----

INDEX

| Clause  |                                                                 | Page  |
|--------------|----------------------------------------------------------------------|------------|
| 1            | INTERPRETATION                                                       | 2          |
| 2            | FACILITY                                                             | 19         |
| 3            | POSITION OF THE LENDERS, THE SWAP BANK AND THE      MAJORITY LENDERS | 20         |
| 4            | DRAWDOWN                                                             | 21         |
| 5            | INTEREST                                                             | 23         |
| 6            | INTEREST PERIODS                                                     | 25         |
| 7            | DEFAULT INTEREST                                                     | 25         |
| 8            | CONVERSION TO TERM      LOAN;  REPAYMENT AND PREPAYMENT    | 27         |
| 9            | CONDITIONS PRECEDENT                                                 | 29         |
| 10           | REPRESENTATIONS AND      WARRANTIES                                  | 30         |
| 11           | GENERAL UNDERTAKINGS                                                 | 32         |
| 12           | CORPORATE UNDERTAKINGS                                               | 35         |
| 13           | INSURANCE                                                            | 37         |
| 14           | SHIP COVENANTS                                                       | 43         |
| 15           | SECURITY COVER                                                       | 46         |
| 16           | PAYMENTS ANDCALCULATIONS                                             | 48         |
| 17           | APPLICATION OF RECEIPTS                                              | 50         |
| 18           | APPLICATION OF EARNINGS                                              | 51         |
| 19           | EVENTS OF DEFAULT                                                    | 52         |
| 20           | FEES AND EXPENSES                                                    | 56         |
| 21           | INDEMNITIES                                                          | 57         |
| 22           | NO SET-OFF OR TAX    DEDUCTION                                       | 59         |
| 23           | ILLEGALITY, ETC                                                      | 60         |
| 24           | INCREASED COSTS                                                      | 60         |
| 25           | SET-OFF                                                              | 61         |

----

| 26                                                        | TRANSFERS AND CHANGES IN LENDING      OFFICES | 62 |
|-----------------------------------------------------------|-----------------------------------------------|----|
| 27                                                        | VARIATIONS AND WAIVERS                        | 65 |
| 28                                                        | NOTICES                                       | 66 |
| 29                                                        | SUPPLEMENTAL                                  | 68 |
| 30                                                        | LAW AND JURISDICTION                          | 68 |
| SCHEDULE 1  LENDERS AND      COMMITMENTS        | 70                                            |
| SCHEDULE 2  DRAWDOWN NOTICE                     | 71                                            |
| SCHEDULE 3  CONDITION PRECEDENT      DOCUMENTS  | 72                                            |
| SCHEDULE 4  TRANSFER    CERTIFICATE             | 77                                            |
| SCHEDULE 5  DESIGNATION NOTICE                  | 81                                            |
| SCHEDULE 6  FORM OF COMPLIANCE      CERTIFICATE | 82                                            |

----

| (1) | CAPITAL PRODUCT PARTNERS      L.P. being a limited partnership formed in the Republic of the      Marshall Islands whose registered office is at Trust Company House, Trust      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall      Islands as Borrower. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (3) | HSH NORDBANK AG as Swap    Bank. |
|-----|----------------------------------|

| (4) | HSH NORDBANK AG as    Bookrunner. |
|-----|-----------------------------------|

| (5) | HSH NORDBANK AG as Mandated Lead Arranger,      Facility Agent and SecurityTrustee. |
|-----|-------------------------------------------------------------------------------------|

| (6) | DnB NOR BANK ASA, London      as      Co-Arranger. |
|-----|----------------------------------------------------|

| (A) | The      Lenders have agreed to make available to the Borrower a revolving credit      facility (initially divided into 3 tranches) of up to US$350,000,000 for      the purpose of: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | in      the case of Tranche A (being in an amount of up to US$57,500,000), to      refinance part of the cost of acquiring the issued share capital of the      Existing Owners of the 2001-built Suezmax tanker “AMORE MIO II” and the      2005-built chemical tanker“ARISTOFANIS”; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in      the case of Tranche B (being in an amount of up to US$52,500,000), to      refinance part of the cost of acquiring the issued share capital of the      Existing Owners of the 2006-built medium range product tankers “ARISTIDIS”      and “ALKIVIADIS”; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | in      the case of Tranche C (being in an amount of up to US$240,000,000), to      part-finance or refinance the acquisition cost of certain Additional Ships      or to part-finance or refinance the cost of acquiring the issued share      capital of an Additional ShipOwner. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | To      the extent initially borrowed for the purposes referred to in Recital (A)      and prepaid, the Borrower shall be entitled to reborrow the prepaid      amounts for the purpose referred to in paragraph (iii) of Recital (A) or      in order to provide the Borrower with additional liquidity for its general      working capital and corporatepurposes |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | The      Swap Bank has agreed to enter into interest rate swap transactions with      the Borrower from time to time to hedge the Borrower’s exposure under this      Agreement to interest ratefluctuations. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D) | The      Lenders and the Swap Bank have agreed to share in the security to be      granted to the Security Trustee pursuant to this Agreement with the      obligations of the Borrower to the Swap Bank being subordinated to those      of the Borrower to the Lenders. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

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

|   | (a) | it      is a tanker built in or after 2002; |
|--------|-----|---------------------------------------------|

|   | (b) | it      maintains the highest class with an Approved Classification Society free      of any overdue recommendations andconditions; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | it      is to be registered on an ApprovedFlag; |
|--------|-----|-------------------------------------------------|

----

Index

|   | (a) | American      Bureau of Shipping; |
|--------|-----|-----------------------------------|

|   | (b) | Bureau      Veritas; |
|--------|-----|----------------------|

|   | (c) | Det      Norske Veritas; |
|--------|-----|--------------------------|

|   | (d) | Germanischer      Lloyd; |
|--------|-----|--------------------------|

|   | (e) | Korean      Register of Shipping; |
|--------|-----|-----------------------------------|

|   | (f) | Lloyd’s      Register of Shipping; |
|--------|-----|------------------------------------------|

|   | (g) | Nippon      Kaiji Kyokai; |
|--------|-----|---------------------------|

|   | (h) | Registro      Italiano Navale; and |
|--------|-----|------------------------------------|

----

Index

|   | (a) | 30      March 2013 (as such date may be extended in accordance with Clause 4.9),      or such later date as the Facility Agent may, with the authorisation of      all the Lenders, agree with the Borrower;or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

|   | (a) | a      Ship (at all times during the term of the Existing Charter relative      thereto), an assignment of the rights of the Owner of that Ship under the      Existing Charter relative to that Ship executed or to be executed by the      relevant Owner in favour of the Security Trustee;  and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | each      Ship (in the case of AMORE MIO II and ARISTOFANIS, after the expiry of the      Existing Charter relative thereto), an assignment of the rights of the      relevant Owner under any Charterparty in respect of such Ship with a      duration of at least 11 consecutive months executed or to be executed by      the relevant Owner in favour of the Security  Trustee, |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | it      is entered into by the Borrower pursuant to the Master Agreement with the      Swap Bank which, at the time the Transaction is entered into, is also a      Lender; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | its      purpose is the hedging of the Borrower’s exposure under this Agreement to      fluctuations in LIBOR arising from the funding of the Loan (or any part      thereof) for a period expiring no later than the final Repayment Date;      and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (c) | it      is designated by the Borrower, by delivery by the Borrower to the Facility      Agent of a notice of designation in the form set out in Schedule 5, as a      Designated Transaction for the purposes of the Finance      Documents; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

----

Index

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

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

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

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

|   | (a) | “AMORE      MIO II”, a time charter in respect of that Ship dated 12 September 2007      and made between Baymont and BP;and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | “ARISTOFANIS”,      a time charter in respect of that Ship dated 23 June 2005 and made between      Forbes and Shell; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

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

|   | (c) | the      Agency and Trust Agreement; |
|--------|-----|--------------------------------------|

|   | (d) | the      Guarantees; |
|--------|-----|----------------------|

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

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

|   | (g) | the      Mortgages; |
|--------|-----|---------------------|

|   | (h) | the      Deeds of Covenant; |
|--------|-----|-----------------------------|

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

|   | (j) | the      Retention Account Pledge; |
|--------|-----|------------------------------------|

|   | (k) | the      Swap Account Pledge; |
|--------|-----|-------------------------------|

|   | (l) | the      Management Agreement Assignments; |
|--------|-----|--------------------------------------------|

|   | (m) | any      Charterparty Assignments; |
|--------|-----|------------------------------------|

|   | (n) | any      Bareboat Charter SecurityAgreements; |
|--------|-----|-----------------------------------------------|

|   | (o) | the      Approved Manager’s Undertakings;and |
|--------|-----|----------------------------------------------------|

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

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

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

----

Index

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

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

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

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

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

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

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

----

Index

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

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

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

|   | (c) | any      other documents which are prepared or which are otherwise relevant to      establish and maintain the Ships’ or the Owners’ compliance with the ISM      Code which the Facility Agent mayrequire; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (a) | the      rate per annum equal to the offered quotation for deposits in Dollars for      a period equal to, or as near as possible equal to, the relevant Interest      Period which appears on the appropriate page of the Reuters Monitor Money      Rates Service at or about 11.00 a.m. (London time) on the Quotation Date      for that Interest Period or on such other service as may be nominated by      the British Bankers’ Association as the information vendor for the purpose      of displaying British Bankers’ Association Interest Settlement Rates for      Dollars; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if      no rate is quoted on the appropriate page of the Reuters Monitor Money      Rates Service, the rate per annum determined by the Facility Agent to be      the arithmetic mean (rounded upwards, if necessary, to the nearest      one-sixteenth of one per cent.)      of the rates per annum notified to the Facility Agent by each Lender as      the rate at which deposits in Dollars are offered to      that Lender by leading banks in the London Interbank Market at that      Lender’s request at or about 11.00 a.m. (London time) on the Quotation      Date for that Interest Period for a period equal to that Interest Period      and for delivery on the first Business Day of  it; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (a) | cash      in hand or held with banks or other financial institutions of the Borrower      and/or any other member of the Group in Dollars or another currency freely      convertible into Dollars,; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      market value of transferable certificates of deposit in a freely      convertible currency acceptable to the Lenders (being for the purposes of      this Agreement, Dollars, Japanese Yen, Swiss Francs, Euros or Sterling)      issued by a prime international bank;and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      market value of equity securities (if and to the extent that the Facility      Agent is satisfied that such equity securities are readily saleable for      cash and that there is a ready market therefor) and investment grade debt      securities which are publicly traded on a major stock exchange or      investment market (valued at market value as at any applicable date of      determination); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      market value of any asset specified in paragraph (b) and (c) shall be the      bid price quoted for it on the relevant calculation date by the Facility      Agent: and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      amount or value of any asset denominated in a currency other than Dollars      shall be converted into Dollars using the Facility Agent’s spot rate for      the purchase of Dollars with that currency on the relevant calculation      date. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | at      any time when no Advances are outstanding, Lenders whose Commitments total      66 2/3 per cent. of the Total Commitments;and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | at      any other time, Lenders whose Contributions total 66 2/3 per cent. of the      Loan; |
|--------|-----|----------------------------------------------------------------------------------------------|

----

Index

|   | (a) | the      aggregate of all interest payable by any member of the Group on any      Financial Indebtedness (excluding any amounts owing by one member of the      Group to another member of the Group) and any net amounts payable under      interest rate hedge agreements,less |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      aggregate of all interest received by any member of the Group arising from      any Liquid Assets and any net amounts received by any member of the Group      under interest rate hedgeagreements; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in      relation to each Existing Ship, the Existing Owner thereof;      and |
|--------|-----|------------------------------------------------------------------------------|

|   | (b) | in      relation to each Additional Ship, the Additional Ship Owner      thereof; |
|--------|-----|-----------------------------------------------------------------------------------|

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

----

Index

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

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

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

|   | (e) | liens      for master’s disbursements incurred in the ordinary course of trading and      any other lien arising by operation of law or otherwise in the ordinary      course of the operation, repair or maintenance of a Ship, provided such      liens do not secure amounts more than 45 days overdue (unless the overdue      amount is being contested by the relevant Owner in good faith by      appropriate steps) and subject, in the case of liens for repair or      maintenance, to Clause 14.13(e); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

----

Index

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

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

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

----

Index

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

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

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

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

----

Index

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

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

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

|   | (d) | any      arrest, capture, seizure or detention of the Ship (including any hijacking      or theft) unless she is within 90 days redelivered to the full control of      the Owner owning the Ship; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

----

Index

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

----

Index

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

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

----

Index

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

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

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

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

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

| 1.5 | General      Interpretation. |
|-----|------------------------------|

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

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

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

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

| (b) | Clauses      1.1 to 1.4 and paragraph (a) of this Clause 1.5 apply unless the contrary      intention appears. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (c) | References      in Clause 1.1 to a document being in the form of a particular Appendix      include references to that form with any modifications to that form which      the Facility Agent (with the authorisation of the Majority Lenders in the      case of substantial modifications) approves or reasonably      requires. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 2.1 | Amount of      facilities.  Subject to the other provisions of this      Agreement, the Lenders shall make available to the Borrower revolving      credit and term loan facilities not exceeding $350,000,000 in aggregate at      any time.  The revolving credit facility shall initially be made      available in three Tranches asfollows: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Tranche      A shall be in an amount not exceeding  $57,500,000; |
|-----|------------------------------------------------------------------|

| (b) | Tranche      B shall be in an amount not exceeding  $52,500,000; |
|-----|------------------------------------------------------------------|

| (c) | Tranche      C shall be in an amount not exceeding $240,000,000;  and |
|-----|-----------------------------------------------------------------------|

----

Index

| (d) | Tranche      A and Tranche B may each be drawn in up to two Advances each and Tranche C      may be drawn in multiple Advances, with each Additional Ship (or the      acquisition of the shares in an Additional Ship Owner) being part-financed      by not more than one Advance. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Consolidation of      Tranches.  On the Drawdown Date of the Advance under      Tranche C which will result in Tranche C being fully drawn, all the      Tranches shall be consolidated to form a single tranche constituting the      Revolving Facility. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 3.1 | Interests of Lenders and Swap      Bank several.  The rights of the Lenders and the Swap      Bank under this Agreement and the Master Agreement are several;      accordingly: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | each      Lender shall be entitled to sue for any amount which has become due and      payable by the Borrower to it under this Agreement;  and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      Swap Bank shall be entitled to sue for any amount which has become due and      payable by the Borrower to it under the Master  Agreement, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Proceedings by individual      Lender or Swap Bank.  However, without the prior consent      of the Majority Lenders, no Lender and the Swap Bank may bring proceedings      in respect of: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

|   | and      in no circumstances shall a Lender or the Swap Bank have any      responsibility for a failure of another Lender or the Swap Bank to perform      its obligations under this Agreement or the Master    Agreement. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

Index

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

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

| (a) | shall      be entitled to assume that the Majority Lenders have duly given any      instruction or authorisation which, under any provision of a Finance      Document, is required in relation to any action which the Facility Agent      has taken or is about to take; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

| (b) | each      Advance under Tranche A or Tranche B shall be used in refinancing the      acquisition of a Tranche A Ship or, as the case may be, a Tranche B Ship      or in part-financing or financing the acquisition of the issued share      capital (free of any encumbrances or charges, except those permitted by      the Majority Lenders) of the Existing Owners of the Tranche A Ships and      the Tranche B Ships; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | each      Advance under Tranche C shall be used in part-financing or refinancing the      acquisition of an Additional Ship or in part-financing or refinancing the      acquisition of shares (free of any encumbrances or charges, except those      permitted by the Majority Lenders) in an Additional Ship Owner Provided      that: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Borrower may draw down an Advance under Tranche C to finance or refinance      the acquisition of an Additional Ship or the whole of the issued share      capital of an Additional Ship Owner if, after such Advance is drawn down,      the then outstanding amount of the Revolving Facility does not exceed 60      per cent. of the aggregate Market Value of all Ships then subject to a      Mortgage; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | an      Advance under Tranche C may only be used to finance or refinance the      acquisition of the whole of the issued share capital of an Additional Ship      Owner if the Additional Ship Owner has entered into an Additional Ship MOA      to acquire a tanker newbuilding or the seller of the shares is Capital      Maritime & Trading Corp.; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | subject      to the other provisions of this Agreement, an Advance under Tranche C may      only be used to finance or refinance a newbuilding upon delivery of the      same to its Owner by the relevant shipyard or by a person who has taken      delivery of the newbuilding from a shipyard and is on-selling the same to      the Owner; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| (d) | if      any part of the Total Commitments has not been borrowed before the end of      the Availability period, the Total Commitments shall on that date be      permanently cancelled by an amount equal to such undrawn      amount. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Purpose of      Advances.  The Borrower undertakes with each Creditor      Party to use each Advance only for the purposes stated in the Recitals to      this Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Notification to Lenders of      receipt of a Drawdown Notice.  The Facility Agent shall      promptly notify the Lenders that it has received a Drawdown Notice and the      Facility Agent shall inform each Lenderof: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | the      duration of the first InterestPeriod. |
|-----|------------------------------------------------|

| 4.5 | Drawdown Notice      irrevocable.  A Drawdown Notice must be signed by a      director or other authorised person of the Borrower; and once served, a      Drawdown Notice cannot be revoked without the prior consent of the      Facility Agent, acting on the authority of the Majority      Lenders. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | Lenders to make available      Contributions.  Subject to the provisions of this      Agreement, each Lender shall, on and with value on each Drawdown Date,      make available to the Facility Agent for the account of the Borrower the      amount due from that Lender on that Drawdown Date under Clause      2.1. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.7 | Disbursement of      Advance.  Subject to the provisions of this Agreement,      the Facility Agent shall on each Drawdown Date pay to the Borrower the      amounts which the Facility Agent receives from the Lenders under Clause      4.6; and that payment to the Borrower shall be  made: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 4.8 | Disbursement of Advance to      third party.  The payment by the Facility Agent under      Clause 4.7 to an Additional Ship Seller or any other third party shall      constitute the making of the Advance and the Borrower shall thereupon      become indebted, as principal and direct obligor, to each Lender in an      amount equal to that Lender’sContribution. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.9 | Extension of Termination      Date.  If on 30 March 2013 (for the purposes of this      Clause 4.9, the “Original      Termination Date”) the outstanding principal amount of the      Revolving Facility does not exceed 60 per cent. of the aggregate Market      Value of the Ships then subject to a Mortgage (determined by taking the      average of the aggregate Market Value of the Ships on the Original      Termination Date and on the date falling 6 months prior to the Original      Termination Date), the Borrower may, by giving the Facility Agent notice      in writing, request the extension of the Original Termination Date for a      further period of up to 3 years.  If Lenders whose Contributions      total 80 per cent. of the Loan, acting in their sole and absolute      discretion, agree to extend the Original Termination Date in accordance      with this Clause 4.9 the Facility Agent shall send to the Borrower a      notice in writing advising it of the period by which the Original      Termination Date      will be extended  Provided that the new      termination date shall be no later than 30 March 2016 and at all times      thereafter the term “Termination Date” shall      be read and construed to mean the new extended termination      date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

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

| 5.2 | Normal rate of      interest.  Subject to the provisions of this Agreement,      the rate of interest on each Advance in respect of an Interest Period      shall be the aggregate of: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | LIBOR      for that Interest Period. |
|-----|--------------------------------------|

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

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

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

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

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

| (a) | no      rate is quoted on the appropriate page of the Reuters Monitor Money Rates      Service and at least half of the total number of Lenders at any time do      not, before 1.00 p.m. (London time) on the Quotation Date for an Interest      Period, provide quotations to the Facility Agent in order to fix LIBOR;      or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | at      least 1 Business Day before the start of an Interest Period, the majority      of the Lenders (in numbers) who together have Contributions amounting to      more than 50 per cent. of the Loan (or, if no Advance is outstanding at      the relevant time, Commitments amounting to more than 50 per cent. of the      Total Commitments) notify the Facility Agent that LIBOR fixed by the      Facility Agent would not accurately reflect the cost to those Lenders of      funding their respective Contributions (or any part of them) during the      Interest Period in the London Interbank Dollar Market at or about 11.00      a.m. (London time) on the second Business Day before the commencement of      the Interest Period; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | at      least 1 Business Day before the start of an Interest Period, the Facility      Agent is notified by a Lender (the “Affected Lender”) that      for any reason it is unable to obtain Dollars in the London Interbank      Market in order to fund its Contribution (or any part of it) during the      Interest Period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5.7 | Suspension of      drawdown.  If the Facility Agent’s notice under Clause      5.6 is served before an Advance ismade: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| (a) | in      a case falling within paragraphs (a) or (b) of Clause 5.5, the Lenders’      obligations to make the Advance; |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

----

Index

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

|   | shall      be suspended while the circumstances referred to in the Facility Agent’s      notice continue. |
|--------|-----------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| (a) | on      the date on which the Facility Agent serves that notice, the Total      Commitments or (as the case may require) the Commitment of the Affected      Lender so far as they relate to the relevant Advance shall be cancelled;      and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 5.14 | Renegotation of      Margin.  The Borrower shall negotiate in good faith with      the Lenders an adjustment to the Margin which is to apply as from the date      falling on the fifth anniversary of the date of this Agreement (the “Margin Determination      Date”).  The Borrower      shall use its best endeavours to ensure that such negotiations commence      not later than the date falling 30 days before the Margin Determination      Date.  If: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| (a) | an      adjustment is agreed between the parties, the Facility Agent will send to      the Borrower and the Creditor Parties a notice in writing by no later than      the date falling 5 Business Days before the Margin Determination Date      specifying the new amount of the Margin which will apply as from the      Margin Determination Date and at all times thereafter the term “Margin” shall be read      and construed to mean such amount;or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | an      adjustment cannot be agreed by the Margin Determination Date, the Borrower      acknowledges and agrees that the Facility Agent (acting upon the      instructions of all the Lenders) may request the Borrower to prepay the      Loan within 30 Business Days of the Facility Agent’s notice and the      Borrower agrees to make such prepayment within a 60 Business Day      period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | INTERESTPERIODS |
|---|-----------------|

| 6.1 | Commencement of Interest      Periods.  The first Interest Period applicable to an      Advance shall commence on the relevant Drawdown Date and each subsequent      Interest Period shall commence on the expiry of the preceding Interest      Period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Duration of normal Interest      Periods.  Subject to Clauses 6.3 and 6.4, each Interest      Period in respect of each Advance shallbe: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | 1,      3, 6, 9 or 12 months as notified by the Borrower to the Facility Agent not      later than 11.00 a.m. (Hamburg time) 3 Business Days before the      commencement of the InterestPeriod; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (d) | such      other period as the Borrower may request from the Facility Agent, which      may be agreed by the Facility Agent |
|-----|----------------------------------------------------------------------------------------------------------------------------|

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

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

| 7 | DEFAULTINTEREST |
|---|-----------------|

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

----

Index

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

Index

| 8 | CONVERSION TO TERM LOAN;  REPAYMENT      AND PREPAYMENT |
|---|-------------------------------------------------------------------|

| 8.1 | Conversion to Term      Loan.  On the Termination Date, the Revolving Facility      shall be converted into the TermLoan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Mandatory amortisation and      amount of repayments of Term Loan.  The following      provisions of this Clause 8.2 shall apply to the repayment of the      Loan: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | if      on a Distribution Declaration Date falling before the Termination Date,      the Security Cover Ratio (expressed as a percentage) is less than 125 per      cent., then the Borrower shall repay the Loan in an amount which, once      repaid, shall eliminate the shortfall.  If a repayment is      required pursuant to this Clause 8.2(a) on any Distribution Declaration      Date (being the “Relevant      Distribution Declaration Date”), then the Borrower shall transfer      the amount of the repayment due under this Clause 8.2(a) into the      Retention Account no later than 5 days after the Relevant Distribution      Declaration Date.  On the last day of the first Interest Period      to expire which is current as at the Relevant Distribution Declaration      Date the Facility Agent shall apply all amounts standing to the credit of      the Retention Account in or towards repayment of the Loan and the payment      of interest thereon in accordance with Clause 18.4;  and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | after      the Termination Date, the Term Loan shall be repaid by up to 20 equal      consecutive three-monthly repayment instalments (each a “Repayment Instalment”      and together the “Repayment Instalments”)      and a final balloon instalment (the “Balloon Instalment”).      The Balloon Instalment shall be equal to 50 per cent of the Revolving      Facility on the Termination Date and each Repayment Instalment shall be in      an amount equal to one-twentieth of the amount by which the Revolving      Facility on the Termination Date exceeds the Balloon      Instalment  Provided that if the      Termination Date is extended pursuant to Clause 4.9, the Balloon      Instalment shall remain unchanged but each Repayment Instalment shall be      in an amount equal to one-eighth of the original Balloon      Instalment. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | Repayment      Dates.  The first Repayment Instalment shall be repaid on      the date falling 3 months after the Termination Date, each subsequent      Repayment Instalment shall be repaid at 3-monthly intervals thereafter and      the Balloon Instalment, together with the Final Repayment Instalment,      shall be repaid on the date falling on the earlier of (a) the tenth      anniversary of the first Drawdown Date and (b) the Final Maturity      Date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Final Repayment      Date.  On the final Repayment Date, the Borrower shall      additionally pay to the Facility Agent for the account of the Creditor      Parties all other sums then accrued or owing under any Finance      Document. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Optional facility      cancellation.  The Borrower shall be entitled, upon      giving to the Facility Agent not less than 3 Business Days prior written      notice (which notice shall be irrevocable), to cancel, in whole or in      part, and, if in part, by an amount not less than $1,000,000 or a higher      multiple of $1,000,000, the undrawn balance of the Revolving      Facility.  Upon such cancellation taking effect on expiry of      such notice the several obligations of the Lenders to make their      respective Commitments available in relation to the portion of the Total      Commitments to which such notice relates shall terminate and the      commitment fee referred to in Clause 20.1(a)) on such portion shall cease      to accrue. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.6 | Voluntary      prepayment.  Subject to the following conditions, the      Borrower may prepay, the whole or any part of the Loan on the last day of      an Interest Period in respectthereof. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.7 | Conditions for voluntary      prepayment.  The conditions referred to in Clause 8.6 are      that: |
|-----|--------------------------------------------------------------------------------------------------------------|

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

----

Index

| (b) | the      Facility Agent has received from the Borrower at least 5 Business Days’      prior written notice specifying the amount to be prepaid and the date on      which the prepayment is to be made (such date to be the last day of an      Interest Period relative to the amount being so prepaid);    and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 8.8 | Effect of notice of      prepayment.  A prepayment notice may not be withdrawn or      amended without the consent of the Facility Agent, given with the      authority of the Majority Lenders, and the amount specified in the      prepayment notice shall become due and payable by the Borrower on the date      for prepayment specified in the prepayment  notice. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.9 | Notification of notice of      prepayment.  The Facility Agent shall notify the Lenders      promptly upon receiving a prepayment notice, and shall provide any Lender      which so requests with a copy of any document delivered by the Borrower      under Clause 8.7(c). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.10 | Mandatory      prepayment.  The Borrower shall be obliged to prepay the      Relevant Amount if a Ship is sold or becomes a Total  Loss: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | in      the case of a Total Loss, on the earlier of the date falling 150 days      after the Total Loss Date and the date of receipt by the Security Trustee      of the proceeds of insurance relating to such Total  Loss. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.11 | Amounts payable on      prepayment.  A prepayment shall be made together with      accrued interest (and any other amount payable under Clause 21 below or      otherwise) in respect of the amount prepaid and, if the prepayment is not      made on the last day of an Interest Period together with any sums payable      under Clause 21.1(b) but without premium or  penalty. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.12 | Application of partial      prepayment.  Each partial prepayment made after the      Termination Date shall be applied to reduce pro rata each Repayment      Instalment and the BalloonInstalment. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.13 | Reborrowing. |
|------|--------------|

| (a) | No      amount of the Term Loan prepaid may be  reborrowed. |
|-----|-------------------------------------------------------------|

| (b) | Subject      to the terms of this Agreement, any amount of the Revolving Facility      repaid or prepaid may bereborrowed. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| 8.14 | Unwinding of Designated      Transactions.  On or prior to any repayment or prepayment      of the Loan under this Clause 8 or any other provision of this Agreement,      the Borrower shall wholly or partially reverse, offset, unwind or      otherwise terminate one or more of the continuing Designated Transactions      to the extent necessary to ensure that the notional principal      amount of the continuing Designated Transactions thereafter remaining does      not and will not in the future (taking into account the scheduled      amortisation) exceed the amount of the Loan as reducing from time to time      thereafter pursuant to Clause8.2. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 8.15 | Prepayment of Swap      Benefit.  If a Designated Transaction is terminated in      circumstances where the Swap Bank would be obliged to pay an amount to the      Borrower under the Master Agreement, the Borrower hereby agrees that such      payment shall be applied in prepayment of the Loan in accordance with      Clause 8.12  and authorises the Swap Bank to pay such amount to      the Facility Agent for suchpurpose. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (a) | that      on or before the date of this Agreement, the Facility Agent receives the      fees referred to in Clause 20.1 which are due and payable at that      time; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | that,      on or before the service of the Drawdown Notice in respect of the first      Advance of Tranche A, the Facility Agent receives the documents described      in Part A of Schedule 3 in form and substance satisfactory to the Facility      Agent and its lawyers; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | that,      on or before the service of the Drawdown Notice in respect of each Advance      of  Tranche A and Tranche B, the Facility Agent receives the      documents described in Part B of Schedule 3 in form and substance      satisfactory to the Facility Agent and its  lawyers; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | that,      on or before the service of the Drawdown Notice in respect of each Advance      of Tranche C, the Facility Agent receives the documents described in Part      C of Schedule 3 in form and substance satisfactory to the Facility Agent      and its lawyers; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

|   | (iv) | there      has been no material adverse change in the financial condition, state of      affairs or prospects of the Borrower or any Owner from that applying at      the date of this Agreement; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | the      Borrower has entered into Designated Transactions with the Swap Bank in      order to hedge all the interest rate risk under this Agreement as at the      relevant Drawdown Date (immediately following the drawdown of the relevant      Advance); and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | the      Facility Agent receives any fees referred to in Clause 20.1 which are due      and payable at that time; |
|--------|------|-------------------------------------------------------------------------------------------------------------------|

----

Index

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

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

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

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

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

| 10.2 | Status.  The      Borrower is a limited partnership (comprised of a single general partner      and multiple limited partners) formed and validly existing and in good      standing under the laws of the Republic of Marshall    Islands. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Capital.  The      Borrower’s capital consists of 13,512,000 common units held by public      unitholders, 8,805,522 subordinated units held by Capital Maritime &      Trading Corp. and a general partner interest held by Capital GP      L.L.C. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Corporate      power.  The Borrower (or, in the case of paragraphs (a)      and (b), each Existing Owner) has the partnership or corporate capacity,      and has taken all partnership or corporate action and obtained all      consents necessary for it: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      own and register the Existing Ship owned by it under the relevant Approved      Flag; |
|-----|-----------------------------------------------------------------------------------------------|

| (b) | to      enter into, and perform its obligations under, the Existing Charter to      which it is a party; |
|-----|----------------------------------------------------------------------------------------------------------|

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

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

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

| 10.6 | Legal validity; effective      Security Interests.  The Finance Documents to which the      Borrower is a party, do now or, as the case may be, will, upon execution      and delivery (and, where applicable, registration as provided for in the      Finance Documents): |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

Index

| 10.7 | No third party Security      Interests.  Without limiting the generality of Clause      10.6, at the time of the execution and delivery of each Finance Document      to which the Borrower is a party: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 10.8 | No      conflicts.  The execution by the Borrower of each Finance      Document to which it is a party, and the borrowing by the Borrower of the      Loan, and its compliance with each Finance Document to which it is a party      will not involve or lead to a contraventionof: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

| 10.12 | No      litigation.  No legal or administrative action involving      the Borrower has been commenced or taken or, to the Borrower’s knowledge,      is likely to be commenced or taken. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Validity      and completeness of ExistingCharters. |
|-------|-----------------------------------------------------|

| (a) | each      Existing Charter constitutes valid, binding and enforceable obligations of      the parties thereto respectively in accordance with its terms;      and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | no      amendments or additions to any Existing Charter have been agreed (other      than those notified to the Facility Agent prior to the date of this      Agreement) nor has any party thereto waived any of their respective rights      under any Existing Charter. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.14 | Compliance with certain      undertakings.  At the date of this Agreement, the      Borrower is in compliance with Clauses 11.2, 11.4, 11.9      and  11.14. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.15 | Taxes      paid.  The Borrower has paid all taxes applicable to, or      imposed on or in relation to the Borrower and its  business. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10.16 | ISM and ISPS Code      compliance.  All requirements of the ISM Code and the      ISPS Code as they relate to the Borrower, any Owner, the Approved Manager      and any Existing Ship have been compliedwith. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|  | 10.17 | No money      laundering.  Without prejudice to the generality of      Clause 4.3, in relation to the borrowing by the Borrower of the Loan, the      performance and discharge of its obligations and liabilities under the      Finance Documents, and the transactions and other arrangements effected or      contemplated by the Finance Documents to which the Borrower is a party,      the Borrower confirms that it is acting for its own account and that the      foregoing will not involve or lead to contravention of any law, official      requirement or other regulatory measure or procedure implemented to combat      “money laundering” (as defined in Article 1 of the Directive (91/308/EEC)      of the Council of the EuropeanCommunities). |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 11.1 | General.  The      Borrower undertakes with each Creditor Party to comply with the following      provisions of this Clause 11 at all times during the Security Period      except as the Facility Agent may, with the authorisation of the Majority      Lenders, otherwise permit (which      permission shall not be unreasonably withheld in connection with Clause      11.13). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (b) | not      create or permit to arise any Security Interest over any other asset,      present or future other than in the normal course of its business of      acquiring and financing vessels;and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (a) | all      or a substantial part of its assets, whether by one transaction or a      number of transactions, whether related or not if such transfer, lease or      disposal results in the Borrower being in breach of any of the financial      covenants referred to in Clause 12.5 or in the occurrence of an Event of      Default; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 11.4 | No other liabilities or      obligations to be incurred.  The Borrower will not incur      any liability or obligation except liabilities and obligations under the      Finance Documents and liabilities or obligations reasonably incurred in      the ordinary course of its business of acquiring, operating and financing      vessels, acquiring shares in vessel owning companies and financing such      acquisitions and all other matters reasonably incidental thereto (which      shall include, without limitation, but subject to Clause 12.8, any      Financial Indebtedness which may be incurred by the Borrower in the      ordinary course of its business). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

| 11.6 | Provision of financial      statements.  The Borrower will send or procure there are      sent to the Facility Agent: |
|------|---------------------------------------------------------------------------------------------------------------------------------|

| (a) | as      soon as possible, but in no event later than 180 days after the end of      each financial year of the Borrower (commencing with the financial      statements for the year ending 31 December 2007), the audited consolidated      annual accounts of the Group; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | as      soon as possible, but in no event later than 90 days after the end of each      3-month period in each financial year of the Borrower (commencing with the      financial statements for the 3-month period ending 31 March      2008): |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      unaudited consolidated management accounts of the Group for that 3-month      period certified as to their correctness by the chief financial officer of      the Borrower; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      management accounts of each Owner for that 3-month period certified as to      their correctness by an officer of theBorrower; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (c) | promptly      after each request by the Facility Agent, such further financial      information about the Borrower, the Ships and the Owners (including, but      not limited to, charter arrangements, Financial Indebtedness and operating      expenses) as the Facility Agent mayrequire. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (c) | fully      disclose or provide for all significant liabilities of the relevant person      and its subsidiaries. |
|-----|------------------------------------------------------------------------------------------------------------------|

| 11.8 | Creditor      notices.  The Borrower will send to the Facility Agent,      at the same time as they are despatched, copies of all communications      which are despatched to all of its creditors or to the whole or any class      of them. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

----

Index

|  | 11.11 | Notification of      litigation.  The Borrower will provide the Facility Agent      with details of any legal or administrative action involving the Borrower,      any Security Party, the Approved Manager or the Ships, their Earnings or      their Insurances as soon as such action is instituted, unless it is clear      that the legal or administrative action cannot be considered material in      the context of any FinanceDocument. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.12 | No amendment to Master      Agreement;  Transactions.  The Borrower will      not: |
|--|-------|--------------------------------------------------------------------------------------------------------|

| (a) | agree      to any amendment or supplement to, or waive or fail to enforce, the Master      Agreement or any of its provisions;or |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (b) | enter      into any Transaction pursuant to the Master Agreement except Designated      Transactions. |
|-----|-------------------------------------------------------------------------------------------------------|

|  | 11.13 | No amendment to the Existing      Charters and of the Charterparty.  The Borrower will      ensure that no Owner shall agree to any material amendment or supplement      to, or waive or fail to enforce, any Existing Charter or any Charterparty      or any of its provisions. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.14 | Principal place of      business.  The Borrower will maintain its place of      business, and keep its corporate documents and records, at the address      stated at Clause 28.2(a) and the Borrower will not establish nor do      anything as a result of which it would be deemed to have, a place of      business in England or the United States of  America. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.15 | Confirmation of no      default.  The Borrower will, within 2 Business Days after      service by the Facility Agent of a written request, serve on the Facility      Agent a notice which is signed by 2 directors of the Borrower and      which: |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | the      Facility Agent may serve requests under this Clause 11.15 from time to      time;  this Clause 11.15 does not affect the Borrower’s      obligations under Clause 11.16. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.16 | Notification of      default.  The Borrower will notify the Facility Agent as      soon as the Borrower becomes awareof: |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | any      matter which indicates that an Event of Default may have      occurred, |
|-----|----------------------------------------------------------------------------------|

|  | 11.17 | Provision of further      information.  The Borrower will, as soon as practicable      after receiving the request, provide the Facility Agent with any      additional financial or other information  relating: |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | to      the Borrower, the Ships, their Insurances, their Earnings or the Owners;      or |
|-----|------------------------------------------------------------------------------------------|

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

----

Index

|  | 11.18 | General and administrative      costs.  The Borrower shall ensure that the payment of all      the general and administrative costs of the Borrower and the Owners in      connection with the ownership and operation of the Ships (including,      without limitation, the payment of the management fees pursuant to the      Management Agreements) shall be fully subordinated to the payment      obligations of the Borrower and the Owners under this Agreement and the      other Finance Documents throughout the Security  Period. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.19 | Provision of copies of SEC      filings.  The Borrower will send to the Facility Agent      copies of all filings made with, and reports submitted to, the US      Securities and Exchange Commission promptly after making such filings or      submitting such reports  Provided that any such      filings or reports which are made available to the public shall be      considered to have been delivered to the Facility Agent subject to the      Borrower first having notified the Facility Agent that such filings or      reports have been made orsubmitted. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.20 | Provision of copies and      translation of documents.  The Borrower will supply the      Facility Agent with a sufficient number of copies of the documents      referred to above to provide 1 copy for each Creditor Party; and if the      Facility Agent so requires in respect of any of those documents, the      Borrower will provide a certified English translation prepared by a      translator approved by the FacilityAgent. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11.21 | Hedging of interest rate      risks.  The Borrower shall from time to time enter into      Designated Transactions with the Swap Bank in order to hedge all the      interest rate risk under thisAgreement. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 12.1 | General.  The      Borrower also undertakes with each Creditor Party to comply with the      following provisions of this Clause 12 at all times during the Security      Period except as the Facility Agent may, with the authorisation of the      Majority Lenders, otherwise permit (such permission not to be unreasonably      withheld in the case of Clause12.3(d)). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Maintenance of      status.  The Borrower will maintain its separate      existence as a limited partnership and remain in good standing under the      laws of the Republic of the MarshallIslands. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (b) | pay      any dividend or make any other form of distribution or effect any form of      redemption, purchase or return of share capital Provided that the      Borrower may make a distributionif: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Borrower has first submitted to the Facility Agent a Compliance      Certificate (with supporting evidence satisfactory to the Facility Agent)      which confirms that (A) no Event of Default has occurred or is continuing      and (B) the making of such distribution will not result in the Borrower      being in breach of any of the financial covenants referred to in Clause      12.5 or in the occurrence of an Event of Default;  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      Facility Agent is satisfied that the Security Cover Ratio referred to in      Clause 15.1 is maintained at the time the distribution is      made; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

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

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

|   | or      enter into any transaction with or involving such a person or company on      terms which are, in any respect, less favourable to the Borrower than      those which it could obtain in a bargain made at arms’      length  Provided that this shall      not prevent or restrict the Borrower from on-lending the Loan to the      Owners; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | allow      any Owner to open or maintain any account with any bank or financial      institution except accounts with the Facility Agent or any other Creditor      Party for the purposes of the Finance Documents  Provided that until the      completion of the syndication process (as referred to in Clause 12.8) an      Owner may continue to maintain any other accounts already opened with      other banks for the purposes of previous  financings; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | cause      the common units of the Borrower to cease to be listed on the Nasdaq      National Market in New York unless the common units of the Borrower are      listed instead on any other internationally recognised stock exchange      acceptable to the Lenders, such acceptance not to be unreasonably      withheld. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 12.5 | Financial      Covenants.  The Borrower shall ensure that at all      times: |
|------|----------------------------------------------------------------------------------------|

| (a) | the      ratio of Total Indebtedness less unencumbered cash and cash equivalents to      the aggregate Market Value of all the Fleet Vessels shall not exceed      0.725:1; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the      ratio of EBITDA to Net Interest Expenses (calculated on a trailing      4-quarter basis (or such other period as the Facility Agent (acting upon      the instructions of the Majority Lenders) may otherwise reasonably      require)) shall be no less than 2:1;and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | at      all times the Borrower and all the other members of the Group shall      maintain immediately freely available and unencumbered bank or cash      deposits in an aggregate amount of not less than the product of $500,000      and the number of Ships which are subject to a Mortgage at the relevant      time, 50 per cent. of such liquidity may be constituted by undrawn      Commitments under the RevolvingFacility. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.6 | Compliance      Check.  Compliance with the undertakings contained in      Clause 12.5 shall be determined by reference to the unaudited consolidated      accounts for the first 3 financial quarters in each Financial Year of the      Borrower and for the fourth financial quarter in each Financial Year of      the Borrower, the audited consolidated accounts for that Financial Year of      the Group delivered to the Facility Agent pursuant to this      Agreement.  At the same      time as it delivers those consolidated accounts, the Borrower shall      deliver to the Facility Agent a Compliance Certificate signed by the chief      financial officer of theBorrower. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 12.7 | Maintenance of ownership of      Owners.  The Borrower shall remain the ultimate legal      owner of the entire issued and allotted share capital of each Owner which      at the relevant time is party to a Guarantee free from any Security      Interest. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.8 | Free Syndication      market.  The Borrower shall not, and shall ensure that no      Owner and no member of the Group shall, until the earlier of 30 August      2008 and the date on which the Facility Agent declares that the primary      syndication of the Loan has closed: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | syndicate      or issue or attempt to syndicate or issue;or |
|-----|-------------------------------------------------------------|

| (b) | announce      or authorise the announcement of the syndication or issuance of;      or |
|-----|----------------------------------------------------------------------------------------|

| (c) | engage      in discussions concerning the syndication or issuance  of, |
|-----|------------------------------------------------------------------------|

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

| 13.1 | General.  The      Borrower undertakes with each Creditor Party to procure that each Owner      will comply with the following provisions of this Clause 13 at all times      during the Security Period (after the Ship which is owned or to be owned      by that Owner has been delivered to it under the relevant Shipbuilding      Contract) except as the Facility Agent may, with the authorisation of the      Majority Lenders, otherwise permit (which permission has been given to      each Owner whose Ship is subject to a bareboat charter with BP and such      permission shall be deemed to be given to each Owner whose Ship may from      time to time be subject to a bareboat charter with  BP). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

| (b) | in      the case of fire and usual marine risks and war risks, in such amounts as      shall from time to time be approved by the Facility Agent but in any event      in an amount not less than      the greater of (i) the Market Value of the Ship owned by that Owner for      the time being and (ii) such amount, which when aggregated with the amount      for which any other Ship then subject to a Mortgage is insured, is equal      to 120 per cent. of the Loan;and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

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

| (e) | on      such terms as shall from time to time be approved in writing by the      Facility Agent (including, without limitation, a blocking and trapping      clause); and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (a) | (except      in relation to risks referred to in Clause 13.2(c)) name (or be amended to      name) the Security Trustee as additional named assured for its rights and      interests, warranted no operational interest and with full waiver of      rights of subrogation against the Security Trustee, but without the      Security Trustee thereby being liable to pay (but having the right to pay)      premiums, calls or other assessments in respect of such insurance and      shall not name any other additional assured without the prior written      consent of the Security Trustee, such consent not to be unreasonably      withheld and excluding the Approved Manager and any bareboat      charterer; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | name      the Security Trustee as sole loss payee with such directions for payment      as the Security Trustee mayspecify; |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (f) | provide      that the Security Trustee may make proof of loss if the Owners fail to do      so;  and |
|-----|----------------------------------------------------------------------------------------------------------------|

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

----

Index

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

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

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

|   | (ii) | in      case of any substantial change in insurance cover, obtain the Majority      Lenders’ approval to the matters referred to in paragraph (i)      above; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | at      least 14 days before the expiry of any obligatory insurance, renew the      insurance; and |
|-----|----------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

----

Index

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

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

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

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

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

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

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

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

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

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

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

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

----

Index

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

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

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

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

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

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

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

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

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

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

| (b) | effecting,      maintaining or renewing any such insurances as are referred to in Clause      13.17 below or dealing with or considering any matters relating to any      such insurances, and      the Borrower shall procure that each Owner shall, forthwith upon demand,      indemnify the Security Trustee in respect of all reasonable fees and other      expenses incurred by or for the account of the Security Trustee in      connection with any such report as is referred to in paragraph (a)      above. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13.17 | Mortgagee’s interest,      additional perils.  The Security Trustee shall be      entitled from time to time to effect, maintain and renew all or any of the      following insurances in an amount equal to 120 per cent. of the Loan in      the case of the mortgagee’s interest marine insurance referred to in      paragraph (a) below and in an amount equal to 110 per cent. of the Loan in      the case of the mortgagee’s interest additional perils policy referred to      in paragraph (b) below, on such terms, through such insurers and generally      in such manner as the Majority Lenders may from time to time consider      appropriate: |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | a      mortgagee’s interest marine insurance in relation to each Ship in such      amount as the Security Trustee may consider appropriate, providing for the      indemnification of the Security      Trustee for any losses under or in connection with any Finance Document      which directly or indirectly result from loss of or damage to any Ship or      a liability of any Ship or of any Owner, being a loss or damage which is      prima facie covered by an obligatory insurance but in respect of which      there is a non-payment (or reduced payment) by the underwriters by reason      of, or on the basis of an allegation  concerning: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (i) | any      act or omission on the part of an Owner, of any operator, charterer,      manager or sub-manager of the Ship owned by it or of any officer, employee      or agent of that Owner or of any such person, including any breach of      warranty or condition or any non-disclosure relating to such obligatory      insurance; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (b) | a      mortgagee’s interest additional perils policy in relation to each Ship in      such amount as the Security Trustee may consider appropriate, providing      for the indemnification of the Security Trustee against, among other      things, any possible losses or other consequences of any Environmental      Claim, including the risk of expropriation, arrest or any form of      detention of a Ship, the imposition of any Security Interest over a Ship      and/or any other matter capable of being insured against under a      mortgagee’s interest additional perils policy whether or not similar to      the foregoing, |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | and      the Borrower shall upon demand fully indemnify the Security Trustee in      respect of all premiums and other expenses which are incurred in      connection with or with a view to effecting, maintaining or renewing any      such insurance or dealing with, or considering, any matter arising out of      any such insurance. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|  | 13.20 | Compliance with mortgagee’s      instructions.  The Security Trustee shall be entitled      (without prejudice to or limitation of any other rights which it may have      or acquire under any Finance Document) to require a Ship to remain at any      safe port or to proceed to and remain at any safe port designated by the      Security Trustee until the relevant Owner implements any amendments to the      terms of the obligatory insurances and any operational changes required as      a result of a notice served under Clause13.19. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 14 | SHIPCOVENANTS |
|----|---------------|

| 14.1 | General.  The      Borrower also undertakes with each Creditor Party to procure that each      Owner complies with the following provisions of this Clause 14 at all      times during the Security Period (after the Ship has been delivered to it      under the Shipbuilding Contract) except as the Facility Agent, with the      authorisation of the Majority Lenders, may otherwise permit (in the case      of the Clauses 14.2, 14.3(b) and 14.13(e), such permission not to be      unreasonably withheld). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Ship’s name and      registration.  The Borrower shall procure that each Owner      shall keep the Ship owned by it registered in its name under the relevant      Approved Flag; shall not do or allow to be done anything as a result of      which such registration might be cancelled or imperilled; and shall not      change the name or port of registry of that  Ship. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (b) | so      as to maintain the highest class with an Approved Classification Society      acceptable to the Majority Lenders free of overdue recommendations and      conditions and, upon the Security Trustee’s request, the Approved      Classification Society shall provide the Security Trustee with any      information and documentation required in respect of the Ship as the same      is maintained in the records of the Approved Classification Society;      and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 14.7 | Technical      Survey.  Without prejudice to the Owners’ obligations      pursuant to Clause 14.6, if the survey report to be delivered as a      condition to the drawdown of the Advance which shall be used to (inter      alia) finance or refinance a Ship (as referred to in the applicable      paragraph of Schedule 3) is not satisfactory to the Facility Agent (acting      reasonably), the Borrower shall procure that the relevant Owner shall      promptly following the request of the Facility Agent (to be made within 6      months of the Drawdown Date relative to the Advance which was used (inter      alia) to finance or refinance such Ship) submit      the Ship owned by it for a technical survey by an independent surveyor or      surveyors appointed by the Facility Agent. All fees and expenses incurred      in relation to the appointment of the surveyor or surveyors and the      preparation and issue of all technical reports pursuant to this Clause      14.7 shall be for the account of the  Borrower. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 14.8 | Inspection.  The      Borrower shall procure that each Owner shall permit the Security Trustee      (by surveyors or other persons appointed by it for that purpose) to board      the Ship owned by it at all reasonable times to inspect her condition or      to satisfy themselves about proposed or executed repairs and shall afford      all proper facilities for such inspections  Provided      that  so long as a Ship is found to be in a satisfactory      condition to the Facility Agent (acting reasonably) and no continuing      Event of Default or Potential Event of Default shall be in existence, the      Borrower or the relevant Owner, as the case may be, shall not be obliged      to pay the fees and expenses incurred in connection with the inspection of      the relevant Ship more than once in any twelve-month    period. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.9 | Prevention of and release from      arrest.  The Borrower shall procure that each Owner shall      promptly discharge: |
|------|----------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | and,      forthwith upon receiving notice of the arrest of the Ship owned by it, or      of her detention in exercise or purported exercise of any lien or claim,      the Borrower shall procure her release by providing bail or otherwise as      the circumstances may require. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.10 | Compliance with laws      etc.  The Borrower shall procure that each Owner      shall: |
|--|-------|--------------------------------------------------------------------------------------------------|

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

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

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

|  | 14.11 | Provision of      information.  The Borrower shall procure that each Owner      shall promptly provide the Security Trustee with any information which the      Majority Lenders request regarding: |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

Index

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

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

| (e) | its      compliance or the compliance of the Ship owned by it with the ISM Code and      the ISPS Code, and,      upon the Security Trustee’s request, provide copies of any current charter      relating to the Ship owned by it and of any current charter guarantee, and      copies of the ISM Code Documentation and the  ISCC. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.12 | Notification of certain      events.  The Borrower shall procure that each Owner shall      immediately notify the Security Trustee by letter  of: |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| (e) | any      intended dry docking of the Ship owned by it where the cost of the dry      docking will, or is likely to, exceed $500,000 (or the equivalent in any      other currency) in aggregate; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | and      that Owner shall keep the Security Trustee advised in writing on a regular      basis and in such detail as the Security Trustee shall require of that      Owner’s, the Approved Manager’s or any other person’s response to any of      those events or matters. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.13 | Restrictions on, appointment of      managers  etc.  The Borrower shall procure that      no Owner shall: |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------|

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

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

| (c) | appoint      a manager of the Ship owned by it other than the Approved      Manager; |
|-----|--------------------------------------------------------------------------------------|

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

----

Index

| (e) | put      the Ship owned by it into the possession of any person for the purpose of      work being done upon her in an amount exceeding or likely to exceed      $750,000 (or the equivalent in any other currency) unless that person has      first given to the Security Trustee and in terms satisfactory to it a      written undertaking not to exercise any lien on that Ship or her Earnings      for the cost of such work orotherwise. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.14 | Notice of      Mortgage.  The Borrower shall procure that each Owner      shall keep the Mortgage registered against the Ship owned by it as a valid      first priority or, as the case may be, preferred mortgage, carry on board      that Ship a certified copy of the relevant Mortgage and place and maintain      in a conspicuous place in the navigation room and the Master’s cabin of      that Ship a framed printed notice stating that that Ship is mortgaged by      that Owner to the Security Trustee. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.15 | Sharing of      Earnings.  The Borrower shall procure that no Owner      shall: |
|--|-------|-------------------------------------------------------------------------------------------|

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

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

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

|  | 14.16 | Time Charter      Assignment.  If any Owner enters into any Charterparty or      a bareboat charter in respect of its Ship, the Borrower shall procure that      the relevant Owner shall, at the request of the Facility Agent, execute in      favour of the Security Trustee a Charterparty Assignment or, in the case      of a bareboat charter, a Bareboat Charter Security Agreement, and shall      deliver to the Facility Agent such other documents equivalent to those      referred to at paragraphs 3, 4 and 5 of Part A of Schedule 3 hereof as the      Facility Agent may require. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14.17 | Bareboat      Charters.  Any Owner may enter into a  bareboat      charter in respect of its Ship subject to the following      conditions: |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | such      bareboat charter shall be with one of the charterers which is a party to      an Existing Charter or an affiliate or subsidiary of such charterer or any      other company which in the reasonable opinion of the Majority Lenders is      equivalent to any such charterer or any other company which may be      approved by the Majority Lenders (acting reasonably)  and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | each      such bareboat charterer shall enter into and execute a Bareboat Charter      Security Agreement except in circumstances where the Majority Lenders      (acting reasonably) may agreeotherwise. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15 | SECURITYCOVER |
|----|---------------|

| 15.1 | Provision of additional      security cover; prepayment of Loan.  The Borrower      undertakes with each Creditor Party that, if the Facility Agent notifies      the Borrower that at any time after the Drawdown Date of the first Advance      to be drawn under this Agreement the aggregate Market Value of the Ships      subject to a Mortgage is below 125 per cent. of the Loan, the Borrower      will, within 1 month after the date on which the Facility Agent’s notice      is served, either: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | provide,      or ensure that a third party provides, additional security which, in the      opinion of the Majority Lenders, has a net realisable value at least equal      to the shortfall and which consists of either (i) cash pledged to the      Security Trustee or (ii) a Security Interest (including, but not limited      to, a first priority or, as the case may be, preferred mortgage over      another vessel), covering such asset or assets and documented in such      terms as the Facility Agent may, with authorisation from the Majority      Lenders, approve or require;or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

| 15.2 | Meaning of additional      security.  In Clause 15.1 “security” means a      Security Interest over an asset or assets (whether securing the Borrower’s      liabilities under the Finance Documents or a guarantee in respect of those      liabilities), or a guarantee, letter of credit or other security in      respect of the Borrower’s liabilities under the Finance      Documents. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 15.4 | Valuation of      Ships.  The market value of a Ship at any date is that      shown by the average of two valuationsprepared: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

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

| (b) | by      2 Approved Brokers, one appointed by the Borrower and the other by the      Facility Agent; |
|-----|-----------------------------------------------------------------------------------------------------|

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

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

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

| 15.5 | Value of additional      security.  The net realisable value of any additional      security which is provided under Clause 15.1 and which consists of a      Security Interest over a vessel shall be that shown by a valuation      complying with the requirements of Clause15.4. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 15.7 | Provision of      information.  The Borrower shall promptly provide the      Facility Agent and any Approved Broker or expert acting under Clause 15.4      or 15.5 with any information which the Facility Agent or the Approved      Broker or expert may request for the purposes of the valuation; and, if      the Borrower fails to provide the information by the date specified in the      request, the valuation may be made on any basis and assumptions which the      Approved Broker or the Majority Lenders (or the expert appointed by them)      consider prudent. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 15.8 | Payment of valuation      expenses.  Without prejudice to the generality of the      Borrower’s obligations under Clauses 20.2, 20.3 and 21.3, the Borrower      shall, on demand, pay the Facility Agent the amount of the reasonable fees      and expenses of any Approved Broker or expert instructed by the Facility      Agent under this Clause and all reasonable legal and other expenses      incurred by any Creditor Party in connection with any matter arising out      of this Clause  Provided that so long as      no Event of Default or Potential Event of Default shall have occurred and      be continuing the Borrower shall not be obliged to pay such fees or      expenses in respect of more than one set of valuations of each Ship in any      twelve-month period. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.9 | Frequency of      valuations.  The Borrower acknowledges and agrees that      the Facility Agent may commission valuations of the Ships at such times as      the Majority Lenders shall reasonably deem necessary and, in any event,      not less often than once during each 12-month period of the Security      Period. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

|   | under      a Finance Document shall be made to the Facility Agent or to the Security      Trustee, in the case of an amount payable toit: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (iii) | in      the case of an amount payable by a Lender to the Facility Agent or by the      Borrower to the Facility Agent or any Lender, to the account of the      Facility Agent at JP Morgan Chase Bank, New York, SWIFT Code CHASUS33 (Account No      001-1-331808 under reference “Capital Product Partners L.P. - US$350m      Facility”), or to such other account with such other bank as the Facility      Agent may from time to time notify to the Borrower and the other Creditor      Parties; and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 16.2 | Payment on non-Business      Day.  If any payment by the Borrower under a Finance      Document would otherwise fall due on a day which is not a Business      Day: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

----

Index

| 16.4 | Distribution of payments to      Creditor Parties.  Subject to Clauses 16.5, 16.6 and      16.7: |
|------|------------------------------------------------------------------------------------------------------------|

| (a) | any      amount received by the Facility Agent under a Finance Document for      distribution or remittance to a Lender or the Security Trustee shall be      made available by the Facility Agent to that Lender or, as the case may be      or the Security Trustee by payment, with funds having the same value as      the funds received, to such account as the Lender or the Security Trustee      may have notified to the Facility Agent not less than 5 Business Days      previously; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | amounts      to be applied in satisfying amounts of a particular category which are due      to the Lenders generally shall be distributed by the Facility Agent to      each Lender pro rata to the amount in that category which is due to      it. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

----

Index

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

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

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

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

|   | (ii) | secondly,      in or towards satisfaction pro rata of any and all amounts of interest or      default interest payable to the Creditor Parties under the Finance      Documents (other than under the Master Agreement);  and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | thirdly,      in or towards satisfaction of theLoan; |
|--------|-------|------------------------------------------------------|

| (b) | SECONDLY:  in      or towards satisfaction of any amounts then due and payable under the      Master Agreement in the following order and  proportions: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | first,      in or towards satisfaction pro rata of all amounts then due and payable to      the Swap Bank under the Master Agreement other than those amounts referred      to at paragraphs (ii) and (iii); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

----

Index

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

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

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

| 17.4 | Appropriation rights      overridden.  This Clause 17 and any notice which the      Facility Agent gives under Clause 17.2 shall override any right of      appropriation possessed, and any appropriation made, by the Borrower or      any Security Party. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 18.1 | Payment of      Earnings.  The Borrower undertakes with each Creditor      Party to ensure that, throughout the Security Period (subject only to the      provisions of the General Assignments), all the Earnings of each Ship are      paid to the Earnings Account for that Ship and all payments by the Swap      Bank to the Borrower under a Designated Transaction are paid to the Swap      Account.  Any monies standing to the credit of the Earnings      Accounts shall be freely available to the Owners subject to there not      being any Event of Default or Potential Event of Default in existence at      the relevant time. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | Retentions.  The      Borrower undertakes with each Creditor Party (only if the circumstances      referred to in Clause 8.2(a) shall apply at the relevant time) to ensure      that no later than 3 Business Days after a Relevant Distribution      Declaration Date, there shall be transferred to the Retention Account out      of the aggregate Earnings received in the Earnings Accounts, the repayment      instalment falling due under Clause 8.2(a) at that  time. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | Application of      Earnings.  The Borrower undertakes with the Lenders to      procure that money from time to time credited to, or for the time being      standing to the credit of, an Earnings Account shall, unless and until an      Event of Default or Potential Event of Default shall have occurred      (whereupon the provisions of Clause 17.1 shall be and become applicable),      be available for application in the following  manner: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | in      or towards meeting the costs and expenses from time to time incurred by or      on behalf of the relevant Owner in connection with the operation of the      Ship owned by it; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | in      or towards making payments of all amounts due and payable by the Borrower      under this Agreement other than the payments of principal and interest      pursuant to Clauses 8.2 and 5.1; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in      or towards making any transfers to the Retention Account in accordance      with Clause 18.2; and |
|-----|-----------------------------------------------------------------------------------------------------------|

----

Index

| (d) | as      to any surplus from time to time arising on an Earnings Account following      application as aforesaid, to be paid to the relevant Owner or to      whomsoever it may direct. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4 | Application of      retentions.  Until an Event of Default occurs, the      Facility Agent shall on each due date for the payment of interest under      this Agreement distribute to the Lenders in accordance with Clause 16.4 so      much of the then balance on the Retention Account as equals any repayment      instalment due in accordance with Clause 8.2(a) on that interest payment      date in discharge of the Borrower’s liability for that repayment      instalment. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.5 | Interest accrued on Retention      Account.  Any credit balance on the Retention Account      shall bear interest at the rate from time to time offered by the Facility      Agent to its customers for Dollar deposits of similar amounts and for      periods similar to those for which such balances appear to the Facility      Agent likely to remain on the RetentionAccount. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.6 | Release of accrued      interest.  Interest accruing under Clause 18.5 shall be      released to the Borrower on each interest payment date unless an Event of      Default or a Potential Event of Default has occurred or the then credit      balance on the Retention Account is less than what would have been the      balance had the full amount required by Clause 18.2 been transferred in      that and each previous month. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.7 | Location of      accounts.  The Borrower shall  promptly: |
|------|---------------------------------------------------------------------|

| (a) | comply      or procure compliance by the Owners with any requirement of the Facility      Agent as to the location or re-location of the Retention Account, the Swap      Account and the Earnings Accounts (or any of them);  and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | execute      any documents which the Facility Agent specifies to create or maintain in      favour of the Lenders a Security Interest over the Retention Account, the      Swap Account and the Earnings Accounts (or any of  them). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19 | EVENTS OFDEFAULT |
|----|------------------|

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

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

| (b) | any      breach occurs of Clause 9.2, 11.2, 11.3, 12.2, 12.3, 12.5, 13.2, 13.3,      15.1 or 18.1; or |
|-----|-------------------------------------------------------------------------------------------------------|

| (c) | any      breach by the Borrower or any Security Party occurs of any provision of a      Finance Document (other than a breach covered by paragraphs (a) or (b)      above) if, in the reasonable opinion of the Majority Lenders, such default      is capable of remedy, and such default continues unremedied 20 days after      written notice from the Facility Agent requesting action to remedy the      same; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

Index

| (f) | any      of the following occurs in relation to any Financial Indebtedness of a      Relevant Person exceeding $750,000 (or, in the case of the Borrower,      $5,000,000) (or, in either case, the equivalent in any other currency) in      aggregate: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

|   | (ii) | any      assets of a Relevant Person are subject to any form of execution,      attachment, arrest, sequestration or distress in respect of a sum of, or      sums aggregating, $1,000,000 or more or the equivalent in another currency      unless such execution, attachment, arrest, sequestration or distress is      dismissed, withdrawn, released or lifted within 15 Business Days of the      occurrence of such event; or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

Index

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

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

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

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

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

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

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

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

| (k) | if      the common units of the Borrower cease to be quoted on the Nasdaq National      Market in New York or any other internationally recognised stock exchange      acceptable to the Lenders or if the whole of the issued share capital of      any Owner whose Ship is at the relevant time subject to a Mortgage is not      wholly owned by the Borrower; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (m) | the      Master Agreement is terminated, cancelled, suspended, rescinded or revoked      or otherwise ceases to remain in full force and effect for any reason      except with the consent of the Facility Agent, acting with the      authorisation of the Majority Lenders;or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n) | an      Event of Default (as defined in Section 14 of the Master Agreement) occurs      which remains unremedied 5 Business Days after the occurrence thereof;      or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

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

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

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

|   | in      the light of which the Majority Lenders reasonably consider that there is      a significant risk that any Security Party is, or will later become,      unable to discharge its liabilities under the Finance Documents as they      fall due. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

| 19.4 | Acceleration of      Loan.  On the service of a notice under paragraph (a)(ii)      of Clause 19.2, the Loan, all accrued interest and all other amounts      accrued or owing from the Borrower or any Security Party under this      Agreement and every other Finance Document shall become immediately due      and payable or, as the case may be, payable on  demand. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

Index

| 19.7 | Lender’s rights      unimpaired.  Nothing in this Clause shall be taken to      impair or restrict the exercise of any right given to individual Lenders      under a Finance Document or the general law; and, in particular, this      Clause is without prejudice to Clause3.1. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | except      that this does not exempt a Creditor Party or a receiver or manager from      liability for losses shown to have been caused by the gross negligence or      the wilful misconduct of such Creditor Party’s own officers and employees      or ( as the case may be) such receiver’s or manager’s own partners or      employees. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.9 | Relevant      Persons.  In this Clause 19 “a Relevant Person” means      the Borrower, an Owner and any company which is a subsidiary of the      Borrower or an Owner. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 19.10 | Interpretation.  In      Clause 19.1(f) references to an event of default or a termination event      include any event, howsoever described, which is similar to an event of      default in a facility agreement or a termination event in a finance lease;      and in Clause 19.1(g) “petition” includes an      application. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20 | FEES ANDEXPENSES |
|----|------------------|

| 20.1 | Commitment and certain other      fees.  The Borrower shall pay to the Facility      Agent: |
|------|-------------------------------------------------------------------------------------------------------|

| (a) | a      commitment fee for distribution among the Lenders pro rata to their      Commitments at the rate of 0.325 per cent. per annum on the amount of the      Total Commitments less the amount of the Loan for the period from (and      including) the date of this Agreement up to and including the Termination      Date, such fee to be paid quarterly in arrears and on the last day of such      period; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | certain      other fees as are referred to in the Fee Letter, such fees to be in such      amount and to be payable at the times and in the manner referred to in the      Fee Letter. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | Costs of negotiation,      preparation etc.  The Borrower shall pay to the Facility      Agent on its demand the amount of all expenses incurred by the Facility      Agent or the Security Trustee in connection with the negotiation,      preparation, execution or registration of any Finance Document or any      related document (including, for the avoidance of doubt, any expenses      incurred by the Lenders in obtaining the legal opinions referred to in      Schedule 3) or with any transaction contemplated by a Finance Document or      a related document. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.3 | Costs of variations,      amendments, enforcement etc.  The Borrower shall pay to      the Facility Agent, on the Facility Agent’s demand, the amount of all      expenses incurred by a Lender in connection  with: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

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

| (c) | the      valuation of any security provided or offered under Clause 15 or any other      matter relating to such security; |
|-----|----------------------------------------------------------------------------------------------------------------------------|

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

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

|   | There      shall be recoverable under paragraph (d) the full amount of all legal      expenses, whether or not such as would be allowed under rules of court or      any taxation or other procedure carried out under such    rules. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

| (c) | any      failure (for whatever reason) by the Borrower to make payment of any      amount due under a Finance Document on the due date or, if so payable, on      demand (after giving credit for any default interest paid by the Borrower      on the amount concerned under Clause 7);and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the      occurrence and/or continuance of an Event of Default or a Potential Event      of Default and/or the acceleration of repayment of the Loan under Clause      19, and      in respect of any tax (other than tax on its overall net income) for which      a Creditor Party is liable in connection with any amount paid or payable      to that Creditor Party (whether for its own account or otherwise) under      any Finance Document. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

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

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

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

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

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

|   | other      than liability items which are shown to have been caused by the gross      negligence or the wilful misconduct of the Facility Agent’s or (as the      case may be) the Security Trustee’s own officers or    employees. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a) | any      matter which would be covered by Clause 20.3 if any of the references in      that Clause to a Lender were a reference to the Facility Agent or (as the      case may be) to the Security Trustee;and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any      liability items which arise, or are asserted, under or in connection with      any law relating to safety at sea, pollution or the protection of the      environment, the ISM Code or the ISPSCode. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

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

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

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

|   | the      Borrower shall indemnify the Creditor Party concerned against the loss      arising when the amount of the payment actually received by that Creditor      Party is converted at the available rate of exchange into the Contractual      Currency. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      this Clause 21.5, the “available rate of      exchange” means the rate at which the Creditor Party concerned is      able at the opening of business (London time) on the Business Day after it      receives the sum concerned to purchase the Contractual Currency with the      Payment Currency. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | This      Clause 21.5 creates a separate liability of the Borrower which is distinct      from its other liabilities under the Finance Documents and which shall not      be merged in any judgment or order relating to those other      liabilities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 21.7 | Sums deemed due to a      Lender.  For the purposes of this Clause 21, a sum      payable by the Borrower to the Facility Agent or the Security Trustee for      distribution to a Lender shall be treated as a sum due to that      Lender. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| 22.2 | Grossing-up for      taxes.  If the Borrower is required by law to make a tax      deduction from any payment: |
|------|--------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

----

Index

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

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

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

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

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

|   | for      the Notifying Lender to maintain or give effect to any of its obligations      under this Agreement in the manner contemplated by this      Agreement. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 23.3 | Prepayment; termination of      Commitment.  On the Facility Agent notifying the Borrower      under Clause 23.2, the Notifying Lender’s Commitment shall terminate; and      thereupon or, if later, on the date specified in the Notifying Lender’s      notice under Clause 23.1 as the date on which the notified event would      become effective the Borrower shall prepay the Notifying Lender’s      Contribution in accordance with Clause8. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24 | INCREASEDCOSTS |
|----|----------------|

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

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

| (b) | the      effect of complying with any regulation (including any which relates to      capital adequacy or liquidity controls or which affects the manner in      which the Notifying Lender allocates capital resources to its obligations      under this Agreement including, without limitation, the implementation of      any regulations which may replace those set out in the statement of the      Basle Committee on Banking Regulations and Supervisory Practices dated      July 1998 and entitled “International Convergence of Capital Measurement      and Capital Structures”) which is introduced, or altered, or the      interpretation or application of which is altered, after the date of this      Agreement, |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | is      that the Notifying Lender (or a parent company of it) has incurred or will      incur an “increased      cost”, that is to say,: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

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

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

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

|   | but      not an item attributable to a change in the rate of tax on the overall net      income of the Notifying Lender (or a parent company of it) or an item      covered by the indemnity for tax in Clause 21.1 or by Clause      22. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      the purposes of this Clause 24.1 the Notifying Lender may in good faith      allocate or spread costs and/or losses among its assets and liabilities      (or any class thereof) on such basis as it considers      appropriate. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.2 | Notification to Borrower of      claim for increased costs.  The Facility Agent shall      promptly notify the Borrower and the Security Parties of the notice which      the Facility Agent received from the Notifying Lender under Clause      24.1. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3 | Payment of increased      costs.  The Borrower shall pay to the Facility Agent, on      the Facility Agent’s demand, for the account of the Notifying Lender the      amounts which the Facility Agent from time to time notifies the Borrower      that the Notifying Lender has specified to be necessary to compensate the      Notifying Lender for the increasedcost. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.4 | Notice of      prepayment.  If the Borrower is not willing to continue      to compensate the Notifying Lender for the increased cost under Clause      24.3, the Borrower may give the Facility Agent not less than 15 days’      notice of its intention to prepay the Notifying Lender’s Contribution at      the end of an Interest Period. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| 25.1 | Application of credit      balances.  Each Creditor Party may following the      occurrence of an Event of Default and without prior  notice: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

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

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

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

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

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

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

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

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

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

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

| 26.2 | Transfer by a      Lender.  Subject to Clause 26.4 and the other terms and      conditions of this Clause 26.2, a Lender (the “Transferor Lender”) may      at any time cause: |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | to      be (in the case of its rights) transferred to, or (in the case of its      obligations) assumed by, any third party, another bank, financial      institution, pension scheme or single purpose vehicle (a “Transferee Lender”) by      delivering to the Facility Agent a completed certificate in the form set      out in Schedule 4 with any modifications approved or required by the      Facility Agent (a “Transfer Certificate”)      executed by the Transferor Lender and the Transferee    Lender. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | require      the prior written consent of the Facility Agent (except in the case of a      transfer to a subsidiary of aLender); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (ii) | the      Contribution or Commitment (or the combination of the two) being      transferred by the Transferor Lender to the Transferee Lender shall not be      less than $30,000,000; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | be      effected without the consent of, but with notice to, the Borrower and      without any cost to the Borrower: |
|--------|-------|----------------------------------------------------------------------------------------------------------------------|

|   | (A) | following      the occurrence of an Event ofDefault; |
|--------|-----|------------------------------------------------------|

|   | (B) | if      such transfer is to a subsidiary or any other company or financial      institution which is in the same ownership or control as the Transferor      Lender; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | require      the consent of the Borrower (such consent not to be unreasonably withheld      or delayed) in all othercircumstances. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

| 26.6 | Lender re-organisation; waiver      of Transfer Certificate.  However, if a Lender enters      into any merger, de-merger or other reorganisation as a result of which      all its rights or obligations vest in another person (the “successor”), the      Facility Agent may, if it sees fit, by notice to the successor and the      Borrower and the Security Trustee waive the need for the execution and      delivery of a Transfer Certificate; and, upon service of the Facility      Agent’s notice, the successor shall become a Lender with the same      Commitment and Contribution as were held by the predecessor      Lender. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

Index

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

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

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

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

| (f) | the      Transferee Lender becomes entitled to all the rights under the Finance      Documents which are applicable to the Lenders generally, including but not      limited to those relating to the Majority Lenders and those under Clause      5.7 and Clause 20, and to the extent that the Transferee Lender becomes      entitled to such rights, the Transferor Lender ceases to be entitled to      them; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | The      rights and equities of the Borrower or any Security Party referred to      above include, but are not limited to, any right of set off and any other      kind of cross-claim. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.8 | Maintenance of register of      Lenders.  During the Security Period the Facility Agent      shall maintain a register in which it shall record the name, Commitment,      Contribution and administrative details (including the lending office)      from time to time of each Lender holding a Transfer Certificate and the      effective date (in accordance with Clause 26.4) of the Transfer      Certificate; and the Facility Agent shall make the register available for      inspection by any Lender, the Security Trustee and the Borrower during      normal banking hours, subject to receiving at least 3 Business Days prior      notice. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|  | 26.11 | Registration      fee.  In respect of any Transfer Certificate, the      Facility Agent shall be entitled to recover a registration fee of $3,000      (and all costs, fees and expenses incidental to the transfer (including,      but not limited to legal fees and expenses)) from the Transferor Lender or      (at the Facility Agent’s option) the Transferee  Lender. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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

|  | 26.13 | Disclosure of      information.  A Lender may disclose to a potential      Transferee Lender or sub-participant (as well as to any rating agency,      trustee or accountant) any information which the Lender has received in      relation to the Borrower, any Security Party or their affairs under or in      connection with any Finance Document which the Facility Agent may consider      necessary or appropriate to be disclosed in order to ensure a successful      transfer or sub-participation to a potential Transferee Lender or a      sub-participant and the ongoing monitoring of the Loan by any Lender or      potential Transferee Lender or sub-participant.  In such case,      the Facility Agent shall be released from its obligation of secrecy and      confidentiality Provided      that if a potential Transferee Lender, sub-participant, rating      agency, trustee or accountant is not subject to a duty of confidentiality,      the Facility Agent shall require the execution of a confidentiality      agreement by such potential Transferee Lender, sub-participant, rating      agency, trustee or accountant. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

| 27.2 | Variations, waivers etc.      requiring agreement of all Lenders.  However, as regards      the following, Clause 27.1 applies as if the words “by the Facility Agent      on behalf of the Majority Lenders” were replaced by the words “by or on      behalf of every Lender” (in the case of all the paragraphs below (other      than paragraph (i)) and “by or on behalf of Lenders whose Contributions      total 80 per cent. of the Loan” (in the case of paragraphs (d) and      (i)): |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

Index

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

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

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

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

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

| (i) | any      other change or matter as regards which this Agreement or another Finance      Document expressly provides that each Lender’s consent is required; and      any change to, or waiver of a breach of, Clause 15.1 of this      Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

|   | and      there shall not be implied into any Finance Document any term or condition      requiring any such provision to be enforced, or such right or remedy to be      exercised, within a certain or reasonabletime. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 28.2 | Addresses for      communications.  A notice shall be  sent: |
|------|------------------------------------------------------------------------|

| (a)    | to      the Borrower: | c/o      Capital Ship Management Corp.                                                                                   |
|--------|-----------------------|--------------------------------------------------------------------------------------------------------------------------|
|   |                  | 3      Iassonos Street                                                                                                   |
|   |                  | 185      37 - Piraeus                                                                                                    |
|   |                  | Greece                                                                                                                   |
|   |                  |                                                                                                                     |
|   |                  | Fax      No: +30 210 4285 679                                                                                            |
|   |                  | for      the attention of: the Chief Financial Officer                                                                   |
|   |                  |                                                                                                                     |
| (b)    | to      a Lender:     | at      the address below its name in Schedule 1 or (as the case may require) in      the relevant Transfer Certificate. |
|   |                  |                                                                                                                     |

----

Index

| (c)    | to      the Swap Bank:     | Zinsderivateabwicklung      OE 3652 |
|--------|----------------------------|-------------------------------------|
|   |                       | Gerhart-Hauptmann-Platz      50     |
|   |                       | 20095      Hamburg                  |
|   |                       | Germany                             |
|   |                       | Fax      No: +49 40 3333 34086      |
|   |                       |                                |
| (d)    | to      the Facility Agent | HSH      Nordbank AG                |
|   | and      Security Trustee: | Shipping,      Greek clients        |
|   |                       | Gerhart-Hamptmann-Platz      50     |
|   |                       | D-20095      Hamburg                |
|   |                       | Germany                             |
|   |                       | Fax      No: +49 40 3333 34118      |

|   | or      to such other address as the relevant party may notify the Facility Agent      or, if the relevant party is the Facility Agent or the Security Trustee,      the Borrower, the Lenders and the Security  Parties. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.3 | Effective date of      notices.  Subject to Clauses 28.4 and    28.5: |
|------|---------------------------------------------------------------------------------|

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

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

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

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

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

|   | the      notice shall (subject to Clause 28.5) be deemed to be served, and shall      take effect, at 9 a.m. on the next day which is such a business      day. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.5 | Illegible      notices.  Clauses 28.3 and 28.4 do not apply if the      recipient of a notice notifies the sender within one hour after the time      at which the notice would otherwise be deemed to be served that the notice      has been received in a form which is illegible in a material      respect. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

----

Index

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

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

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

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

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

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

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

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

| 30 | LAW ANDJURISDICTION |
|----|---------------------|

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

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

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

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

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

| 30.4 | Process      agent.  The Borrower irrevocably appoints Curzon Maritime      Ltd. at its office for the time being, presently at 30/33 Minories Street,      St. Clare House, London EC3N 1DJ, England, to act as its agent to receive      and accept on its behalf any process or other document relating to any      proceedings in the English courts which are connected with this      Agreement. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

Index

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

----

Index

SCHEDULE 1

| Lender                                        | Lending      Office                                                                                         | Commitment($)          | Percentage      ofTotal      Commitments(%) |
|-----------------------------------------------|-------------------------------------------------------------------------------------------------------------|------------------------|---------------------------------------------|
|  HSH      Nordbank AG               |  Gerhart-Hauptmann-Platz      5020095      HamburgGermany Fax      No: +(49) 40 33 33 34118  |  90,000,000  |  25.7                                  |
|  DnB      NOR Bank ASA              |  20      St. Dunstan’s HillLondon      EC3R 8HYEngland Fax      No: 0044 207 626 5356  |  75,000,000  |  21.5                                  |
|  Alpha      Bank A.E.                    |  Akti      Miaouli      89185      38 PiraeusGreece Fax      No: +30 210 429 0348            |  60,000,000       |  17.1                             |
|  National      Bank of Greece S.A.  |  Bouboulinas      2 &Akti      Miaouli185      35 Piraeus Fax      No: +30 210 414 4120  |  60,000,000  |  17.1                                  |
|  Piraeus      Bank A.E.                  |  47-49      Akti Miaouli185      36 Piraeus Fax      No: +30 210 429 2601                         |  65,000,000       |  18.6                                  |

----

Index

SCHEDULE 2

| To:    | HSH      Norbank AG             |
|--------|---------------------------------|
|   | Gerhart-Hauptmann-Platz      50 |
|   | 20095      Hamburg              |
|   | Germany                         |

| Attention: Loans      Administration  |  2008 |
|--------------------------------------------|------------|

| 1 | We      refer to the loan agreement (the “Loan Agreement”) dated      19 March 2008 and made between us, as Borrower, the Lenders referred to      therein, HSH Nordbank AG as Swap Bank, you as Bookrunner, Facility Agent,      Mandated Lead Arranger, Security Trustee and DnB NOR Bank ASA, London as      Co-Arranger in connection with revolving credit and term loan facilities      of up to US$350,000,000 in aggregate.  Terms defined in the Loan      Agreement have their defined meanings when used in this Drawdown      Notice. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | We      request to borrow an Advance under Tranche [    ] as      follows: |
|---|------------------------------------------------------------------------------------------------|

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

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

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

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

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

| (a) | the      representations and warranties in Clause 10 of the Loan Agreement would      remain true and not misleading if repeated on the date of this notice with      reference to the circumstances now existing;and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 5 | [We      authorise you to deduct any facility fees referred to in Clause 20.1 from      the amount of the Advance]. |
|---|---------------------------------------------------------------------------------------------------------------------|

----

Index

SCHEDULE 3

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

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

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

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

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

| (e) | the      Fee Letter; |
|-----|----------------------|

| (f) | the      Guarantees to be entered into by the Existing  Owners; |
|-----|-----------------------------------------------------------------|

| (g) | the      Retention Account Pledge; and |
|-----|----------------------------------------|

| (h) | the      Swap Account Pledge. |
|-----|-------------------------------|

| 2 | Copies      of the certificate of limited partnership (in the case of the Borrower),      the certificate of incorporation (in the case of each Existing Owner) and      the constitutional documents of the Borrower and each Existing      Owner. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 5 | Copies      of all consents which the Borrower or any Existing Owner requires to enter      into, or make any payment under, any Finance  Document. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | The      originals of any mandates or other documents required in connection with      the opening or operation of each Earnings Account relative to an Existing      Ship and the Retention Account and the Swap  Account. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 8 | Copies      of all the Management Agreements of the Existing  Ships. |
|---|----------------------------------------------------------------------|

| 9 | Copies      of all the Existing Charters duly executed by the parties      thereto. |
|---|-------------------------------------------------------------------------------------|

| 10 | A      copy of the Partnership Agreement duly executed by the parties      thereto. |
|----|-------------------------------------------------------------------------------------|

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

----

Index

| 12 | Documentary      evidence that the agent for service of process named in Clause 30 has      accepted its appointment. |
|----|-----------------------------------------------------------------------------------------------------------------------|

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

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

| 1 | Copies      of resolutions of the shareholders and directors of the Relevant Owner and      the Borrower authorising the execution of each of the Finance Documents to      which such Owner is a party and, in the case of the Borrower, approving      the borrowing of the relevant Advance and authorising named directors or      attorneys to give the Drawdown Notices and other notices under this      Agreement. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The      original of any power of attorney under which any Finance Document is      executed on behalf of the RelevantOwner. |
|---|------------------------------------------------------------------------------------------------------------------------------|

| 3 | Copies      of all consents which the Relevant Owner or the Borrower requires to enter      into, or make any payment under, any Finance  Document. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | A      duly executed original of the Guarantee of the Relevant Owner and of the      Mortgage (and, if applicable, the Deed of Covenant) and the General      Assignment relative to the Relevant Ship, the Earnings Account Pledge, the      Management Agreement Assignment and of each document to be delivered      pursuant to each such FinanceDocument. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | If      applicable, a duly executed original of the Charterparty Assignment in      respect of the Existing Charter (in the case of each Tranche A Ship) of      the Relevant Ship and of each document to be delivered pursuant to each      such Finance Document. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Evidence      satisfactory to the Facility Agent that the Relevant Owner is a direct or      indirect wholly-owned subsidiary of the  Borrower. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | The      originals of any documents required in connection with the opening of the      Earnings Account in respect of the Relevant  Ship. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | Documentary      evidence that: |
|---|---------------------------------|

| (a) | the      Relevant Ship is registered in the ownership of the Relevant Owner under      an Approved Flag; |
|-----|----------------------------------------------------------------------------------------------------------|

----

Index

| (b) | the      Relevant Ship is in the absolute and unencumbered ownership of the      Relevant Owner save as contemplated by the Finance    Documents; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      Relevant Ship maintains the highest available class with an Approved      Classification Society as the Facility Agent may approve free of all      overdue recommendations and conditions of such classification      society; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 9 | A      copy of the Management Agreement and a duly executed original of the      Approved Manager’s Undertaking in relation to the Relevant      Ship. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | Copies      of: |
|----|-----------------|

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

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

| 11 | Two      valuations (at the cost of the Borrowers) of the Relevant Ship, addressed      to the Facility Agent, stated to be for the purposes of this Agreement and      dated not earlier than 4 weeks before the Drawdown Date relative to the      relevant Advance, each from an Approved Broker (such valuations to be made      in accordance with Clause 15.4). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12 | A      survey report in respect of the Relevant Ship prepared (at the cost of the      Borrower) by an independent marine surveyor appointed by the Facility      Agent dated no later than 20 days prior to the Drawdown Date of the      relevant Advance in form, scope and substance satisfactory to the Facility      Agent and its technical advisers. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | At      the cost of the Borrower, a favourable opinion from an independent      insurance consultant acceptable to the Lenders on such matters relating to      the insurances for the Relevant Ship as the Facility Agent may      require. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | Favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the laws of the Approved Flag State in which the Relevant Ship      is registered and such other relevant jurisdictions as the Facility Agent      may require. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15 | If      the Facility Agent so requires, in respect of any of the documents      referred to above, a certified English translation prepared by a      translator approved by the FacilityAgent. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 1 | Copies      of resolutions of the shareholders and directors of each Relevant Owner      and the Borrower authorising the execution of each of the Finance      Documents to which such Owner is a party and, in the case of the Borrower,      approving the borrowing of the relevant Advance and authorising named      directors or attorneys to give the Drawdown Notices and other notices      under this Agreement. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The      original of any power of attorney under which any Finance Document is      executed on behalf of the RelevantOwner. |
|---|------------------------------------------------------------------------------------------------------------------------------|

| 3 | Copies      of all consents which each Relevant Owner or the Borrower requires to      enter into, or make any payment under, any Finance    Document. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | A      duly executed original of the Guarantee of the Relevant Owner and of the      Mortgage and the General Assignment relative to the Relevant Ship, the      Owner’s Earnings Account Pledge and of each document to be delivered      pursuant to each such FinanceDocument. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | If      applicable, a duly executed original of the Charterparty Assignment or the      Bareboat Charter Security Agreement in respect of the Relevant Ship and of      each document to be delivered pursuant to each such Finance      Document. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Evidence      satisfactory to the Facility Agent that the Relevant Owner is a direct or      indirect wholly-owned subsidiary of the  Borrower. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | The      originals of any documents required in connection with the opening of the      Earnings Account in respect of the Relevant  Ship. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | Documentary      evidence that: |
|---|---------------------------------|

| (a) | the      Relevant Ship is registered in the ownership of the Relevant Owner under      an Approved Flag; |
|-----|----------------------------------------------------------------------------------------------------------|

| (b) | the      Relevant Ship is in the absolute and unencumbered ownership of the      Relevant Owner save as contemplated by the Finance    Documents; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the      Relevant Ship maintains the highest available class with an Approved      Classification Society as the Facility Agent may approve free of all      overdue recommendations and conditions of such classification      society; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| 9 | A      copy of the Management Agreement and a duly executed original of the      Approved Manager’s Undertaking in relation to the Relevant      Ship. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | Copies      of: |
|----|-----------------|

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

----

Index

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

| 11 | Two      valuations (at the cost of the Borrowers) of the Relevant Ship, addressed      to the Facility Agent, stated to be for the purposes of this Agreement and      dated not earlier than 4 weeks before the Drawdown Date relative to the      relevant Advance, each from an Approved Broker (such valuations to be made      in accordance with Clause 15.4). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12 | A      survey report in respect of the Relevant Ship prepared (at the cost of the      Borrower) by an independent marine surveyor appointed by the Facility      Agent dated no later than 20 days prior to the Drawdown Date of the      relevant Advance in form, scope and substance satisfactory to the Facility      Agent and its technical advisers. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | At      the cost of the Borrower, a favourable opinion from an independent      insurance consultant acceptable to the Lenders on such matters relating to      the insurances for each Relevant Ship as the Facility Agent may      require. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | Favourable      legal opinions from lawyers appointed by the Lender on such matters      concerning the laws of the Approved Flag State in which the Relevant Ship      is registered and such other relevant jurisdictions as the Facility Agent      may require. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15 | If      the Facility Agent so requires, in respect of any of the documents      referred to above, a certified English translation prepared by a      translator approved by the FacilityAgent. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

SCHEDULE 4

| To: | HSH NORDBANK AG for      itself and for and on behalf of the Borrower, each Security Party, the      Security Trustee and each Lender, as defined in the Loan Agreement      referred to below. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | This      Certificate relates to a Loan Agreement (the “Loan Agreement”) dated      19 March 2008 and made between (1) Capital Product Partners L.P. (the      “Borrower”), (2)      the banks and financial institutions named therein, (3) HSH Nordbank AG as      Swap Bank (4) HSH Nordbank AG as Bookrunner, Facility Agent, Mandated Lead      Arranger and Security Trustee and (5) DnB NOR Bank ASA as Co-Arranger and,      for revolving credit and term loan facilities of up to US$350,000,000 in      aggregate. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | In      this Certificate: |
|---|---------------------------|

|   | “the Relevant Parties”      means the Facility Agent, the Borrower, [each Security Party], the      Security Trustee, and each Lender; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “the Transferor” means      [full name] of [lending office]; |
|--------|--------------------------------------------------------------------------|

|   | “the Transferee” means      [full name] of [lending office]. |
|--------|--------------------------------------------------------------------------|

|   | Terms      defined in the Loan Agreement shall, unless the contrary intention      appears, have the same meanings when used in this    Certificate. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The      effective date of this Certificate is .........200[ ]  Provided that this      Certificate shall not come into effect unless it is signed by the Facility      Agent on or before that date. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | The      Transferor assigns to the Transferee absolutely all rights and interests      (present, future or contingent) which the Transferor has as Lender under      or by virtue of the Loan Agreement and every other Finance Document in      relation to [      ] per cent. of the      Contribution outstanding to the Transferor (or its predecessors in title)      which is set out below: |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Contribution | Amount      transferred |
|--------|--------------|-------------------------|
|   |         |                    |
|   |         |                    |
|   |         |                    |

| 5 | By      virtue of this Transfer Certificate and Clause 26 of the Loan Agreement,      the Transferor is discharged [entirely from its Commitment which amounts      to $[      ]] [from      [      ] per cent. of its Commitment, which      percentage represents $[      ]] and the      Transferee acquires a Commitment of      $[      ]. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| 6 | The      Transferee undertakes with the Transferor and each of the Relevant Parties      that the Transferee will observe and perform all the obligations under the      Finance Documents which Clause 26 of the Loan Agreement provides will      become binding on it upon this Certificate taking  effect. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | The      Facility Agent, at the request of the Transferee (which request is hereby      made) accepts, for the Facility Agent itself and for and on behalf of      every other Relevant Party, this Certificate as a Transfer Certificate      taking effect in accordance with Clause 26 of the Loan      Agreement. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | The      Transferor: |
|---|----------------------|

| (a) | warrants      to the Transferee and each RelevantParty: |
|-----|---------------------------------------------------------|

|   | (i) | that      the Transferor has full capacity to enter into this transaction and has      taken all corporate action and obtained all consents which are in      connection with this transaction;and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | that      this Certificate is valid and binding as regards the      Transferor; |
|--------|------|---------------------------------------------------------------------------------|

| (b) | warrants      to the Transferee that the Transferor is absolutely entitled, free of      encumbrances, to all the rights and interests covered by the assignment in      paragraph 4 above; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | undertakes      with the Transferee that the Transferor will, at its own expense, execute      any documents which the Transferee reasonably requests for perfecting in      any relevant jurisdiction the Transferee’s title under this Certificate or      for a similar purpose. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | The      Transferee: |
|---|----------------------|

| (a) | confirms      that it has received a copy of the Loan Agreement and each other Finance      Document; |
|-----|-------------------------------------------------------------------------------------------------------|

| (b) | agrees      that it will have no rights of recourse on any ground against either the      Transferor, the Facility Agent, the Security Trustee, any Lender in the      event that: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Finance Documents prove to be invalid or  ineffective, |
|--------|-----|-----------------------------------------------------------------|

|   | (ii) | the      Borrower or any Security Party fails to observe or perform its      obligations, or to discharge its liabilities, under the Finance      Documents; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | it      proves impossible to realise any asset covered by a Security Interest      created by a Finance Document, or the proceeds of such assets are      insufficient to discharge the liabilities of the Borrower or Security      Party under the Finance Documents; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | agrees      that it will have no rights of recourse on any ground against the Facility      Agent, the Security Trustee or any Lender in the event that this      Certificate proves to be invalid orineffective; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | warrants      to the Transferor and each Relevant Party (i) that it has full capacity to      enter into this transaction and has taken all corporate action and      obtained all official consents which it needs to take or obtain in      connection with this transaction; and (ii) that this Certificate is valid      and binding as regards the Transferee;and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | confirms      the accuracy of the administrative details set out below regarding the      Transferee. |
|-----|-------------------------------------------------------------------------------------------------------|

----

Index

| 10 | The      Transferor and the Transferee each undertake with the Facility Agent and      the Security Trustee severally, on demand, fully to indemnify the Facility      Agent and/or the Security Trustee in respect of any claim, proceeding,      liability or expense (including all legal expenses) which they or either      of them may incur in connection with this Certificate or any matter      arising out of it, except such as are shown to have been mainly and      directly caused by the gross and culpable negligence or dishonesty of the      Facility Agent’s or the Security Trustee’s own officers or      employees. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11 | The      Transferee shall repay to the Transferor on demand so much of any sum paid      by the Transferor under paragraph 10 above as exceeds one-half of the      amount demanded by the Facility Agent or the Security Trustee in respect      of a claim, proceeding, liability or expense which was not reasonably      foreseeable at the date of this Certificate; but nothing in this paragraph      shall affect the liability of each of the Transferor and the Transferee to      the Facility Agent or the Security Trustee for the full amount demanded by      it. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| [Name      of Transferor] | [Name      of Transferee] |
|---------------------------|---------------------------|
|                      |                      |
| By:                       | By:                       |
|                      |                      |
| Date:                     | Date:                     |

----

Index

| Note: | This      Transfer Certificate alone may not be sufficient to transfer a      proportionate share of the Transferor’s interest in the security      constituted by the Finance Documents in the Transferor’s or Transferee’s      jurisdiction.  It is the responsibility of each Lender to      ascertain whether any other documents are required for this      purpose. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

SCHEDULE 5

| 1 | the      Loan Agreement; |
|---|--------------------------|

| 2 | the      Master Agreement dated [●] March 2008 made between ourselves and HSH      Nordbank AG; and |
|---|-----------------------------------------------------------------------------------------------------------|

| 3 | a      Confirmation delivered pursuant to the said Master Agreement dated [●]      March 2008 and addressed by HSH Nordbank AG to  us. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------|

|                               |
|------------------------------------|
|                               |
| for      and on behalf of          |
| CAPITAL      PRODUCT PARTNERS L.P. |

----

Index

SCHEDULE 6

| 1 | We      refer to the Agreement. This is a Compliance Certificate and attached      hereto are the calculations which will provide evidence of compliance.      Terms defined in the Agreement have the same meaning when used in this      Compliance Certificate unless given a different meaning in this Compliance      Certificate. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | We      refer to clauses 12.5 and 15.1 of the Agreement and hereby certify      that: |
|---|---------------------------------------------------------------------------------------|

----

Index

| 3 | We      confirm that no Event of Default is continuing and that no Event of      Default would occur out of the distribution or dividend [made][to be      made].* |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | .....................    |
|--------|------------------------------|
|   | Chief      Financial Officer |
|   |                         |
|   |                         |

| * | If      this statement cannot be made, the certificate should identify any Event      of Default that is continuing and the steps, if any, being taken to remedy      it. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Only      applicable if the Compliance Certificate accompanies the audited financial      statements and is to be signed by the auditors.  To be agreed      with the Company’s auditors prior to signing the  Agreement. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| BORROWER                  |   |   |
|---------------------------|--------|--------|
|                      |   |   |
| SIGNEDby                  | )      |   |
| for      and on behalf of | )      |   |
| CAPITAL      PRODUCT      | )      |   |
| PARTNERS      L.P.        | )      |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
| LENDERS                   |   |   |
|                      |   |   |
| SIGNEDby                  | )      |   |
| for      and on behalf of | )      |   |
| HSH      NORDBANK AG      | )      |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
| SIGNEDby                  | )      |   |
| for      and on behalf of | )      |   |
| DNB      NOR BANK ASA     | )      |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
| SIGNEDby                  | )      |   |
| for      and on behalf of | )      |   |
| ALPHA      BANK A.E.      | )      |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
| SIGNEDby                  | )      |   |
| for      and on behalf of | )      |   |
| NATIONAL      BANK OF     | )      |   |
| GREECE      S.A.          | )      |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
|                      |   |   |
| SIGNEDby                  | )      |   |
| for      and on behalf of | )      |   |
| PIRAEUS      BANK A.E.    | )      |   |
|                      |   |   |
|                      |   |   |
| SWAP      BANK            |   |   |
|                      |   |   |
| SIGNEDby                  | )      |   |
| for      and on behalf of | )      |   |
| HSH      NORDBANK AG      | )      |   |
|                      |   |   |

----

Index

| BOOKRUNNER                    |   |   |
|-------------------------------|--------|--------|
|                          |   |   |
| SIGNEDby                      | )      |   |
| for      and on behalf of     | )      |   |
| HSH      NORDBANK AG          | )      |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
| MANDATED      LEAD ARRANGER   |   |   |
|                          |   |   |
| SIGNEDby                      | )      |   |
| for      and on behalf of     | )      |   |
| HSH      NORDBANK AG          | )      |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
| FACILITY      AGENT           |   |   |
|                          |   |   |
| SIGNEDby                      | )      |   |
| for      and on behalf of     | )      |   |
| HSH      NORDBANK AG          | )      |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
| SECURITY      TRUSTEE         |   |   |
|                          |   |   |
| SIGNEDby                      | )      |   |
| for      and on behalf of     | )      |   |
| HSH      NORDBANK AG          | )      |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
| CO-ARRANGER                   |   |   |
|                          |   |   |
| SIGNEDby                      | )      |   |
| for      and on behalf of     | )      |   |
| DNB      NOR BANK ASA         | )      |   |
|                          |   |   |
|                          |   |   |
|                          |   |   |
| Witness      to all the above | )      |   |
| Signatures:                   | )      |   |
|                          |   |   |
|                          |   |   |
| Name:                         |   |   |
|                          |   |   |
| Address:                      |   |   |

----