----

----

| 1  | PURPOSE                               | 3  |
|----|---------------------------------------|----|
| 2  | INTERPRETATION                        | 3  |
| 3  | CONSTRUCTION                          | 8  |
| 4  | COMMITMENT                            | 8  |
| 5  | AVAILABILITY      AND DRAWDOWN        | 9  |
| 6  | CONDITIONS      PRECEDENT             | 9  |
| 7  | INTEREST                              | 10 |
| 8  | REPAYMENT...                          | 11 |
| 9  | OPTIONAL      PREPAYMENT/CANCELLATION | 11 |
| 10 | MANDATORY      PREPAYMENT             | 11 |
| 11 | SET-OFF                               | 12 |
| 12 | PAYMENTS      AND CALCULATIONS        | 12 |
| 13 | SECURITY                              | 13 |
| 14 | REPRESENTATIONS      AND WARRANTIES   | 14 |
| 15 | COVENANTS      AND UNDERTAKINGS       | 15 |
| 16 | EVENTS      OF DEFAULT                | 19 |
| 17 | CHANGES      IN CIRCUMSTANCE          | 21 |
| 18 | FEES      AND COSTS                   | 22 |
| 19 | CURRENCY      INDEMNITY               | 22 |
| 20 | TRANSFER      AND PARTICIPATION       | 23 |
| 21 | GUARANTEE      AND INDEMNITY          | 23 |
| 22 | AGENCY                                | 26 |
| 23 | NOTICES      AND MISCELLANEOUS        | 28 |
| 24 | LAW      AND JURISDICTION             | 29 |
| 25 | SIGNATURES                            | 29 |

|  SCHEDULES |                                             |
|-----------------|--------------------------------------------------|
|            |                                             |
| 1.              | List      of Banks and Financial Institutions    |
| 2.              | Conditions      Precedent                        |
| 3.              | Form      of Drawdown Notice                     |
| 4.              | Form      of Certificate of Compliance           |
| 5.              | Form      of Assignment Agreement                |
| 6.              | Form      of Isle of Man First Priority Mortgage |
| 7.              | Form      of Deed ofCovenants                    |

----

| (1) | DeepOcean Shipping AS, a      Norwegian limited company registered with company registration number 979      456 107 with its registered address at Stoltenberggaten 1, 5527 Haugesund,      Norway (the "Borrower"); |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | DeepOcean ASA, a      Norwegian limited company registered with company registration number 980      722 805 with its registered address at Stoltenberggaten 1, 5527 Haugesund,      Norway (the "Guarantor"); |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      financial institutions listed in Schedule 1 as banks, including their      successors in title and assignees and transferees (the "Banks");      and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Nordea Bank Norge ASA,      PO Box 1166 Sentrum, 0107 Oslo, Norway (the "Agent"). |
|-----|-----------------------------------------------------------------------------------|

| (A) | Pursuant      to a loan agreement dated 20 December 2004 (as later amended) the Borrower      has taken up a term loan facility in the original amount of USD      12,329,212.39 and a revolving credit facility in the original amount of      USD 3,600,000 (the "Original Loan") for the      purpose of re-financing the acquisition and refurbishment of MV Atlantic      Challenger, an offshore construction vessel of 3,372 dwt built in 1990 and      rebuilt in 1999 (the"Vessel"). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | The      Borrower wishes to refinance the Original Loan, and the Banks have agreed      to provide such refinancing, on the terms and conditions of this Loan      Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | PURPOSE |
|---|---------|

| 1.1 | The      Banks have, according to the terms and conditions set out in this Loan      Agreement, agreed to make available to the Borrower a credit facility in      the maximum amount of USD 18,000,000 for the purpose of assisting the      Borrower in refinancing of the OriginalLoan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | The      Borrower's obligations pursuant to his Loan Agreement shall be guaranteed      by the Guarantor as further describedherein. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| 2 | INTERPRETATION |
|---|----------------|

| 2.1 | In      this Loan Agreement, unless the context otherwise requires, the following      capitalized words and expressions shall have the meaning set opposite them      below: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "Assignment      Agreement" | the      assignment agreement between the Agent and the      Borrower, substantially in the form set out in Schedule      5. |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------|

----

| "Assignment      of Earnings"    | the      assignment of the Earnings as set out in the Assignment      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Assignment      of Insurances"  | the      assignment of the Vessel's insurances as set out in the Assignment      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Banking      Day"               | any      day on which dealings in deposits of USD are carried on in the London      Interbank Eurocurrency Market and on which banks are open for business in      Oslo and London,                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Banks"                          | each      and all of the lenders as set forth in Schedule1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Certificate      of Compliance" | the      certificate to be delivered by the Guarantor pursuant to Clause 15.3,      substantially in the form set out in Schedule 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Commitment"                     | the      Banks' commitment to make available to the Borrower a term loan facility      in the maximum amount of up to USD 18,000,000 to the extent not cancelled      or reduced pursuant to the terms and conditions of this Loan      Agreement.                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Deed      of Covenants"         | the      deed of covenants related to the Mortgage, substantially in the form set      out in Schedule 7 hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Drawdown      Date"             | the      Banking Day on which the Commitment is drawn by the Borrower, such date to      be agreed between the Borrower and the Agent but not to be later than 30      November 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Drawdown      Notice"           | the      irrevocable notice of drawdown from the Borrower as required by Clause 5.1      (b) and substantially in the form as set out in Schedule      3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "Earnings"                       | all      (i) hire payable to the Borrower for the use of the Vessel, (ii)      compensation payable to the Borrower in the event of requisition of the      Vessel, (iii) remuneration for salvage and other services performed by the      Vessel payable to the Borrower, (iv) demurrage and retention moneys      receivable by the Borrower in relation to the Vessel, (v) damage for      breach (or payments for variation or termination) of any contract of      employment of the Vessel and (vi) other monies whatsoever due or to become      due to the Borrower from any third parties in respect of the Vessel or      otherwise. |

----

| "Environmental      Laws"    | all      national, international and state laws, rules, regulations, treaties and      conventions applicable to the Vessel and, pertaining to the pollution or      protection of human health or the environment including, without      limitation, the carriage of Pollutants and actual or threatened emissions,      spills, releases or discharges of Pollutants. |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "Event      of Default"      | each      event defined as an Event of Default in Clause16.                                                                                                                                                                                                                                                                                                              |
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "Factoring      Agreement"   | the      factoring agreement in respect of the Borrower's earnings in the amount of      NOK 190,000,000 entered into between the Borrower and Bergensbanken ASA 8      January 1999 and assigned 21 December 2004 to the    Agent.                                                                                                                                      |
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "Finance      Documents"     | this      Loan Agreement, the Security Documents and any document or agreement from      time to time entered into pursuant to the terms of any such      document.                                                                                                                                                                                                      |
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "Final      Maturity Date"   | the      date falling on the fourth anniversary of the Drawdown Date. If such date      is not a Banking Day the Final Maturity Date shall be the first following      Banking Day unless it would thereby fall in a new calendar month in which      case it shall be the first preceding Banking Day.                                                                  |
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "GAAP"                       | the      generally accepted accounting principles in Norway, including the      international Financial Reporting Standards  (IFRS).                                                                                                                                                                                                                                     |
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "Group      "                | the      Guarantor and its Subsidiaries                                                                                                                                                                                                                                                                                                                                  |
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "Interest      Payment Date" | the      last day of each Interest Period or if the Agent and the Banks should      consent to longer Interest Periods than six (6) months, the last Banking      Day of each six months period during that Interest Period and the last day      of that Interest Period save as provided by Clause    7.2.                                                             |
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "Interest      Period"       | each      period for the calculation of interest on the Loan as described in Clause      7.2.                                                                                                                                                                                                                                                                            |
|                         |                                                                                                                                                                                                                                                                                                                                                                     |
| "ISDA      Agreement"        | The      master hedging agreement by the International Swap Dealers Association      Inc. including the relevant schedule(s) thereto and any other related      document and/or agreement all with terms and conditions acceptable to the      Swap Provider and theAgent.                                                                                               |

----

| "ISM      Code"       | the      International Safety Management Code for the Safe Operation of Ships and      for Pollution Prevention constituted pursuant to Resolution A.741 (18) of      the International Maritime Organisation and incorporated into the Safety      of Life Sea Convention and include any amendments or extensions of it and      any regulation issued pursuant to it.                                                                                                                                                                                                                                                                           |
|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| "LIBOR"               | for      any Interest Period:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                  |  (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | the      rate per annum equal to the offeredquotation      for deposits in USD ascertained by the Agent to be the rate established by      the British Bankers' Association and appearing on the Reuter page LIBOR 01      (or its replacement), published or reported by Reuter through its monitor      service or any equivalent successor to such service at or about 11:00      hours a.m. (London time) on the applicable Quotation Date;      or |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                  |  (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | if      no such rate is available, the rate perannum      at which the Agent is able to acquire the relevant currency for the      relevant Interest Period in the London Interbank Market at about 1.1.00      hours a.m. (London time) on the applicable Quotation Date, as conclusively      certified by the Agent to the Borrower. |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| "Loan"                | the      total aggregate amount outstanding from time to time hereunder, including      but not limited to accrued interest, fees, costs and any amount due or to      become due and payable hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| "Majority      Banks" | any      Banks whose contribution to the Loan totals more than 67 % of the      Loan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| "Margin"              | 0.80      % (zero point eighty per cent) per annum.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| "Market      Value"   | the      fair market value of the Vessel in USD determined as the arithmetic      average of independent valuations of the Vessel obtained from two      independent and well-reputed brokers appointed by the Agent on behalf of      the Banks and accepted by the Borrower. Such valuations to be made with or      without physical inspection of the Vessel (as the Agent may require), on      the basis of a sale for prompt delivery for cash at arm's length on normal      commercial terms as between a willing buyer and seller, on an "as is where      is" basis free of any existing charters or other contract of      employment. |

----

| "Mortgage"                | the      first priority mortgage on the Vessel to be executed by the Borrower in      favour of the Agent (on behalf of the Banks) as security for its      obligations under this Loan Agreement and being registered against the      Vessel in its ships registry, substantially in the form set out in      Schedule 6. |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |                                                                                                                                                                                                                                                                                                                        |
| "Principal"               | the      principal amount outstanding hereunder.                                                                                                                                                                                                                                                                            |
|                      |                                                                                                                                                                                                                                                                                                                        |
| "Repayment      Date"     | each      date falling at quarterly consecutive intervals starting at 3 months after      the Drawdown Date and ending on the Final Maturity    Date.                                                                                                                                                                       |
|                      |                                                                                                                                                                                                                                                                                                                        |
| "Safety      Regulations" | all      applicable safety and other regulations and as required by the      classification society, the flag state or such jurisdictions where the      Vessel will be employed under any charter or otherwise from time to      time.                                                                                     |
|                      |                                                                                                                                                                                                                                                                                                                        |
| "Security      Documents" | the      security documents specified in Clause 13.                                                                                                                                                                                                                                                                         |
|                      |                                                                                                                                                                                                                                                                                                                        |
| "Subsidiary"              | a      subsidiary as defined in Section 1 -3 of the Norwegian Private Limited      Liability Companies Act 1997 No. 45 (as amended)      ("aksjeloven").                                                                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                                                                        |
| "Swap      Provider"      | the      provider of the relevant interest rate hedge (swap) for the Borrower, on      the terms and conditions of the ISDA Agreement, being Nordea Bank Finland      Plc. or any other swap provider acceptable to the    Agent.                                                                                           |
|                      |                                                                                                                                                                                                                                                                                                                        |
| "Taxes"                   | any      present or future taxes, levies, duties, imposts, charges, fees,      deductions or withholdings levied or imposed by any governmental or other      public taxing or similar authority.                                                                                                                           |
|                      |                                                                                                                                                                                                                                                                                                                        |
| "Total      Loss"         | a      total loss as any occurrence in consequence whereof the Vessel has become      or is likely to become a total loss which expression shall      include;                                                                                                                                                              |
|                      |                                                                                                                                                                                                                                                                                                                        |
|                      |  (a)                                                                                                                                                                                                                                                                                                                   | any      actual, constructive, agreed,compromised      or arranged total loss of the Vessel; or |
|                      |                                                                                                                                                                                                                                                                                                                        |
|                      |  (b)                                                                                                                                                                                                                                                                                                                   | requisition      for title or any other compulsory acquisition of the Vessel;      or |
|                      |                                                                                                                                                                                                                                                                                                                        |
|                      |  (c)                                                                                                                                                                                                                                                                                                                   | any      other event which the insurers consider at total    loss. |
|                      |                                                                                                                                                                                                                                                                                                                        |
| "USD"                     | the      lawful currency of the United States of  America.                                                                                                                                                                                                                                                                  |

----

| "Vessel" | MV      Atlantic Challenger, a 1990 built and 1999 rebuilt offshore construction      vessel of 3,372dwt. |
|----------|-----------------------------------------------------------------------------------------------------------|

| 3 | CONSTRUCTION |
|---|--------------|

| 3.1 | In      this Loan Agreement, unless the context or any express provisions of this      Loan Agreement otherwiserequires: |
|-----|--------------------------------------------------------------------------------------------------------------------------|

|  | (a) | words      importing the singular shall include the plural and vice versa. In      particular, for so long as it is the only Bank, references to the Banks      and/or the Majority Banks shall be construed as a reference to Nordea Bank      Norge ASA.; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | reference      to any party shall be deemed to be a reference to or include, as      appropriate, their respective permitted successors and assigns or      transferees; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | references      to Clauses and Schedules are references to clauses and schedules to this      Loan Agreement; |
|--|-----|---------------------------------------------------------------------------------------------------------------|

|  | (d) | all      references to statutes and other legislation include all modifications,      re-enactments and amendmentsthereof; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------|

|  | (e) | a      reference to this Loan Agreement or to any other agreement or document      shall be construed as including a reference to all permitted amendments      and/or variations thereof or supplements thereto from time to time in      force. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | COMMITMENT |
|---|------------|

| 4.1 | The      obligation of each Bank under this Loan Agreement shall be to contribute      that proportion of the Loan which its commitment bears to the total of the      Commitment of all Banks. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Subject      to the provisions related to the Majority Banks' decisions as set out      herein, the obligations of each Bank are several, but not joint. The      failure of any Bank to perform such obligations shall not relieve any      other Bank, the Agent or the Borrower of any of their respective      obligations or liabilities under this Loan Agreement or the Security      Documents nor shall the Agent be responsible for the obligations of any      Bank (except for its own obligations, if any, as a Bank) nor shall any      Bank be responsible for the obligations of any other Bank under this Loan      Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | The      obligations of the Borrower under this Loan Agreement and the Security      Documents shall not be affectedby: |
|-----|-------------------------------------------------------------------------------------------------------------------------|

|  | (a) | any      time or waiver granted to or composition with any third    party; |
|--|-----|----------------------------------------------------------------------------|

|  | (b) | any      failure to enforce any rights, remedy or security against any third      party; |
|--|-----|------------------------------------------------------------------------------------------|

|  | (c) | any      legal limitation, incapacity or other circumstances relating to any third      party; or |
|--|-----|---------------------------------------------------------------------------------------------------|

----

|  | (d) | this      Loan Agreement or any of the Security Documents becoming invalid or      unenforceable against any      third party. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | The      Borrower shall not claim any set-off or counterclaim against any third      party until the Banks have received all amounts due or to become due to      them under this Loan Agreement and the Security  Documents. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | AVAILABILITY      AND DRAWDOWN |
|---|--------------------------------|

| 5.1 | The      Commitment shall be available for drawdown in one drawing on the Drawdown      Date on the followingconditions: |
|-----|--------------------------------------------------------------------------------------------------------------------------|

|  | (a) | the      conditions precedent as per Clause 6 shall have been  met; |
|--|-----|---------------------------------------------------------------------|

|  | (b) | the      Borrower shall have given to the Agent a Drawdown Notice which shall be received by the Agent      prior to 11 a.m. London time not less than three (3) Banking Days      prior to the Drawdown Date unless a shorter notice period is accepted in      writing by the Banks; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | no      event shall have occurred which constitutes and continues to constitute an      Event of Default or which by giving of notice and/or lapse of time would      constitute an Event of Default;and |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | the      representations and warranties contained in Clause 14 shall be true and      accurate at the time of giving of the Drawdown Notice and at the Drawdown      Date with reference to the facts then  subsisting. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | The      Commitment shall be available for the purpose set out in Clause 1      only. |
|-----|---------------------------------------------------------------------------------------|

| 5.3 | Any      undrawn part of the Commitment shall be cancelled on 31 December      2007. |
|-----|--------------------------------------------------------------------------------------|

| 6 | CONDITIONS      PRECEDENT |
|---|---------------------------|

| 6.1 | The      obligations of the Agent and each Bank hereunder are subject to the      condition that the Agent, on behalf of the Banks, has received, at least 3      Banking Days prior to the Drawdown Date, all the documents set forth in      Schedule 2 hereto in a form and substance satisfactory to the      Agent. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | If the documents set out in Schedule 2 are not      submitted as originals, the Agent may require that a Norwegian      attorney-at-law certify photocopies of any such documents as true and      correct. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| 7.1 | The      Borrower shall pay interest on the Principal on each Interest Payment Date      at the annual rate which is conclusively certified by the Agent (save for      manifest error) to be the aggregate of the Margin and    LIBOR. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | The      Borrower may elect Interest Periods for the Principal of one (1), three      (3)or, six (6) months duration or alternatively such other Interest      Periods (if available to the Banks) to which the Agent with the consent of      the Banks shall agree to, providedthat: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | the      Borrower shall select the first Interest Period for the Loan in the      Drawdown Notice. Each subsequent Interest Period shall commence on the      expiry of the preceding InterestPeriod; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | the      Borrower shall select the length of the subsequent Interest Periods by      informing the Agent in writing no later than 10:00 a.m. three Banking Days      before the beginning of the next Interest  Period; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | if      any Interest Period would otherwise end on a day which is not a Banking      Day i shall be extended to end on the first following Banking Day unless      it would thereby end in a new calendar month in which case it shall be      shortened to end or the first preceding Banking  Day; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | if      any Interest Period would otherwise extend beyond a Repayment Date there      shall be a separate Interest Period ending on the Repayment Date for the      amount then falling due; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | Interest      Periods of one (1) month duration may only be selected three times per      calendar year; and |
|--|-----|--------------------------------------------------------------------------------------------------------------|

|  | (f) | If      the Borrower fails to select an Interest Period in accordance with this      clause 7.2, that Interest Period shall be three (3)  months. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | If      the Borrower fails to pay an amount on its due date for payment under this      Loan Agreement, the Borrower shall pay interest on such amount on demand      from that date up to and including the date of actual payment, to be      compounded at the end of each of the periods under (c) below, at an annual      rate which is conclusively certified by the Agent (save for manifest      error) to be the aggregateof: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | the      Margin; |
|--|-----|------------------|

|  | (b) | 3      % per annum;      and |
|--|-----|------------------------------|

|  | (c) | LIBOR      for such period as the Agent may select from time to time and for amounts      comparable with the amounts which the Borrower has failed to      pay. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8 | REPAYMENT |
|---|-----------|

| 8.1 | The      Borrower shall repay the Principal in 16 quarterly instalments of USD      500,000 each on each Repayment Date. The remaining Loan shall be repaid in      one instalment on the Final MaturityDate. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Any      repayment of Principal according to this Clause 8 may not be      re-borrowed. |
|-----|-----------------------------------------------------------------------------------------|

| 9 | OPTIONAL      PREPAYMENT/CANCELLATION |
|---|---------------------------------------|

| 9.1 | The      Borrower may cancel the Commitment or prepay the Principal in whole or in      part in amounts equalling USD 100,000 or whole multiples thereof, or any      other amount as agreed with the Agent, on any Interest Payment Date upon      giving the Agent not less than five (5) Banking Days irrevocable written      notice of such cancellation or prepayment. Prepayment on any other day      than the Interest Payment Date for the amounts to be prepaid, are subject      to payment of any breakage costs (excluding the Margin) and redeployment      losses to the Banks. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Any      prepaid amounts according to Clause 9.1 of this Loan Agreement shall,      unless in the event of prepayment as a consequence of a sale or Total Loss      of the Vessel, reduce the Principal in inverse order of maturity, starting      with the final instalment. Prepaid amounts may not be      re-borrowed. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | MANDATORY      PREPAYMENT |
|----|---------------------------|

|  | 10.1 | In      case of: |
|--|------|------------------|

|  | (a) | sale      or other disposition of the Vessel;or |
|--|-----|-------------------------------------------------|

|  | (b) | Total      Loss; or |
|--|-----|---------------------|

|  | (c) | in      the event of a capture, seizure, arrest, detention or confiscation of the      Vessel by any government or by persons acting or purporting to act on      behalf of any government unless the Vessel shall be released from such      capture, seizure, arrest, detention or confiscation within two months      after the occurrence thereof; then the Loan shall be prepaid in full      according to this Clause 10. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | In      the event set forth in Clause 10.1 (a) or (c), the Loan shall immediately      be due and payable. |
|------|------------------------------------------------------------------------------------------------------------|

| 10.3 | In      die event of a Total Loss, the Borrower shall prepay the Loan on the      earlier of (i) 180 days from the occurrence of the Total Loss and (ii)      upon receipt of insuranceproceeds. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Any      prepaid amounts under Clause 10 of this Loan Agreement may not be      re-borrowed. |
|------|----------------------------------------------------------------------------------------------|

----

| 10.5 | Any      breakage costs (excluding the Margin) and redeployment losses incurred by      any Bank as a consequence of prepayment according to this Clause 10 on any      other date than on Interest Payment Date for prepaid amounts shall be due      and payable to the Agent ondemand. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11 | SET-OFF |
|----|---------|

| 11.1 | The      Borrower authorises the Agent (on behalf of the Banks) to apply any credit      balance to which the Borrower is then entitled on any account of the      Borrower with the Agent or with any of the Banks in satisfaction of any      sum due and payable from the Borrower to the Agent and the Banks under      this Loan Agreement. For this purpose, the Agent and the Banks are      authorised to purchase with the monies standing to the credit of such      account such other currencies as may be necessary to effect such      application. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 12.1 | The      Borrower shall at all times ensure that there are sufficient funds in its      bank accounts on any Repayment Date to cover the payment of the next      instalment of Principal and/or interest on the next Interest Payment      Date. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | All      payments to be made by the Borrower hereunder shall be made to such      accounts of the Agent or the Banks with such banks as the Agent shall      notify the Borrower from time to time, by not later than 11. a.m. London      time in USD in freely transferable funds which are for same day settlement      or in such other USD funds as shall for the time being be customary for      the settlement of transactions of thisnature. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.3 | All      payments by the Borrower shall be made without set-off or counterclaim and      free and clear of and without deduction for or on account of any present      or future Taxes of any nature, unless the Borrower is compelled by law to      make payment subject to any such Taxes. In the event that the Borrower is      compelled by law to deduct or withhold any such Taxes, the Borrower shall      (i) pay to the Agent such additional amount as may be necessary to ensure      that the Agent and the Banks receive a net amount equal to that which they      would have received had such deductions or withholdings not been made and      (ii) deliver to the Agent as soon as practicable after any request by it      an official receipt of the payment of any Taxes so    deducted. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.4 | If      the date on which a payment is due to be made hereunder is not a Banking      Day, such date of payment shall be the first following Banking Day unless      payment would thereby be made in a new calendar month, in which case the      payment shall be made on the preceding Banking  Day. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5 | Interest      and any other payments hereunder of an annual nature shall accrue from day      to day and be calculated on the actual number of days elapsed on the basis      of a 360 days year. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.6 | If      any amount of Principal is for any reason repaid on a day other than a      Repayment Date, the      Borrower shall pay to the Agent on demand such amount as may be necessary      to compensate the Agent and the Banks for any loss, premium or penalty      incurred by them in respect of the liquidation or reemployment of funds      borrowed for the purpose of maintaining the amount      repaid. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.7 | The      Borrower shall promptly, on demand by a Bank, pay to that Bank the amount      of any increased cost relating to this Loan Agreement incurred by it as a      result of: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | any      change in, or any change in the interpretation or application by any      competent authority of, any relevant law or regulation after the date of      this Loan Agreement; or |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | compliance      with any regulation made by a competent authority of the jurisdiction in      which it is incorporated and/or in which its principal office is located      after the date of this Loan Agreement, including any law or regulation      relating to taxation (save for tax on overall net income and to the extent      such increased cost is attributable to a Tax deduction or withholding      required by law to be made by the Borrower or compensated for by Clause      12.3), or reserve asset, special deposit, cash ratio, liquidity or capital      adequacy requirements or any other form of banking or monetary      control. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.8 | In      this Loan Agreement, "increased cost"means: |
|------|-----------------------------------------------------|

|  | (a) | an      additional cost incurred by a Bank as a result of the Bank having entered      into, or performing, maintaining or funding its obligations under this      Loan Agreement save for an increase in general administration cost of such      Bank; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | a      reduction in any amount payable to a Bank or the effective return to a      Bank on its capital which would not have occurred had that Bank not      entered into this Loan Agreement;or |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | the      amount of any payment made by a Bank, or the amount of any interest or      other return foregone by a Bank, calculated by reference to any amounts      received or receivable by that Bank from the Agent or the Borrower under      this Loan Agreement, |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | SECURITY |
|----|----------|

| 13.1 | The      Loan shall at all times, as long as there are any outstanding amount due      according to this Loan Agreement, be secured by the Guarantee stated in      this Loan Agreement and the following Security  Documents: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|  | (b) | the      Assignment Agreement, containing the Assignment of Insurances and the      Assignment of Earnings. |
|--|-----|-------------------------------------------------------------------------------------------------------------|

| 13.2 | All      the Security Documents shall serve as security for the Loan on a pari      passu basis on first priority over the respective  assets. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | The      Swap Provider's exposure under the ISDA Agreement shall at all times be      secured by the second priority mortgage on the  Vessel. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | REPRESENTATIONS      AND WARRANTIES |
|----|-------------------------------------|

| 14.1 | The      Borrower represents and warrants to the Agent and the Banks as      follows: |
|------|---------------------------------------------------------------------------------------|

|  | (a) | The      Borrower is a limited liability company wholly owned by the Guarantor,      duly incorporated and validly existing under the laws of Norway, in good      standing, and has the power to own and operate its  assets; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | The      Borrower has the power to enter into and perform, and has taken all      necessary corporate action to authorise the entry into, performance and      delivery of each of the Finance Documents, and the transactions      contemplated therein; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Each      of the Finance Document constitutes (or will, when executed by the      respective parties thereto, constitute) legal, valid and binding      obligations of the Borrower and/or the Guarantor, enforceable in      accordance with its terms and, save as provided for therein and/or as have      been or shall be completed prior to the Drawdown Date, no registration,      filing, payment of Tax or fees or other formalities are necessary or      desirable to render the relevant Finance Document enforceable against the      respective parties and, in respect of the Vessel, for the Mortgage to      constitute valid and enforceable first priority  mortgage; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | The      entry into and performance by the Borrower of the Finance Documents and      the transactions contemplated thereby do not and will not conflict      with: |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | any      present law or regulation or judicial or official order applicable to      it; |
|--|-----|-----------------------------------------------------------------------------------------|

|  | (ii) | its      articles of association or other constitutional documents;    or |
|--|------|---------------------------------------------------------------------------|

|  | (iii) | any      document or agreement which is binding on the  Borrower; |
|--|-------|-------------------------------------------------------------------|

|  | (e) | All      authorisations and consents required in connection with the entry into,      performance, validity and enforceability of, and the transactions      contemplated by, each of the Finance Documents, and for the Borrower to      carry on its business, have been obtained and are in full force and      effect, or will be obtained prior to the Borrower serving the Drawdown      Notice hereunder; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | The      accounts of the Borrower most recently delivered to the    Agent: |
|--|-----|----------------------------------------------------------------------------|

|  | (i) | have      been prepared in accordance with generally accepted accounting principles      in Norway, consistentlyapplied; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------|

----

|  | (ii) | fairly      represent the financial conditions of the Borrower, as at the date on      which they were drawn up; |
|--|------|------------------------------------------------------------------------------------------------------------------|

|  | (g) | AH      financial documents and information relating to the Borrower or otherwise      relevant to the matters contemplated by this Loan Agreement which have      been supplied by or on behalf of the Borrower to the Agent are complete      and, as at the date of such documents or information, correct in all      material respects, and the Borrower has not omitted to disclose to the      Agent any off-balance sheet liabilities or other information, documents or      agreements which, if disclosed, could reasonably be expected to affect the      decision of the Agent or the Banks to enter into this Loan      Agreement. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | No      litigation, arbitration or administrative proceedings are current or, to      theBorrower's knowledge, pending or threatened against the Borrower which      might, if adversely determined, be reasonably expected to have a material      adverse effect on its ability to perform its obligations under any of the      Finance Documents; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | The      Borrower is operating its business and the Vessel in compliance with all      relevant applicable laws, including but not limited to the Safety      Regulations, the Environmental Laws, and any other applicable laws and      regulations; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (j) | The      Borrower has delivered all necessary tax returns to the relevant taxation      authorities and the Borrower is not in default in the payment of Taxes,      and no material claim is being asserted with respect to    Taxes; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (k) | The      Borrower complies in all respects with all Environmental Laws applicable      to it or the Vessel, including without limitation, requirements relating      to establishment of financial responsibility and obtained the      Environmental Approval applicable to it and the  Vessel. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | The      representations and warranties set out in Clause 14 are made by the      Borrower on the date of this Loan Agreement and shall be deemed to be      repeated by the Borrower at the date of the Drawdown Notice and each      Interest Period selection notice, as well as the first day in each      Interest Period, with reference to the facts and circumstances then      existing, unless otherwise notified to the Agent in writing, and if not      permitted under this Loan Agreement, waived by the Banks prior to such      dates. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15 | COVENANTS      AND UNDERTAKINGS |
|----|---------------------------------|

| 15.1 | Each      of the Borrower and the Guarantor undertakes with the Banks that, as long      as any amount is owed to the Banks hereunder, it will comply with the      following covenants and undertakings set out in this Clause 15. Each of      the Borrower and the Guarantor undertake to promptly inform the Agent in      writing of any occurrence or event which constitutes or may constitute a      breach of the covenants and undertakings which apply to it pursuant to      this Clause 15. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.2 | Each      of the Borrower and the Guarantor undertakes to deliver to the Agent the      following (which, upon the reasonable request of the Agent shall be in the      English language): |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | 1      (one) copy confirmed by its auditor (who shall be an authorised public      accountant) of its audited balance sheets as of the close of each      financial year and audited statement(s) of profit and loss, cash flow      reports and annual reports within 150 (one hundred and fifty) days after      the close of each financialyear; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | its      unaudited consolidated financial statements within 90 (ninety) days after      the end of the 1st,      2nd      and 3rd      calendar quarter; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | such      financial and other information as the Agent, in its sole discretion, may      from time to time reasonablyrequest; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | The      Guarantor undertakes, within 90 (ninety) days after the end of each      calendar quarter, to deliver Certificate of Compliance to the Agent, as      confirmation of the Guarantor's compliance with the following financial      covenants, all calculated on a consolidated basis and in accordance with      GAAP: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | Working      Capital: The ratio of Current Assets to Current Liabilities to      remain greater than 1.1:1.0. |
|--|-----|---------------------------------------------------------------------------------------------------------------|

|  | (b) | Minimum Leverage      Ratio: The ratio of consolidated Net Interest Bearing Debt to      EBITDA (including any lease obligations) on a trailing four quarter basis      shall at no time be greater than4:1. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Minimum Book      Equity: The Book Equity shall at all times be no less than 35% of      the aggregate of (i) the Book Equity and (ii) the Total      Liabilities. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.4 | The      Borrower further undertakes that as long as any amount is outstanding      under this Loan Agreement: |
|------|----------------------------------------------------------------------------------------------------------------|

|  | (a) | it      will promptly inform the Agent of any occurrence or event of which it      becomes aware which constitutes an Event of Default or will materially      adversely affect the Borrower's ability to perform its obligations      hereunder or under any of the FinanceDocuments; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | It      will provide the Agent in writing, promptly upon becoming aware of them,      relevant details of any litigation, arbitration or administrative      proceedings, hereunder any environmental claim, which are current or, to      its knowledge, threatened or pending against it and which might, if      adversely determined, be reasonably expected to have a material adverse      effect on its ability to perform its obligations under the Finance      Documents, and further details of any such matters previously disclosed to      the Agent, as the Banks may reasonablyrequest; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | it      will not make any changes to its by-laws or merge, demerge, consolidate or      liquidate or in any other way make any amendments to its corporate status      without the prior written consent of the Agent on behalf of the      Banks; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | it      will not make any changes in its fiscal year, the nature of its business,      its company name, its legal structure or organisation and/or its corporate      seat without the Agent's prior written consent on behalf of the      Banks; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | it      will at all times manage its business and the Vessel in compliance with      all relevant applicable laws and regulations and notify the Agent      immediately of any breach thereof; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | it      will procure that the Vessel is insured according to the following terms      and conditions: |
|--|-----|-------------------------------------------------------------------------------------------------------|

|  | (i) | the      Vessel shall be fully insured against such risks, in such amounts, on such      terms (always applying Norwegian law and including the terms of the      Norwegian Marine Insurance Plan of 1996, version 2002 (as amended from      time to time) as the Agent may approve (such approval not to be      unreasonably withheld). Such insurances shall include, but not be limited      to Hull and Machinery, Hull Interest, Freight Interest, Protection &      Indemnity (including a maximum club cover for oil pollution liability for      the Vessel, presently USD 1,000,000,000), War Risk (including terrorism)      and Loss of Hire. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (ii) | Insurance      shall be maintained with first class underwriters and insurance companies      and at terms acceptable to the Agent and shall note and maintain the      notation of the Agent (on behalf of the Banks) as mortgagee and as further      set out in the loss payable clause in the Assignment      Agreement. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | The      insured value of the Vessel shall at all times be equal to or higher than      its Market Value, and the aggregate insured value of the Vessel shall be      equal to or greater than 125 % (hundred and twenty      five per cent) of the Loan. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   | Furthermore,      the Hull and Machinery insured value of each Vessel shall at all times      cover 80 % (eighty per cent) of its Market Value, and the aggregate Hull      and Machinery insured value of all Vessels shall be equal to or greater      than the Loan, while the remaining cover may be taken out by way of Hull      and Freight Interestinsurances. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | insurance      premiums shall be paid punctually and the Borrower shall renew the      insurances timely and deliver the annual certificates to the Agent      evidencing that the Vessel is insured and that the Agent (on behalf of the      Banks) is noted as mortgagee in the Vessel's insurance policies with first      priority; and |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | In      addition to the insurances specified above, the Agent may require (a) a      Mortgagees Interest Insurance (M.I.I) and (b) when and if the Vessel is      operating the territory of the United States of America, Mortgagee      Interest Additional Perils insurance, in which case the Borrower shall      procure that the Agent be reimbursed, or reimburse the Agent, in full all      and any costs incurred by the Agent to secure the interest of the Banks in      relation thereto. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | it      will at all times comply with the Safety Regulations and the Environmental      Laws applicable to any of them from time to time, and comply with all      international conventions and regulations, including SOLAS conventions and      the International Management code for the Safe Operation of Ships and for      Pollution Prevention adopted by the International Maritime Organisation.      In particular, the Borrower shall ensure compliance with the ISM Code and      shall ensure that any charterer and any company performing management      services on behalf of the Borrower complies with said conventions and      regulations; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | it      will deliver to the Agent copies of all relevant certificates required      under the Safety Regulations and Environmental Laws when such certificates      are required by the relevantauthorities. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | it      will promptly notify the Agent in writing (in case of urgency by telefax)      of: |
|--|-----|--------------------------------------------------------------------------------------------|

|  | (i) | any      accident to the Vessel involving repairs where the cost is likely to      exceed USD 100,000 (or the equivalent in any other    currency); |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | any      occurrence in consequence whereof the Vessel has become or is likely to      become a Total Loss; |
|--|------|------------------------------------------------------------------------------------------------------------|

|  | (iii) | any      arrest, capture, seizure, detention or confiscation of the Vessel or the      exercise or purported exercise of any lien on the  Vessel; |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (j) | it      will as soon as possible and in no event later than 30 days after the      Borrower, or any of its key employees become aware of the same, procure      that any arrest or other similar charges against the Vessel shall be      released; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (k) | the      Borrower shall maintain the Vessel classified in the highest class with      either Bureau Veritas or another classification society acceptable to the      Agent, and not change such classification society without the prior      written consent of the Agent; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (1) | it      will not change the flag of the Vessel or register or grant or permit      any  mortgage      or other encumbrance over the Vessel other than permitted by this Loan      Agreement (hereunder the second priority mortgage over the Vessel as      security for the Borrower's obligations under the Swap arrangement with      the Swap Provider) without the prior written consent of the Agent on      behalf of the Banks; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (m) | it      shall semi-annually (or up to quarterly if the Agent deem that the      circumstances require updated reports) establish the Market Value and      submit the written report thereof to the Agent, and shall procure that the      Market Value at all times exceeds 130% of the  Loan. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.5 | The      Guarantor further undertakes that as long as any amount is outstanding      under this Loan Agreement: |
|------|-----------------------------------------------------------------------------------------------------------------|

|  | (a) | it      will not permit any changes of ownership and/or control of the Borrower      without the prior written consent of the Agent on behalf of the      Banks; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | it      will not make any changes in its fiscal year, the nature of its business      or that of its subsidiaries, its company name, its legal structure or      organisation and/or its corporate seat without the Agent's prior written      consent on behalf of theBanks; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | it      will promptly inform the Agent of any occurrence or event of which it      becomes aware which constitutes an Event of Default or will materially      adversely affect the Borrower's or the Guarantor's ability to perform      their respective obligations hereunder or under any of the Finance      Documents; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | it      will not, and shall ensure that the subsidiaries of the Guarantor shall      not, merge, demerge, consolidate or liquidate or in any other way make any      amendments to its corporate status without the prior written consent of      the Agent on behalf of the Banks; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | it      will maintain its listing on the Oslo Stock Exchange at all      times. |
|--|-----|---------------------------------------------------------------------------------|

| 15.6 | The      Borrower may enter into interest rate hedging arrangements on the terms      and conditions of the ISDA Agreement for a notional amount not exceeding      the Loan and for periods up to the Final Maturity  Date. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16 | EVENTS      OF DEFAULT |
|----|------------------------|

| 16.1 | Each      of the following events or circumstances is an Event of      Default: |
|------|---------------------------------------------------------------------------------|

----

|  | (a) | the      Borrower fails to pay any sum due hereunder on the due date provided,      however, that it shall not be an Event of Default if such failure is due      to an administrative or technical banking error and such failure is      remedied within three (3) BankingDays; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | the      Borrower and/or the Guarantor otherwise defaults in the due performance or      observance of any undertaking, covenant or other obligation or term      contained herein or in any of the Finance Documents. No Event of Default      under this paragraph (b) will occur if, in the reasonable opinion of the      Agent, the failure to comply is capable of remedy and is remedied within      10 Business Days of the earlier of the Agent giving notice to the Borrower      and/or the Guarantor and the Borrower and/or the Guarantor becoming aware      of the failure to comply. For the avoidance of doubt, a breach of Clauses      15.4 (f) (insurances) and 15.4(1) (flag) is not capable of      remedy. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | a      change of ownership and/or control of the Borrower shall occur without the      Agent's prior writtenconsent; |
|--|-----|----------------------------------------------------------------------------------------------------------------------|

|  | (d) | any      representation or warranty made by the Borrower in this Loan Agreement or      in the Finance Documents or in any notice, certificate or statement      delivered or made pursuant hereto proves to have been inaccurate or      misleading in any material respect whenmade; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | a      material adverse change shall occur with respect to the financial      condition of the Borrower and/or the Guarantor or any creditor of the said      parties declares a default, or is capable of declaring a default under any      agreement imposing obligations upon the Borrower or the Guarantor in      amounts exceeding USD 1,000,000 and USD 5,000,000, respectively, provided      that the defaulting party is unable to demonstrate to the satisfaction of      the Banks within seven (7) Banking Days after the declaration of such      default that the subject party is not in  default; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | the      Borrower and/or the Guarantor is unable or admits in writing its inability      to pay its lawful debts as they mature or makes a general assignment for      the benefit of its creditors; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | any      proceedings are commenced or any judgement or order is given by a      competent court or any effective resolution is passed for or with the view      to bankruptcy, liquidation or reorganisation of the Borrower and/or the      Guarantor or for the appointment of a receiver, trustee or liquidator of      the Borrower and/or the Guarantor or all or any substantial part of its      assets unless contested in goodfaith; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | the      Borrower and/or the Guarantor ceases or threatens to cease to carry on      its  business      otherwise than, in case of the Borrower, following the voluntary sale of      the Vessel, or disposes or threaten to dispose of a substantial part of      its assets or the same are seized or appropriated for any      reason; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | the      Borrower shall suffer a material adverse change in its financial position      which, in the reasonable opinion of the Banks, will adversely affect the      Borrower's ability to repay theLoan; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (j) | any      governmental or other consent, approval or authorisation necessary for the      Borrower to fulfil all its obligations hereunder or otherwise to give full      effect to any of the Finance Documents is revoked or otherwise modified in      a manner unacceptable to the Banks in their reasonable      opinion; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (k) | any      of the Security Documents cease to be in full force and effect on the      priority as required by Clause 13;and |
|--|-----|---------------------------------------------------------------------------------------------------------------------------|

|  | (1) | it      becomes impossible or unlawful for the Borrower to fulfil any of its       undertakings      or other obligations under this Loan Agreement and the Security Documents      or for the Agent or the Banks to exercise any of their rights      thereunder. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | Upon      the occurrence of an Event of Default the Agent may, and if so instructed      by the Majority Banks, give notice to the Borrower declaring that the      obligations of the Banks hereunder shall terminate forthwith and the Loan      shall become immediately due and payable by the Borrower together with      accrued interest thereon as set out in Clause7. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | Notwithstanding      any notice under Clause 16.2, the Banks shall be entitled to exercise any      remedy conferred upon the Banks by this Loan Agreement and any of the      Security Documents upon the occurrence of an Event of    Default. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17 | CHANGES      IN CIRCUMSTANCE |
|----|------------------------------|

| 17.1 | In      the event that any of the Banks by reason of circumstances affecting the      market are unable at the relevant time to obtain deposits in USD in the      London Interbank Eurocurrency Market to fund the Commitment or the Loan      (as the case may be), the Agent shall forthwith notify the Borrower      thereof and until such notice is withdrawn the obligation of the Banks to      advance the Commitment or the Loan (as the case may be) shall be      suspended. The Banks shall then endeavour to fund the relevant part of the      Commitment or the Loan (as the case may be) with USD from such alternative      sources as may be available to them and in such case the rate of interest      payable on such amount by the Borrower shall be the aggregate of the      Margin and the rate as the Banks shall from time to time certify as being      the cost to them of the relevantfunds. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2 | If      any of the Banks are unable to fund the relevant USD amount from      alternative sources, or the Borrower does not accept the terms of such      alternative funding (which the Borrower shall be at liberty to do), the      Borrower shall repay to the Agent (for the account of the Banks) the Loan      or the affected part thereof together with accrued interest thereon on the      earlier of the date falling five (5) Banking Days after receipt of written      notice thereof and the next Interest Payment  Date. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3 | If,      at any time when any of the Banks are funding from alternative sources,      they find that USD deposits again are available to diem in the London      Eurocurrency Market they shall forthwith notify the Borrower via the Agent      and resume the ordinary terms of this Loan Agreement as soon as the      alternative source funding may be converted into ordinary funding      hereunder. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4 | In      the event that it shall become unlawful for any of the Banks or the Agent      to make the Commitment available or maintain or fund the Loan (as the case      may be) or any part thereof, then the Banks' obligations shall terminate      and all amounts owing by the Borrower to all the Banks hereunder shall      become due and payable on demand. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17.5 | In      the event that any law, regulation or official directive (having the force      of law) or change in the same shall subject any of the Banks to any Taxes      or impose any reserve, deposit or other requirement (including capital      adequacy) which results in an increase in the cost to any of the Banks of      making available the Commitment or maintaining or funding the Loan (as the      case may be) or results in a reduction in the amount of Principal or      interest receivable by any of the Banks by an amount which is deemed by      such Banks to be material, then such Banks shall promptly upon becoming      aware of the same notify the Borrower in writing via the Agent of the      amount required to compensate such Banks for such additional cost or      reduced receipt. Such amount which is relevant in the circumstances shall      be payable by the Borrower on the earlier of the date falling ten (10)      Banking Days after receipt of such written notice and the next following      Interest Payment Date. If the Borrower chooses to prepay the Loan, the      Borrower shall nevertheless compensate the Banks for such reasonable      additional cost or reduced receipt up to and including the date of      prepayment. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18 | FEES      AND COSTS |
|----|---------------------|

| 18.1 | The      Borrower shall pay to theAgent: |
|------|------------------------------------------|

|  | (a) | a      non-refundable arrangement fee in an amount equal to 0.25 % (zero point      twenty five per cent) of the Commitment due and payable to the Agent on      the Drawdown Date for further distribution to the Banks at the discretion      of the Agent; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | a      non-refundable commitment fee of 0.25% (zero point twenty five per cent)      per annum calculated on the basis of the difference between the Commitment      and the amount drawn under the Original Loan, payable from the signing of      the firm offer until the Commitment is fully drawn (or such earlier date      as the Commitment is cancelled orterminated); |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | a      non-refundable agency fee of NOK 25,000 per year, due and payable to the      Agent in advance for each year, first time on the Drawdown Date and      thereafter on each anniversary thereof until the earlier of the Final      Repayment Date or cancellation or termination of the  Loan; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | upon      demand, all legal expenses (including external legal assistance) and other      reasonable expenses incurred by the Agent and the Banks in connection with      the preparation, syndication, execution and (where appropriate) recording      of this Loan Agreement and the Security Documents and any other document      incidental hereto and in protecting or enforcing any rights of the Agent      and the Banks hereunder or otherwise in connection with the Loan and the      Finance Documents. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19 | CURRENCY      INDEMNITY |
|----|-------------------------|

| 19.1 | The      Borrower hereby agrees that no payment to the Agent or the Banks      hereunder pursuant to any      judgement or order of any court or otherwise shall operate to discharge      the obligations of the Borrower unless and until payment in full shall      have been received in the currency in which the Loan is outstanding. To      the extent that the amount of any such payment shall be made in a currency      other than the currency of the Loan and on actual conversion from such      currency shall fall short of the amount of the relevant obligation      expressed in the currency of the Loan, the Agent and the Banks shall have      a further and separate cause of action against the Borrower for the      recovery of such sum as shall after conversion into the currency of the      Loan be equal to the amount of the  shortfall. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 20 | TRANSFER      AND PARTICIPATION |
|----|---------------------------------|

| 20.1 | This      Loan Agreement shall be binding upon and inure to the benefit of the      Banks, the Agent, the Borrower and the Guarantor and their respective      successors and permittedassigns. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | The      Borrower or the Guarantor may not assign or transfer any of the rights or      obligations under this Loan Agreement without the prior written consent of      the Banks. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | The      Banks may transfer the Commitment and the Loan in whole or in part to      other banks or financial institutions. The Borrower and the Guarantor      agree to sign all documents which in the reasonable opinion of the Agent      or the Banks are necessary or desirable to effectuate such transfer,      including but not limited to relevant supplements or renewals for the      Security Documents. The transferring Bank shall cover costs related to      initial transfers to affiliated banks. Reasonable costs related to      subsequent transfers to other banks or financial institutions shall be      covered by the Borrower only in the event such transfer is motivated by      reasons (such as new regulations) outside the control of the transferring      Bank. The Agent shall in any event continue to act as    Agent. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3 | In      the event the Banks transfer any part of the Commitment and/or the Loan      according to Clause 21.2, references herein to the Banks shall, as the      context shall permit, be understood to mean the Banks and/or their      transferees. The obligations and liabilities of each Bank in relation to      the Commitment and in relation to renewals of and otherwise with respect      to the Loan, shall be several in proportion to their respective      participation in the Commitment and the Loan unless otherwise specified      herein. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21 | GUARANTEE      AND INDEMNITY |
|----|------------------------------|

| 21.1 | The      Guarantor irrevocably andunconditionally: |
|------|----------------------------------------------------|

|  | (a) | guarantees      to the Agent and each Bank, as and for its own debt and not merely as      surety (Norwegian:"      selvskyldnerkausjonist"), the punctual performance by the Borrower      of all of the Borrower's obligations under the Finance      Documents; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | undertakes      with the Agent and each Bank that whenever the Borrower does not pay any      amount when due under or in connection with any of Finance Documents, the      Guarantor shall immediately on demand by the Agent pay that amount as if      it were the principal obligor;and |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (c) | indemnifies      the Agent and each Bank immediately on demand against any cost, loss or      liability suffered by that party if any obligation guaranteed by the      Guarantor is or becomes unenforceable, invalid or illegal. The amount of      the cost, loss or liability shall be equal to the amount which that party      would otherwise have been entitled torecover. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.2 | The      obligations of the Guarantor hereunder (the "Guarantee Obligations")      are continuing obligations and will extend to the ultimate balance      of sums payable by the Borrower under the Finance Documents, regardless of      any intermediate payment or discharge in whole or in  part. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3 | The      liability of the Guarantor hereunder shall be limited to USD 18,000,000,      plus any unpaid amount of interest, fees, liability and expenses under the      Finance Documents. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.4 | If      any payment by the Borrower or any discharge given by a Bank (whether in      respect of the obligations of the Borrower or any security for those      obligations or otherwise) is avoided or reduced as a result of insolvency      or any similar event: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | the      liability of the Guarantor shall continue as if the payment, discharge,      avoidance or reduction had not occurred;and |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | each      Bank shall be entitled to recover the value or amount of that security or      payment from the Guarantor, as if the payment, discharge, avoidance or      reduction had not occurred. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.5 | The      obligations of the Guarantor under this Clause 21 will not be affected by      an act, omission, matter or thing which, but for this Clause 21, would      reduce, release or prejudice any of its obligations under this Clause 21      (without limitation and whether or not known to it or any Bank)      including: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | any      time, waiver or consent granted to, or composition with, the Borrower or      other person; |
|--|-----|------------------------------------------------------------------------------------------------------|

|  | (b) | the      release of the Borrower or any other person under the terms of any      composition or arrangement with any creditor of the    Borrower; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | the      taking, variation, compromise, exchange, renewal or release of, or refusal      or neglect to perfect, take up or enforce, any rights against, or security      over assets of the Borrower or other person or any non-presentation or      non-observance of any formality or other requirement in respect of any      instrument or any failure to realise the full value of any      security; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | any      incapacity or lack of power, authority or legal personality of or      dissolution or change in the members or status of the Borrower or any      other person; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | any      amendment (however fundamental) or replacement of any of the Finance      Documents or any other document orsecurity; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------|

----

|  | (f) | any      unenforceability, illegality or invalidity of any obligation of any person      under any of the Finance Documents or any other document or security;      or |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | any      insolvency or similarproceedings. |
|--|-----|--------------------------------------------|

| 21.6 | Furthermore,      the Guarantor specifically waives all rights under the provisions of the      Norwegian Financial Agreements Act 1999 (as amended) not being mandatory      provisions, including (but not limited to) the following provisions (the      main contents of the relevant provisions being as indicated in the      brackets): |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | §      63 (1) - (2) (to be notified of any Event of Default hereunder and to be      kept informed thereof); |
|--|-----|-------------------------------------------------------------------------------------------------------------------|

|  | (b) | §      63 (3) (to be notified of any extension granted to the Borrower in payment      of principal and/orinterest); |
|--|-----|---------------------------------------------------------------------------------------------------------------------------|

|  | (c) | §      63 (4) (to be notified of the Borrower's bankruptcy proceedings or debt      reorganisation proceedings and/or any application for the      latter); |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | §      65 (3) (that the consent of the Guarantor is required for the Guarantor to      be bound by amendments to the Finance Documents that may be detrimental to      its interest); |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | §      67 (2) (about any reduction of the Guarantor's liabilities hereunder,      since no such reduction shall apply as long as any amount is outstanding      under the Finance Documents); |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | §      67 (4) (that the Guarantor's liabilities hereunder shall lapse after ten      (10) years, as the Guarantor shall remain liable hereunder as long as any      amount is outstanding under any of the Finance  Documents); |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | §      70 (as the Guarantor shall have no right of subrogation into the rights of      the Agent and/or theBanks under the Finance Documents until and unless the      Agent and the Banks shall have received all amounts due or to become due      to them under the FinanceDocuments); |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | §      71 (as the Agent or the Banks shall have no liability first to make demand      upon or seek to enforce remedies against the Borrower or any other      security provided in respect of the Borrower's liabilities under the      Transaciton Documents before demanding payment under or seeking to enforce      the Guarantee Obligations of the Guarantor  hereunder); |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | §      72 (as all interest and default interest due under any of the Finance      Documents shall be secured by the Guarantee Obligations of the Guarantor      hereunder); |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (j) | §      73 (l)-(2) (as all costs and expenses related to an Event of Default under      this Loan Agreement shall be secured by the Guarantee Obligations of the      Guarantor hereunder); and |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (k) | § 74 (1) -      (2) (as the Guarantor shall not make any claim against the Borrower for      payment until and unless the Agent and the Banks first shall have received      all amounts due or to become due to them under the Finance      Documents). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.7 | The      Guarantor waives any right it may have of first requiring any Bank (or the      Agent on its behalf) to proceed against or enforce any other rights or      security or claim payment from any person before claiming from the      Guarantor under this Clause 21. This waiver applies irrespective of any      law or any provision of any of the Finance Documents to the      contrary. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.8 | Until      all amounts which may be or become payable by the Borrower under or in      connection with the Finance Documents have been irrevocably paid in full,      each Bank (or the Agent on its behalf)may: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | refrain      from applying or enforcing any other moneys, security or rights held or      received by that Bank (or the Agent on its behalf) in respect of those      amounts, or apply and enforce the same in such manner and order as it sees      fit (whether against those amounts or otherwise) and the Guarantor shall      be entitled to the benefit of the same;and |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | hold      in an interest-bearing suspense account any moneys received from the      Guarantor or on account of the Guarantor's liability under this Clause      21. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.8 | Until      all amounts which may be or become payable by the Borrower under or in      connection with the Finance Documents have been irrevocably paid in full      and unless the Agent otherwise directs, the Guarantor shall not exercise      any rights which it may have by reason of performance by it of its      obligations under the FinanceDocuments: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | to      be indemnified by theBorrower; |
|--|-----|----------------------------------------|

|  | (b) | to      take the benefit (in whole or in part and whether by way of subrogation or      otherwise) of any rights of the Agent or the Banks under the Finance      Documents or security taken pursuantthereto. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.9 | This      guarantee is in addition to and is not in any way prejudiced by any other      guarantee or security now or subsequently held by the Agent or any      Bank. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22 | AGENCY |
|----|--------|

| 22.1 | Each      Bank irrevocably authorizes the Agent to take such action on such Bank's      behalf and to exercise such powers under this Loan Agreement as are      specifically delegated to the Agent by the terms hereof together with all      such other powers as are reasonably incidental thereto. The relationship      between the Agent and each Bank is that of agent and principal only, and      nothing herein shall be deemed to impose on the Agent any obligations      other than those for which express provision is made herein. In performing      its duties and functions hereunder, the Agent shall exercise the same care      as it normally exercises in making and handling loans for its own account.      The Agent assumes no responsibility and neither the Agent nor any of its      officers, directors, employees or agents shall be liable to the Banks or      any of them for any action taken or omitted to be taken hereunder or in      connection with the Finance Documents unless caused by its or its      employees' or its agents' gross negligence or willful      misconduct. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.2 | Except      as otherwise expressly provided herein, the Agent shall distribute      promptly to each of the Banks, in proportion to each Bank's participation      in the Loan, all sums      received by it on behalf of the Banks  hereunder. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 22.3 | If      any Bank at any time receives or recovers by set-off or otherwise any sum      which it is obliged (or being so entitled has elected) to apply towards      payment of any amount due to it hereunder (otherwise than amounts      specifically payable at that Bank under the terms of this Loan Agreement)      then such Bank shall be obliged to offer to each other Bank through the      Agent such payment by way of an adjustment in the amount as may be      necessary to ensure that at all times each Bank receives the same      proportion of principal, interest and commitment commission due to it      under this Loan Agreement as each other Bank, provided, however, that such      offer may be conditional upon each Bank who may accept such offer (the      "Accepting Bank") agreeing to indemnify the Bank making such offer (the      "Offering Bank") in terms reasonably acceptable to the Offering Bank      against any loss (other than the loss suffered by such payment by way of      adjustment) which the Offering Bank may subsequently suffer by reason of      having made such payment by way of adjustment to such Accepting      Bank. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.4 | The      Agent will promptly advise the Banks of each notice received by it from      the Borrower and/or the Guarantor hereunder unless the subject matter of      such notice calls for action or attention to the Agent only. The Agent      shall not be under any obligation to ascertain or inquire as to the      performance or observance by the Borrower of its obligations hereunder      other than (a) the Borrower's obligations to make payments on the due date      therefore, and (b) the monitoring of continued insurance of the Vessel in      accordance with this LoanAgreement. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.5 | Each      Bank shall, in proportion to such Bank's participation in the Commitment      and the Loan, reimburse the Agent on demand for all expenses incurred by      the Agent in connection with the negotiation, preparation and execution of      this Loan Agreement and the Security Documents and any amendments thereto,      the preservation or enforcement of any right of the Agent or the Banks      hereunder and thereunder or otherwise in connection with the Loan, and      shall indemnify and hold the Agent harmless against any loss or liability      which the Agent may suffer or incur by reason of an action taken or      omitted by it as the Agent hereunder except such as results from the      Agent's gross negligence or wilful misconduct, all to the extent that such      expenses are reimbursable under Clause 12.7 but shall not have been      recovered from or indemnified by theBorrower. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.6 | In      performing its duties and exercising its power hereunder the Agent will be      entitled to rely in good faith on (a) any document and communication      believed by it to be genuine and to have been signed or sent by the person      by whom it purports to have been signed or sent and (b) the opinions and      statements of professional advisers selected by it in connection herewith,      and shall not be liable to any other party for any consequence of any such      reliance. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.7 | The      Agent shall not be responsible to any Bank for the truth or accuracy of      any representation warranty, undertaking or covenant given or made herein      nor for the validity, effectiveness, adequacy or enforceability of this      Loan Agreement. The Agent shall not be required to make any enquiry as to      the performance or observance by the Borrower and/or theguarantor of any      of the terms, provisions or conditions of this Loan Agreement nor the      existence or possible existence of any Event of  Default. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 22.8 | Each      Bank shall be responsible for making its own independent investigation of      the financial condition and affairs of the Borrower and the Guarantor in      connection with the Commitment and continuance of the Loan and has made      its own appraisal of the creditworthiness of the Borrower and the      Guarantor. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23 | NOTICES      AND MISCELLANEOUS |
|----|--------------------------------|

| 23.1 | All      notices, requests, demands or other communications to or upon the      respective parties hereto shall be deemed to have been truly given or made      when delivered in writing or by facsimile, at their respective addresses      given below or at such other addresses as the parties may hereafter      specify to each other inwriting: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | The      Agent: |
|--|-----|-----------------|

|  | (ii) | The      Borrower: |
|--|------|--------------------|

|  | (iii) | The Guarantor:       DeepOcean      ASA |
|--|-------|----------------------------------------------|

----

| 23.2 | Communications      sent by letter or telefax shall be effective on receipt if received within      normal business hours on a Banking Day at the place of receipt and      otherwise at 09.00 hours on the next following Banking Day. Any      communication by telefax sent by the Borrower or the Guarantor to the      Agent or the Banks shall be confirmed by letter if so      requested. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | Any      notice given under or in connection with any Finance Document must be in      English. All other documents provided under or in connection with any      Finance Document must be: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | in      English; or |
|--|-----|---------------------|

|  | (b) | if      not in English, and if so required by the Agent, accompanied by a      certified English translation and, in this case, the English translation      will prevail unless the document is a constitutional, statutory or other      official document. The Agent may require an English translation only if      one or more of the Finance Parties is  non-Norwegian. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.4 | No      failure or delay on the part of the Banks or the Agent to exercise any      power, right or remedy under this Loan Agreement or any of the Security      Documents shall operate as a waiver thereof, nor shall any single or      partial exercise by the Banks or the Agent of any power, right or remedy      preclude any other or further exercise thereof or the exercise of any      other power, right or remedy. The remedies provided herein and in the      Security Documents are cumulative and are not exclusive of any remedies      provided by law. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24 | LAW      AND JURISDICTION |
|----|---------------------------|

| 24.1  | This      Loan Agreement shall be governed by and interpreted under the laws of      Norway. |
|------------|----------------------------------------------------------------------------------------------|

| 24.2 | Any      action or proceeding against the Borrower and/or the Guarantor under this      Loan Agreement may be brought and enforced in the courts in the City of      Oslo and in any other court having jurisdiction, whether concurrently or      not. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3 | The      choice of venue shall not prevent the Banks from enforcing any of the      Security Documents in other jurisdictions the Banks deem more appropriate,      specifically actions against the Vessel may be enforced where the Vessel      is located or registered, |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25 | SIGNATURES |
|----|------------|

----

|   | For      and on behalf of  |   | For      and on behalf of   |   |
|--------|----------------------------|--------|-----------------------------|--------|
|   | DEEPOCEAN      SHIPPING AS |   | NORDEA      BANK NORGE ASA  |   |
|   | (as      Borrower)         |   | (as      Agent)             |   |
|   |                       |   |                        |   |
|   | ILLEGIBLE                  |   | ILLEGIBLE                   |   |
|   | Signature                  |   | Signature                   |   |
|   |                       |   |                        |   |
|   |                       |   |                        |   |
|   |                       |   |                        |   |
|   | For      and on behalf of  |   | For      and on behalf of   |   |
|   | DEEPOCEAN      ASA         |   | NORDEA      BANK NORGE ASA. |   |
|   | (as      Guarantor)        |   | (as      Bank)              |   |
|   |                       |   |                        |   |
|   | ILLEGIBLE                  |   | ILLEGIBLE                   |   |
|   | Signature                  |   | Signature                   |   |
|   |                       |   |                        |   |
|   |                       |   |                        |   |

----

| Banks                      | Commitment          |
|----------------------------|---------------------|
|                       |                |
| Nordea      Bank Norge ASA | USD      18,000,000 |
|                       |                |
| Total                      | USD      18,000,000 |

----

| 1. | Documents      in respect of the Borrower: |
|----|--------------------------------------------|

|  | (a) | the      Articles of Association (Norwegian:      "Vedtekter"); |
|--|-----|-----------------------------------------------------------------|

|  | (b) | a      Certificate of Registration (Norwegian:      "Firmaattest"); |
|--|-----|---------------------------------------------------------------------|

|  | (c) | a      resolution of the board of directors authorising the execution of the      Finance Documents to which it is aparty; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------|

|  | (d) | a      power of attorney to its representatives for the execution and      registration of the Finance Documents to which it is a    party; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | all      approvals, authorisations and consents required by any government or other      authorities in order for the Borrower to enter into and perform its      obligations under this Loan Agreement and/or any of the Finance Documents      to which it is a party; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | a      budget, to be delivered to the Agent evidencing the projected operating      expenses of the Vessel on an annualbasis; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | Confirmation      of acceptance by the Borrower to the Agent's letter setting out the      effective annual interest;and |
|--|-----|--------------------------------------------------------------------------------------------------------------------------|

|  | (h) | Evidence      that the fees, costs and expenses then due from the Borrower pursuant to      Clause 18 (Fees and Costs) have been paid or will be paid on the Drawdown      Date. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Documents      in respect of the Guarantor: |
|----|---------------------------------------------|

|  | (a) | the      Articles of Association (Norwegian:      "Vedtekter"); |
|--|-----|-----------------------------------------------------------------|

|  | (b) | a      Certificate of Registration (Norwegian:      "Firmaattest"); |
|--|-----|---------------------------------------------------------------------|

|  | (c) | a      resolution of the Board of Directors authorising the execution of this      Loan Agreement; and |
|--|-----|--------------------------------------------------------------------------------------------------------|

|  | (d) | most      recent (dated 31 December 2006 or later) audited financial statements      . |
|--|-----|----------------------------------------------------------------------------------------|

| 3. | Documents      in respect of the Vessel: |
|----|------------------------------------------|

|  | (a) | evidence      that the Vessel is registered in the name of the Borrower in the Isle of      Man ship registry and that the Mortgage is executed and recorded with its      intended first priority over the Vessel and that no other encumbrances      (except for a second priority mortgage over the Vessel in favour of the      Swap Provider) are registered against the  Vessel; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | an      updated class certificates in respect of the Vessel from the relevant      classification society, confirming that the Vessel is in class with no      overdue conditions orrecommendations; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | copies      of insurance policies/cover notes documenting that insurance cover has      been taken out in respect of the Vessel in accordance with Clause 15.4 k)      (Insurances), and evidence that the Agent's (on behalf of the Banks)      security interests in the insurance policies have been noted in accordance      with relevant notices and acknowledgements as required under the      Assignment of Insurances; and |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | copies      of the document of compliance with applicable Safety Regulations and any      certificates issued with respect to the Vessel as required by the relevant      authorities at such time. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The      Finance Documents and relateddocuments: |
|----|--------------------------------------------------|

|  | (a) | this      Loan Agreement executed by the Borrower in three (3)      originals; |
|--|-----|--------------------------------------------------------------------------------|

|  | (b) | a      copy of the ISDA Agreement and the second priority mortgage over the      Vessel in favour of the SwapProvider; |
|--|-----|------------------------------------------------------------------------------------------------------------------------|

|  | (c) | the      Drawdown Notice; |
|--|-----|---------------------------|

|  | (d) | the      Certificate of Compliance; |
|--|-----|-------------------------------------|

|  | (e) | the      Assignment of Insurances; |
|--|-----|------------------------------------|

|  | (f) | the      Assignment of Earnings; |
|--|-----|----------------------------------|

|  | (g) | the      Mortgage; |
|--|-----|--------------------|

|  | (h) | the      Deed of Covenants; and |
|--|-----|---------------------------------|

|  | (i) | the      notices of assignment to and acknowledgement and consent from the relevant      parties as required in the Assignment of Insurances and the Assignment of      Earnings. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Legal      opinions |
|----|---------------------|

| 6. | Other      documents; |
|----|-----------------------|

----

----

----

----

| Covenant                    | Status      at the date hereof | Minimum      requirement                                                                                                                                                              |
|-----------------------------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Working      Capital        |                           | The      ratio of Current Assets to Current Liabilities to be greater than      1.1:1.0.                                                                                              |
| Minimum      Leverage Ratio |                           | The      ratio of consolidated Net Interest Bearing Debt to EBITDA (including any      lease obligations) on a trailing four quarter basis shall at no time be      greater than 4:1. |
| Minimum      Book Equity    |                           | The      Book Equity shall at all times be no less than 35% of the aggregate of (i)      the Total Book Assets and (ii) the Total  Liabilities                                        |

----

----

----

----

| (1) | Nordea Bank Norge ASA,      PO Box 1166, Sentrum, 0107 Oslo, Norway, acting as agent for a      syndicate of banks and as bank under the Loan Agreement (as defined below)      (the "Agent");      and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | DeepOcean Shipping AS, a      Norwegian limited liability company with company registration number 979      45 107 with registered address at Stoltenberggaten 1, 5527 Haugesund,      Norway (the "Borrower"). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A) | By      a long term credit facility (the "Loan Facility") in the      maximum amount of USD 18,000,000 (eighteen million) on the terms and      conditions set out in a loan agreement dated 19 November 2007 (the "Loan Agreement", which      expression shall include a reference to any agreement and/or instrument      prolonging or refinancing, in part or in whole, the financial indebtedness      as set out therein), between certain banks (the "Banks") (as lenders)      and the Borrower, the Banks have, according to their several obligations,      made the Loan Facility available to the Borrower with the purpose of      refinancing the existing indebtedness in respect of the MV Atlantic      Challenger, a 1990 built /1999 rebuilt offshore construction vessel of      3,372 dwt (the "Vessel")      owned by the Borrower; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | Any      amount outstanding under the Loan Agreement from time to time shall be      secured by (i) the Assignment of Earnings (including the Factoring      Agreement) and the Assignment of Insurances, as set out in thisAssignment      Agreement, (ii) a first ranking mortgage over the Vessel and (iii) an      on-demand guarantee from DeepOcean ASA, as set forth in the Loan      Agreement.; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | It      is a condition precedent for the utilisation of the Loan Facility that the      Borrower enter into this Assignment Agreement and grants, in favour of the      Agent (on behalf of the Banks) the collateral security set out      herein. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | DEFINITIONS |
|---|-------------|

| 1.1 | In      this Assignment Agreement including the preamble hereto (unless the      context otherwise requires) any term or expression defined in the preamble      shall have the meaning      ascribed to it therein. In addition, terms and expressions not defined      herein but which are defined in the Loan Agreement shall have the meaning      ascribed to them in the LoanAgreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2 | ASSIGNMENT |
|---|------------|

| 2.1 | To      secure the payment and the discharge of the Borrower's obligations under      the Loan Agreement and the payment of all sums which from time to time may      become due thereunder, and to secure the performance and observance of and      compliance with all the covenants, terms and conditions contained in the      Loan Agreement, the Borrower hereby assigns to the Agent (on behalf of the      Banks) on first priority: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | all      (i) freight and hire including, but not limited to all payments in respect      of the Vessel to be made to the Borrower as a consequence of the operation      of the Vessel under any charter party and any other contract of employment      related to the Vessel; (ii) compensation payable to the Borrower in the      event of any requisition of the Vessel; (iii) remuneration for salvage and      other services performed by the Vessel payable to the Borrower; (iv)      demurrage and retention money receivable by the Borrower in relation to      any Vessel; (v) damage for breach (or payments for variation or      termination) of any contract of employment of the Vessel; and (vi) other      monies whatsoever due or to become due to the Borrower from any third      parties in respect of the Vessel or otherwise (the aforesaid hereinafter      collectively referred to as the "Earnings");      and |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | all      amounts due or to become due from any insurers as payment of losses or as      return of premium or otherwise, under any insurances policies taken out      for the Vessel and all other sums whatsoever due or to become due in      respect of the Vessel or the insurance thereof (collectively the "Insurances"). |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The      Borrower undertakes promptly to give notice of the assignment of the      Earnings and Insurances to any charterer and the insurers and any other      third party from which any of the Earnings or amounts may become payable      in the form set out in Schedules 1 and      2 hereto,      respectively, or such other form as deemed sufficient by the Agent, and      procure that any recipient of such notice acknowledges receipt of the      notice as set outtherein. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | PERFECTION |
|---|------------|

| 3.1 | The      Borrower agrees that at any time and from time to time upon the written      request of the Agent, it will promptly and duly execute and deliver to the      Agent any and all such further instruments and documents as the Agent on      behalf of the Banks may reasonably deem necessary or desirable to register      this Assignment Agreement in any applicable registry, and to maintain      and/or perfect the security created by this Assignment Agreement and the      rights and powers herein granted. This shall include the Factoring      Agreement in the amount of NOK 190,000,000 currently registered against      the Borrower in the Norwegian Register of Moveable Property (Losoreregisteret). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4 | ASSIGNMENT      OF THIS AGREEMENT |
|---|-----------------------------------|

| 4.1 | The      Banks may assign or transfer their rights hereunder to any person to whom      the rights and obligations of the Banks under the Loan Agreement are      wholly or partially assigned in accordance with Clause 20 ("Transfer and Participations")      of the Loan Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | NO      FURTHER ASSIGNMENT OR PLEDGE |
|---|--------------------------------------|

| 5.1 | The      Borrower shall not, unless prior written consent has been obtained from      the Agent or otherwise permitted under the Loan Agreement, be entitled to      further assign or pledge the Earnings and/or the    Insurances. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | ADDITIONAL      AND CONTINUING SECURITY |
|---|-----------------------------------------|

| 6.1 | The      security contemplated by this Assignment Agreement shall be in addition to      any other security granted in accordance with the Loan Agreement, and      shall be a continuing security in full force and effect as long as any      obligations are outstanding under the Loan  Agreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | CONFLICT      WITH THE LOAN AGREEMENT |
|---|---------------------------------------|

| 7.1 | As      between the Borrower and the Agent, in the event of any conflict or      inconsistency between the terms of the Loan Agreement and this Assignment      Agreement, the terms of the Loan Agreement will  prevail. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | NOTICES |
|---|---------|

| 8.1 | Every      notice or demand under this Assignment Agreement shall be in writing, but      may be given or made by fax which shall be sent to each Party at their      respective addresses: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | The      Agent |
|--|-----|----------------|

----

| 9 | MISCELLANEOUS |
|---|---------------|

| 9.1 | The      Parties hereby confirm that they have received a copy of the Loan      Agreement. |
|-----|--------------------------------------------------------------------------------------------|

| 10 | GOVERNING      LAW AND JURISDICTION |
|----|-------------------------------------|

| 10.1 | This      Assignment Agreement shall be governed by and construed in accordance with      Norwegian law. The undersigned hereby unconditionally and irrevocably      submits to the non-exclusive jurisdiction of the Norwegian courts, the      venue to be Oslo City Court. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      and on behalf of            |   | For      and on behalf of            |   |
|--------|--------------------------------------|--------|--------------------------------------|--------|
|   | Nordea Bank Norge ASA.               |   | DeepOcean      Shipping AS           |   |
|   | (as      Agent)                      |   | (as Borrower)                        |   |
|   |                                 |   |                                 |   |
|   |                                 |   |                                 |   |
|   | Signature                            |   | Signature                            |   |
|   |                                 |   |                                 |   |
|   |                                 |   |                                 |   |
|   | Name      and title in block letters |   | Name      and title in block letters |   |

----

| 1. | Notice of      Assignment |
|----|---------------------------|

| 2. | Loss Payable      Clause |
|----|--------------------------|

|  | (A) | Any      and every sum receivable in respect of a Total Loss and any and every sum      receivable in respect of a casualty, shall be paid directly and in full to      the Agent; and |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (B) | All      other sums receivable in respect of the insurances hereunder shall be paid      to the Assignors unless and until you have received written notice from      the Agent that all sums receivable in respect of the insurances hereunder      shall be paid directly to the Agent or its  order. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | To      the P&I insurers: |
|--------|-------------------------------|

| 3. | Notice      of Cancellation |
|----|-----------------------------|

|  | (A) | if      the insurers cancel or give notice of cancellation of the policy whereon      this notice is endorsed at least 14 days (7 days in case of war risk)      before such cancellation is to takeeffect; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (B) | of      any alteration in or termination or expiry of the policy at least 14 days      before any such alteration, termination or expiry is to take      effect; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (C) | of      any default in the payment of any premium or failure to renew the      insurances constituted by the policy at least 14 days prior to the date of      renewal thereof; and |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (D) | of      any act or omission or of any other event of which the insurers have      knowledge and which might invalidate or render unenforceable in whole or      in part the insurances constituted by the  policy. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |
|-------------------------------------|
| Signature                           |
|                                |
|                                |
| Name      and title in blockletters |

----

| For      and on behalf of     |
|-------------------------------|
| [Name      of Insurer]        |
|                          |
|                          |
| Signature                     |
|                          |
|                          |
| Name      with capitalfetters |

----

| (i) | by      a general assignment dated 19 November 2007 (the "Assignment") made      between ourselves and Nordea Bank Norge ASA (on behalf of certain other      banks) (the "Agent"),      we have assigned absolutely and have agreed to assign absolutely to      and in favour of the Agent all our rights, title and interest, present and      future to all moneys due and payable by yourselves to ourselves under the      Charter Party; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | by      the Assignment Agreement, the Agent (or its nominee) is entitled to (but      without obligation to do so), if an Event of Default shall occur (as more      particularly described therein) and if it shall decide, by written notice      to you and ourselves, to enter into and fulfil the obligations of the      undersigned as party to the Charter Party as if it were a party thereto      from the date hereof; |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | you      are hereby irrevocably authorised and instructed to continue the      performance of your obligations under the Charter Party towards us and      receive instructions from us, until such time as the Agent shall direct to      the contrary whereupon all instructions or demands for actions shall be      made by the Agent and payments are due to the Agent or as it may direct;      and |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | that      the Assignment by reference to a credit facility agreement dated 19      November 2007 includes provisions that no amendments shall be made to the      Charter Party (nor shall you be released from your obligations thereunder)      without the previous written consent of the Agent and that we shall remain      liable to perform all our obligations under the Charter Party and the      Agent shall be under no obligations of any kind whatsoever in respect      thereof. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |
|-------------------------------------|
| Signature                           |
|                                |
|                                |
| Name      and title in blockletters |

----

| Place      and date: [*]      |
|-------------------------------|
|                          |
| For      and on behalf of     |
| [Name      of charterer]      |
|                          |
|                          |
| Signature                     |
|                          |
|                          |
| Name      with capitalletters |

----

----

| IMO      number                                                             | Official      number | AtName      of ship     | Port      of registry |
|-----------------------------------------------------------------------------|----------------------|-------------------------|-----------------------|
| 8607311                                                                     | 739295               | Atlantic      Challenge | Douglas               |
|                                                                        |                 |                    |        M         | cm | Sailing,      steam or motor      ship | Horse      power of engines (if      any) |
| Length                                                                      |                 |                    | 108                   | 12 | MOTOR | 5296      kW |
| Main      breadth                                                           |                 |                    | 19                    | 00 |   |   |
| Depth                                                                       |                 |                    | 12                    | 22 | Gross      tonnage 7,320      tons | Register      tonnage 2,197 |
|                                                                        |                 |                    |                  |   | (for      dual tonnages stated3      the higher) |
| and      as desc described      in moredetail      in theRegister      Book |

| Executed as a Deed on | 2007 |
|-------------------------------------------|------|

| dated | 2007 |
|-------|------|

| Notes | 1. | The      prompt registration of a mortgage deed at the ship's port of registry is      essential to the security of the mortgage as a mortgage takes its priority      from the date of production for registry, not (ram the date of the      instrument. |
|-------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Registered      owners or mortgagees must inform the Registrar of British Ships of any      changes of address. |
|--|----|-----------------------------------------------------------------------------------------------------------------|

----

----

| DATED                                                   | 2007 |
|---------------------------------------------------------|------|
|                                                    |
| DEEP      OCEAN SHIPPING AS(as      the Owner)          |
|                                                    |
|                                                    |
| and                                                     |
|                                                    |
|                                                    |
| NORDEA      BANK NORGE ASA(as      the Mortgagee)       |
|                                                    |
|                                                    |
| DEED      OF COVENANTS(m.v.      "Atlantic Challenger") |
|                                                    |

----

| Contents |
|----------|
|     |   |   |
|     |  1. | Definitions      and Interpretation |
|     |  2. | Payment      by Owner |
|     |  3. | Mortgage      and Charge |
|     |  4. | Covenants      for Title |
|     |  5. | Insurances      and Requisition Compensation |
|     |  6. | Earnings |
|     |  7. | Owner's      Obligations to Maintain the Vessel Etc |
|     |  8. | Owner's      Obligations to Maintain Registration Etc |
|     |  9. | Representations      and Warranties |
|     |  10. | Exclusion      of Liabilities |
|     |  11. | Default      and Enforcement |
|     |  12. | Receivers |
|     |  13. | Protection      of Third Parties |
|     |  14. | Protection      of Security |
|     |  15. | New      Accounts |
|     |  16. | Application      of Moneys |
|     |  17. | Power      of Attorney |
|     |  18. | Delegation |
|     |  19. | Indemnities |
|     |  20. | Currency      Clauses |
|     |  21. | Miscellaneous |
|     |  22. | Assignment |
|     |  23. | Notices |
|     |  24. | Governing      Law |
|     |  25. | Jurisdiction |

----

| Dated |   2007 |
|-------|------------------|

| 1. | DEEP OCEAN SHIPPING AS a      company incorporated in Norway whose registered office is at      Stoltenberggaten 1, 5527 Haugesund, Norway (the Owner);    and |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | NORDEA BANK NORGE ASA, a      company incorporated in Norway of PO Box 1166 Sentrum, 0107 Oslo, Norway      (the Mortgagee). |
|----|------------------------------------------------------------------------------------------------------------------------------|

| A | The      Owner is the sole, absolute and unencumbered beneficial and registered      owner of sixty four sixty-fourth shares in the Vessel (as defined      below). |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B | Pursuant      to a loan agreement dated 20 December 2004 (as amended) the Ownerhas taken      up a term loan facility in the original amount of US$12,329,212.39 and a      revolving credit facility in the original amount of US$3,600,000 (the      Original Loan) for      the purposes of refinancing the acquisition and refurbishment of the      Vessel (as defined below). |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C | Pursuant      to a Loan Agreement      dated                   2007      (the Loan      Agreement)between (i) the Owner as borrower, (ii) Deep Ocean ASA as      guarantor, (iii) the financial institutions listed in schedule 1 thereto      as banks (the Banks)      and (iv) Nordea Bank Norge ASA as agent (the Agent) the Banks agreed      to make a US$18,000,000 loan facility available to the Owner to refinance      the Original Loan. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D | It      is a condition precedent to the availability of the facility under the      Loan Agreementthat the Owner executes, delivers and registers the Mortgage      (as defined below) relating to the Vessel in favour of the Mortgagee and      enters into this Deed as security for the Secured Liabilities (as defined      below). |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E | The      Owner has executed the Mortgage relating to the Vessel in favour of the      Mortgagee. |
|---|--------------------------------------------------------------------------------------------------|

| F | This      Deed is collateral to the Mortgage and is the Deed of Covenants referred      to in the Mortgage but shall nevertheless continue in full force and      effect notwithstanding any discharge of the  Mortgage. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G | The      Owner and the Mortgagee intend this Deed to take effect as a      deed. |
|---|----------------------------------------------------------------------------------|

| 1. | DEFINITIONS      AND INTERPRETATION |
|----|-------------------------------------|

| 1.1 | Definitions |
|-----|-------------|

|   | Business      Day | means      any day (other than a Saturday or Sunday or public or bank holiday) on      which dealings in deposits of US dollars are carried on in      the London Interbank Eurocurrency Market and on which banks in the Isle of      Man, Oslo and London are open for  business; |
|--------|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Classification      Society | has      the meaning given in Clause 7.1;                                                                                                                                                                                                                                                                                                    |
|--------|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                        |                                                                                                                                                                                                                                                                                                                                         |
|   | Deed                        | means      this deed as amended, restated, novated, varied or supplemented from time      to time;                                                                                                                                                                                                                                           |
|   |                        |                                                                                                                                                                                                                                                                                                                                         |
|   | Earnings                    | has      the meaning given to it in the Loan Agreement.                                                                                                                                                                                                                                                                                      |
|   |                        |                                                                                                                                                                                                                                                                                                                                         |
|   | Environmental      Claim    | means      any claim by any government, judicial or regulatory authority that arises      out of an Environmental Incident or an alleged Environmental Incident or      which relates to any Environmental Law or any claim by any other person      that relates to an Environmental Incident or to an alleged Environmental      Incident; |
|   |                        |                                                                                                                                                                                                                                                                                                                                         |
|   | Environmental      Incident | means      in relation to the Vessel:                                                                                                                                                                                                                                                                                                        |
|   |                        |                                                                                                                                                                                                                                                                                                                                         |
|   |                        | (a)                                                                                                                                                                                                                                                                                                                                          | any      release of Environmentally Sensitive Material from the Vessel;      or |
|   |                        |                                                                                                                                                                                                                                                                                                                                         |
|   |                        | (b)                                                                                                                                                                                                                                                                                                                                          | any      incident in which Environmentally Sensitive Material is released from a      vessel other than the Vessel which involves a collision between the Vessel      and such other vessel or some other incident of navigation or operation,      in either case, in connection with which the Vessel is actually or      potentially liable to be arrested, attached, detained or injuncted and/or      the Vessel and/or the Owner and/or any operator or manager of the Vessel      is at fault or allegedly at fault or otherwise liable to any legal or      administrative action; or |
|   |                        |                                                                                                                                                                                                                                                                                                                                         |
|   |                        | (c)                                                                                                                                                                                                                                                                                                                                          |  any      incident in which Environmentally Sensitive Material is released otherwise      than from the Vessel and in connection with which the Vessel is actually      or potentially liable to be arrested and/or where the Owner and/or any      other operator or manager of the Vessel is at fault or allegedly at      fault; |
|   |                        |                                                                                                                                                                                                                                                                                                                                         |
|   | Environmental      Law      | means      any law concerning or relating to pollution or protection of the      environment, the carriage or storage of Environmentally Sensitive      Material, or actual or threatened releases of Environmentally Sensitive      Material;                                                                                               |

----

|   | Environmentally      Sensitive Material | means      any radioactive emissions and any natural or artificial substance, whether      in solid or liquid form or in the form of a gas or vapour and whether      alone or in combination with any other substance, capable of causing harm      to man or any other living organism or damaging the environment or public      health or welfare including but not limited to any controlled, special,      hazardous, toxic, radioactive or dangerous waste;                                                                                                                                                                                                                                    |
|--------|-----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Event      of Default                   | has      the meaning given to it in the Loan Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Finance      Document                   | has      the meaning given to it in the Loan Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | insurances                              | means      the insurances placed by the Owner pursuant to Ciause 5 (but not any      insurance placed by the Mortgagee under Clause  5.3);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Insurers                                | means      the underwriters, insurance companies and mutual insurance associations      with whom the Insurances are placed;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 1SDA      Agreement                     | has      the meaning given to it in the Loan Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Mortgage                                | means      the first priority Isle of Man statutory ship mortgage relating to the      Vessel dated the same date as this Deed;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Receiver                                | means      a receiver and manager or a receiver (whether appointed pursuant to this      Deed, pursuant to any statute, by a court or otherwise) of the Vessel or      any part of it;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Requisition      Compensation           | means      compensation payable because of requisition for title or other compulsory      acquisition of the Vessel by any government;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Second      Priority Security           | means      any second priority mortgage and/or collateral deed of covenants in      relation to the Vessel entered into by the Owner in favour of the Swap      Provider pursuant to the ISDA Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Secured      Liabilities                | means      all present and future obligations and liabilities of the Owner to the      Mortgagee and/or the Banks under or in relation to this Deed, the Loan      Agreement, the Mortgage, the Security Documents or any other Finance      Document, whether actual or contingent, whether owed jointly      or severally and whether owed as principal or surety or in any other      capacity, together with all costs, charges and expenses incurred by the      Mortgagee and/or the Banks in connection with the protection, preservation      or enforcement of its rights under this Deed, the Loan Agreement, the      Mortgage, the Security Documents or any other Finance      Document; |

----

|   | Security      Documents | has      the meaning given to it in the Loan Agreement;                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Security      Period    | means      the period beginning on the date of this Deed and ending on the date on      which the Mortgagee is satisfied that all of the Secured Liabilities have      been unconditionally and irrevocably paid and discharged in      full;                                                                                                                                                                                                                       |
|   |                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Swap      Provider      | has      the meaning given to it in the Loan Agreement;                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Total      Loss         | has      the meaning given to it in the Loan Agreement;                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Vessel                  | means      the vessel m.v. Atlantic Challenger registered in the name of the Owner      under the laws and flag of the Isle of Man under Official Number 739295      and with IMO Number 8607311 and includes any share or interest therein and      her engines, machinery, boats, tackle, outfit, spare gear, fuel,      consumable or other stores, belongings and appurtenances whether on board      or ashore and whether now owned or hereafter    acquired. |

| 1.2 | Interpretation |
|-----|----------------|

|  | (a) | In      this Deed capitalised terms defined in the Loan Agreement have, unless      expressly defined in this Deed, the same meaning in this    Deed. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | In      this Deed, unless the contrary intention appears, a reference      to: |
|--|-----|--------------------------------------------------------------------------------|

|  | (i) | an      amendment includes      a supplement, restatement, amendment, novation or re-enactment and amended is to be      construed accordingly; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (aa) | if      the numerically corresponding day is not a Business Day, the period will      end on the next Business Day in that month (if there is one) or the      preceding Business Day (if there isnot); |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (bb) | if      there is no numerically corresponding day in that month, that period will      end on the last Business Day in that month;and |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------|

|  | (cc) | notwithstanding      sub-paragraph (aa) above, a period which commences on the last Business      Day of a month will end on the last Business Day in the next month or the      calendar month in which it is to end, as  appropriate; |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | any      statute or statutory provision or any provision of law includes a      reference to that statute or statutory provision or provision of law as      from time to time amended, extended, replaced, re-enacted or consolidated      and all subordinate legislation made pursuant to  it; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | a      clause or a Schedule is a reference to a clause of or a Schedule to this      Deed; |
|--|-------|--------------------------------------------------------------------------------------------|

|  | (iv) | a      person includes its permitted successors and assigns under this      Deed; |
|--|------|-----------------------------------------------------------------------------------|

|  | (v) | any      Finance Document or a document is a reference to that Finance Document or      document as it may have been amended, varied, restated, novated or      supplemented from time totime; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | a      time of day is a reference to London time unless otherwise      stated; |
|--|------|--------------------------------------------------------------------------------|

|  | (vii) | an      obligation of the Owner to do something shall include an obligation to      procure that it is done and an obligation not to do something shall      include an obligation not to permit, suffer or allow  it; |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (viii) | words      denoting the singular include the plural and vice versa and words denoting      any gender include allgenders; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------|

|  | (ix) | "includes",      "including" and "in particular" shall not limit general words and      expressions in connection with which they are used;  and |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (x) | winding-up,      liquidation, dissolution or bankruptcy includes any equivalent or      analogous proceedings under the laws of any jurisdiction other than the      Isle of Man and any reference to an administrator, receiver,      administrative receiver, trustee or manager includes the equivalent      official in suchjurisdiction. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | In      this Deed all obligations, covenants, undertakings, representations and      warranties on the part of two or more persons are entered into, given or      made by such persons jointly andseverally. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The      index to and the headings in this Deed are for convenience only and shall      not affect the construction or interpretation of this  Deed. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | if      the Mortgagee considers that an amount paid to it is capable of being      avoided or otherwise set aside on the liquidation, winding up,      administration, dissolution or bankruptcy of the person that paid that      amount or otherwise, then that amount shall not be considered to have been      irrevocably paid for the purposes of thisDeed. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | PAYMENT      BY OWNER |
|----|-----------------------|

| 2.1 | Covenant      to pay Secured Liabilities |
|-----|------------------------------------------|

| 2.2 | No      Withholding or Set-Off |
|-----|--------------------------------|

| 2.3 | Default      Interest |
|-----|-----------------------|

----

| 2.4 | Certificate |
|-----|-------------|

| 3. | MORTGAGE      AND CHARGE |
|----|--------------------------|

| 3.1 | Mortgage |
|-----|----------|

| 3.2 | Continuing      Security |
|-----|--------------------------|

| (a) | The      security created by the Mortgage and this Deed shall be held by the      Mortgagee as a continuing security for the payment and discharge of the      Secured Liabilities and shall not be released or discharged by any      intermediate payment or satisfaction of part of the Secured      Liabilities. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The      Mortgage and this Deed shall remain in full force and effect until the      Secured Liabilities shall have been unconditionally and irrevocably paid      in full to the Mortgagee (which expression shall not include a payment of      a dividend in a liquidation, winding up or bankruptcy of less than 100%).      When the Secured Liabilities have been unconditionally and irrevocably      paid in full the Mortgagee shall at the cost of the Owner discharge the      Mortgage and this Deed. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Additional      Security |
|-----|--------------------------|

|   | This      Deed is in addition to and independent of, and shall not prejudice or      merge with any other security (or any right of set-off) which the      Mortgagee may hold at any time for the Secured Liabilities or any part of      the Secured Liabilities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | COVENANTS      FOR TITLE |
|----|--------------------------|

|   | The      Owner covenants for the benefit of the Mortgagee  that: |
|--------|------------------------------------------------------------------|

| (a) | it      is the sole absolute legal and beneficial owner of the Vessel and has the      right to mortgage and charge the Vessel pursuant to the terms of this Deed      and the Mortgage; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | it      is mortgaging and charging the Vessel free from all other encumbrances      (save for any Second Priority Security) and free from all rights      exercisable by third parties;and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | it      will, at its own cost, do all that it reasonably can to give the Mortgagee      the security interest in the Vessel conferred by this Deed and/or the      Mortgage. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | INSURANCES      AND REQUISITIONCOMPENSATION |
|----|---------------------------------------------|

----

| 5.1 | Undertakings |
|-----|--------------|

| (a) | to      insure the Vessel in the joint names of the Owner and the Mortgagee in      United States Dollars in the full insurable value of the Vessel but for      not less than 125% of the Loan against fire, marine, war, third party and      other risks covered by hull and machinery policies on terms, through      insurance brokers and with insurers, approved in writing by the      Mortgagee; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | to      enter the Vessel in the name of the Owner in a protection and indemnity      association approved in writing by the Mortgagee for its full value and      tonnage for all third party liability risks, pollution risks and other      risks usually insured by such protection and indemnity      association; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | to      place such additional insurances (including insurance against oil      pollution and other environmental risks) as the Mortgagee may consider to      be necessary; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | to      pay on the due date all premiums (including additional premiums), calls,      contributions or other amounts payable in connection with the Insurances      and to produce evidence of the payment of such amounts when so requested      by the Mortgagee; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | to      provide such guarantees and indemnities as the protection and indemnity      and war risks associations in which the Vessel is entered may require at      any time; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | to      renew the Insurances not less than fourteen days before they expire and to      procure that the brokers and the insurers confirm in writing to the      Mortgagee that they have beenrenewed; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | to      procure that the brokers retain the original insurance policies, cover      notes, certificates of entry and other documents issued in relation to the      insurances to the order of the Mortgagee and give the Mortgagee copies of      all such documents; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | to      procure that the protection and indemnity and the war risks associations      in which the Vessel is entered give the Mortgagee a duplicate of the      certificates of entry orpolicies; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | to      procure that the brokers and the protection and indemnity and war risks      associations in which the Vessel is entered each provide the Mortgagee      with a letter of undertaking in such form as the Mortgagee may require in      which they agree (inter alia) to give fourteen days' prior written notice      to the Mortgagee if the Insurances are to be cancelled or not renewed and      to give the Mortgagee the right to pay any premiums or calls within a      reasonable time if the Owner has failed to pay them on the due      date; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | not      to do or omit to do anything nor allow anything to be done as a result of      which any Insurance may be cancelled oravoided; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

----

| (k) | not      to allow the Vessel to load any cargo or make any voyage which is not      covered under the Insurances unless the Owner has placed additional      insurance to cover the proposed voyage on terms approved in writing by the      Mortgagee; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (I) | not      to allow the Vessel to enter any zone which is declared a war zone by any      government or by the Vessel's war risks Insurers unless the Owner shall      have informed the war risks insurers of the proposed voyage and paid any      applicable additional premium in accordance with the terms of the war      risks policy; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | to      procure that all amounts payable under the Insurances are paid in      accordance with any relevant loss payable clause and to apply all amounts      that are paid to the Owner to the repair of the damage to the Vessel and      the settlement of any liability or loss in respect of which the amount      shall have been received. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Failure      to insure |
|-----|------------------------|

| 5.3 | Mortgagee's      Interest Insurance |
|-----|-------------------------------------|

| 5.4 | Requisition      Compensation |
|-----|-------------------------------|

| 6.  | EARNINGS |
|----------|----------|

| (a) | to      inform the Mortgagee of the use and operation of the Vessel and, when so      requested by the Mortgagee, to give the Mortgagee copies of all charters      and other documents relating to the use and operation of the      Vessel; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | to      duly perform all obligations undertaken by the Owner in all charters,      bills of lading or other contracts entered into by the Owner for the use      of the Vessel and the carriage of cargo;and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | to      take all necessary steps to enforce the performance by charterers and      shippers of all charterparties and other contracts of employment and all      bills of lading and other contracts relating to the  Vessel. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7. | OWNER'S      OBLIGATIONS TO MAINTAIN THE VESSELETC |
|----|----------------------------------------------------|

| 7.1  | Owner's      Undertakings |
|-----------|---------------------------|

| (a) | to      keep the Vessel seaworthy and in good order and condition in accordance      with best ship managementpractice; |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (b) | to      maintain the Vessel in a condition entitling the Vessel to the highest      class applicable to vessels of her type of a classification society      approved by the Mortgagee (the "Classification Society")      free of recommendations and qualification and each year to procure      that the Classification Society confirms to the Mortgagee that such      classification is maintained; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | to      arrange for the Vessel to be inspected and surveyed in accordance with the      rules of the classification Society and, when so requested by the      Mortgagee, to give the Mortgagee copies of all inspection and survey      reports and any other documents relating to the classification of the      Vessel; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | to      inform the Mortgagee immediately of any recommendation or requirement      notified to the Owner by the Classification Society or by any governmental      or international authority which is not complied with within the time      limit specified; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | to      allow the Mortgagee or its authorized representative unrestricted access      to the Vessel at all reasonable times for the purpose of inspecting the      condition of the Vessel; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | to      give the Mortgagee no less than five Business Days' prior notice of any      dry-docking or any underwater inspection so that the Mortgagee can arrange      for its representatives to attend such dry-docking or inspection if it      decides that this isnecessary; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | not      to give possession of the Vessel to a shipyard for repairs to be carried      out to the Vessel the cost of which will exceed the amount of US$ 100,000      unless the shipyard shall have given a written waiver to the Mortgagee of      its lien or right of detention on the Vessel for the cost of such      repairs; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | not      to make or allow to be made any material alteration to the Vessel (unless      such alteration is required by law or by the Classification Society)      without the prior written consent of the Mortgagee which it shall have      full power to withhold; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | to      comply with all requirements imposed by international convention, statute,      regulation, common law or otherwise in relation to the maintenance,      operation and safety of the Vessel and keep on board the Vessel valid      certificates evidencing suchcompliance; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | to      comply with the requirements of the International Safety Management Code      and to ensure that at all times the Owner has a valid document of      compliance and the Vessel has a valid safety management      certificate; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (k) | to      comply with and procure that all servants and agents of the Owner comply      with all legal requirements relating to environmental protection and in      particular the prevention of oil pollution and damage by hazardous and      noxious substances; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (I) | not      to use or allow the Vessel to be used in contravention of any applicable      law or in any unlawful trade or carry any cargo which will render the      Vessel liable to penalty, forfeiture, capture, confiscation, or seizure as      prize and in the event of war in any part of the world (whether or not war      has been declared)not to use or allow the Vessel to be used in carrying      any prohibited cargo; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | to      pay all taxes, social security and national insurance contributions,      governmental charges, fines and penalties properly payable by or imposed      on the Owner of the Vessel; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n) | when      requested by the Mortgagee to provide evidence that the wages, social      security and national insurance contributions of the master and crew of      the Vessel are being paid in accordance with the Vessel's articles of      agreement and the relevant statutory provisions, and to pay to the      relevant authority all amounts deducted from the wages of the master and      crew in respect of any tax liability and social security and national      insurance contributions; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o) | not      to appoint a manager of the Vessel without the Mortgagee's prior written      consent; |
|-----|-------------------------------------------------------------------------------------------------|

| (p) | to      ensure that at all times an Isle of Man approved representative person is      appointed in respect of the Vessel and not, without the prior written      consent of the Mortgagee, to remove any such person, appoint a new Isle of      Man approved representative person in respect of the Vessel or terminate      or materially amend the terms of appointment of any such Isle of Man      approved representativeperson; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (q) | not      to do, or knowingly omit to do, or cause or voluntarily permit to be done      anything which may in any way depreciate, jeopardise or otherwise      prejudice the value of the Vessel or the rights of the Mortgagee pursuant      to the Mortgage and thisDeed; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r) | not      to exercise any right of set-off, counterclaim or defence against the      Mortgagee with respect to the Vessel, the Mortgage or this      Deed; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (s) | to      comply with, and to procure that all servants and agents of the Owner      comply with, all Environmental Laws in relation to the Vessel;      and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (t) | immediately      inform the Mortgagee of: |
|-----|-------------------------------------------|

|  | (i) | any      actual or threatened arrest or detention of the  Vessel; |
|--|-----|-------------------------------------------------------------------|

|  | (ii) | any      casualty or damage to the Vessel as a result of which the Vessel has      become or may become a Total Loss or if the estimated cost of repairs may      exceed US$ 100,000; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (iii) | the      occurrence of any incident which may give rise to a pollution      or environmental claim against theOwner; |
|--|-------|----------------------------------------------------------------------------------------------------------------------|

|  | (iv) | the      issue of any petition for the winding up, liquidation, dissolution or      bankruptcy of the Owner or anything analogous to the foregoing in any      relevant jurisdiction; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | the      happening of an Event of Default or an event which with the passing of      time or giving of notice may result in an Event of  Default. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Rights      of Mortgagee |
|-----|--------------------------|

| 8.  | OWNER'S      OBLIGATIONS TO MAINTAIN REGISTRATIONETC |
|----------|------------------------------------------------------|

| (a) | to      keep the Vessel registered on the isle of Man Ship Register at the port of      Douglas and not do or allow anything to be done which may result in such      registration being cancelled orsuspended; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | to      maintain the corporate existence of the Owner under the laws of Norway and      to comply with all statutory requirements applicable to the      Owner; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | save      for any Second Priority Security, not to sell, transfer, mortgage, charge,      hypothecate or abandon theVessel; |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (d) | not      to change the name of the Vessel or change its country of registration      without the prior written consent of the Mortgagee which it shall have      full power to withhold; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | not      to create or allow to exist any charge, lien or encumbrance (except      pursuant to the Mortgage, this Deed and any Second Priority Security) on      the Vessel other than a lien on the Vessel for salvage services or for      crew's wages; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | to      obtain, comply with the terms of and do all that is necessary to maintain      in full force and effect all authorisations, approvals, licences and      consents required in or by the law and regulations of any jurisdictions in      which it is incorporated or resident or carries on business to enable it      lawfully to enter Into and perform its obligations under the Mortgage and      this Deed and to ensure the legality, validity, enforceability or      admissibility in evidence of the Mortgage and this Deed in any      jurisdictions in which it is incorporated or resident or carries on      business; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (g) | immediateiy      to inform the Mortgagee if any legal proceedings are issued against the      Vessel or if the Vessel is attached, arrested or detained by order or      direction of any court or tribunal or by any government or other competent      authority, and to take such action as is necessary to release the Vessel      as soon as possible and in any event within three days and to discharge      all charges, liens or encumbrances on the Vessel (except for the Mortgage,      this Deed and any Second PrioritySecurity); |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | to      execute any further documents required by the Mortgagee to perfect the      security created by the Mortgage and thisDeed; |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| (i) | if      any court or tribunal having jurisdiction declares or any rule of law      renders any part of this Deed or the Mortgage invalid or unenforceable, to      execute any further documents required by the Mortgagee to maintain the      security created by this Deed and the Mortgage;  and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | to      execute a bill of sale and any other documents that the Mortgagee may      require if the Mortgagee sells the Vessel under its power of sale or as      agent for the Owner. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 9.1 | Representations      and Warranties |
|-----|-------------------------------------|

| (a) | it      is a company duly incorporated and validly existing under the laws of      Norway with power to enter into this Deed and the Mortgage and to exercise      its rights and perform its obligations under this Deed and the Mortgage      and all corporate and other action required to authorise its execution of      this Deed and the Mortgage and the performance of its obligations under      this Deed and the Mortgage has been dulytaken; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      obligations expressed to be assumed by it in this Deed and the Mortgage      are legal and valid and binding and enforceable against it in accordance      with the terms of this Deed and the Mortgage and no limit on its powers      will be exceeded as a result of the performance of its obligations under      this Deed and the Mortgage; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | all      acts, conditions and things required to be done, fulfilled and performed      in order (i) to enable it lawfully to enter into, exercise its rights      under and perform and comply with the obligations expressed to be assumed      by it in this Deed and the Mortgage, (ii) to ensure that the obligations      expressed to be assumed by it in this Deed and the Mortgage are legal,      valid and binding, and (iii) to make this Deed and the Mortgage admissible      in evidence in any jurisdiction in which it is incorporated, resident or      carries on business have been done, fulfilled and    performed; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d) | under      the laws of its jurisdiction of incorporation and/or territories in which      it is subject to taxation in force at the date of this Deed, it will not      be required to make any deduction or withholding on account of tax from      any payment it may make under this Deed and the  Mortgage; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | it      has not taken any corporate action nor have any other steps been taken or      legal proceedings been started or (to the best of its knowledge and      belief) threatened against it for its winding up, dissolution,      administration, liquidation or re-organisation or for the appointment of a      receiver, administrator, administrative receiver, custodian, trustee or      similar officer of it or of any or all of its assets or      revenues; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | subject      only to the Mortgage, this Deed and any Second Priority Security, no      person other than the Owner has any legal or beneficial interests (or any      right to claim any such interest) in the Vessel or any part thereof and      the Owner has not received notice of any such  claim; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | save      as contemplated in this Deed, the Mortgage and any Second Priority      Security, it has not assigned, charged, mortgaged, pledged, transferred or      otherwise disposed of (or agreed to assign, charge, mortgage, pledge,      transfer or otherwise dispose of), whether by way of security or      otherwise, the benefit of all or any of its right, title and interest in      and to the Vessel or any part ofit; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | no      Environmental Claim has been made or threatened against the Owner or      otherwise in connection with theVessel; |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (i) | no      Environmental incident has occurred and no person has claimed that an      Environmental Incident hasoccurred; |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (j) | the      execution of this Deed and the Mortgage and the exercise of its rights and      the performance of its obligations under this Deed and the Mortgage do not      and will not (i) conflict with its constitutional documents or any rules      and regulations made thereunder; (ii) conflict with any applicable law,      regulation or official or judicial order; or (iii) conflict with the      provisions of any agreement, mortgage, bond or other instrument or treaty      to which it is a party or which is binding upon it or any of its assets or      result in a requirement for the creation of any security interest over any      such asset, in each case, in anyway; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | the      execution of this Deed and the Mortgage and the exercise of its rights and      the performance of its obligations under this Deed and the Mortgage do not      and will not cause any of the foregoing representations to be      untrue. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Repetition |
|-----|------------|

----

| 10.  | EXCLUSION      OF LIABILITY |
|-----------|-----------------------------|

| (a) | the      Owner will remain liable to perform all the obligations assumed by it in      relation to the Vessel; |
|-----|----------------------------------------------------------------------------------------------------------------|

| (b) | neither      the Mortgagee nor any of the Banks shall be under any obligation or      liability in respect of the Vessel by reason of this Deed or the Mortgage      or anything arising out of, or in connection with  them; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | neither      the Mortgagee nor any of the Banks shall not be under any obligation of      any kind: |
|-----|-----------------------------------------------------------------------------------------------------|

|  | (i) | to      assume or perform or fulfil any obligation of the Owner in, under or in      respect of the Vessel, the Mortgage or this Deed or be under any liability      whatsoever as a result of any failure of the Owner to perform any of its      obligations in connectiontherewith; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | to      enforce against any person any rights and benefits hereby assigned or      charged or to which the Mortgagee or any of the Banks may at any time be      entitled; and/or |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | to      make any enquiries as to the nature or sufficiency of any payment received      by the Mortgagee or any of the Banks hereunder or to make any claim or to      take any action to collect any moneys hereby assigned, mortgaged or      charged. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | EFAULT      AND ENFORCEMENT |
|-----|-----------------------------|

| 11.1 | nforcement |
|------|------------|

| (a) | to      commence legal proceedings against the Owner and/or the Vessel to obtain      judgment for the SecuredLiabilities; |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (b) | to      order the master of the Vessel to proceed immediately at the Owner's risk      and expense to a port or anchorage nominated by the    Mortgagee; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | to      take possession of the Vessel and exercise all the rights and powers of a      mortgagee conferred by law or by thisDeed; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (d) | to      discharge the master and crew of the Vessel and employ a new master and      crew; |
|-----|--------------------------------------------------------------------------------------------|

| (e) | to      sell the Vessel or any shares therein (whether as mortgagee under its      power of sale, as attorney-in-fact for the Owner or otherwise) in such      manner and on such terms as the Mortgagee may decide with power to the      Mortgagee to postpone the sale without being liable for any resulting      loss; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (f) | to      insure, maintain, repair, charter, operate, use, employ, manage or lay up      the Vessel on such terms as it may consider appropriate without being      responsible for any loss or damage to the Vessel (provided such loss or      damage has not been caused by the wilful act or default of the      Mortgagee); |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | to      require all documents relating to the insurances including all policies,      cover notes and all claims correspondence to be delivered to the Mortgagee      or to a broker or agent appointed byit; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | to      defend, pay or compromise all claims against the Owner in connection with      the Vessel including those which have given or may give rise to any charge      or lien on the Vessel whether ranking in priority to or subordinate to the      Mortgage and this Deed; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | to      institute, continue, release or compromise all claims by the Owner against      the Insurers, any charterer or any other third party in connection with      the Vessel; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | to      combine and consolidate all accounts which the Owner may have with the      Mortgagee and to set off any credit balances on such accounts against the      Secured Liabilities; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | to      recover from the Owner on demand all amounts paid and payable and losses      incurred by the Mortgagee in connection with the exercise of any of its      powers and rights under Clause 5.2, Clause 7.2, this Clause 11 or      otherwise. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Suspense      Account |
|------|-----------------------|

| 12. | RECEIVERS |
|-----|-----------|

| 12.1 | Appointment      of Receiver |
|------|------------------------------|

----

| 12.2 | Powers      of Receiver |
|------|-------------------------|

| 12.3 | Removal      of Receiver |
|------|--------------------------|

| 12.4 | Remuneration      of Receiver |
|------|-------------------------------|

| 12.5 | Powers      of Receiver Implied by Law |
|------|----------------------------------------|

| 13. | PROTECTION      OF THIRD PARTIES |
|-----|----------------------------------|

| 13.1 | No      Duty to Enquire |
|------|-------------------------|

| 13.2 | Receipt |
|------|---------|

----

| 14. | PROTECTION      OF SECURITY |
|-----|-----------------------------|

| 15. | NEW      ACCOUNTS |
|-----|-------------------|

| 16. | APPLICATION      OF MONIES |
|-----|----------------------------|

|  | First | in      payment of the remuneration and expenses of the Receiver and all      liabilities having priority to suchcosts; |
|--|-------|-------------------------------------------------------------------------------------------------------------------------|

|  | Second | in      payment of all amounts paid and payable and losses incurred by the      Mortgagee (together with interest thereon) in connection with the exercise      of any of its powers and rights under Clause 5.2, Clause 7.2, Clause 11 or      otherwise; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Third | in      payment of the Secured Liabilities and any other amounts payable by the      Owner under this Deed; |
|--|-------|-------------------------------------------------------------------------------------------------------------|

|  | Fourth | in      payment of the balance (if any) to the Owner or to the person entitled      thereto. |
|--|--------|----------------------------------------------------------------------------------------------|

----

| 17. | POWER      OF ATTORNEY |
|-----|------------------------|

| 17.1 | Power      of Attorney |
|------|------------------------|

| 17.2 | Ratification |
|------|--------------|

|  | (a) | ail      transactions entered into by it or them in the proper exercise of its or      their powers in accordance with this Deed;and |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | ail      transactions entered into by it or them in signing, sealing, delivering      and otherwise perfecting any assignment, mortgage, charge, security, deed,      assurance, document or act asaforesaid. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | DELEGATION |
|-----|------------|

| 19. | INDEMNITIES |
|-----|-------------|

| 19.1 | Indemnity |
|------|-----------|

|  | (a) | the      exercise or the purported exercise of any powers, authorities, or      discretions vested in them pursuant to this Deed and/or the      Mortgage; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | any      matter or thing done or omitted or in any way relating to the provisions      of this Deed and/or theMortgage; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------|

|  | (c) | any      breach by the Owner of its covenants or other obligations to the Mortgagee      under this Deed and/or theMortgage; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | the      enforcement of the provisions of this Deed and/or the Mortgage;      or |
|--|-----|----------------------------------------------------------------------------------|

|  | (e) | any      action, claim or proceeding relating to any of the above,  except      to the extent that they result from the gross negligence or willful      default of the Mortgagee, any Bank, any Receiver or any such manager,      agent, officer or employee. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Indemnification      of Expenses |
|------|----------------------------------|

| (a) | all      expenses including legal and out-of-pocket expenses (on a full indemnity      basis) incurred by the Mortgagee or any other Bank in connection      with: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | the      preparation, negotiation and execution of this Deed and/or the      Mortgage; |
|--|-----|----------------------------------------------------------------------------------------|

|  | (ii) | the      preparation and negotiation of documentation relating to any amendment or      extension of this Deed and/or the Mortgage, regardless of the form such      documentation takes and whether or not such documentation is acceptable      to, and/or executed by, any or all parties  thereto; |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | the      granting of any waiver, approval, consent, confirmation or release under,      or in respect of, this Deed and/or the Mortgage;  and |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | any      investigation or due diligence into the financial or other condition of      the Owner or into ascertaining whether or not it has complied or is      complying with this Deed and/or theMortgage, |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | an      amount equal to any stamp duties, search fees, registration fees and      duties payable in connection with this Deed and/or the Mortgage and any      penalties with respect to, or resulting from its delay or omission to pay      any such duties or fees;and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | all      expenses, including legal and out-of-pocket expenses on a full indemnity      basis, incurred by the Mortgagee and any other  Bank: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | in      contemplation of, or otherwise in connection with, the enforcement of any      rights or exercise of any powers under this Deed and/or the Mortgage or in      investigating any possible default or breach by the Owner of this Deed      and/or the Mortgage; or |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | in      respect of any proceedings, legal or otherwise, involving the Mortgagee      and any other Bank in connection with this Deed and/or the Mortgage or the      Vessel, whether such proceedings are brought by the Owner or a third      party, |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20. | CURRENCY      CLAUSES |
|-----|-----------------------|

| 20.1 | Currency      Conversion |
|------|--------------------------|

| 20.2 | Currency      indemnity |
|------|-------------------------|

| 21. | MISCELLANEOUS |
|-----|---------------|

| 21.1 | Potentially      Avoided Payments |
|------|-----------------------------------|

----

| 21.2 | Avoidance      of Payments |
|------|----------------------------|

| 21.3 | Further      Assurance |
|------|------------------------|

| 21.4 | Amendment      and Variation |
|------|------------------------------|

| 21.5 | Waivers      and Releases |
|------|---------------------------|

| 21.6  | Severability |
|------------|--------------|

| (a) | the      legaiity, validity or enforceability of the remaining provisions of this      Deed or the Mortgage or the effectiveness in any other respect of the      security created by this Deed or the Mortgage under such law;      or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      legality, validity or enforceability of such provision or the      effectiveness of the security created by this Deed or the Mortgage under      the law of any otherjurisdiction. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.7 | Cumulative      Remedies |
|------|--------------------------|

| 21.8 | Immediate      Recourse |
|------|-------------------------|

| 21.9 | Contracts      (Rights of Third Parties) Act2001 |
|------|--------------------------------------------------|

| (a) | Save      in respect of any rights created in favour of a Bank or a Receiver      appointed under this Deed, this Deed does not create any right enforceable      by any person who is not a party to it (the "Third Party") under the      Contracts (Rights of Third Parties) Act 2001, but this Clause 21.9 does      not affect any right or remedy of a Third Party which exists or is      available apart from thatAct. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Notwithstanding      any term of this Deed, the consent of any person (including any Bank) who      is not a party to this Deed is not required for any variation (including      any rescission or variation of any rights that such a person may have to      enforce any provisions of this Deed) or termination of this      Deed. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.10 | Consents |
|-------|----------|

| 21.11 | Granting      of Time |
|-------|-----------------------|

| 21.12 | Counterparts |
|-------|--------------|

----

| 21.13 | Release      of Security |
|-------|--------------------------|

| 21.14 | Trust |
|-------|-------|

| 22. | ASSIGNMENT |
|-----|------------|

| 22.1 | Assignment |
|------|------------|

| 22.2 | The      Owner's Rights |
|------|-------------------------|

| 22.3 | The      Mortgagee's Rights |
|------|-----------------------------|

| 23. | NOTICES |
|-----|---------|

| 23.1 | Communications      in Writing |
|------|--------------------------------|

| 23.2 | Contact      Details |
|------|----------------------|

| (a) | The      contact details of each party to this Deed for all communications in      connection with this Deed are those notified by each party to the other      party. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The      contact details of the Owner for this purpose  are: |
|-----|--------------------------------------------------------------|

----

|  | Address: | Stoltenbeggaten 1, 5527      Haugesund, Norway |
|--|----------|------------------------------------------------|

|  | Fax Number: | [•] |
|--|-------------|-----------|

|  | Attention: | [•] |
|--|------------|-----------|

| (c) | The contact details of theMortgagee for this purpose      are: |
|-----|----------------------------------------------------------------|

|  | Address: | PO Box 1166 Sentrum, 0107 Oslo,      Norway |
|--|----------|---------------------------------------------|

|  | Fax      Number:   | [•] |
|--|------------------------------|-----------|

|  | Attention: | [•] |
|--|------------|-----------|

| (d)  | Any      party may change its contact details by giving three Business Days' notice      to the other party. |
|-----------|--------------------------------------------------------------------------------------------------------------|

| (e)  | Where      a party nominates a particular department or officer to receive a      communication, a communication will not be effective if it fails to      specify that department or officer. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3  | Effectiveness |
|------------|---------------|

| (a)  | Except      as provided below, a communication in connection with this Deed will be      deemed to be given as follows: |
|-----------|-------------------------------------------------------------------------------------------------------------------------|

|  | (i)  | if      delivered in person, at the time ofdelivery; |
|--|-----------|------------------------------------------------------|

|  | (ii)  | if      posted, three days after being deposited in the post, postage prepaid, in      a correctly addressed envelope; and |
|--|------------|----------------------------------------------------------------------------------------------------------------------------|

|  | (iii)  | if      by fax, when received in legibleform. |
|--|-------------|-----------------------------------------------|

| (b)  | A      communication given under paragraph (a) above but received on a      non-working day or after business hours in the place of receipt will only      be deemed to be given on the next working day in that    place. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)  | A      communication to the Mortgagee will only be effective on actual receipt by      it. |
|-----------|--------------------------------------------------------------------------------------------|

| 24.  | GOVERNING      LAW |
|-----------|--------------------|

| 25.  | JURISDICTION |
|-----------|--------------|

| 25.1  | Courts      of the Isle of Man |
|------------|--------------------------------|

----

| 25.2 | Appropriate      Forum |
|------|------------------------|

| 25.3 | Proceedings      in Other Jurisdictions |
|------|-----------------------------------------|

| 25.4 | General      Consent |
|------|----------------------|

| 25.5 | Waiver      of Immunity |
|------|-------------------------|

| 25.6 | Appointment      of Process Agent |
|------|-----------------------------------|

----

| EXECUTED      and DELIVERED          | :        |
|--------------------------------------|----------|
| as      a deed by DEEP OCEAN         | :        |
| SHIPPING      AS acting by           | :        |
|                                 | :        |
| its      duly authorised attorney    | :        |
| pursuant      to a power of attorney | :        |
| dated                                | 2007     | : |
| in      the presence of              | :   |
|                                 |     |
|                                 | Attorney |
|                                 |     |
| Witness      signature:              |     |
|                                 |     |
| Name:                                |     |
|                                 |     |
| Address:                             |     |
|                                 |     |
| Occupation:                          |     |
|                                 |     |
|                                 |     |
| EXECUTED      and DELIVERED          | :        |
| as      a deed by NORDEA BANK        | :        |
| NORGE      ASA acting by             | :        |
|                                 | :        |
| its      duly authorised attorney    | :        |
| pursuant      to a power of attorney | :        |
| dated                                | 2007     | : |
| in      the presence of              | :        |
|                                 |     |
|                                 | Attorney |
|                                 |     |
|                                 |     |
| Witness      signature:              |     |
|                                 |     |
| Name:                                |     |
|                                 |     |
| Address:                             |     |
|                                 |     |
| Occupation:                          |     |

----