cancellation, charge or lapse shall not be      effective with respect to the Security Trustee for 30 days (or 7 days in      the case of war risks) after receipt by the Security Trustee of prior      written notice from the insurers of such cancellation, change or      lapse. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5 | Renewal of obligatory      insurances. The Borrower shall procure that each Owner      shall: |
|------|-----------------------------------------------------------------------------------------------|

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

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

|   | (ii) | in      case of any substantial change in insurance cover, obtain the Security      Trustee’s approval to the matters referred to in paragraph (1)      above; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

----

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

| (e) | they      will notify the Security Trustee if any person other than the Owner is      named as assured or co-assured in any of the obligatory insurances and      shall procure that, upon the written request of the Security Trustee, such      additional assured or co-assured executes in favour of the Security an      assignment (in such form as the Lenders may approve or require) of its      interest in the obligatory insurances;and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13.7 | Copies of certificates of      entry. The Borrower shall procure that each Owner shall ensure that      any protection and indemnity and/or war risks associations in which the      Ship owned by that Owner is entered provides the Security Trustee      with: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 13.9 | Payment of premiums. The      Borrower shall procure that each Owner shall punctually pay all premiums      or other sums payable in respect of the obligatory insurances and produce      all relevant receipts when so required by the Security      Trustee. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13.11 | Restrictions on employment.      The Borrower shall procure that no Owner employ the Ship owned by      it, nor permit her to be employed, outside the cover provided by any      obligatory insurances. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.12 | Compliance with terms of      insurances. The Borrower shall procure that no Owner shall do or      omit to do (or permit to be done or not to be done) any act or thing which      would or might render any obligatory insurance invalid, void, voidable or      unenforceable or render any sum payable thereunder repayable in whole or      in part; and, in particular: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | each      Owner shall take all necessary action and comply with all requirements      which may from time to time be applicable to the obligatory insurances,      and (without limiting the obligation contained in Clause 13.7(c) above)      ensure that the obligatory insurances are not made subject to any      exclusions or qualifications to which the Security Trustee has not given      its prior approval; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 13.13 | Alteration to terms of      insurances. The Borrower shall procure that no Owner shall either      make or agree to any alteration to the terms of any obligatory insurance      or waive any right relating to any obligatory insurance without the prior      written consent of the SecurityTrustee. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.14 | Settlement of claims.      The Borrower shall procure that no Owner shall settle, compromise      or abandon any claim under any obligatory insurance for Total Loss or for      a Major Casualty, and shall do all things necessary and provide all      documents, evidence and information to enable the Security Trustee to      collect or recover any moneys which at any time become payable in respect      of the obligatory insurances. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.15 | Provision of copies of      communications. The Borrower shall procure that each Owner shall      provide the Security Trustee, at the time of each such      communication, copies of all written communications between that Owner      and: |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

----

| 13.16 | Provision of information.      In addition, the Borrower shall procure that each Owner shall      promptly provide the Security Trustee (or any persons which it may      designate) with any information which the Security Trustee (or any such      designated person) reasonably requests for the purpose  of: |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | effecting,      maintaining or renewing any such insurances as are referred to in Clause      13.17 below or dealing with or considering any matters relating to any      such insurances |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.17 | Mortgagee’s interest      insurances. The Security Trustee shall be entitled from time to      time to effect, maintain and renew a mortgage’s interest insurance in an      amount equal to 110 per cent. of the Loan, on such terms, through such      insurers and generally in such manner as the Security Trustee may from      time to time consider appropriate and the Borrower shall upon demand fullyindemnify the Security      Trustee in respect of all premiums and other expenses which are incurred      in connection with or with a view to effecting, maintaining or renewing      such insurance or dealing with, or considering, any matter arising out of      such insurance. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.18 | Review of insurance      requirements. The Security Trustee shall be entitled to review the      requirements of this Clause 13 from time to time in order to take account      of any changes in circumstances after the date of this Agreement which      are, in the opinion of the Majority Lenders, significant and capable of      affecting the Owners or the Ships and their insurance (including, without      limitation, changes in the availability or the cost of insurance coverage      or the risks to which the Owners may be subject), and may appoint      insurance consultants in relation to this review at the cost of the      Borrower. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.19 | Modification of insurance      requirements. The Security Trustee shall notify the Borrower of any      proposed modification under Clause 13.18 to the requirements of this      Clause 13 which the Majority Lenders, acting upon the advice of their      insurance consultants, consider appropriate in the circumstances, and such      modification shalltake effect on and from      the date it is notified in writing to the Borrower as an amendment to this      Clause 13 and shall      bind the Borroweraccordingly. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.20 | Compliance with mortgagee’s      instructions. The Security Trustee shall be entitled (without      prejudice to or limitation of any other rights which it may have or      acquire under any Finance Document) to require any Ship to remain at any      safe port or to proceed to and remain at any safe port designated by the      Security Trustee until the Owner of that Ship implements any amendments to      the terms of the obligatory insurances and any operational changes      required as a result of a notice served under Clause  13.19. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 14.1 | General. The Borrower      also undertakes with each Creditor Party to procure that each Owner shall      comply with the following provisions of this Clause 14 at all times during      the Security Period (in the case of “SINFONIA” after that Ship has been      delivered to Star L pursuant to the MOA) except as the Agent, with the      authority of the Majority Lenders, may otherwise  permit. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.2 | Ship’s name and registration.      The Borrower shall procure that each Owner  shall: |
|------|---------------------------------------------------------------------------------------------|

| (a) | keep      the Ship owned by it registered in its ownership under an Approved      Flag; |
|-----|-----------------------------------------------------------------------------------------|

| (b) | not      change the name or port of registry of any Ship;  and |
|-----|----------------------------------------------------------------|

| (c) | not      do or allow to be done anything as a result of which such registration      might be cancelled or imperilled. |
|-----|------------------------------------------------------------------------------------------------------------------------|

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

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

| (b) | so      as to maintain the highest class with a first-class classification society      which is a member of IACS acceptable to the Agent free of overdue      recommendations and conditions of such classification society;      and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | so      as to comply with all laws and regulations applicable to vessels      registered at ports in the relevant Approved Flag State or to vessels      trading to any jurisdiction to which the Ship may trade from time to time,      including but not limited to the ISM Code, the ISPS Code, the ISM Code      Documentation and the ISPS CodeDocumentation. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4 | Modification. The      Borrower shall procure that no Owner shall make any modification or      repairs to, or replacement of, the Ship owned by it or equipment installed      on her which would or might materially alter the structure, type or      performance characteristics of the Ship or materially reduce her      value. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 14.6 | Surveys. The Borrower shall      procure that each Owner shall submit the Ship owned by it regularly to all      periodical or other surveys which may be required for classification      purposes and, if so required by the Majority Lenders, provide the Security      Trustee (at the expense of the Borrower) with copies of all survey      reports. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7 | Inspection. The Borrower      shall procure that each Owner shall permit the Security Trustee (by      surveyors or other persons appointed by it for that purpose) to board the      Ship owned by it at all reasonable times to inspect her condition or to      satisfy themselves about proposed or executed repairs and shall afford all      proper facilities for suchinspections. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.8 | Prevention of and release from      arrest. The Borrower shall procure that each Owner shall promptly      discharge: |
|------|-----------------------------------------------------------------------------------------------------------------------|

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

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

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

| 14.9 | Compliance with laws etc.      The Borrower shall procure that each Owner and each Approved      Manager shall: |
|------|-----------------------------------------------------------------------------------------------------------------|

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

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

| (c) | in      the event of hostilities in any part of the world (whether war is declared      or not), not cause      or permit the Ship to enter or trade to any zone which is declared a war      zone by any government or by the Ship’s war risks insurers unless the      Owner has (at its expense) effected any special, additional or modified      insurance cover required for it to enter or trade to any war      zone. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.10 | Provision of information.      The Borrower shall procure that each Owner shall promptly provide      the Security Trustee with any information which the Security Trustee      request regarding: |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| (e) | its      compliance or the compliance of the Ship with the ISM Code and the ISPS      Code, |
|-----|---------------------------------------------------------------------------------------------|

| 14.11 | Notification of certain      events. The Borrower shall procure that each Owner shall      immediately notify the Security Trustee by letter  of: |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

| (d) | any      arrest or detention of the Ship, any exercise or purported exercise of any      lien on the Ship or her Earnings or any requisition of the Ship for      hire; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (g) | any      claim for breach of the ISM Code or the ISPS Code being made against the      Owner, |
|-----|-----------------------------------------------------------------------------------------------|

|   | each      Approved Manager or otherwise in connection with the Ship;    or |
|--------|----------------------------------------------------------------------------|

| (h) | any      other matter, event or incident, actual or threatened, the effect of which      will or could |
|-----|--------------------------------------------------------------------------------------------------------|

|   | lead      to the ISM Code or the ISPS Code not being complied  with |
|--------|---------------------------------------------------------------------|

| 14.12 | Restrictions on chartering,      appointment of managers etc. The Borrower shall procure that no      Owner shall: |
|-------|--------------------------------------------------------------------------------------------------------------------|

| (a) | let      the Ship owned by it on demise charter for any  period; |
|-----|------------------------------------------------------------------|

| (b) | other      than the relevant Initial Charterparty or Future Charterparty, enter into      any time or consecutive      voyage charter in respect of the Ship owned by it for a term which      exceeds, or which by virtue of any optional extensions may exceed, 11      months; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | change      the terms on which the Ship owned by it is employed or the identity of the      person by      whom that Ship is employed; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| (d) | enter      into any charter in relation to the Ship owned by it under which more than      2 months’      hire (or the equivalent) is payable in  advance; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | charter      the Ship owned by it otherwise than on bona fide arm’s length terms at the      time when      the Ship is fixed; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (f) | appoint      a manager of the Ship owned by it other than an Approved Manager or agree      to any alteration to the terms of an Approved Manager’s      appointment; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | de-activate      or lay up the Ship owned by it; or |
|-----|-----------------------------------------------------|

| (h) | put      the Ship owned by it into the possession of any person for the purpose of      work being done      upon her in an amount exceeding or likely to exceed $250,000 (or the      equivalent in any other currency) unless that person has first given to      the Security Trustee and in terms satisfactory to it a written undertaking      not to exercise any lien      on the Ship or her Earnings for the cost of such work or      otherwise. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| 14.14 | Sharing of Earnings. The      Borrower shall procure that no Ownershall: |
|-------|--------------------------------------------------------------------------|

| (a) | enter      into any agreement or arrangement for the sharing of any      Earnings; |
|-----|------------------------------------------------------------------------------------|

| (b) | enter      into any agreement or arrangement for the postponement of any date on      which any Earnings are due; the reduction of the amount of any Earnings or      otherwise for the release or adverse alteration of any right of that Owner      to any Earnings; or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | enter      into any agreement or arrangement for the release of, or adverse      alteration to, any guarantee or Security Interest relating to any      Earnings. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.15 | Charterparty Assignment.      If any Owner enters into any Future Charterparty in respect of its      Ship, the Borrower shall, at the request of the Agent, procure that the      Owner executes in favour of the Security Trustee a Charterparty Assignment      in respect of that Charterparty, and shall deliver to the Agent such other      documents equivalent to those referred to at paragraphs 3,4 and 5 of      Schedule 4, Part A as the Agent mayrequire. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 15.1 | Provision of additional      security cover; prepayment of Loan. The Borrower undertakes with      each Creditor Party that if the Agent notifies the Borrower      that: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      aggregate Market Values of the Ships;plus |
|-----|----------------------------------------------------|

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

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

|   | (ii) | prepay      in accordance with Clause 8 such part (at least) of the Loan as will      eliminate the shortfall. |
|--------|------|----------------------------------------------------------------------------------------------------------------|

| 15.2 | Meaning of additional security.      In Clause 15.1 “security” means a      Security Interest over an asset or assets (including, without limitation a      vessel (other than a Ship)) (whether securing the Borrower’s liabilities      under the Finance Documents or a guarantee in respect of those      liabilities), or a guarantee, letter of credit, cash deposit or other      security in respect of the Borrower’s liabilities under the Finance      Documents. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.3 | Requirement for additional      documents. The Borrower shall not be deemed to have complied with      Clause 15.1 (1) above until the Agent has received in connection with the      additional security certified copies of documents of the kinds referred to      in paragraphs 3, 4 and 5 of Schedule 4, Part A and such legal opinions in      terms acceptable to the Majority Lenders from such lawyers as they may      select. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4 | Valuation of Ship. The      market value of a Ship at any date is that shown by valuation of that Ship      prepared: |
|------|-----------------------------------------------------------------------------------------------------------------------|

| (a) | as      at a date not more than 15 dayspreviously; |
|-----|----------------------------------------------------|

| (b) | addressed      to the Agent; |
|-----|------------------------------|

| (c) | by      an independent ship sale and purchase broker appointed or approved by the      Agent; |
|-----|-----------------------------------------------------------------------------------------------|

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

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

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

| 15.5 | Value of additional security.      The net realisable value of any additional security which is      provided under Clause 15.1 and which consists of a Security Interest over      a vessel shall be that shown by a valuation complying with the      requirements of Clause 15.4. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.6 | Valuations binding. Any      valuation under Clause 15.1(i), 15.4 or 15.5 shall be binding and      conclusive as regards the Borrower (save in the case of manifest error) as      shall be any valuation which the Majority Lenders make of a security which      does not consist of or include a Security  Interest. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.7 | Provision of information.      The Borrower shall promptly provide the Agent and any Independent      Ship sale and purchase broker or expert acting under Clause 15.4 or 15.5      with any information which the Agent or broker or expert may request for      the purposes of the valuation; and, if the Borrower fails to provide the      information within 3 Business Days following such request, the valuation      may be made on any basis and assumptions which the independent ship sale      and purchase broker or the Majority Lenders (or the expert appointed by      them) consider prudent. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.8 | Payment of valuation expenses.      Without prejudice to the generality of the Borrower’s obligations      under Clauses 20.2, 20.3 and 21.3, the Borrower shall, on demand, pay the      Agent the amount of the fees and expenses of the broker instructed by the      Agent under this Clause . |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.9 | Frequency of valuations.      The Borrower acknowledges and agrees that the Agent may commission      valuations of each Ship, or, as the case may be, the Fleet Vessels at such      times as the Lender shall reasonably deem necessary and, in any event, not      less than once during each 12-month of the Security  Period. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 16.1 | Currency      and method of payments. All payments to bemade: |
|------|---------------------------------------------------------------|

| (a) | by      the Lenders to the Agent; or |
|-----|--------------------------------------|

| (b) | by      the Borrower to the Agent, the Security Trustee or any    Lender |
|-----|--------------------------------------------------------------------------|

|   | (i) | by      not later than 11.00 a.m. (Piraeus time) on the due  date; |
|--------|-----|--------------------------------------------------------------------|

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

|   | (iii) | if      in Dollars, to the account of the Agent at Bank of New York, USA or credit      to the account of the Lender (account number 8033138548) or to such other      account with such other bank as the Agent may from time to time notify to      the Borrower and the other Creditor Parties;and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 16.2 | 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, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 16.4 | Distribution of payments to      Creditor Parties. Subject to Clauses 16.5, 16.6 and 16.7 any amount      received by the Agent under a Finance Document for distribution or      remittance to a Lender, or the Swap Bank or the Security Trustee shall be      made available by the Agent to that Lender or, as the case may be, the      Security Trustee or the Swap Bank by payment, with funds having the same      value as the funds received, to such account as the Lender, or the      Security Trustee or the Swap Bank may have notified to the Agent not less      than 5 Business Days previously. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

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

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

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

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

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

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

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

| 17.1 | Normal order of application,      Except as any Finance Document may otherwise provide, any sums      which are received or recovered by any Creditor Party under or by virtue      of any Finance Document shall beapplied: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

|   | (ii) | secondly,      in or towards satisfaction pro rata of any and all amounts of interest or      default interest payable to the Creditor Parties under the Finance      Documents and the Master Agreement (and, for this purpose, the expression      “interest” shall include any net amount which the Borrower shall have      become liable to pay or deliver under section 2(e) (Obligations) of the      Master Agreement but shall have failed to pay or deliver to the Lender at      the time of application or distribution under this Clause 17);      and |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | thirdly,      in or towards satisfaction pro rata of the Loan and the Swap Exposure      calculated as at the actual Early Termination Date applying to each      particular Transaction, or if no such Early Termination Date shall have      occurred, calculated as if an Early Termination Date occurred on the date      of application or distributionhereunder); |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 17.4 | Appropriation rights      overridden. This Clause 17 and any notice which the Agent gives      under Clause 17.3 shall override any right of appropriation possessed, and      any appropriation made, by the Borrower or any Security    Party. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 18.1 | Payment of Earnings. The      Borrower undertakes with each Creditor Party to ensure that throughout the      Security Period (subject only to provisions of the relevant General      Assignment), all the Earnings of each Ship are paid to the Earnings      Account for that Ship. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a) | comply,      and ensure that the Owners comply, with any requirement of the Agent as to      the location      or re-location of any EarningsAccount; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 18.3 | Interest accrued on Accounts.      Any credit balance on the Earnings Accounts shall bear interest at      the rate from time to time offered by the Agent to its customers for      Dollar deposits of similar amounts and for periods similar to those for      which such balances appear to the Agent likely to remain on that Earnings      Account. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4 | Release of accrued interest.      Interest accruing under Clause 18.3 shall be freely available to      the Owners. |
|------|---------------------------------------------------------------------------------------------------------------------|

| 18.5 | Debits for expenses etc.      The Agent shall be authorised by the Borrower (but not obliged)      from time to time to debit the Earnings Account without prior notice in      order to discharge any amount due and payable under Clause 20 or 21 to a      Creditor Party or payment of which any Creditor Party has become entitled      to demand under Clause 20 or 21. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.6 | Borrower’s obligations      unaffected. The provisions of this Clause 18 do not      affect: |
|------|----------------------------------------------------------------------------------------------------|

| (a) | the      liability of the Borrower to make payments of principal and interest on      the due dates; or |
|-----|---------------------------------------------------------------------------------------------------------|

| (b) | any      other liability or obligation of the Borrower or any Security Party under      any Finance Document. |
|-----|---------------------------------------------------------------------------------------------------------------|

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

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

| (a) | the      Borrower or any Security Party fails to pay when due or (if so payable) on      demand within 2 Business Days of such demand any sum payable under a      Finance Document or under any document relating to a Finance Document      unless such failure is due to a bank payment transmission error;      or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any      breach occurs of Clause 9.2, 11.2, 11.3, 11.17, 12.2, 12.3, 12.5, 12.7,      13.2, 15.1 or 18.1; or |
|-----|--------------------------------------------------------------------------------------------------------------|

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

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

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

| (f) | any      of the following occurs in relation to any Financial Indebtedness of a      Relevant Person (exceeding, in the case of the Borrower, $1,000,000 in      aggregate (or the equivalent in any other  currency)): |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any      Financial Indebtedness of a Relevant Person is not paid when due or, if so      payable, on demand; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

----

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

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

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

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

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

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

|   | (ii) | any      assets of a Relevant Person are subject to any form of execution,      attachment, arrest,      sequestration or distress in respect of a sum of, or sums aggregating,      $1,000,000 or more or the equivalent in another currency;      or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (v) | a      petition is presented in any Pertinent Jurisdiction for the winding up or      administration,      or the appointment of a provisional liquidator, of a Relevant Person;      or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

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

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

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

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

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

| (k) | without      the prior consent of the Agent (acting upon the instructions of the      Majority Lenders), Mr. Prokopios Tsirigakis ceases to be, at any time      during the Security Period, the Chief Executive Officer of the Borrower;      or  |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l) | the      shares of the Borrower cease to be quoted on the Nasdaq National Market in      New York or any other international recognised stock exchange acceptable      to the Lenders; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | without      the prior written consent of the Majority Lenders, a change has occurred      after the date of this Agreement in the ownership of any of the shares in      any Owner or in the ultimate control of the voting rights attaching to any      of those shares; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (p) | any      Initial Charterparty is terminated, cancelled, suspended, rescinded or      revoked or otherwise      ceases to remain in full force and effect for any reason except with the      consent of the Agent (acting upon the authorisation of the Majority      Lenders) or by effluxion of time unless a replacement charter in all      respects acceptable to the Lender, to be made between the relevant Owner      and a charterer acceptable to the Lender, is effected within 60 daysof the cancellation or      termination of the Initial Charterparty or the date on which the Initial      Charterparty ceases to remain in full force and effect or being      negotiated; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

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

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

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

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

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

|   | (ii) | 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 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 19.4 | Acceleration of Loan. On      the service of a notice under paragraph (a)(ii) of Clause 19.2, 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. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

| 19.7 | Lender’s rights unimpaired.      Nothing in this Clause shall be taken to impair or restrict the      exercise of any right given to individual Lenders under a Finance Document      or the general law; and, in particular, this Clause is without prejudice      to Clause 3.1. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 19.9 | Relevant Persons. In      this Clause 19 “a      Relevant Person” means the Borrower, a Security Party and any other      member of the Group (but excluding any company which is dormant and the      value of whose gross assets is $50,000 orless). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.10 | Position of Swap Bank.      Neither the Agent nor the Security Trustee shall be obliged, in      connection with any action taken or proposed to be taken under or pursuant      to the foregoing provisions of this Clause 19, to have any regard to the      requirements of the Swap Bank except to the extent that the Swap Bank is      also a Lender. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.11 | Interpretation. In      Clause 19.1(f) references to an event of default or a termination event      include any event, howsoever described, which is similar to an event of      default in a facility agreement or a termination event in a finance lease;      and in Clause 19.1(g) “petition” includes an  application. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 20.1 | Commitment and participation      fees. The Borrower shall pay to the  Agent: |
|------|-------------------------------------------------------------------------------|

| (a) | a      commitment fee for distribution among the Lenders pro rata to their      Commitments at the rate of 0.25 per cent. per annum on the undrawn amount      of Tranche C from the date of this Agreement up to and including the      earlier of (A) the Drawdown Date in respect of Tranche C and (B) the last      day      of the Availability Period, such fee to be paid quarterly in arrears and      on the last day of suchperiod; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| (b) | on      the date of this Agreement, a participation fee      (to be distributed to the Lenders pro rata to their Commitments) equal to      0.35 per cent. of the Total Commitments;and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | certain      facility fees set out in the FeeLetter. |
|-----|------------------------------------------------------|

| 20.2 | Costs of negotiation,      preparation etc. The Borrower shall pay to the Agent on its demand      the amount of all expenses incurred by the Lenders, the Agent or the      Security Trustee in connection with the negotiation, preparation,      execution or registration of any Finance Document or any related document      or with any transaction contemplated by a Finance Document or a related      document (including, without limitation, any legal fees or      expenses). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3 | Costs of variations,      amendments, enforcement etc. The Borrower shall pay to the Agent,      on the Agent’s demand, the amount of all expenses (including, without      limitation, any legal fees or expenses) incurred by a Lender or the Swap      Bank in connection with: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | the      valuation of any security provided or offered under Clause 15.8 or any      other matter relating to suchsecurity; |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (d) | such      circumstances where the Agent, in its absolute opinion, considers that      there has been a material change to theinsurances in      respect of a Ship, the review of the insurances of that Ship pursuant to      Clause 13.18; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 20.4 | Documentary taxes. The      Borrower shall promptly pay any tax payable on or by reference to any      Finance Document, and shall, on the Agent’s demand, fully indemnify each      Creditor Party against any liabilities and expenses resulting from any      failure or delay by the Borrower to pay such a  tax. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.5 | Certification of amounts.      A notice which is signed by two officers of a Creditor Party, which      states that a specified amount, or aggregate amount, is due to that      Creditor Party under this Clause 20 and which indicates (without      necessarily specifying a detailed breakdown) the matters in respect of      which the amount, or aggregate amount, is due shall be prima facie      evidence that the amount, or aggregate amount, is  due. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

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

| (c) | any      failure (for whatever reason) by the 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 the Borrower      on the amount concerned under Clause7); |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 21.3 | Miscellaneous indemnities.      The Borrower shall fully indemnify each Creditor Party severally on      their respective demands in respect of all claims, demands, proceedings,      liabilities, taxes, losses and expenses of every kind (“liability items”)      which may be made or brought against, or incurred by, the relevant      Creditor Party, in any country, in relationto: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | any      other event, matter or question which occurs or arises at any time during      the Security Period and which has any connection with, or any bearing on,      any Finance Document, any payment or other transaction relating to a      Finance Document or any asset covered (or previously covered) by a      Security Interest created (or intended to be created) by a Finance      Document; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | other      than claims, expenses, liabilities and losses which are shown to have been      directly and mainly caused by the dishonesty or wilful misconduct of a      Creditor Party’s officers oremployees. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4 | Extension of indemnities;      environmental indemnity. Without prejudice to its generality,      Clause 21.3 covers: |
|------|-----------------------------------------------------------------------------------------------------------------------|

| (a) | any      matter which would be covered by Clause 21.3 if any of the references in      that Clause |
|-----|----------------------------------------------------------------------------------------------------|

|   | to      a Lender were a reference to the Agent or (as the case may be) to the      Security Trustee; and |
|--------|----------------------------------------------------------------------------------------------------------|

| (b) | any      liability items which arise, or are asserted, under or in connection with      any law |
|-----|-------------------------------------------------------------------------------------------------|

|   | relating      to safety at sea, pollution or the protection of the      environment. |
|--------|--------------------------------------------------------------------------------------|

| 21.5 | Currency indemnity. If      any sum due from the Borrower or any Security Party to a Creditor Party      under a Finance Document or under any order or judgment relating to a      Finance Document has to be converted from the currency in which the      Finance Document provided for the sum to be paid (the “Contractual Currency”)      into another currency (the “Payment Currency”) for      the purpose of: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 21.7 | Application to Master      Agreement. For the avoidance of doubt, Clause 21.5 does not apply      in respect of sums due from the Borrower to the Swap Bank under or in      connection with the Master Agreement as to which sums the provisions of      section 8 (Contractual Currency) of the Master Agreement shall      apply. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.8 | Sums deemed due to a Lender.      For the purposes of this Clause 21, a sum payable by the Borrower      to the Agent or the Security Trustee for distribution to a Lender shall be      treated as a sum due to thatLender. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 22.2 | 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 Agent 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; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 22.3 | Evidence of payment of taxes.      Within 1 month after making any tax deduction, the Borrower      concerned shall deliver to the Agent documentary evidence satisfactory to      the Agent that the tax had been paid to the appropriate taxation      authority. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.4 | Exclusion of tax on overall net      income. In this Clause 22 “tax deduction” means      any deduction or withholding for or on account of any present or future      tax except tax on a Creditor Party’s overall net  income. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.5 | Application to Master      Agreement. For the avoidance of doubt, Clause 22 does not apply in      respect of sums due from the Borrower under or in connection with the      Master Agreement as to which sums the provisions of section 2(d)      (Deduction or Withholding for Tax) of the Master Agreement shall      apply. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23 | ILLEGALITY,      ETC |
|----|----------------------|

| 23.1 | Illegality. This Clause      23 applies if a Lender (the “Notifying Lender”)      notifies the Agent that it has become, or will with effect from a      specified date, become: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| 23.2 | Notification of illegality.      The Agent shall promptly notify the Borrower, the Security Parties,      the Security Trustee and the other Lenders of the notice under Clause 23.1      which the Agent receives from the Notifying  Lender. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | Prepayment; termination of      Commitment. On the Agent notifying the Borrower under Clause 23.2,      the Notifying Lender’s Commitment shall terminate; and thereupon or if      later, on the date specified in the Notifying Lender’s notice under Clause      23.1 as the date on which the notified event would become effective the      Borrower shall prepay the Notifying Lender’s Contribution in accordance      with Clause 8. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.4 | Mitigation. If      circumstances arise which would result in a notification under Clause 23.1      then, without in any way limiting the rights of the Notifying Lender under      Clause 23.3, the Notifying Lender shall use reasonable endeavours to      transfer its obligations, liabilities and rights under this Agreement and      the Finance Documents to another office or financial institution not      affected by the circumstances but the Notifying Lender shall not be under      any obligation to take any such action if, in its opinion, to do would or      might: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| 24 | INCREASED      COSTS |
|----|----------------------|

| 24.1 | Increased costs. This      Clause 24 applies if a Lender (the “Notifying Lender”)      notifies the Agent that the Notifying Lender considers that as a      result of: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | the      effect of complying with any law or regulation (including any which      relates to capital adequacy or liquidity controls or which affects the      manner in which the Notifying Lender allocates capital resources to its      obligations under this Agreement (including, without limitation, any laws      or regulations which shall replace, amend and/or supplement those set out      in the statement of the Basle Committee on Banking Regulations and      Supervisory Practices dated July 1988 and entitled “International      Convergence of Capital Management and Capital Structures”)) which is      introduced, or altered, or the interpretation or application of which is      altered, after the date of thisAgreement, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

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

| 24.2 | Notification to Borrower of      claim for increased costs. The Agent shall promptly notify the      Borrower and the Security Parties of the notice which the Agent received      from the Notifying Lender under Clause24.1. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3 | Payment of increased costs.      The Borrower shall pay to the Agent, at the end of any Interest      Period during which the Agent makes demand, for the account of the      Notifying Lender, the amounts which the Agent from time to time notifies      the Borrower that the Notifying Lender has specified to be necessary to      compensate the Notifying Lender for the increased  cost. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.4 | Notice of prepayment. If      the Borrower is not willing to continue to compensate the Notifying Lender      for the increased cost under Clause 24.3, the Borrower may give the Agent      not less than 14 days’ notice of its intention to prepay the Notifying      Lender’s Contribution at the end of an Interest  Period. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.5 | Prepayment; termination of      Commitment. A notice under Clause 24.4 shallbe irrevocable; the Agent      shall promptly notify the Notifying Lender of the Borrower’s notice of      intended prepayment; and: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | on      the date on which the Agent serves that notice, the Commitment of the      Notifying Lender      shall be cancelled; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (b) | on      the date specified in its notice of intended prepayment, the Borrower      shall prepay (without      premium or penalty) the Notifying Lender’s Contribution, together with      accrued interest thereon at the applicable rate plus the applicable      Margin. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.6 | Application of prepayment.      Clause 8 shall apply in relation to the  prepayment. |
|------|--------------------------------------------------------------------------------------|

| 25 | SET-OFF |
|----|---------|

| 25.1 | Application of credit balances.      Each Creditor Party may without prior  notice: |
|------|-------------------------------------------------------------------------------------|

----

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

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

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

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

|   | (iii) | enter      into any other transaction or make any entry with regard to the credit      balance which the Creditor Party concerned considers      appropriate. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Existing rights unaffected.      No Creditor Party shall be obliged to exercise any of its rights      under Clause 25.1; and those rights shall be without prejudice and in      addition to any right of set-off, combination of accounts, charge, lien or      other right or remedy to which a Creditor Party is entitled (whether under      the general law or any document). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.3 | Sums deemed due to a Lender.      For the purposes of this Clause 25, a sum payable by the Borrower      to the Agent or the Security Trustee for distribution to, or for the      account of, a Lender shall be treated as a sum due to that Lender; and      each Lender’s proportion of a sum so payable for distribution to, or for      the account of, the Lenders shall be treated as a sum due to such      Lender. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26 | TRANSFERS      AND CHANGES IN LENDING OFFICES |
|----|-----------------------------------------------|

| 26.1 | Transfer by Borrower.      The Borrower may not, without the consent of the Agent, given on      the instructions of all theLenders: |
|------|--------------------------------------------------------------------------------------------------------------------------------------|

| (a) | transfer      any of its rights or obligations under any Finance Document;      or |
|-----|------------------------------------------------------------------------------------|

| (b) | enter      into any merger, de-merger or other reorganisation, or carry out any other      act, as a result of which any of its rights or liabilities would vest in,      or pass to, another person. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.2 | Transfer by a Lender.      Subject to Clause 26.5, a Lender (the “Transferor Lender”)      may, with the prior consent of the Agent (such consent not to be      unreasonably withheld), at any timecause: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | its      rights in respect of all or part of its Contribution;  or |
|-----|--------------------------------------------------------------------|

| (b) | its      obligations in respect of all or part of its Commitment;  or |
|-----|-----------------------------------------------------------------------|

| (c) | a      combination of (a) and (b) |
|-----|-----------------------------------|

----

| 26.3 | Transfer Certificate, delivery      and notification. As soon as reasonably practicable after a      Transfer Certificate is delivered to the Agent, it shall (unless it has      reason to believe that the Transfer Certificate may be      defective): |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | sign      the Transfer Certificate on behalf of itself, the Borrower, the Security      Parties, the Security Trustee and each of the  Lenders; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | on      behalf of the Transferee Lender, send to the Borrower and each Security      Party letters or faxes notifying them of the Transfer Certificate and      attaching a copy of it; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | send      to the Transferee Lender copies of the letters or faxes sent under      paragraph (b) above. |
|-----|--------------------------------------------------------------------------------------------------------|

| 26.4 | Effective Date of Transfer      Certificate. A Transfer Certificate becomes effective on the date,      if any, specified in the Transfer Certificate as its effective date Provided that it is      signed by the Agent under Clause 26.3 on or before that    date. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.5 | No transfer without Transfer      Certificate. No assignment or transfer of any right or obligation      of a Lender under any Finance Document is binding on, or effective in      relation to, the Borrower, any Security Party, the Agent or the Security      Trustee unless it is effected, evidenced or perfected by a Transfer      Certificate. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.6 | Lender re-organisation; waiver      of Transfer Certificate. However, if a Lender enters into any      merger, de-merger or other reorganisation as a result of which all its      rights or obligations vest in another person (the “successor”), the      successor shall automatically and without any further act being necessary      become a Lender with the same Commitment and Contribution as were held by      the predecessor Lender. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.7 | Effect of Transfer Certificate.      A Transfer Certificate takes effect in accordance with English law      as follows: |
|------|--------------------------------------------------------------------------------------------------------------------------|

| (a) | to      the extent specified in the Transfer Certificate, all rights and interests      (present, future or contingent) which the Transferor Lender has under or      by virtue of the Finance Documents are assigned to the Transferee Lender      absolutely, free of any defects in the Transferor Lender’s title and of      any rights or equities which the Borrower or any Security Party had      against the Transferor Lender; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      Transferor Lender’s Commitment is discharged to the extent specified in      the Transfer Certificate; |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| (c) | the      Transferee Lender becomes a Lender with the Contribution previously held      by the Transferor Lender (or the part thereof specified in the Transfer      Certificate) and a Commitment of an amount specified in the Transfer      Certificate; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      Transferee Lender becomes bound by all the provisions of the Finance      Documents which are applicable to the Lenders generally, including those      about pro-rata sharing and the exclusion of liability on the part of, and      the indemnification of, the Agent and the Security Trustee and, to the      extent that the Transferee Lender becomes bound by those provisions (other      than those relating to exclusion of liability), the Transferor Lender      ceases to be bound by them; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | any      part of the Loan which the Transferee Lender advances after the Transfer      Certificate’s effective date ranks in point of priority and security in      the same way as it would have ranked had it been advanced by the      transferor, assuming that any defects in the transferor’s title and any      rights or equities of the Borrower or any Security Party against the      Transferor Lender had not existed; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (f) | the      Transferee Lender becomes entitled to all the rights under the Finance      Documents which are applicable to the Lenders generally, including but not      limited to those relating to the Majority Lenders and those under Clause      5.5 and Clause 20, and to the extent that the Transferee Lender becomes      entitled to such rights, the Transferor Lender ceases to be entitled to      them; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | in      respect of any breach of a warranty, undertaking, condition or other      provision of a Finance Document or any misrepresentation made in or in      connection with a Finance Document, the Transferee Lender shall be      entitled to recover damages by reference to the loss incurred by it as a      result of the breach or misrepresentation, irrespective of whether the      original Lender would have incurred a loss of that kind or      amount. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.8 | Maintenance of register of      Lenders. During the Security Period the Agent shall maintain a      register in which it shall record the name, Commitment, Contribution and      administrative details (including the lending office) from time to time of      each Lender holding a Transfer Certificate and the effective date (in      accordance with Clause 26.4) of the Transfer Certificate; and the Agent      shall make the register available for inspection by any Lender, the      Security Trustee and the Borrower during normal banking hours, subject to      receiving at least 5 Business Days priornotice. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.9 | Reliance on register of      Lenders. The entries on that register shall, in the absence of      manifest error, be conclusive in determining the identities of the Lenders      and the amounts of their Commitments and Contributions and the effective      dates of Transfer Certificates and may be relied upon by the Agent and the      other parties to the Finance Documents for all purposes relating to the      Finance Documents. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.10 | Authorisation of Agent to sign      Transfer Certificates. The Borrower, the Security Trustee and each      Lender irrevocably authorise the Agent to sign Transfer Certificates on      its behalf. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.11 | Registration fee. In      respect of any Transfer Certificate (save for any Transfer Certificate to      be executed pursuant to Clause 2.4), the Agent shall be entitled to      recover a      registration fee of $2,000 from the Transferor Lender or (at the      Agent’s option) the TransfereeLender. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.12 | Sub-participation; subrogation      assignment. A Lender may sub-participate all or any part of its      rights and/or obligations under or in connection with the Finance      Documents without the consent of, or any notice to, the Borrower, any      Security Party, the Agent or the Security Trustee; and the Lenders may      assign, in any manner and terms agreed by the Majority Lenders, the Agent      and the Security Trustee, all or any part of those rights to an insurer or      surety who has become subrogated tothem. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.13 | Disclosure of information.      A Lender may disclose to a potential Transferee Lender or      sub-participant any information which the Lender has received in relation      to the Borrower, any Security Party or their affairs under or in      connection with any Finance Document, unless the information is clearly of      a confidential nature. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.14 | Change of lending office.      A Lender may change its lending office by giving notice to the      Agent and the change shall become effective      on the later of: |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the      date on which the Agent receives the notice;and |
|-----|----------------------------------------------------------|

----

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

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

| 26.15 | Notification. On      receiving such a notice, the Agent shall notify the Borrower and the      Security Trustee; and, until the Agent receives such a notice, it shall be      entitled to assume that a Lender is acting through the lending office of      which the Agent last had notice. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27 | VARIATIONS      AND WAIVERS |
|----|-----------------------------|

| 27.1 | Variations, waivers etc. by      Majority Lenders. Subject to Clause 27.2, a document shall be      effective to vary, waive, suspend or limit any provision of a Finance      Document, or any Creditor Party’s rights or remedies under such a      provision or the general law, only if the document is signed, or      specifically agreed to by fax, by the Borrower, by the Agent on behalf of      the Majority Lenders, by the Agent and the Security Trustee in their own      rights, and, if the document relates to a Finance Document to which a      Security Party is party, by that SecurityParty. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.2 | Variations, waivers etc.      requiring agreement of all Lenders. However, as regards the      following, Clause 27.1 applies as if the words “by the Agent on behalf of      the Majority Lenders” were replaced by the words “by or on behalf of every      Lender and the Swap Bank”: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | a      change in the Margin or in the definition of  LIBOR; |
|-----|-------------------------------------------------------------|

| (b) | a      change to the date for, or the amount of, any payment of principal,      interest, fees, or other sum payable under this  Agreement; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | a      change to any Lender’s Commitment; |
|-----|-------------------------------------------------|

| (d) | an      extension of the AvailabilityPeriod; |
|-----|----------------------------------------------|

| (e) | a      change to the definition of “Majority Lenders” or “Finance      Documents”; |
|-----|------------------------------------------------------------------------------------------------------------|

| (f) | a      change to the preamble or to Clause 2, 3, 4, 5.1, 8.1, 8.2, 17, 18, 19 or      30; |
|-----|-------------------------------------------------------------------------------------------|

| (g) | a      change to this Clause 27; |
|-----|----------------------------------|

| (h) | any      release of, or material variation to, a Security Interest, guarantee,      indemnity or subordination arrangement set out in a Finance Document;      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | any      other change or matter as regards which this Agreement or another Finance      Document expressly provides that each Lender’s consent is      required. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.3 | Exclusion of other or implied      variations. Except for a document which satisfies the requirements      of Clauses 27.1 and 27.2, no document, and no act, course of conduct,      failure or neglect to act, delay or acquiescence on the part of the      Creditor Parties or any of them (or any person acting on behalf of any of      them) shall result in the Creditor Parties or any of them (or any person      acting on behalf of any of them) being taken to have varied, waived,      suspended or limited, or being precluded (permanently or temporarily) from      enforcing, relying on orexercising: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

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

| 28 | NOTICES |
|----|---------|

| 28.1 | General. Unless      otherwise specifically provided, any notice under or in connection with      any Finance Document shall be given by registered letter or fax; and      references in the Finance Documents to written notices, notices in writing      and notices signed by particular persons shall be construed      accordingly. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.2 | Addresses for      communications. A notice shall besent: |
|------|-----------------------------------------------------------|

| (a) | to      the Borrower:         | Aethrion      Centre40      Ag. Konstantinou Avenue151      24 MaroussiAthensGreece Fax      No: +30 210 619 5819Attn:      the Chief Financial Officer  |
|-----|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | to      a Lender:             | At      the address opposite its name in Schedule 1 or (as the case may require)      in the relevant Transfer Certificate.                                   |
| (c) | to      the Agent:            | Piraeus      Bank A.E.47-49      Akti Miaouli185      36 PiraeusGreeceFax      No: +30 210 429 2601Attn:      Relationship Manager                            |
| (d) | to      the Security Trustee: | Piraeus      Bank A.E.47-49      Akti Miaouli185      36 PiraeusGreeceFax      No: +30 210 429 2601Attn:      Relationship Manager                            |
| (e) | to      the Swap Bank:        | Piraeus      Bank A.E.47-49      Akti Miaouli185      36 PiraeusGreeceFax      No: +30 210 429 2601Attn:      Relationship Manager                                 |

----

| 28.3 | Effective date of notices.      Subject to Clauses 28.4 and28.5: |
|------|------------------------------------------------------------------|

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

| (b) | a      notice which is delivered by registered letter shall be deemed to be      served, and shall take      effect, 5 Business Days after being deposited in the post postage prepaid      in an envelope addressed to it at the relevant address;      and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 28.4 | Service outside business hours.      However, if under Clause 28.3 a notice would be deemed to be      served: |
|------|----------------------------------------------------------------------------------------------------------------|

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

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

| 28.5 | Illegible notices.      Clauses 28.3 and 28,4 do not apply if the recipient of a notice      notifies the sender within one hour after the time at which the notice      would otherwise be deemed to be served that the notice has been received      in a form which is illegible in a material  respect. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.6 | Valid notices. A notice      under or in connection with a Finance Document shall not be invalid by      reason that its contents or the manner of serving it do not comply with      the requirements of this Agreement or, where appropriate, any other      Finance Document under which it is servedif: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 28.7 | English language. Any      notice under or in connection with a Finance Document shall be in      English. |
|------|------------------------------------------------------------------------------------------------------------|

| 28.8 | Meaning of “notice”. In      this Clause “notice” includes any demand, consent, authorisation,      approval, instruction, waiver or other  communication. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

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

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

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

| 29.3 | Third party rights. A      person who is not a party to this Agreement has no right under the      Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the      benefit of any term of thisAgreement. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.4 | Counterparts. A Finance      Document may be executed in any number of  counterparts. |
|------|---------------------------------------------------------------------------------------|

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

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

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

| 30.3 | Choice of forum for the      exclusive benefit of the Creditor Parties. Clause 30.2 is for the      exclusive benefit of the Creditor Parties, each of which reserves the      right: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | to      commence such proceedings in the courts of any such country or countries      concurrently with or in addition to proceedings in England or without      commencing proceedings in England. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.4 | Process agent. The      Borrower irrevocably appoints Eurofin International Ltd, whose present      address is Chelsea Harbour, London SW10 OXD, England, to act as its agent      to receive and accept on its behalf any process or other document relating      to any proceedings in the English courts which are connected with this      Agreement. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

| Lender            | Lending      Office                              | Commitment(US      Dollars)  |
|------------------------|--------------------------------------------------|-----------------------------------|
| Piraeus      Bank A.E. | 47-49      Akti Miaouli185      36 PiraeusGreece | 170,000,000*                      |

|   | * | Please refer to Clause 2.4      pursuant to which the Commitment of Piraeus Bank A.E. is limited initially      to $65,000,000, increasing, following the syndication of the Total      Commitments, up to$85,000,000 |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Ship                   | Hire      Rate ($/day) | Actual      or Estimated Delivery Date                                 | Charter      Period (months) | Charterer                       |
|------------------------|------------------------|------------------------------------------------------------------------|------------------------------|---------------------------------|
|                   |                   |                                                                   |                         |                            |
| “ALPHA”    | 47,500                 | Delivered      on [•]                                            | 35      to 38 months         | Worldlink      Shipping Limited |
|                   |                   |                                                                   |                         |                            |
| “BETA”     | 106,500                | Delivered      on [•]                                            | 24      to 26 months         | Industrial      Carriers Inc.   |
|                   |                   |                                                                   |                         |                            |
| “SINFONIA” | 100,000                | Within      3 BusinessDays      of the DrawdownDate      for Tranche A | 11      months               | K      Line                     |

----

| 1 | We      refer to the loan agreement (the “Loan Agreement”) dated      [•] 2008 and made between ourselves as Borrower, the Lenders referred to      therein, yourselves as Agent, Security Trustee and Swap Bank and in      connection with a term loan facility of up to US$170,000,000. Terms      defined in the Loan Agreement have their defined meanings when used in      this Drawdown Notice. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | We      request to borrow Tranche [A] [B] [C] as  follows: |
|---|------------------------------------------------------------|

| (a) | Amount      of Tranche $[•]; |
|-----|------------------------------------|

| (b) | Drawdown      Date: [•] 2008; |
|-----|-------------------------------------|

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

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

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

| (a) | the      representations and warranties in Clause 10 of the Loan Agreement would      remain |
|-----|----------------------------------------------------------------------------------------------|

|   | true      and not misleading if repeated on the date of this notice with reference      to the circumstances now existing; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

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

|   | borrowing      of the Loan. |
|--------|-----------------------------|

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

| 5 | We      authorise you to deduct any outstanding fees applicable to the Tranche      referred to in Clause 20.1 from the amount of that  Tranche. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                               |   |
|--------|------------------------------------------------------------------------------------|--------|
|   | [Attorney-in-Fact][Director]for      and on behalf ofSTAR      BULK CARRIERS CORP. |   |

----

| 1 | A      duly executed original of each of: |
|---|-------------------------------------------|

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

| (b) | the      Agency and Trust Deed; |
|-----|---------------------------------|

| (c) | the      Guarantees; and |
|-----|--------------------------|

| (d) | the      Earnings Account Pledges. |
|-----|------------------------------------|

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

| 3 | Copies      of resolutions of the directors of the Borrower and the directors and      shareholders of each Owner authorising the execution of each of the      Finance Documents to which the Borrower or that Owner is a party and, in      the case of the Borrower, authorising named officers to give the Drawdown      Notices and other notices under thisAgreement. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | The      original of any power of attorney under which any Finance Document is      executed on behalf of the Borrower or each  Owner. |
|---|----------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Copies      of all consents which the Borrower or any Owner requires to enter into, or      make any payment under, any Finance Document and, in the case of Star L,      the MOA. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 7 | Evidence      satisfactory to the Agent that each Owner is a direct or indirect      wholly-owned subsidiary of theBorrower. |
|---|------------------------------------------------------------------------------------------------------------------------------|

| 8 | A      copy of the MOA and of all documents signed or issued by the parties      thereto under or in connection withit. |
|---|-------------------------------------------------------------------------------------------------------------------------|

| 9 | Such      documentary evidence as the Agent and its legal advisers may require in      relation to the due authorisation and execution of the MOA and all      documents to be executed by the parties thereto under the    MOA. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | A      copy of the Management Agreement in respect of each  Ship. |
|----|-------------------------------------------------------------------|

----

| 11 | All documentation      required by each Creditor Party in relation to the Borrower and any      Security Party pursuant to that Creditor Party’s “know your customer”      requirements. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12 | Documentary      evidence that the agent for service of process named in Clause 30 has been      appointed. |
|----|-------------------------------------------------------------------------------------------------------------|

| 13 | Favourable      legal opinions from lawyers appointed by the Agent on such matters      concerning the laws of the Marshall Islands and such other relevant      jurisdictions as the Agent mayrequire. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | If      the Agent so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Agent. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | A      copy of the Initial Charterparty in relation to each Ship and of all      documents signed or issued by the parties thereto under or in connection      with that Initial Charterparty. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | A      duly executed original of the Mortgage, the General Assignment and the      Charterparty Assignment relating to each Ship (and of each document to be      delivered under each of them); |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a) | “SINFONIA”      has been unconditionally delivered by the Seller to, and accepted by, Star      L under      the MOA and the Contract Price (including any balance not being financed      by Tranche A) has been duly paid, together with a copy of the bill of sale      and the other documents delivered by the Seller      thereunder; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | each      Ship is definitively and permanently registered in the name of the      relevant Owner under      an Approved Flag; |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (c) | each      Ship is in the absolute and unencumbered ownership of the Owner thereof,      save as contemplated      by the Finance Documents applicable to that  Ship; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | each      Ship maintains the highest available class with a first-class      classification society which      is a member of IACS as the Agent may approve free of all overdue      recommendations and conditions of such classification      society; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | the      Mortgage relating to each Ship has been duly registered against that Ship      as a valid first priority      or preferred ship mortgage in accordance with the laws of the relevant      Approved Flag State; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | each      Ship is insured in accordance with the provisions of this Agreement and      all requirements      therein in respect of insurances have been complied with;      and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | A      duly executed original of each Manager’s Undertaking in relation to each      Ship. |
|---|--------------------------------------------------------------------------------------------------|

----

| 5 | Copies      of:  |
|---|-----------------------|

| (a) | the      document of compliance (DOC) and safety management certificate (SMC)      referred to in paragraph (a) of the definition of the ISM Code      Documentation and the ISSC in respect of each Ship and the relevant      Approved Manager certified as true and in effect by the relevant Owner;      and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      ISPS Code Documentation in respect of each Ship and the relevant Owner      certified as true and in effect by thatOwner. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| 6 | A      valuation (at the cost of the Borrower) of each Ship, addressed to the      Agent, stated to be for the purpose of this Agreement and dated not      earlier than 15 days before the Drawdown Date for Tranche A, each from an      independent sale and purchase ships broker appointed by the Agent to be      prepared in accordance with Clause 15.4 and showing that the aggregate      Market Value of the Ships is in an amount satisfactory to the      Agent. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Favourable      legal opinions from lawyers appointed by the Agent on such matters      concerning the laws of Marshall Islands and such other relevant      jurisdictions as the Agent mayrequire. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 9 | If      the Agent so requires, in respect of any of the documents referred to      above, a certified English translation prepared by a translator approved      by the Agent. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| To: | Piraeus      Bank A.E. for itself and for and on behalf of the Borrower, each Security      Party, the Security Trustee, the Swap Bank and each Lender, as defined in      the Loan Agreement referred tobelow. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | This      Certificate relates to a Loan Agreement (the “Loan Agreement”) dated      [ ] 2008 and made between (1)Star Bulk Carriers Corp. as      borrower (the “Borrower”), (2) the      banks and financial institutions named therein as Lenders, (3) Piraeus      Bank A.E. as Agent, (4) Piraeus Bank A.E. as Security Trustee and (5)      Piraeus Bank A.E. as Swap Bank in respect of a term loan facility of up to      US$170,000,000. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | In      this Certificate: |
|---|---------------------------|

| 3 | The      effective date of this Certificate is ........200        Provided that this      Certificate shall not come into effect unless it is signed by the Agent on      or before thatdate. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | The      Transferor assigns to the Transferee absolutely all rights and interests      (present, future or contingent) which the Transferor has as Lender under      or by virtue of the Loan Agreement and every other Finance Document in      relation to [ ] per cent. of the Contribution outstanding to the      Transferor (or its predecessors in title) which is set out      below: |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Contribution | Amount      transferred |
|--------------|-------------------------|

----

| 5 | By      virtue of this Transfer Certificate and Clause 26 of      the Loan Agreement, the Transferor is discharged [entirely from its      Commitment which amounts to      $[           ]]      [from [ ] per cent. of its Commitment, which percentage represents      $[       ]] and the Transferee acquires      a Commitment of    $[       ]. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | The      Transferee undertakes with the Transferor and each of the Relevant Parties      that the Transferee will observe and perform all the obligations under the      Finance Documents which Clause 26 of the Loan Agreement provides will      become binding on it upon this Certificate taking  effect. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | The      Agent, at the request of the Transferee (which request is hereby made)      accepts, for the Agent itself and for and on behalf of every other      Relevant Party, this Certificate as a Transfer Certificate taking effect      in accordance with Clause 26 of the Loan  Agreement. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | The      Transferor: |
|---|----------------------|

| (a) | warrants      to the Transferee and each RelevantParty: |
|-----|---------------------------------------------------------|

|   | (i) | that      the Transferor has full capacity to enter into this transaction and has      taken all corporate action and obtained all consents which are in      connection with this transaction;and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | that      this Certificate is valid and binding as regards the      Transferor; |
|--------|------|---------------------------------------------------------------------------------|

| (b) | warrants      to the Transferee that the Transferor is absolutely entitled, free of      encumbrances, to all the rights and interests covered by the assignment in      paragraph 4 above; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | undertakes      with the Transferee that the Transferor will, at its own expense, execute      any documents which the Transferee reasonably requests for perfecting in      any relevant jurisdiction the Transferee’s title under this Certificate or      for a similar purpose. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | The      Transferee: |
|---|----------------------|

| (a) | confirms      that it has received a copy of the Loan Agreement and each other Finance      Document; |
|-----|-------------------------------------------------------------------------------------------------------|

| (b) | agrees      that it will have no rights of recourse on any ground against either the      Transferor, the Agent, the Security Trustee, the Swap Bank or any Lender      in the event that: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Finance Documents prove to be invalid or  ineffective, |
|--------|-----|-----------------------------------------------------------------|

|   | (ii) | the      Borrower or any Security Party fails to observe or perform its      obligations, or to discharge its liabilities, under the Finance      Documents; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | it      proves impossible to realise any asset covered by a Security Interest      created by a Finance Document, or the proceeds of such assets are      insufficient to discharge the liabilities of the Borrower or any Security      Party under the Finance Documents; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | agrees      that it will have no rights of recourse on any ground against the Agent,      the Security Trustee, the Swap Bank or any Lender in the event that this      Certificate proves to be invalid orineffective; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d) | warrants      to the Transferor and each Relevant Party (i) that it has full capacity to      enter into this transaction and has taken all corporate action and      obtained all official consents which it needs to take or obtain in      connection with this transaction; and (ii) that this Certificate is valid      and binding as regards the Transferee;and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | confirms      the accuracy of the administrative details set out below regarding the      Transferee. |
|-----|-------------------------------------------------------------------------------------------------------|

| 10 | The      Transferor and the Transferee each undertake with the Agent and the      Security Trustee severally, on demand, fully to indemnify the Agent and/or      the Security Trustee in respect of any claim, proceeding, liability or      expense (including all legal expenses) which they or either of them may      incur in connection with this Certificate or any matter arising out of it,      except such as are shown to have been mainly and directly caused by the      gross and culpable negligence or dishonesty of the Agent’s or the Security      Trustee’s own officers oremployees. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11 | The      Transferee shall repay to the Transferor on demand so much of any sum paid      by the Transferor under paragraph 10above as exceeds      one-half of the amount demanded by the Agent or the Security Trustee in      respect of a claim, proceeding, liability or expense which was not      reasonably foreseeable at the date of this Certificate; but nothing in      this paragraph shall affect the liability of each of the Transferor and      the Transferee to the Agent or the Security Trustee for the full amount      demanded by it. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| [Name      of Transferor]                                                                               | [Name      of Transferee] |
|---------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                                                    |                      |
| By:                                                                                                     | By:                       |
|                                                                                                    |                      |
| Date:                                                                                                   | Date:                     |
|                                                                                                    |                      |
| Agent                                                                                                   |                      |
|                                                                                                    |                      |
| Signed      for itself and for and on behalf of itself as Agent and for every other      Relevant Party |                      |
|                                                                                                    |                      |
| PIRAEUS      BANK A.E.                                                                             |                      |
|                                                                                                    |                      |
| By:                                                                                                     |                      |
| Date:                                                                                                   |                      |

----

| Note:  | This      Transfer Certificate alone may not be sufficient to transfer a      proportionate share of the Transferor’s interest in the security      constituted by the Finance Documents in the Transferor’s or Transferee’s      jurisdiction. It is the responsibility of each Lender to ascertain whether      any other documents are required for this  purpose. |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | To: | PIRAEUS      BANK A.E. |
|--------|-----|------------------------|

|   | Ness      7-9 |
|--------|---------------|

|   | (a) | the      Interest Coverage Ratio is [●]:[●]; |
|--------|-----|----------------------------------------------------------|

|   | (b) | the      Leverage Ratio is [●]:[●];      and |
|--------|-----|----------------------------------------------------------|

|   | (c) | the      Liquid Funds are $[●], representing $[●] per Fleet      Vessel, |
|--------|-----|--------------------------------------------------------------------------------------|

|                                                                       |   |
|----------------------------------------------------------------------------|--------|
| [  ]Chief      Financial Officer ofSTAR      BULK CARRIERS CORP. |   |

----

| BORROWED                                                                                       |   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|
| SIGNED by Georgia      Mastagasfor      an on behalf ofSTAR      BULK CARRIERS CORP            | )))    |   |
| LENDERS                                                                                        |   |   |
| SIGNED by Georgios Gazis      and Jason Dallasfor      an on behalf ofPIRAEUS      BANK A.E.   | )))    |   |
| AGENT                                                                                          |   |   |
| SIGNED by Georgios Gazis      and Jason Dallasfor      an on behalf ofPIRAEUS      BANK A.E.   | )))    |   |
| SECURITY      TRUSTEE                                                                          |   |   |
| SIGNED by Georgios Gazis      and Jason Dallasfor      an on behalf ofPIRAEUS      BANK A.E.   | )))    |   |
| SWAPBANK                                                                                       |   |   |
| SIGNED by Georgios Gazis      and Jason Dallasfor      and on behalf ofPIRAEUS      BANK A.E.  | )))    |   |
| Witness      to all the above signatures                                                            | )      |   |
| Name:Address:                                                                                       |   |   |

----